Coutts £1m minimum - does it 'mean' anything?

solidpro

I've noticed marketing for Coutts, which is probably similar for a few other specific banks that simply asks if you have £1m or more to invest. If you say no the advert politely apologises for your poverty and excuses itself. If you say 'yes' it gives you info for how to get in touch.

So, in personal opinions, if you did have £1m to invest, would options like these be a special option for you to increase your wealth or is it just another bunch of fund managers thowing darts at a board and majority investing their own money in passive funds anyway...,?

Millyonare

If you can tick the right boxes, they may sometimes consider a salary as low as £100k a year.

ForumUser7

Millyonare said:

If you can tick the right boxes, they may sometimes consider a salary as low as £100k a year.

The form directs you to NatWest premier if you have a sole income of greater than or equal to £100k a year, so I guess you would have to call and speak with someone rather than using the form.

Albermarle

solidpro said:

I've noticed marketing for Coutts, which is probably similar for a few other specific banks that simply asks if you have £1m or more to invest. If you say no the advert politely apologises for your poverty and excuses itself. If you say 'yes' it gives you info for how to get in touch.

So, in personal opinions, if you did have £1m to invest, would options like these be a special option for you to increase your wealth or is it just another bunch of fund managers thowing darts at a board and majority investing their own money in passive funds anyway...,?

It is not really just fund managers, I assume they will offer some kind of wealth management service.

Normally on here if someone wants financial advice we recommend they go to an Independent Financial Advisor. For sure the fees will be less.
Only maybe if you had a few Million Pounds, you might need a more specialised/expensive service. I guess most of Coutts clients are more in this category anyway.

Malthusian

solidpro said:

So, in personal opinions, if you did have £1m to invest, would options like these be a special option for you to increase your wealth or is it just another bunch of fund managers thowing darts at a board and majority investing their own money in passive funds anyway...,?

You don't put your money with Coutts to increase your wealth, you do it to show it off, like a Rolex watch. 
For the investment side it is just another tied advice outfit like St James Place. I doubt many people here would invest in them even if they did have more than £1 million in free assets. There is nothing wrong with paying more for a status symbol but the intersection between people on a forum called MoneySavingExpert and people willing to pay extra for a service just to show that they can is small.
I have no idea what kind of portfolios Coutts advisers recommend, but there is no evidence that any investment adviser can consistently beat the market, and if their charges are higher than competitors, they are less likely to manage it by luck.
The banking side is just a "Veblen good" version of NatWest / RBS that costs more.

dunstonh

So, in personal opinions, if you did have £1m to invest, would options like these be a special option for you to increase your wealth or is it just another bunch of fund managers thowing darts at a board and majority investing their own money in passive funds anyway...,?

I have a client that used to be with them and it was just a DFM style offering within a fund structure.  
here is the ISIN of one of their funds IE00BYYCCF89

Futuristic

I've seen a lot of Coutts adverts on social media as well, very strange way of advertising when it's only for the highest top % or whatever. Most private banking services are just a money drain unless you have special requirements such as borrowing off your stock port etc. which there are better banks for but you need to be in the multi M's 

Millyonare

Private banks can be good for networking. You can go to their private corporate events, join their private social networks (apps), and meet influential people with way more cash than you. They can drag you up the social, corporate or political ladder. You're joining a swanky club for the 1% or higher.

Of course, this has to be balanced with the high fees, ongoing charges and bang-average funds they may push you to buy.

Some say the tipping point to join a private bank / wealth manager is typically around £3m net cash (today). That's when you have enough cash to painlessly afford the high fees, while hobnobbing with £100m elites who might directly or indirectly help you to make your next £3m. Money attracts money.

For balance, Coutts has been "banking" in Central London since 1692, so it must be doing something right. Before Covid, their net profit margin was a decent 32%.

Albermarle

Some say the tipping point to join a private bank / wealth manager is typically around £3m net cash (today). That's when you have enough cash to painlessly afford the high fees, while hobnobbing with £100m elites who might directly or indirectly help you to make your next £3m. Money attracts money.

I think also when you are at this level of net cash ( and above) you will be looking at different types of investments for tax reasons, such as complex barely legal tax avoidance schemes, non dom status, unusual investments opportunities in companies in the virgin Islands, Isle of Man  etc that your typical financial advisor is not normally involved with.

Millyonare

Agreed. If they can (legally) save you £1m in tax on your £3m inheritance, then a £100k fee to get there is a nothing burger. For example, they might suggest and help you to buy a working farm.

Malthusian

Albermarle said:

I think also when you are at this level of net cash ( and above) you will be looking at different types of investments for tax reasons, such as complex barely legal tax avoidance schemes, non dom status, unusual investments opportunities in companies in the virgin Islands, Isle of Man  etc that your typical financial advisor is not normally involved with.

Insert old joke about how to make a small fortune here.
(Non dom status is the odd one out as it can actually save tax - assuming you aren't paying more in your country of domicile.)

Millyonare said:

Agreed. If they can (legally) save you £1m in tax on your £3m inheritance, then a £100k fee to get there is a nothing burger. For example, they might suggest and help you to buy a working farm.

A £100,000 fee (5%+ with no decency cap) to stick your money in something that qualifies for Business Relief / Agricultural Relief? Whur be yon farmers' yachts to?