RBC Wealth Management and Bank of Montreal are among the Canadian firms climbing the global rankings of private wealth managers, according to rankings published on Thursday by London, England-based research and consulting firm GlobalData and Private Banker International.
Overall, the world’s 25 largest private wealth managers grew their assets under management (AUM) by 5.5% in 2016, up from 2.9% in 2015, the global private wealth managers AUM rankings show.
Switzerland-based UBS AG continues to lead the rankings, with global AUM of over US$2 trillion. Bank of America Merrill Lynch, Morgan Stanley, Credit Suisse, and JP Morgan round out the top five.
Canada’s top entrant in the rankings is RBC in 21st place, up five spots from 2015; BMO ranks 23rd, up one place from last year.
While overall industry growth was strong in 2016, some firms saw their AUM shrink notably, according to the rankings.
“HSBC and Deutsche Bank reduced their international footprints and now neither is present in the top 10 ranking,” says Bartosz Golba, head of content for wealth management, GlobalData, in a statement.
“Divestments will continue to affect the competitive landscape, creating opportunities for smaller players to expand their operations. Gone are the times of pursuing growth at all costs. Every merger and acquisition will be analyzed carefully before any deal is signed,” Golba adds.
Against this backdrop, GlobalData says that it sees more Asian private banks, with an increasing international focus, climbing its rankings.
“In terms of top performing banks, however, China may dominate the field. The country’s banks have grown their private banking AUM in recent years, riding the wave of an expanding domestic wealth management market. However, a select few have crept up into the top global echelons of wealth managers by prioritizing the HNW and ultra HNW segments,” Golba says.