Friday, March 21, 2014

How Can Bankers to the Rich Earn Their Fees?

Top banks and trust companies charge real money for wealth management these days, according to the WSJ.
Annual fee for managing $5 million: $46,500
For managing $20 $30 million: $201,000
To earn such generous compensation, says the Journal, a wealth manager needs to do more than allocate assets. No surprise there. More than three decades ago, when Daniel Davison ran US Trust, the bank depicted the breadth of its services by commissioning Winston Churchill's granddaughter to create a sculpture of a trust officer walking a client's dog.

Though wire houses and banks still dominate the high net worth market, the WSJ graphic shows independent advisers are nibbling voraciously at their business.

Corrected 3/26

1 comment:

Anonymous said...

You've got a typo (relative to the current WSJ article). The $201k fee is for managing $30M not $20.