MyPrivateBanking Offers Re-Negotiation Service For Wealth Management Costs
A new service offered by MyPrivateBanking assists clients of wealth managers by fully exploiting their scope for cost reduction and re-negotiation of their fees.
- (1888PressRelease) July 09, 2010 - Zurich, Switzerland - The cost of wealth management is the single biggest lever a client has to increase the performance of his or her portfolio. If today a client pays 2-3% in direct and indirect fees to his wealth manager per year but could cut this by half, his returns can increase by more than 25% after 20 years. A new service offered by MyPrivateBanking, an independent consultant to wealth management clients, assists clients of wealth managers by fully exploiting their scope for cost reduction and re-negotiation of their fees.
Research by MyPrivateBanking has shown that the majority of clients lack the experience, time and knowledge to reduce their wealth management costs significantly. For their part, wealth managers, in addition to the direct, visible, fees, have various additional levers to influence your costs of wealth management in the selection of products, number of transactions or choice of partners. "Our research shows that the direct and hidden costs can easily add up to 2%-3% of the assets per year, thereby eliminating about half of the annual profits a normal balanced portfolio will achieve on average in the long-term" explains Steffen Binder, Managing Director of MyPrivateBanking. "We will help clients in identifying the portfolio costs that are really necessary and negotiate a better deal without hurting performance at all."
MyPrivateBanking understands all the cost drivers, knows the benchmarks in terms of what other clients are paying for similar services and has a lot of experience in re-negotiating fees of wealth managers clients. In cooperation with a specialized cost-cutting service provider covering all global markets MyPrivateBanking offers wealth management clients now the following services:
1. Identification of Savings Potential: Analysis of all costs related to wealth management services and the portfolio, e.g. Management Fees, Transaction fees, Custody fees and Hidden Fees, to create transparency and gain a full understanding of the cost savings potential.
2. Benchmarking: Comparison of the fees paid with those of peers to determine the maximum a client should pay and initiate a beauty contest with several wealth managers.
3. Re-negotiation: Challenging the current fee agreements with the wealth manager and also the proposals of other providers. Assistance in setting-up an agreement under the new terms
4. Monitoring and Controlling: Supervision of the proper implementation of newly agreed fee arrangements and performance of an ongoing cost tracking and reconcilation of fees applied.
"On average we cut the costs of wealth management for our clients by 40% - per year", Christian Nolterieke, Managing Director of MyPrivateBanking, emphasizes the value of the service for the clients. "The Re-negotiation service of MyPrivateBanking is performance-based and self-financing. A part of the fees and commissions saved will be attributed to our services."
About MyPrivateBanking:
MyPrivateBanking.com is the first independent information and networking platform for clients of private banks and clients of wealth managers worldwide. MyPrivateBanking.com is not a bank but helps you to get more value out of your wealth manager. The founders have the vision to make wealth management a lot more transparent, cost efficient and client-focused - driven by their own experiences as clients of a number of wealth managers.
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