Table of Contents
OVERVIEW
- Catalyst
- Summary
- Methodology
EXECUTIVE SUMMARY
- Intesa Sanpaolo' s wealth management service is undergoing consolidation
but is performing well
- Italy continues to be the ‘sick man' of Europe
- HNWs are defensively positioned, but their risk appetite is beginning to
increase
- Wealth managers in Italy are strong at providing HNWs with core needs
SPECIAL FEATURE: INTESA SANPAOLO' S WEALTH MANAGEMENT
- The megamerger looks set to provide Intesa Sanpaolo' s wealth management
with advantages in the long run
- So far Intesa Sanpaolo has weathered the financial storm better than
many large financial institutions
- Intesa Sanpaolo is undergoing a dramatic transformation and is both
trying to reorganize and cope with the tough economic times
- Intesa Sanpaolo' s wealth management operations are also undergoing
fundamental changes
- Intesa Sanpaolo' s brand, image and reputation continues to fare well
despite the tough climate
- Intesa Sanpaolo' s wealth management offering is above average on almost
all fronts
- Intesa Sanpaolo has been successful at preventing defections, and has
good relationship managers
- Intesa Sanpaolo has the opportunity to build on its strengths and
address its weaknesses
- Key implications for Intesa Sanpaolo: concentrate on individuality and
enhancing service provision
- Key implication for Intesa Sanpaolo' s competitors: niche organizations
should target areas of current weakness
ITALY' S WEALTH
- Italy has few attractive asset classes at present
- Inflows into deposits continue, but there may be some signs of life
returning to the equities markets
- Bonds are becoming less attractive
- Short term interest rate plummets
- Unemployment is on the rise as average real wages fall
THE ITALIAN HNW INVESTOR
- Italian HNWs are becoming more tolerant of risk in a quest for returns,
but currently remain defensively positioned
- Italian investors are changing their risk appetite, but their
understanding of the current conditions is weak
- Wealth management service implication: HNWs need education to attend to
structural ignorance
- Relationships are important, but loyalty is low
- Wealth management service implication: ensure the organizational
structure is geared towards providing the best possible service
- Italian HNW investors are defensively positioned
- Despite an appetite for risk, Italian HNWs are cash heavy and light on
equities
- Wealth management service implication: remain aware of clients' specific
desires
- Innovative example from the USA: Advisor Software has developed an
application which tailors investment solutions to clients' needs
- There will be a shift away from deposits over the next two years
- Wealth management service implication: look abroad for greater
opportunities
- Innovative example from Ireland: BNY Mellon launches new emerging
markets equities fund
- The Italian HNW has mixed sentiments, looking both for wealth preservation
and for profit
- Although they want to find opportunities to profit in the downturn, HNWs
retain a tentative streak
- HNWs are demanding a high level of input and advice from their wealth
managers
- Auxiliary services, especially tax advice, are also in high demand
- Wealth management implication: offer auxiliary services as a way in
which to develop relationships and increase share of wallet
- Innovative example from the UK: Skandia launches tax planning tool
- In two years' time, discretionary asset management and tax advice will
be in demand as investors continue to seek guidance from their managers
- Capital protected funds and bonds will be the most popular product
category, as HNWs seek greater returns with some security
- Wealth management service implication: be prepared to develop corporate
bond products
- Innovative example from Ireland: Smith & Williamson launch a short-dated
bond fund
- Proactivity and individuality are key to attracting HNW clients
- Wealth management service implication: be proactive in the wealth
management offering
- Data tables
THE ITALIAN WEALTH MANAGER' S VIEW
- Core wealth management provision is good, but this strength could be
leveraged to greater effect
- Wealth managers are addressing core requirements successfully
- Despite clients' selection influencers, wealth managers are emphasizing
the strengths of their core business to increase share of wallet
- Providing clients with a range of contacts and ensuring professionalism
are the best ways to retain HNW investors
- Italian wealth managers keep in regular contact with their clients
- Italian HNWs are more interested in performance than their asset
allocations
- Direct equity investment will be the major resource focus in two years'
time
APPENDIX
- Additional survey questions on HNW motivations
- The drivers of growth in the wealthy population
- Income growth (combined with inflation, changes in GDP by sector,
household savings rates and debt levels)
- Investment returns (market capitalization, interest rates and bond
yields)
- The following measures are not, in themselves, drivers of wealthy
population growth
- Market capitalization
- GDP
- The following measures are not drivers of wealthy population growth except
under very restricted circumstances
- Primary residence value growth
- Inheritance
- Methodology
- Wealth Management Market Leaders Survey 2009
- Global Wealth Model
- Definitions
- Western Europe
- Onshore wealth
- Liquid assets
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: Wealth managers' views about the strengths and weaknesses of Intesa
Sanpaolo' s wealth management services on a scale of 1 to 4 (1 = very low, 2 =
somewhat low, 3 = somewhat high, 4 = very high)
- Table: Wealth managers' views about the strengths and weaknesses of Intesa
Sanpaolo' s wealth management services on a scale of 1 to 4 (1 = very low, 2 =
somewhat low, 3 = somewhat high, 4 = very high)
- Table: Wealth managers' views about the strengths and weaknesses of Intesa
Sanpaolo' s wealth management services on a scale of 1 to 4 (1 = very low, 2 =
somewhat low, 3 = somewhat high, 4 = very high)
- Table: Intesa Sanpaolo is well regarded by other wealth managers
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: What proportion of your HNWs' portfolios is allocated to the
following five asset classes?
- Table: HNWs' portfolio allocation now versus in two years' time
- Table: What are HNWs demanding today?
- Table: In two years' time, how much demand do you expect from HNWs for the
following product areas?
- Table: What will determine HNWs' choice of wealth management service over
the next two years?
- Table: HNW motivations when it comes to investment decisions
- Table: HNW motivations when it comes to investment decisions
- Table: HNW motivations when it comes to investment decisions
- Table: HNW motivations when it comes to investment decisions
- Table: What are your company' s greatest strengths and weaknesses?
- Table: What is the most effective means of increasing share of wallet
today?
- Table: What is the best way to retain clients today?
- Table: On average, how often do your relationship managers speak by phone
to each HNW client?
- Table: On average, how often do your relationship managers speak in person
to each HNW client?
- Table: When speaking with clients, what do they most want to talk about
today?
- Table: What product areas will your wealth management service focus most
resources on in the next two years?
FIGURES
- Figure: Intesa Sanpaolo' s brand image and reputation has survived
relatively well in the current crisis
- Figure: Intesa Sanpaolo is doing well at indentifying investment
opportunities in the downturn
- Figure: Intesa Sanpaolo is performing well across the board when it comes
to the people in the organization
- Figure: The Borsa Italiana has been suffering since 2007
- Figure: The outflows from mutual funds continued in 2008, but were slowing
by Q3
- Figure: Bond yields plummeted in the latter half of 2008 and in to 2009
- Figure: The interest rate also took a dive at the end of 2008 and in to
2009
- Figure: The labor market has been hit as unemployment is on the rise once
more and average real wages are lower
- Figure: HNW investors in Italy have a higher risk appetite than the
average European HNW investor
- Figure: There is a lower risk of HNW clients in Italy leaving to find
another wealth manager than the average European HNW investor
- Figure: The majority of HNW wealth in Italy is invested in the ' cash or
near cash' asset category, with this accounting for 28% of all investments
- Figure: In two years' time, holdings in cash and near cash will reduce,
while equities and fixed income will increase
- Figure: Corporate bonds will increase dramatically over the next two years
- Figure: In Italy, HNW investors' greatest demand is for tax advice
- Figure: In two years' time, the greatest demand among HNW investors in
Italy will be for capital protected funds or bonds, with 80% of HNW investors
demanding this category of product
- Figure: HNW investors in Italy are most influenced by proactivity in
bringing ideas to clients in their choice of wealth manager
- Figure: The greatest strength of wealth managers in Italy is their
companies' financial stability
- Figure: The best way for wealth managers in Italy to increase share of
wallet is to convince clients that your company is financially sound
- Figure: The best way for wealth managers in Italy to retain HNW investors
is to give the client several points of contact within the bank
- Figure: In Italy, the wealth management relationship managers speak to
clients by phone approximately once a week
- Figure: In Italy, wealth management relationship managers speak to clients
in person approximately once a month
- Figure: The majority of clients in Italy want to speak to their wealth
manager about performance of their overall portfolio
- Figure: In two years' time, wealth managers in Italy will be focusing most
of their resources on direct equity investment
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