To stay competitive in a rapidly changing and dynamic environment, wealth managers, advisors and their firms must develop skills and solutions to successfully attract and serve clients.
The theme of Toronto CFA Society’s 2011 Annual Wealth Management Conference—Adapt or Die—focused on the acceleration of the industry changes caused by the financial crises of 2008 and 2009 and what practitioners and firms must now focus on to succeed.
The conference offered participants an opportunity to stay current with the best practices and innovative thinking necessary for successfully maintaining client relationships and expectations, particularly resulting from the recent financial crisis.
Sheila Avari: Our live coverage of the 2011 Annual Wealth Management Conference began on Tuesday, May 3. Opening remarks from Tom Trainor, CFA Conference Co-Chair. Approximately 100 professionals in attendance in Toronto. Four chapters—Cleveland, South Florida, Winnipeg and Vancouver are listening remotely.
There’s a huge change in what’s going on in private wealth, as well as what it takes to succeed. Read the live event coverage below:
Adapting to a Changed Industry, Petrina Dolby, Vice President, Capgemini
Petrina Dolby: Let’s set the scene where we explore with asset allocation, risk management and how to work in this new environment. We’ll talk about the global market for HNW individuals.
Petrina Dolby: Capgemini develops World Wealth Report (with Merrill Lynch), a global benchmark for HNW investor behavior. It’s a mix of primary and secondary research. We talk to investors around the world and advisors. Coming out of the crisis, what is the difference in behavior. What are the emerging trends in organizations and how they’re dealing with this? The new World Wealth Report will come out in June 2011.
Petrina Dolby: Why is there is all this hype with wealth management these days. Wealth management has been a sustainable and profitable part of the business for many institutions. if you look at the margin generator, you’re seeing a lot of new competitors coming into the market.
Petrina Dolby: We define HNW individuals as those who have $1 million USD in investable assets, excluding primary residence.
Petrina Dolby: In 2009, the world’s HNW population increased by 17% to 10 million and the wealth increased by 19% to $39 trillion from 2008. The Asia Pacific region has eclipsed Europe with the number of HNW individuals and the amount of overall wealth. Canada continues to grow and remains in the top 10.
Petrina Dolby: 8 of top 10 countries with highest growth in HNW individuals are in Asia Pacific. Hong Kong is very susceptible in swings. Hong Kong has a high concentration of mid tier millionaires ($1-$5 million in investable assets.) The recovery in India more sustainable. With the Non resident Indian population, we expect India will grow at a similar rate.
Petrina Dolby: Canada has been in 7th position for quite a while. We;ve sustained north american growth trajectory. we will see Canada’s HNW population will go to just over to where we were in 2007. Where they’re investing is a bit different now. And what they’re expecting from their advisor is a bit different. Well talk about this later.
Petrina Dolby: Global market capitalization rose nearly 47% in 2009, reaching $47.9 trillion. People are becoming more bullish.