MARKETMONITOR


Strikingabalancebetween performaceandpersonality T


heexistentialmoment for privatebanking is finallywithus.We haveexpectedthisday of reckoningformany


years.Wedidnotknowwhether it wouldcomefromafinancial, political, climateor security crisis. Butithasarrived,combininga


public healthemergency,asocial revolutiononourstreetsanda majoreconomiccrisis. Ithasnot necessarilycomefromtheavenuewe predicted.Butprivatebankswouldbe disingenuoustosayitwasunexpected. In factmostprivatebanksandfamily officeoperationshavebeenpreparing forsuchanevent for severalyears. Theyhavebeeninvestingheavily


FROMTHE EDITOR WRITTENBY YURIBENDER


Private banks have, in large part, adapted well to the challenges thrown up by the pandemic. But the real winners going forward will be those which are able to combine relationship management with investment performance


in digitalisation,datamanagement, artificial intelligence, customer experienceandenvironmental, social andgovernancefacilities in orderto adjust toachangeof circumstances. Asaresult,wealthmanagers are


perhapsmorereadyforthechallenges aheadthanmanyotherindustries. Despitebraggingabouttheir flexibility toadapt, ithasnotproveddifficult for themtomovefrommeetingclients in boardrooms, diningroomsandsports venuesto linkinguponvideoscreens. Costsavingshavebeensignificant. Privatebankinginvestmentteams


havealsobeenbetterprepared.They lostmoneyformanyclients atthe timeofthe global financial crisis,due to allocationsin inappropriatehedge funds,andwidely-sold structured products,whichbenefitedsales teams muchmorethaninvestors. Thistimeround,wehaveseenmore sensiblechanges toportfolios atthe


Global Private Banking Awards 2020 Many thanks to all the institutions that entered this year’s Global Private Banking Awards. Our virtual awards ceremonies and webinar, focused on what defines a top private bank in the 2020s, will soon be available at pwmnet.com/gbpawebinar


4 OCTOBER/NOVEMBER 2020


rightmoments,abulk-buyingofcheap assets afterthe initial crashandamove tomoresociallybeneficialandnew technology-ledassets.Therehavebeen biglosses too,butriskmanagement andscenariomodellingareimproving. In theirmovetocuratedata,


structure philanthropicventuresand influencesuccessionplans,private bankssometimesforgettheyneedto beexpert investmentmanagers first. This isnotlostonthe likesofUBS, whichapologised to clients after losing somuchof theirwealth afterthe last crisis.Bankbossesdecidedatthetime that theymustfocusmoreonasset management. TheZurichgianthasbeenconfirmed


asBestGlobalPrivateBankfor2020 byourjudgingpanel. Ithasalsowon accolades for itsAsian strategyandfor its sustainableandimpact investing offer inourGlobalPrivateBanking Awards.UBScreditsmuchof this success to its catchynew‘3L’mantraof liquidity,longevityandlegacy,usedto frameclientconversations. Theoriginofsuchconcepts is


intriguing. Thisoneinitiallysprung fromthechief investmentoffice’swork intohowbehavioural traitsimpacted the decisions clientsweremaking abouttheirportfolios. Thiswaseventuallycombinedwith


another,separatepieceof research fromthe client strategyoffice, looking at clients’emotionsandneeds, into oneof thebank’s topglobal strategic initiatives.UBShaslongbeenfond of bigideasandgrandgestures. Buttheyknewthisonewasspecial, able toapplythe glueofemotionsto combinerelationshipsandinvestment


FT Wealth Management Summit Panel debates and sessions from our virtual third annual FTWealthManagement Summit can be watched on demand on www.ftlive.com


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