The ultra rich saw their wealth rise by almost 22 percent in 2009, faster than other millionaires’ 19 percent returns, according to a June report by Capgemini SA and Merrill Lynch. The report attributed the higher gain to a “more effective reallocation of assets.”
The world’s richest clients often come with “impossible demands,” push margins down and cause internal conflict with investment banking colleagues, said the vice chairman of Barclays Plc’s wealth management unit.People with at least $30 million to invest, known as ultra high net worth individuals, insist on paying less for services, Gerard Aquilina of Barclays Wealth, told a conference in Zurich. They also ask for credit to invest in property, which may not generate private banking fees, and demand help with getting children into schools or last-minute concert tickets, he said.“Beware of the complexities of dealing with ultra high net worths,” said Aquilina, who until 2006 was chief executive officer for the Americas at HSBC Holdings Plc. “Demanding and often unreasonable” requests may create “impossible demands on the organization,” he said.
By Warren Giles, Sept. 2, 2010 Bloomberg
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