In an interview with Eugene Yao from ACN Newswire, Chris Selby (Managing Director, Head of Merrill Lynch Global Wealth Management Australia and New Zealand) discussed some of the key challenges faced by the company and his outlook for the future.
Merrill Lynch Global Wealth Management (GWM) provides advice-based wealth management services and products, meeting the needs of high-net-worth individuals as well as small to mid-sized business owners. Even though the Global financial crisis significantly impacted some of their clientele, Chris Selby is quite confident that as the financial markets rebound and the investors' confidence returns, Australia economy and high net worth population will undergo a period of rapid growth in the near future.
In an interview with Eugene Yao from ACN Newswire, Chris Selby (Managing Director, Head of Merrill Lynch Global Wealth Management Australia and New Zealand) discussed some of the key challenges faced by the company and his outlookfor the future.
Below is an edited version of the interview.
1. What is your view on the Australia economy?
The Australia economy is relatively stronger in withstanding the Global Financial Crisis (GFC) in comparison to regions like NorthAmerica, Europe and Hong Kong. It is expected that the Australian economy will be among the first to recover from the GFC due to the country's close tie with the higher growth Asian economies, and the healthier balance sheets across both Corporates and Individuals. There are also signs over the past year that many Australian investors are transferring their assets back home, which also further strengthen our domestic economy.
2. Can you highlight a few key findings in the World Wealth Report2009 released today?
The World Wealth Report 2009, conducted by Merrill Lynch Wealth Management and Capgemini, identified some of the key trends and changes among the High Net Worth Individuals (HNWI) and their investment approach. Some of the key findings include:
- Allocation to fixed income and cash based investments totaled 50% of overall HNWI portfolios globally, a 6% increase from 2007.
- Allocation to real estate increased 4% from 2007, totaling 18% of overall HNWI portfolios globally, as HNWI saw opportunities in the market.
- Many HNWIs are shifting their investment from overseas market back to familiar domestic markets.
These findings are important to wealth management firms, like Merrill Lynch (ML), in devising business strategies in addressing the ever-changing needs of our clients through these difficult times.
3. The report says that 50% of overall HNWIs portfolios are with fixed income and cash based investment. What type of investment options does ML offer in correspond to these growing demands?
ML offers comprehensive coverage on all global bond markets. This includes bonds issued by Sovereign, Corporate and Regional/Municipal bodies. Also, the ML global platform includes over 6000 funds, with many specifically tailored for cash, cash-like or fixed income. The key is ML can tailor a portfolio for whatever is appropriate for the client. ML can also offer financing in any currency to ensure the right balance of gearing is available.
4.The WWR 09 also suggested that HNWIs are becoming increasingly concerned about "risk management" and "due diligence capabilities" in choosing what Wealth Management firm to stay with. What measures or strategy does ML take in addressing to this trend?
At ML, we take risk management seriously. All accounts are regularly monitored to ensure suitable investments match the client's risk profiles. Likewise, strict lending and limit thresholds are also monitored daily. The Wealth Management business, in conjunction with the Institutional bank, continuously evaluates assets and, in the case of funds, ensures that any changes within the management are reviewed and remain suitable investments.
All funds are screened before being eligible to be sold. All new Debt or Equity issues must pass a review on suitability. This is all in conjunction with the standard Anti-Money Laundering and Know Your Client due-diligence required.
5. The WWR 09 also suggests that HNWIs are placing more emphasize on online accessibility to their portfolio. What does ML offer in addressing this increasing demand?
For example, the Merrill Lynch will be launching its BT wrap platform association on August 2nd, 2009. This will enhance the domestic product base to include all Australian domiciled funds available on BT's platform. In addition, tax reporting is made simpler, less time consuming and less expensive, by providing each client with one set of accounts for all of their investments.
In conjunction with BT wrap, we will also be launching a service called "Praemium" (an info pack will be available in early July). Praemium offers comprehensive tax reporting for all investments (both domestic and international) in one statement, designedwith and for local reports. ML is proud to be the first firm in Australia to offer this comprehensive reporting service to clients.
6. There has been some criticism about the merger of Merrill Lynch and Bank of America. What is your view on that?
In regards to the merger of Bank of America and Merrill Lynch, I believe the combined forces will allow the group to provide a much broader array of solutions, products and services to our clients. The combined entity will have both the commercial and investment banking capacities, which mean that ML GWM can now offer more than just personal investment service to our clients, but also providing them with business solutions that look after their commercial and business financial requirements as well.
About Chris Selby
Chris, Managing Director and Head of Wealth Management, is responsible for the Private Client activities. His role is to develop and expand the combined Bank of America and Merrill Lynch platform serving individuals and smaller institutions for all products. Up until 2009, Chris, was MD of the Investment Bank. In 2005 he joined the investment Banking team to focus on Capital and Structured Credit/Capital opportunities principally for Financial Institutions. His expertise is in the Alternative Capital and Investments for Issuers and Investors.
Chris joined Merrill Lynch New York in 1985 with the non-Dollar Sales group covering US Institutions. He moved to Sydney in 1987 to cover US Hedge Funds for alternative A$/NZ$ investments and to expand the Sydney domestic sales platform. His roles in Australia have included Head of Global A$ Fixed Income Sales, Head of Fixed Income and in 2002 Head of Debt and Capital Markets. He has also been a member of the 7 person Australian Executive committee. Chris has a Bachelor of Arts in Political Science and Asian Studies from Connecticut College.
About Merrill Lynch Global Wealth Management
Merrill Lynch Global Wealth Management (GWM) is a leading provider of comprehensive wealth management and investment services for individuals and businesses globally. With approximately 16,000 financial advisors and more than $1.1 trillion in client assets, it is among the largest businesses of its kind in theworld. More than two-thirds of GWM assets are with clients who have a net worth of $1 million or more. Within GWM, the Private Banking & Investment Group provides tailored solutions to ultra high net worth clients, offering both the intimacy of a boutique and the resources of a premier global financial services company. These clients are served by more than 160 Private Wealth Advisor teams, along with experts in areas such as investment management, concentrated stock management and intergenerational wealth transfer strategies. Merrill Lynch Global Wealth Management is part of Bank of America Corporation. Visit http://www.ml.com
Copyright 2009 ACN Newswire. All rights reserved.
© 2009 JCN Newswire
