India Wealth News

Sumitomo woos Kotak

Sat, 03 Jul 2010 02:13:25 +0000

Indian banks are in good shape. We’ve heard that often enough from the Reserve Bank of India (RBI) and the government. Now we have independent confirmation. This time, endorsement of their good health and bright future comes not from the Reserve Bank of India (RBI) governor or from the ministry, but from Sumitomo Mitsui Financial Group Inc (SMFG).

The second-largest Japanese bank by market value is to acquire 4.5% stake in Kotak Mahindra Bank for $296 million. Source

Asia’s Private Bank Boom ‘Not What It Was’ in 2007

Sat, 03 Jul 2010 02:11:23 +0000

The past year’s expansion in Asia’s wealth management industry bears little resemblance to the boom of 2007, when firms were hiring indiscriminately and clients were less cautious, said the head of Credit Suisse Group AG’s private-banking unit in the region.

“In 2007, banks who were expanding organically hired everyone that could count to ten without using ten fingers,” Marcel Kreis said in a June 24 interview. “Certainly we’re not back: the investment environment, the client environment, the whole thing is not what it was in 2007.” Source

Standard Chartered on course for record first-half thanks to Asia

Sat, 03 Jul 2010 02:10:45 +0000

Standard Chartered is on course for another record first-half performance as the bank continues to reap the benefits of its exposure to the growing economies of Asia. In an interim management statement on Monday, the bank said profits and revenues for the first five months of 2010 were ahead of the comparable period last year, which was also a record for the bank.

Last year Standard Chartered made its seventh consecutive record full-year profit, and based on the lender’s current performance, senior managers at the bank say an eighth in a row is a possibility. Source

RBS plans to triple wealth management business in India

Sat, 03 Jul 2010 02:09:10 +0000

The Royal Bank of Scotland will use its banking licence to provide banking services to the well-heeled under its private banking division after it divests its retail and commercial business.

Even as the UK bank is in talks to sell the retail business of erstwhile ABN Amro, RBS is drawing up plans to triple its wealth management business in India. Source

No western gold rush into Asia for many years

Sat, 03 Jul 2010 02:06:30 +0000

Fund management houses will increasingly adopt a “multi-boutique” or “virtual” structure, but will struggle to crack the potentially lucrative Asian market. Those are among the predictions of the latest annual industry report drawn up by Citigroup, Principal Global Investors and Create Research.

Asset managers continue to cast envious glances at the projected growth of Asia, and the wider developing world; emerging market equities and bonds are the two asset classes the industry predicts will attract the most new money in the next three years and Asia is overwhelmingly tipped as the most likely source of “alpha”, or market-beating returns, over the same period. Source

World Wealth Report: HNWs return to 2007 levels of wealth, Asia-Pacific leading way

Sat, 03 Jul 2010 02:03:06 +0000

The world’s population of high net worth individuals (HNWIs) grew 17.1% to 10.0 million in 2009, returning to levels last seen in 2007 despite the contraction in world gross domestic product (GDP). Global HNWI wealth similarly recovered, rising 18.9% to US$39.0 trillion, with HNWI wealth in Asia-Pacific and Latin America actually surpassing levels last seen at the end of 2007.

For the first time ever, the size of the HNWI population in Asia-Pacific was as large as that of Europe (at 3.0 million). Source

Boom time: India sees a big rise in millionaires

Sat, 03 Jul 2010 02:01:24 +0000

The number of Indians with investible resources in excess of a million dollars rose 51% on the back of a smart recovery in asset prices in 2009, according to the 2010 World Wealth Report released on Wednesday by Capgemini and Merrill Lynch Global Wealth Management Ltd.

The number of high net worth individuals (HNIs) was 126,700 in 2009, or one for every 9,471 Indians. Source

A new era of wealth management data feeds emerging?

Sat, 03 Jul 2010 01:59:07 +0000

Is market and market-related data a crucial driver of success in the wealth management industry? Well, it could be in a couple of ways. Obviously, if a wealth management firm (wealth management news) could craft a truly unique and high value-added data feed for customers, it would prove a marketable benefit, though I think that route is unlikely.

It could also drive business as an advisor tool that can aid in the retention and recruiting of top producers. If a firm could offer a truly unique service that would compel high-producing brokers to join its team, that would be great thing. According to Celent, we’re seeing some innovation, as more firms opt for customizable services that offer advanced features beyond mere data look-up. Source

What the CGT hike means for trusts and international investors

Sat, 03 Jul 2010 01:55:31 +0000

Not since the proposed changes to the taxation of UK resident non-domiciled individuals has such controversy been stoked as is the case with the proposals to change the rate of capital gains tax, says Christopher Shaw, group head of wealth planning at Societe Generale Private Banking Hambros.

What is more surprising is that much of the criticism appears to have come from within the parties forming the newly elected government. This article explores what impact the changes will have on trusts as well as international investors. Source

RAB Capital to bolster operations in Asia

Sat, 03 Jul 2010 01:54:26 +0000

RAB Capital, the London-based hedge fund manager, is moving to significantly bolster its Asian operations amid growing interest in hedge funds from investors in the region. The firm, which has $1.4bn under management, has poached David Seex, the head of Citigroup’s Asian alternative asset management business, to head up its Hong Kong-based office.

Mr Seex will oversee a fundraising push in the region and the development of a new Asian “deep-value fund” launched this year by RAB. The fund will focus on picking up distressed assets from troubled Asian companies. Source