PRIVATE BANKER May 2015 Issue 320 www.privatebankerinternational.com On track for digital wellness • Interview: Arbuthnot Latham's James Fleming • PBI London Awards: Preview • Interview: Lombard Odier's Dominic Tremlett • Country survey: France PBI 320.indd 1 22/05/2015 20:11:30 Join thousands of financial services Intelligent Environments, the international professionals who have joined The provider of digital solutions in association with Retail Banker International, Digital Banking Club to understand Cards International, Electronic and discuss the future of mobile and Payments International, Private Banker online financial services International and Motor Finance Membership benefits 10% discount on Delegate passes for Motor Finance and Private Banking UK conferences Annual Subscription to Retail Banker International, Cards International, Electronic Payments International, Motor Finance and Private Banker International publications (new subscribers only) World Market Intelligence Ltd’s archive of over 250 Retail Banking, Private Banking and Cards and Payments research reports (for new report purchasers only) Annual subscription to Retail Banking Intelligence Centre and Wealth Insight Intelligence database (new subscribers only) World Market Intelligence Ltd’s bespoke research and consultancy services For further information please email: [email protected] Join The Club! www.thedigitalbankingclub.com Or For further information please email: [email protected] PBI 320.indd 2 22/05/2015 20:11:30 TDBC-Advert-Dec-2014.indd 1 19/01/2015 09:03:48 Private Banker International EDITOR’S LETTER ANALYSIS CONTENTS London state of mind NEWS Join thousands of financial services Intelligent Environments, the international 2: NEWS BRIEFS hese are exciting times for wealth exposure. provider of digital solutions in association management in the UK. The private Additionally, the appeal of the once- professionals who have joined The 13: NEWS DIGEST with Retail Banker International, banking industry in London, par - favourite offshore financial hubs, such as Digital Banking Club to understand 12: MONTHLY TECH UPDATE ticularly, is becoming increasingly Switzerland, has taken a hit due to the end T of banking secrecy. This has further added Cards International, Electronic 13: MONTHLY REGULATION ROUND-UP interesting, with more banks and their cli- ents alike rushing to the UK capital. to London’s attractiveness for wealthy cli- and discuss the future of mobile and Payments International, Private Banker 15: PEOPLE MOVES Established banks from across the world ents. online financial services International and Motor Finance ANALYSIS as well as new institutions are developing However, regulation and compliance private banking units in London, while demands continue to loom large on the 10: EXPERT COMMENT: WEALTHINSIGHT other big players are growing their exist- leading financial centres of the world, put- ing operations. ting banks’ profitability under the spot - 14: LIQUIDITY PROFILES Indeed, with the strategic advantage light and driving industry consolidation. FEATURE of its central timezone and an increas - The UK private banking industry needs to ing inflow of foreign money, London has effectively navigate through this climate. COVER STORY 4-5: THE DIGITAL WAVE strengthened its position as the go-to Also, the European private banking As wealthy individuals increase their demand wealth hub, particularly for the ultra-high industry trends significantly influence for digital channels and easily accessible net worth clientele. the UK sector and it is important to keep Membership benefits information on their portfolios, private The UK General Elections earlier this in mind the various shortfalls and banks and wealth managers must evaluate their digital priorities to successfully keep up month saw The Conservative party swing- synergies. 10% discount on with client demands. John Schaffer talks to ing into power. This is why the upcoming PBI London private banks in Europe to understand their This has come as good news for private Conference, which will take place on digital journeys banks and their clients. 3 June, is the ideal forum to discuss and Delegate passes for Motor Finance and Private Banking UK conferences 6-7: THE ‘IT’ FACTOR: LOMBARD ODIER The already flourishing London prop - debate the future of the UK as a global Head of UK private banking for Lombard erty market, for instance, has got a further private banking and wealth management Annual Subscription to Retail Banker International, Cards International, Odier, Dominic Tremlett, joined the Swiss boost. capital. private bank in 2011 in Switzerland. He The (in)famous Mansion Tax the This is the right time to get industry Electronic Payments International, Motor Finance and Private Banker moved to the bank’s London office in 2013 and one of the features that “attracted” wealthy would have potentially had to face experts in the same room to talk about not International publications (new subscribers only) Tremlett to make the move was the if the Labour party had come into power only the strengths of the market but also Swiss private bank's investment in its was being feared for a while by most high evaluate drawbacks, pressures, and poten- IT infrastructure. Tremlett gives Meghna World Market Intelligence Ltd’s archive of over 250 Retail Banking, Private Mukerjee the details and ultra high net worth clients who own tial threats. expensive homes in Britain. It will definitely be a day of rewarding Banking and Cards and Payments research reports (for new report purchasers only) 8: PBI AWARDS: LONDON 2015 FINALISTS The Conservative’s win has batted away insights and valuable interactions. Private Banker International (PBI) has those concerns as HNWIs and UHNWIs Meghna Mukerjee Annual subscription to Retail Banking Intelligence Centre and Wealth Insight named the finalists for the PBI Awards: will not need to downscale their property [email protected] London 2015, held in conjunction with the Intelligence database (new subscribers only) PBI London Conference 9: SMALL IS BEAUTIFUL World Market Intelligence Ltd’s bespoke research and consultancy services Being modest in size is not necessarily a disadvantage for a private bank, especially if it services clients with significant assets. For further information please email: [email protected] A more personalised service for wealthy individuals can be seen as a unique selling point for a smaller bank. John Schaffer speaks with Arbuthnot Latham CEO, James Fleming, as he discusses the bank’s strategy and growth plans COUNTRY SURVEY 11: FRANCE With an incumbent socialist government and Join The Club! high levels of taxation, it would seem that France is a less favourable environment for wealthy individuals. However, WealthInsight www.thedigitalbankingclub.com data forecasts a growth in the high net worth Follow Private Banker International population in the countryMENT 16: STANLEY GIBBONS Keith Heddle, managing director of Stanley Search for ‘Private Banker International Or For further information please email: Gibbons, on how rare stamps and coins can Search for @BankerNews be serious, alternative investment options – Timetric Financial Services’ [email protected] www.privatebankerinternational.com May 2015 y 1 PBI 320.indd 1 26/05/2015 11:43:13 TDBC-Advert-Dec-2014.indd 1 19/01/2015 09:03:48 Private Banker International NEWS BRIEFS Hedge funds climb in April as Chinese, EM equities surge: HFR Hedge funds posted gains in April as MENA Index advanced +3.6 percent. gain of +1.9 percent and the HFRI ED: Spe- regional equity and currency markets Hedge fund strategy performance was led cial Situations Index gain of +1.4 percent. across China, Russia, Brazil and the Middle by the HFRI Equity Hedge Index, which Partially offsetting these, Macro hedge East posted sharp gains. Volume surged on gained +2.0 percent for the month. Equity funds posted declines in April, paring the Shanghai/Hong Kong Connect program Hedge gains were led by exposure to recov- strong 1Q15 gains, as models re-calibrated to a daily record, driving Chinese A-shares ering growth equities, with the HFRI Fun- portfolio exposures as a result of Oil and to a gain of over 18 percent for the month, damental Growth Index up +4.0 percent for Currency reversals. according to a report by HFR. the month, the best monthly performance The HFRI Macro Index declined -1.2 The HFRI Fund Weighted Composite since October 2011. percent, reducing the YTD gain to +1.9 Index gained +0.8 percent in April, extend- Energy and Fundamental Value strategies percent. Macro sub-strategy declines were ing 2015 gains, with contributions from also posted gains, with these HFRI Indices led by quantitative, trend-following CTA exposure to Emerging Markets and Energy. advancing +3.9 and +2.0 percent, respec- exposures, with the HFRI Macro: System- April performance was led by the HFRI tively. atic Diversified/CTA Index declining -2.2 Emerging Markets Index, which advanced Fixed income-based Relative Value percent for the month, paring the YTD gain +7.0 percent, the best monthly return since Arbitrage strategies also posted gains, as US for the Index to +2.4 percent. May 2009. All EM regions posted gains, & European yields rose and high yield cred- HFR president Kenneth Heinz said: "The led by Russia and Emerging Asia, with the it tightened, with the HFRI Relative Value drivers of April HFRI performance shifted HFRI EM: Russia/Eastern Europe Index