New Wealth strategy good for Barclays: Margaret Doyle - guardian.co.uk
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New Wealth strategy good for Barclays: Margaret Doyle guardian.co.uk, UK Following the crisis, wealthy clients may take a bit more persuading before putting their money with a universal bank. Turmoil in the markets has allowed Barclays to make acquisitions. The Lehman deal gave Barclays $30 billion of private client assets ... Barclays Wealth on expansion path in Asia Barclays says in Sumitomo wealth management talks-FT Barclays Wealth Looking For Quick Deals |
Source: guardian.co.uk
Comments
Simon James, Gore Browne Investment Management, 2009-06-29 09:11:03
This is a well balanced article, which encapsulates the difficulties of balancing shareholder interests with those of clients.
Barclays wish to become one of the largest 5 managers globally, so a M&A strategy is essential. It is perfectly reasonable for them to do this.
Unfortunately for the clients whose relationships they acquire, Barclays have to drive efficiencies of scale to make this work financially.
We believe that selling in-house products, funds or otherwise, is a conflict of interest between a client and his/her investment manager. Many private investors recognise this too, and we are aware of numerous clients who have left Barclays and Merrill Lynch (who also own part of Blackrock) because they resent being invested substantially in in-house funds.
In-house funds do not represent best of breed in most circumstances.
Their use also reflects the fact that clients are looked after by relationship managers, who have no influence over the contents of a portfolio because the investments are selected centrally.
That is why the big houses have long forms to assess which box a client should be posted into!