Private banks and what they have to offer on the investment side

caldi9

Most of the private banks charge a lot in my view. Question (apart from speedier service) is what do they actually have to offer on the investment side? Access to certain products? Actionable ideas at reasonable fees? What’s your experience and has the private banking experience paid off? 

El_Torro

Do you mean investments as in stocks and shares? Or are you referring to savings interest rates?

Either way large banks generally don't offer the best value for money. If you want good interest rates you can often get good deals with small banks which are online only. If you want low cost investing in the stock market then online platforms, not affiliated to mainstream banks, usually offer more choice and lower fees. 

Why? I guess it's because large banks don't need to put a lot of effort into attracting money from consumers. They are a recognisable name so people use them.

caldi9

El_Torro said:

Do you mean investments as in stocks and shares? Or are you referring to savings interest rates?

Either way large banks generally don't offer the best value for money. If you want good interest rates you can often get good deals with small banks which are online only. If you want low cost investing in the stock market then online platforms, not affiliated to mainstream banks, usually offer more choice and lower fees. 

Why? I guess it's because large banks don't need to put a lot of effort into attracting money from consumers. They are a recognisable name so people use them.

I meant access to certain funds, fund launches, investment ideas or other products from the investment side. The high fees have to be worth it somehow.

GeoffTF

caldi9 said:

El_Torro said:

Do you mean investments as in stocks and shares? Or are you referring to savings interest rates?

Either way large banks generally don't offer the best value for money. If you want good interest rates you can often get good deals with small banks which are online only. If you want low cost investing in the stock market then online platforms, not affiliated to mainstream banks, usually offer more choice and lower fees. 

Why? I guess it's because large banks don't need to put a lot of effort into attracting money from consumers. They are a recognisable name so people use them.

I meant access to certain funds, fund launches, investment ideas or other products from the investment side. The high fees have to be worth it somehow.

No they do not. There only have to be people daft enough to pay them.

caldi9

GeoffTF said:

caldi9 said:

El_Torro said:

Do you mean investments as in stocks and shares? Or are you referring to savings interest rates?

Either way large banks generally don't offer the best value for money. If you want good interest rates you can often get good deals with small banks which are online only. If you want low cost investing in the stock market then online platforms, not affiliated to mainstream banks, usually offer more choice and lower fees. 

Why? I guess it's because large banks don't need to put a lot of effort into attracting money from consumers. They are a recognisable name so people use them.

I meant access to certain funds, fund launches, investment ideas or other products from the investment side. The high fees have to be worth it somehow.

No they do not. There only have to be people daft enough to pay them.

Doubt that someone having millions with a private bank does that without getting anything in return. The charges as % of assets are crazy I think, unless clear benefits.

lr1277

You did ask the same question in the last post of you earlier thread:

https://forums.moneysavingexpert.com/discussion/6459359/cheap-private-banks/p4 

My guess is that most if not all people on the forum don't know the answer to your question. This site is fo money savers not people wanting to potentially get outsize returns for a large fee. It is possible there are some people who could meaningfully answer your question but choose not to.

I don't know the answer to your question.

I  think have seen some bank websites suggest they could put you in touch with great investment but obviously no promises are made. Perhaps you should enquire at some banks fo HNWI's?

When bored, I sometimes look at the websites of banks for HNWI's. Some of those websites suggest they offer services to individual clients and not just institutional clients. But my guess is you need to have serious money to invest. So on the internet find a list of banks for HNWI's then look at their websites and see if they offer what you want and whether you meet their client profile.By these banks, I mean investment banks (the clue is in their name) an not banks that take deposits and offer current account.

Otherwise look at forums for luxury lifestyles. Posters on there might be able to answer your question.

If you don't mind spending some money, find an IFA who specialises in investment products. They may be able to set you on the right path, and maybe even guide you along it.

If you are thinking of private equity investments I have no idea how you get into those.Most likely an introduction by you bank but possibly also by an IFA.

One thing I have done but never taken up is the following: watch the business news; if I can I watch the business news on the BBC news channel at 5:30am on weekdays. Very occassionally, they have an analyst who makes a great deal of sense. I then looked up the analyst to see if their employer had an investment offering for retail clients. I need to stress I don't have any money to require a bank for HNWI's nor investment advice.But I can certainly look and dream.

Be aware you take my suggestions at your own risk.

GeoffTF

The evidence is clear. You cannot beat the market in risk adjusted terms except by chance. There are nonetheless countless millions who do not want to believe that. There is also no shortage of people who are keen to exploit their foolishness. You pay a fat percentage come what may, and you also take all the risk.

lr1277

I was on Youtube for some reason. I saw the video titled Why Americans Love American Express. By the way, the video didn't really answer that question. But by the side was a link to a video titled Why Wealthy Americans Love UBS.

Here is the link:

https://www.youtube.com/watch?v=YXTXNzyOMCk 

 

Apparantly the reason Americans love UBS despite the higher fees and lower returns is the secrecy afforded by Swiss law. People want to hide their wealth either from their government or more specifically their government's tax authority. But remember this secrecy is being chipped away by both whistleblowers (think Panama papers) and negotations by international tax authorities to expose more customer information. As an aside I think there was a whistleblower for a Swiss bank but can't remember anymore than that so didn't say anymore.

The reason I am posting this video is that it talks a lot about the UBS takeover of Credit Suisse earlier this year. And some bond holders holding Credit Suisse products lost their entire investment because those particular bonds were wiped out.

I know you say you want access to specific products and these products might do well for you.

But you also have to remember you may buy into a product whose value drops to 0 or your private bank is investigated by a goverment entity and there are repurcussions from that action.

You are best off doing more research and knowing the pitfalls of any financial poduct you buy.

wmb194

lr1277 said:

I was on Youtube for some reason. I saw the video titled Why Americans Love American Express. By the way, the video didn't really answer that question. But by the side was a link to a video titled Why Wealthy Americans Love UBS.

Here is the link:

https://www.youtube.com/watch?v=YXTXNzyOMCk 

 

Apparantly the reason Americans love UBS despite the higher fees and lower returns is the secrecy afforded by Swiss law. People want to hide their wealth either from their government or more specifically their government's tax authority. But remember this secrecy is being chipped away by both whistleblowers (think Panama papers) and negotations by international tax authorities to expose more customer information. As an aside I think there was a whistleblower for a Swiss bank but can't remember anymore than that so didn't say anymore.

The reason I am posting this video is that it talks a lot about the UBS takeover of Credit Suisse earlier this year. And some bond holders holding Credit Suisse products lost their entire investment because those particular bonds were wiped out.

I know you say you want access to specific products and these products might do well for you.

But you also have to remember you may buy into a product whose value drops to 0 or your private bank is investigated by a goverment entity and there are repurcussions from that action.

You are best off doing more research and knowing the pitfalls of any financial poduct you buy.

The AT1 hybrid bonds that were wiped out aren't what the OP's referring to, though. They weren't super secret-squirrel investments for people who have access to the room, they were stockmarket listed securities.

IIRC Swiss banking secrecy is long gone and the reason Americans like Amex is for the cashback and rewards e.g., airport lounge access.

boingy

wmb194 said:

 the reason Americans like Amex is for the cashback and rewards 

I've always assumed it was just because it says "American" on it...

mazdaq199

One thing's for sure, private banks will be charging you a king's ransom for providing any so called "exclusive" investments. IMO, stick to low cost index tracker funds, and you'll be better off over the long term.