Wealth Managers Shun Transparency

New research findings by MyPrivateBanking Research reveal that only 10% of the world’s most important wealth managers publish performance data for their discretionary accounts (accounts for which the holder gives the wealth manager or bank authority to buy and sell securities at their discretion) and only 22% offer specific information about their fees. These results are based on an analysis of the public websites including all reporting documents that the 40 largest wealth managers worldwide publish online.

These private banks and wealth managers typically manage clients’ assets through defined mandates in discretionary accounts (often labeled “conservative”, “balanced” or “growth”) that are very similar to the investment strategies of mutual funds.  In both investment approaches the investment decisions are completely in the hand of the wealth manager or private bank. However, while most countries require extensive transparency on mutual funds such as performance data after fees, the total expense ratio, twice-yearly publication of fund holdings, the benchmark index, there is very little disclosure to the public on the discretionary accounts by private banks and wealth managers.


http://www.myprivatebanking.com/article/myprivatebanking-research-flash