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The Rich Are Getting Richer: What Do They Want From Wealth Managers? · Merryn Talks Money

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  Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
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  Speaker 2: Welcome to Marin Talks to Your Money, the personal finance
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  Speaker 2: edition of Merin Talks Money. In these bonus podcasts, we
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  Speaker 2: talk about the best strategies for making the most of
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  Speaker 2: your money. I'm Merinsum, Supweb Editor at Last for Bloomberg
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  Speaker 2: UK Money. So this week we are talking about who
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  Speaker 2: is getting wealthier and where and how those people are
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  Speaker 2: reshaping the wealth management industry. What do they want from
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  Speaker 2: their management teams that they didn't want a decade ago?
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  Speaker 2: To talk about it, we've provided on Gareth Wilson, global
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  Speaker 2: banking industry leader and executive vice president of IT services
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  Speaker 2: and consulting group cap Gemini. Cap Gemini recently released its
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  Speaker 2: thirty years edition of the Institute's World Wealth Report. We
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  Speaker 2: talk about the growing appealab alternative as it's the folks
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  Speaker 2: on diversify portfolios. Stick around to hear more about this
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  Speaker 2: and about whether what you want from your wealth manager
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  Speaker 2: is excellent returns or empathy. Garrett, thanks for joining us today.
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  Speaker 1: Thank you, Maren. Great to be on Marin Talks Money.
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  Speaker 2: Right now, we are talking about rich people and very
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  Speaker 2: rich people. So before we start, because what we're going
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  Speaker 2: to do in this podcast, are going to talk a
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  Speaker 2: lot about high network people and ultra high network people.
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  Speaker 2: So can we just start by defining what we're talking about.
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  Speaker 2: Who is a high network person? What do you need
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  Speaker 2: to have to be referenced in this report?
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  Speaker 1: So, high net worth individual is an individual who has
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  Speaker 1: investible assets that's greater than a million dollars maren.
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  Speaker 2: Okay, and investable assets is everything's of your house.
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  Speaker 1: Everything except your house, everything except your house. And if
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  Speaker 1: you've got if you've got investible assets between one and
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  Speaker 1: five million, uh huh, we refer to you as a millionaire.
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  Speaker 1: Next door, if you've got assets between five and thirty,
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  Speaker 1: we talk about you as a mid tier millionaire. And
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  Speaker 1: then for the bracket of individuals who have assets and
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  Speaker 1: vestable assets of greater than thirty million dollars, high networth individuals.
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  Speaker 2: Okay, hang on, I've got to have a lot to
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  Speaker 2: be a high networth individual, you do?
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  Speaker 1: And ultra high networth individual.
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  Speaker 2: Soul, everybody here is a high net worth individual and HNW,
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  Speaker 2: but only those above what was it, thirty thirty, ultra thirty,
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  Speaker 2: ultra high networth, well thirty is not going to get
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  Speaker 2: you much. These days is it by the time you've
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  Speaker 2: got a holiday home and a boat and all that.
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  Speaker 1: And that's the interesting thing that we're seeing, Meren, the
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  Speaker 1: growth in terms of that population. So when you look
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  Speaker 1: at that full high networth individual population, yeah, I think
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  Speaker 1: we're talking about twenty five million people globally. Yeah, and
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  Speaker 1: we've added when we look at the year twenty four
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  Speaker 1: versus twenty five, we've added two million additional high networth individuals.
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  Speaker 1: So the population is growing, but their absolute wealth is
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  Speaker 1: growing as well, Meren. And it's growing at the fastest
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  Speaker 1: level when we compare twenty twenty four to twenty twenty
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  Speaker 1: five for the last five years.
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  Speaker 2: Interesting, have you got any analysis of the bit above that,
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  Speaker 2: like anyone over two hundred or how many billionaires, etc.
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  Speaker 2: Or a week stopping at thirty for the pepastes of
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  Speaker 2: this real world.
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  Speaker 1: Well, we've captured that ultra high net worth individual segment,
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  Speaker 1: if I could describe it that way, Maren, as above
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  Speaker 1: thirty million, So we haven't looked at bands within that. However,
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  Speaker 1: when we look at that group as well, it's something
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  Speaker 1: like one percent of those total high net worth population,
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  Speaker 1: and they own something like thirty five percent of that
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  Speaker 1: tall wealth. So there's a real concentration at the top
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  Speaker 1: of the pyramids. So one percent represents thirty five percent,
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  Speaker 1: So there's really individuals there that meet your definition at
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  Speaker 1: two three, four hundred million plus.
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  Speaker 2: Yeah, the bit where you really can have anything you want.
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  Speaker 1: Exactly. Yeah, indeed.
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  Speaker 2: Okay, So where is wealth growing the most? I think
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  Speaker 2: we probably all would get that. It's the US, which
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  Speaker 2: is where we're seeing the highest number of people entering
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  Speaker 2: the high net worth equation and growing the fastest.
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  Speaker 1: Yeah, exactly. Again, based on our cap Gemini analysis in
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  Speaker 1: our World Wealth Report, when we compare twenty twenty four
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  Speaker 1: to twenty twenty five, something like ten percent growth in
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  Speaker 1: terms of that high net worth individuals in the US,
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  Speaker 1: and that was growing the fastest globally. Asia Pacific was
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  Speaker 1: also pretty positive on that basis. And then when you
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  Speaker 1: looked at Europe and the UK still growing merin but
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  Speaker 1: and less less positively.
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  Speaker 3: Yeah.
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  Speaker 1: And then probably the Middle East was one example when
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  Speaker 1: we compared twenty four to twenty five where actually we
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  Speaker 1: saw a decrease in terms of some of that both
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  Speaker 1: population and wealth, but the US leading the way, followed
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  Speaker 1: by Asia Pacific.
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  Speaker 2: Okay, And if you look at Asia Pacific. We'll come
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  Speaker 2: back to the miseries of Europe shortly, but a lot
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  Speaker 2: of that presumably was based around the extraordinary rise in
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  Speaker 2: these create a stock market it.
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  Speaker 1: Was, yeah, indeed, Yeah, we're seeing positive, positive trajectory on
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  Speaker 1: that basis. And interestingly, to your point there, and for
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  Speaker 1: these high networth individuals, we also saw equities become more
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  Speaker 1: important in their portfolio. The stock market increases that we
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  Speaker 1: saw were certainly driving a proportion of that that wealth
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  Speaker 1: population and wealth growth.
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  Speaker 2: So when you look at who's growing wealthier ware across
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  Speaker 2: the world, you can pretty much see the correlation with
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  Speaker 2: domestic stock markets. It's interesting because it suggests that most
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  Speaker 2: places have a fairly hefty.
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  Speaker 3: Home buy it.
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  Speaker 1: Yes, yeah, very much so. And we saw a little
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  Speaker 1: bit of a movement away from some of the more
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  Speaker 1: conservative asset classes. So where we saw equities increase by
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  Speaker 1: something like three percent, we saw cash reduce by two percent,
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  Speaker 1: So some of that.
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  Speaker 2: Kind of Yeah, I'm always interested by when I look
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  Speaker 2: at your chats every year, I'm always interested by the
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  Speaker 2: extent of which the high network people keep so much
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  Speaker 2: money and can your cash equivalents. It always knocks around
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  Speaker 2: pretty substantially over twenty percent twenty three, twenty four to
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  Speaker 2: twenty five percent, and that seems an awful lot of
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  Speaker 2: your assets to hold in cash, your cash equivalents. I'm
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  Speaker 2: pretty sure that if you looked at mid ranking wealthy
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  Speaker 2: people before they quite get you your millionaire next door,
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  Speaker 2: they'd be holding much less of that in cash your
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  Speaker 2: cash equivalents.
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  Speaker 1: Yeah, I think, I think, I think you're right, and
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  Speaker 1: I think it's we always use it as a little
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  Speaker 1: bit of a barometer in terms of risk appetite, conservatism,
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  Speaker 1: and in markets that are growing, were individuals the greater
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  Speaker 1: value in terms of stop and equity markets, they're obviously
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  Speaker 1: taking on a greater risk position. Fixed income we also
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  Speaker 1: saw increase when we looked at twenty four versus twenty
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  Speaker 1: five Merrin so again by something like two percent these points.
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  Speaker 1: And interestingly, alternative investments we saw a little bit of
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  Speaker 1: a decline, So there was a move away from some
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  Speaker 1: of the alts into fixed income and equities. But I
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  Speaker 1: think you point. I think those higher worth individuals were
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  Speaker 1: really following where they saw the performance and the value
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  Speaker 1: in twenty twenty five.
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  Speaker 2: And when you say alternatives, what do you mean you're
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  Speaker 2: talking about private equity and the main private equity, private credit, etc.
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  Speaker 1: Private equity, private credit, some of the hedge hedge funds. Yeah,
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  Speaker 1: and again not all of those investment asset classes are
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  Speaker 1: available to everyone. You know, and I know you've discussed
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  Speaker 1: this in the past in terms of both the liquidity
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  Speaker 1: associated with private assets but also in terms of accessibility.
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  Speaker 1: But again, I think that breadth of asset class and
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  Speaker 1: those breadth of investments is something we're seeing greater appetite for.
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  Speaker 2: I was interested to see that two thirds of your
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  Speaker 2: respondents said that they were interested in increasing their exposure
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  Speaker 2: to private equity, which seems to me so slightly extraordinary
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  Speaker 2: at the moment when it hasn't been a great performer,
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  Speaker 2: and there's an awful lot of debate about the extent
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  Speaker 2: to which it's historical record about performance is real or not.
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  Speaker 2: But still everyone says they want more.
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  Speaker 1: I think they want more access to it, Marin. That's
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  Speaker 1: not necessarily going to say they're going to commit, but
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  Speaker 1: having the option, and I think this for high net
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  Speaker 1: worth individuals, access to products and services is a real
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  Speaker 1: driver and the ability to the ability to diversify your portfolio,
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  Speaker 1: whether it be in terms of asset classes, are also
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  Speaker 1: geographically Again, I think you and I have touched on
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  Speaker 1: this in the past. We've seen high net worth individuals
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  Speaker 1: want to diversify into different markets. We've seen significant growth
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  Speaker 1: and attraction in Asia and the Middle East in the past.
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  Speaker 1: So I think to your point about two thirds of
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  Speaker 1: our respondents wanting to have access to the alternative investments,
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  Speaker 1: I think that's true. Whether or not they'll commit is
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  Speaker 1: dependent on that point in terms of where they see
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  Speaker 1: value and where they see growth and.
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  Speaker 2: What about crypto, And one of the things that you
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  Speaker 2: talk about in the report is how important it is
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  Speaker 2: for wealth managers to be able to offer their high
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  Speaker 2: networth investors' access to all investment classes and crypto. Again,
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  Speaker 2: is that a class that I'm loath to call it
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  Speaker 2: an asset class to be honest, But is that a
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  Speaker 2: group of possible places where you might put some money
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  Speaker 2: about that investors are more interested in?
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  Speaker 1: Now more interested is a subjective statement, but again I
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  Speaker 1: would put it in the same class as alternative investments.
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  Speaker 1: If you're wealth manager can give you access to digital assets,
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  Speaker 1: to crypto, and they can do it through a platform
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  Speaker 1: that's easily accessible, then I think that is kind of
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  Speaker 1: meeting these high net worth individuals their expectations and giving
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  Speaker 1: them the option to choose that within their portfolio, whether
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  Speaker 1: or not they take that decision, I think, as I say,
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  Speaker 1: it's a different point.
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  Speaker 2: It's a different matter.
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  Speaker 3: Yeah.
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  Speaker 2: One of the things you're saying this new report is
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  Speaker 2: that we are, at your words, clear inflection point for
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  Speaker 2: the wealth management industry. What does that mean and why now?
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  Speaker 1: I think the inflection point I think that's probably founded
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  Speaker 1: on three perspectives here, Maren. I think the first point,
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  Speaker 1: I would say is just growing this growing wealth. And
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  Speaker 1: I think we've seen this trajectory over thirty years. Actually
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  Speaker 1: we've been writing this report for thirty years, which yeah,
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  Speaker 1: makes us all feel a little bit dated, but.
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  Speaker 2: The way dated, but expert dated, but.
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  Speaker 1: Expert and d experienced. But I think the wealth management
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  Speaker 1: industry obviously continues to grow to service this growing population
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  Speaker 1: and say it grew by seven point eight percent globally
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  Speaker 1: in twenty twenty five. But also the expectations of those individuals.
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  Speaker 1: And we started this conversation by defining high net worth individuals.
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  Speaker 1: The expectation is that we can bring very personal, a
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  Speaker 1: very personal relationship, a very personal experience, and we can
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  Speaker 1: also bring the breadth of products and services that those
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  Speaker 1: individuals require. So I think there's a real kind of
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  Speaker 1: call to action for the wealth managers to move away
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  Speaker 1: from some of this kind of standard wealth band segmentation
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  Speaker 1: to bring very kind of personalized products and services.
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  Speaker 2: Why because most people, as far as I see it,
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  Speaker 2: most people, until you get up into your thirty, forty,
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  Speaker 2: whatever million dollar band, most people require the same things
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  Speaker 2: from their wealth manager. They don't mind some talking in
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  Speaker 2: your report about the importance of empathy led advice. And
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  Speaker 2: I can't think of anything worse than my wealth manager
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  Speaker 2: giving me empathy led advice. What I'd like him to
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  Speaker 2: do is to make me absolute returns in excessive inflation
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  Speaker 2: every single year without making a fuss about it. And
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  Speaker 2: that seems to me that is what everybody wants from
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  Speaker 2: their wealth manager. Not endless communication and empathy and complicated portfolios.
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  Speaker 2: What am I missing?
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  Speaker 1: We might have to agree to disagree here, Marion, because
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  Speaker 1: I do think that model where success is purely bag
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  Speaker 1: some performance and it's purely denominated by your annual portfolio review,
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  Speaker 1: is not the expectation in terms of the pace with
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  Speaker 1: which the markets in the world is moving. And I
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  Speaker 1: think high net worth individuals want to have the ability
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  Speaker 1: to be able to optimize products and services on a
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  Speaker 1: very kind of timely and a very real time basis.
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  Speaker 2: What does that What does that mean? Gareth? What does
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  Speaker 2: that mean? Optimize products and services on a real time basis?
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  Speaker 2: Surely you employ a wealth manager to manage your money
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  Speaker 2: without constant reference to you, because it's a delegated activity.
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  Speaker 2: But the way you seem to be looking at is
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  Speaker 2: though it is a non delegated activity, but more of
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  Speaker 2: a regular conversation in that when previously when we've talked
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  Speaker 2: to we've talked about wealth management on the podcast. What
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  Speaker 2: we do is we say to people, look, if you
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  Speaker 2: don't want to manage your own money, get some guy
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  Speaker 2: to go do it for you. Then you can sleep
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  Speaker 2: at night and you don't have to think about it.
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  Speaker 2: So is the suggest here that high networth individuals are
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  Speaker 2: changing from that idea of I give my money to
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  Speaker 2: this guy or woman and they're going to take care
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  Speaker 2: of it and I don't have to do anything. I
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  Speaker 2: can sleep at night because I know this guy's a
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  Speaker 2: pro and he's got it under control. What you're talking
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  Speaker 2: about seems to be a regular communication that involves empathy.
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  Speaker 1: There's definitely the need for more of a kind of
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  Speaker 1: proactive and regular management of your portfolio. Now, I suppose
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  Speaker 1: the point I'm making here is if you want to
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  Speaker 1: delegate that and leave that on a twelve month schedule,
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  Speaker 1: then that's obviously one requirement. However, I think there are
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  Speaker 1: individuals who want to have opportunities to present it to
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  Speaker 1: them in a very kind of immediate fashion. So as
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  Speaker 1: things are changing, whether that be changes in the market,
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  Speaker 1: changes in the geopolitical situation, changes in terms of their
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  Speaker 1: kind of personal situation, meren, they're looking for their wealth
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  Speaker 1: managers to be pro and to predict what's required based
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  Speaker 1: on their requirements and objectives and intervene on that basis.
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  Speaker 1: So I think we are seeing a demand for a
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  Speaker 1: much more active relationship rather than a periodic relationship. And also,
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  Speaker 1: I think this idea that we're operating in a very
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  Speaker 1: kind of real time environment. You and I have become
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  Speaker 1: very comfortable with the immediate experience, the real time experience
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  Speaker 1: of being able to order an Amazon being delivered within
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  Speaker 1: X number of ours if required. Again, I think in
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  Speaker 1: a wealth management context, marin clients want to have that
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  Speaker 1: level of insight they want their wealth managers to understand
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  Speaker 1: their expectations and their objectives and to respond on that basis.
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  Speaker 1: And the other thing I would say from our analysis, Maren,
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  Speaker 1: we've seen if you're able to provide the level of
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  Speaker 1: personalization that we're talking about here, those individuals will recommend
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  Speaker 1: and you to their peers and to their friends, even.
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  Speaker 2: If you're charging more than the robo advisor down the road.
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  Speaker 1: And the other time now that we're saying is individuals
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  Speaker 1: are having multiple relationships with their wealth managers. Five years ago,
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  Speaker 1: six years ago, in twenty nineteen, something like thirty nine
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  Speaker 1: percent of all individuals had a relationship with one wealth
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  Speaker 1: management organization. When we look at that figure nine in
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  Speaker 1: twenty twenty five, that's reduced to nineteen percent. So my
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  Speaker 1: point is, Maren, individuals are looking towards multiple organizations to
• 15:38
  Speaker 1: provide access to the products and services they need.
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  Speaker 2: That is one of the numbers that jumped out as
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  Speaker 2: me as well. And I think you may look at
• 15:46
  Speaker 2: that and say, maybe they're not satisfied with one and
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  Speaker 2: so they're moving to another. But that doesn't Necesslily argue
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  Speaker 2: against the idea that you want a personalized, empathetic wealth manager,
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  Speaker 2: because if you have four different wealth managers, they definitely
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  Speaker 2: do not have oversight of your full portfolio or of
• 16:02
  Speaker 2: your full lifestyle because you've got three other guys as
• 16:05
  Speaker 2: well who are doing something else. If you want that personalized,
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  Speaker 2: empathetic one on one understand my family, understand my generational shifts,
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  Speaker 2: understand my wealth, understand how I feel, etc.
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  Speaker 1: Etc.
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  Speaker 2: You'd want one wealth manager. This is like having four therapists.
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  Speaker 1: The kind of argument to that, I would say is
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  Speaker 1: that if you can provide the full breadth of products
• 16:28
  Speaker 1: and services that's required under a single umbrella, under a
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  Speaker 1: single umbrella, then I think you can maximize the strength
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  Speaker 1: and quite frankly, the stickiness of that relationship.
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  Speaker 2: Okay, shift, this shift represents the failure of the industry.
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  Speaker 1: I think this shift represents that demand from clients for
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  Speaker 1: a greater personalized relationship with empathy and also a greater
• 16:56
  Speaker 1: access to products and services because no one firm has
• 16:59
  Speaker 1: been providing that. And we've also seen merin to your point.
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  Speaker 1: We've seen the advent of the robo advisors. We've seen
• 17:07
  Speaker 1: growth in that kind of digital only model. We at
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  Speaker 1: the other end of the scale, we've seen growth in
• 17:13
  Speaker 1: terms of the family offices. So again, if you look
• 17:16
  Speaker 1: at the traditional wealth management organizations, there's competition from family offices.
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  Speaker 1: There's competitions from the kind of robo advisors and in
• 17:26
  Speaker 1: the model where they're not able to deliver the experience
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  Speaker 1: or the products and services that's required. That's meaning assets
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  Speaker 1: are flowing away from the traditional wealth management firms to
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  Speaker 1: the competition. And again in our report we quantify that
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  Speaker 1: as something like one point five trillion of new assets
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  Speaker 1: that have moved into that competitive sphere. So there's an opportunity,
• 17:51
  Speaker 1: but obviously there's clearly a threat as well.
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  Speaker 2: Yeah, and you're focusing the highest growth rates for the
• 17:55
  Speaker 2: robo advisors over their traditional the family offices, which makes
• 17:58
  Speaker 2: sense because the lower base, etc. But that is where
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  Speaker 2: you're expecting to see the growth.
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  Speaker 1: It is. But again you've got to look at this
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  Speaker 1: at an individual basis, because again when we look at
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  Speaker 1: those ultrahi networth individuals with investable assets of greater than
• 18:11
  Speaker 1: thirty million, the rule of the family offers not just
• 18:15
  Speaker 1: the financial services that they're bringing marin, but some of
• 18:18
  Speaker 1: those non financial services around estate planning, inheritance likewise becomes
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  Speaker 1: increasingly important. When we look at products and services. Of course,
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  Speaker 1: we can talk about asset types, we can talk about crypto,
• 18:31
  Speaker 1: we can talk about alternatives. But I also think there's
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  Speaker 1: a rule for the wealth management firms here to bring
• 18:36
  Speaker 1: those broader services to bear again in a way that's
• 18:39
  Speaker 1: directly relevant to their clients.
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  Speaker 2: Yeah, okay, so most marintalks money listeners I think are
• 18:45
  Speaker 2: probably at the top end of your millionaire next door,
• 18:48
  Speaker 2: maybe the bottom end of your million next door, or
• 18:49
  Speaker 2: maybe soon they'll be your millionaire next door. What should
• 18:53
  Speaker 2: they be looking for in a wealth manager?
• 18:55
  Speaker 1: First and foremost, I think they should be looking for
• 18:58
  Speaker 1: performance manager that gives them the return that they aspire
• 19:02
  Speaker 1: towards in terms of their objectives. I also think they
• 19:07
  Speaker 1: should be looking for a wealth management firm that gives
• 19:09
  Speaker 1: them access to the products and services which they believe
• 19:14
  Speaker 1: will be relevant for them and their family going forward. Yeah,
• 19:18
  Speaker 1: and then the final thing I would say is a
• 19:20
  Speaker 1: wealth manager where they don't have to repeat themselves. Part
• 19:24
  Speaker 1: of our analysis suggested that individuals forty two percent of
• 19:28
  Speaker 1: the individuals in the high network that we interviewed have
• 19:31
  Speaker 1: to restate their objectives and requirements. Can you have a
• 19:35
  Speaker 1: relationship with an organization? He Here's your requirements once understands
• 19:39
  Speaker 1: them and actively manages those going forward, this idea of
• 19:43
  Speaker 1: personalization but also access to products and services.
• 19:47
  Speaker 2: Yeah, I guess that robo advisory you do only have
• 19:50
  Speaker 2: to tell.
• 19:50
  Speaker 1: Once indeed, and also a robo advisor can take advantage
• 19:55
  Speaker 1: of some of the artificial intelligence data and information and
• 20:00
  Speaker 1: that's increasingly available to optimize that relationship.
• 20:03
  Speaker 2: Maron, Well, I suppose that is one of the questions
• 20:05
  Speaker 2: ever thinking about how do you find a wealth manager?
• 20:07
  Speaker 2: What are you looking for in a wealth manager? The
• 20:09
  Speaker 2: questions you're going to ask are taught me through your
• 20:11
  Speaker 2: performance and show me how that works relative to the
• 20:14
  Speaker 2: performance from other wealth managers, which I know is information
• 20:17
  Speaker 2: that is not always easy to get hold of. And
• 20:19
  Speaker 2: then what products and services are you providing? Can you
• 20:22
  Speaker 2: show me the whole suite and outside actual products? Do
• 20:25
  Speaker 2: you have a tax advice et cetera, et cetera legal
• 20:28
  Speaker 2: environment department? And then maybe this last question is can
• 20:32
  Speaker 2: you explain to me how you are using AI to
• 20:35
  Speaker 2: enhance your productivity?
• 20:36
  Speaker 1: Yeah, well, you know, I think a lot of that
• 20:39
  Speaker 1: is focused on that role of the relationship manager, which
• 20:42
  Speaker 1: is still very key role across the industry. And again
• 20:46
  Speaker 1: when we looked at when we looked at the relationship
• 20:48
  Speaker 1: managers that we met and we talked to, I think
• 20:50
  Speaker 1: we talked to something like thirteen hundred of them as
• 20:52
  Speaker 1: part of our report. Maren still about forty percent of
• 20:56
  Speaker 1: the activity they do they consider as operational administration. Can't
• 21:02
  Speaker 1: you use AI to somewhat automate that and then ensure
• 21:05
  Speaker 1: that the relationship managers are spending their time bruly invested
• 21:10
  Speaker 1: in their clients and their clients wealth and their clients'
• 21:13
  Speaker 1: portfolios using artificial intelligence around things like know your customer,
• 21:18
  Speaker 1: some of the tools and techniques around managing meetings, and
• 21:22
  Speaker 1: some of the kind of communication on that basis, and
• 21:25
  Speaker 1: portfolio optimization. We still believe the relationship manager is key,
• 21:29
  Speaker 1: and even in the world of AI Maren, we still
• 21:33
  Speaker 1: believe there's a role for the human element, the human
• 21:36
  Speaker 1: judgment within the wealth management industry and that that relationship.
• 21:41
  Speaker 1: Using AI to support the relationship manager, but also using
• 21:44
  Speaker 1: AI to understand more about you as a client. Okay,
• 21:47
  Speaker 1: what do we know about Maren and the things that
• 21:49
  Speaker 1: she's doing Beyond.
• 21:51
  Speaker 2: Maren wants to make two or three percentage points above
• 21:53
  Speaker 2: inflation every year and not be bothered. That's what Maren wants,
• 21:57
  Speaker 2: and I still think that's what most people.
• 21:59
  Speaker 1: Well, you know, I think what we're talking about here
• 22:01
  Speaker 1: will hopefully not only meet your expectations, Maren, but exceed them.
• 22:05
  Speaker 2: Okay, excellent. Can I ask you one last question before
• 22:08
  Speaker 2: we've finished, which is about family offices. We're seeing the
• 22:11
  Speaker 2: rise and rise of the family office. How much money
• 22:13
  Speaker 2: do you need for that. I'm not talking about a
• 22:15
  Speaker 2: single family offices. I'm sure some of my listeners are
• 22:17
  Speaker 2: rich enough for a single family office, but a multiple
• 22:20
  Speaker 2: family office or to get the kind of service you
• 22:22
  Speaker 2: might get from a family office type organization. Which bit
• 22:25
  Speaker 2: of high network do you need to slot into for
• 22:27
  Speaker 2: that and where do you start?
• 22:28
  Speaker 1: I think, unfortunately, Maren, it's not the millionaire's next door.
• 22:32
  Speaker 1: Unfortunately is not the millionaire's next door. So I think
• 22:35
  Speaker 1: in that bracket, when you're getting north of five into
• 22:38
  Speaker 1: the kind of thirty million region, that's where that's when
• 22:42
  Speaker 1: you and your family will be will be relevant on
• 22:44
  Speaker 1: that basis, But again I would come back to understanding
• 22:49
  Speaker 1: truly what you want to achieve. I think we've seen
• 22:53
  Speaker 1: with the advent of entrepreneurs there's a lot of wealth
• 22:57
  Speaker 1: that's being generated through entrepreneurs and the transactions that they're
• 23:02
  Speaker 1: successfully executing within their respective ventures and businesses. And again,
• 23:07
  Speaker 1: as significant amount of wealth generated quite quickly, also lends
• 23:11
  Speaker 1: itself to that kind of family office scenario.
• 23:14
  Speaker 2: Yeah, there'll be a lot of excitement around in the
• 23:15
  Speaker 2: wealth management community about the mega IPOs, right.
• 23:18
  Speaker 1: Of course. Of course, we've got anthropic on the it
• 23:21
  Speaker 1: was on the books on SpaceX when we looked at
• 23:24
  Speaker 1: what was generating wealth previously, we talked about those equity markets,
• 23:28
  Speaker 1: we talked about stocks and shares, and I think it
• 23:30
  Speaker 1: continues to be a significant part of the growth that
• 23:33
  Speaker 1: we've seen over the last five years.
• 23:34
  Speaker 2: Yeah, and it will be I'll tell you what, when
• 23:35
  Speaker 2: we next have this conversation, we tend to have it
• 23:37
  Speaker 2: in a reat. When we next have this conversation, we'll
• 23:39
  Speaker 2: know a lot more about how the young, newly rich
• 23:43
  Speaker 2: young like to have their money managed and what kind
• 23:45
  Speaker 2: of health managers there after, because assuming something doesn't get
• 23:47
  Speaker 2: horribly wrong, which of course it could, there will be
• 23:50
  Speaker 2: an awful lot of newly rich, relatively young people presumably
• 23:54
  Speaker 2: delegating a lot of that money management to the wealth
• 23:57
  Speaker 2: management industry. So we'll know a lot more in a year, won't.
• 24:00
  Speaker 1: We We will, and I suppose my prediction is they
• 24:04
  Speaker 1: will definitely want that level of empathy and personalization that
• 24:07
  Speaker 1: we've talked about, Maren. But also I think they'll be
• 24:10
  Speaker 1: demanding in terms of the kind of products and services
• 24:13
  Speaker 1: from the wealth management industry and their relationship managers.
• 24:16
  Speaker 2: Yeah, it's fascinating and we will find out. Gareth. Thank
• 24:19
  Speaker 2: you so much joining us today.
• 24:20
  Speaker 1: Pleasure Maren.
• 24:31
  Speaker 2: Thanks for listening to this week's Maren Talk to Your Money.
• 24:33
  Speaker 2: If you like our show, rate review and subscribe wherever
• 24:36
  Speaker 2: you listen to your podcast. Also be shorts, follow me
• 24:38
  Speaker 2: and John on x or Twitter. I am Meren s
• 24:42
  Speaker 2: W and John is John Underscore Steppek. This episode was
• 24:45
  Speaker 2: produced by Samasadi and Moses and sound designed by Blake
• 24:49
  Speaker 2: Maples Bestial. Thanks of course to Gareth Wilson and the
• 24:52
  Speaker 2: team at cap Gemini and questions and comments on this
• 24:56
  Speaker 2: show are always welcome. Our show email is Meren Money
• 24:59
  Speaker 2: at Bloomberg dotnut