Global wealth and investment management has become a key focus of major financial institutions worldwide. As the industry continues to consolidate, global wealth managers seek to expand their market share by solidifying core competitive advantages. This article will analyze the key elements that have enabled leading institutions to establish themselves as top global wealth managers, including a strategic focus on high-net-worth individuals, comprehensive in-house research capabilities, and a solutions-oriented approach tailored to clients’ needs. By leveraging global footprint and digital transformation, global wealth managers can achieve robust growth in assets under management across multiple geographic markets.
Targeting high-net-worth and ultra-high-net worth individuals is pivotal
Leading global wealth managers including UBS and Julius Baer have pivoted to make serving high-net-worth and ultra-high-net worth clients a strategic priority. These profitable and demanding segments require dedicated coverage and customized product solutions. Global wealth managers have established specialized teams and even full-fledged boutique units focused exclusively on ultra-high-net worth households. Lowering the threshold for qualifying as a private banking client in key markets like the US has also expanded the target base. As a result, the share of assets managed for ultra-high-net worth individuals now comprises over 50% of total invested assets for some top performers like UBS.
In-house investment research and insights are a competitive edge
Global wealth managers invest heavily in developing internal teams dedicated to investment strategy, economic analysis and portfolio construction. UBS’s Chief Investment Office employs over 1100 staff globally to produce the UBS House View, which identifies tactical recommendations across all major asset classes. These proprietary insights and perspectives allow advisors to tailor solutions aligned to each client’s objectives. Robust research capabilities also enable product innovation, a key advantage when serving the most sophisticated investors.
Adopting a client-centric approach is imperative
Global wealth managers must go beyond simply managing portfolios to provide comprehensive solutions customized to each client’s needs. Standardized know-your-client processes and one-on-one dialogues help advisors fully understand objectives such as liquidity, longevity and legacy planning. Dedicated client strategy teams use advanced analytics to match specific solutions to individual client requirements. The goal is to serve as a strategic partner rather than just an asset manager. This requires moving from being product-focused to becoming client-focused.
Succeeding as a top global wealth manager requires targeting high-net-worth clients, investing in proprietary research, and above all, making the client’s needs the driving force behind every solution. As the industry consolidates, institutions that master these core competencies will lead the field.