Standard takes top spot for wealth services
Standard Bank walked away with the laurels at the Intellidex private banking and wealth management awards at a function in Rosebank on Tuesday.
The hotly contested award has been running for six years, assessing the capabilities of the financial services companies that cater to the often particular tastes of SA’s high net worth individuals. Nearly 6,000 clients were surveyed.
Standard Bank beat Sanlam Private Wealth and Nedbank Private Wealth for the overall award. But it has been a tough market, as ructions in SA’s political environment have caused many of these clients to move their assets offshore.
Investments are also being squeezed by lower returns and rising taxes, including the introduction of a new tax of 45% on those earning more than R1.5m per year.
“The top end is really feeling the pinch now,” said Philip Faure, Standard Bank’s global head of wealth advisory. Clients were “constantly paying more in tax and receiving very little benefit”, Faure said.
“Wealthier clients also tend to have private security, healthcare and education, all of which are paid with after-tax money,” Faure said.
Other industry experts agree. “The past 18 months have been extremely difficult,” said Brian Butchart, MD of Brenthurst Wealth Management, citing lower returns as one concern.
Clients are not the only ones taking a knock. Wealth managers and private banks are being squeezed by more onerous compliance measures.
The award for top wealth management boutiques delivered somewhat of a surprise, as Brenthurst Wealth Management came out tops for the first time. Trailing Brenthurst was Gradidge-Mahura Investments, NFB Financial Services and Verso Wealth.
Investec Private Bank was the top-ranked banking services firm and it scooped the people’s choice award for top private bank.
Newly formed boutique company Verso Wealth won the people’s choice award for wealth managers.
The customers surveyed rated the services they received highly.
Overall, 62% of private banking clients and 83% of wealth management clients rated the services they received as either “very good” or “excellent”.
The awards break down the best provider for different market segments.
For example, Nedbank Private Wealth was rated the top provider for an “up-and-coming professional”, while Sanlam Private Wealth got the nod in the category of successful entrepreneurs.
The full results can be obtained in Investor’s Monthly, with this week’s Financial Mail.