Overall the half year has seen a substantial growth in the amount of assets under management (AUM) at each of our top ten with total AUM smashing through the $5trn mark to hit $5.3trn at 30 June 2013.
This was up from $4.7trn at the same time last yearNet inflows are also on the up as confidence seems to be returning that the global economy is finally turning around, alongside the equity rally of the past six months.
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A few changes in the way we calculate PBI’s Global Index and the sales of private banks to rivals has led to some major changes in our survey for the first half of 2013.
Plaudits go to Barclays Wealth which has pushed Citigroup out of the top ten and commiserations go to Bank of America Merrill Lynch who slipped from number one spot to number three behind Swiss rivals, UBS and Credit Suisse.
Increasing transparency forces change
In a change to our methodology this year, we have looked at only the directly managed assets of those with more than $1m at the top ten banks.
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By GlobalDataThis has meant that the US banks in particular have taken a big cut in the headline figures for AUM. This brings them more in line with their European rival’s figures.
This dramatically changed Bank of America Merrill Lynch’s once dominant position as global number one.
This methodology change, and the sale of its international unit to Julius Baer, shouldn’t obscure the fact ML remains an advisory powerhouse with an estimated $722bn.
Using our old methodology, its AUM was $1.78trn, which would put it out clear in first place.
Citigroup out, Morgan Stanley grows
The first half of 2013 saw Morgan Stanley complete the 100% purchase of Smith Barney from Citigroup. This helped Morgan Stanley-Smith Barney to increase its AUM by 22.7%, the largest rise of any in the top ten.
The counterpoint was the fall of Citigroup out of the top ten to be replaced by Barclays Wealth and Asset Management.
Barclays rise comes as they broke through the $300 million dollar barrier for the first time in 2013.
A strengthening pound and some regulatory issues have been barriers to even stronger growth at the UK bank. However it would still be a big leap for them to be able to pass JP Morgan in ninth place.
HSBC slows down
The only other UK bank in the top ten, HSBC,went through tougher time times over the same period. It had net outflows of $1.2bn and its asset growth was the weakest in the survey at only 2.93%. This is due to the uncertainty caused by the on/off sale of the Monaco office, the sale of other assets, and what this means for HSBC’s future in private banking.
Despite this HSBC held its position in the top ten as the sixth largest private bank globally.
It can’t be long however before RBC overtake them. The Canadian bank showed near 13% growth in AUM over the six months to April 2013.
