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Please click the image above to view the table of contents for Tiburon's Upscale Channels Research Report

New Tiburon Research Report - An Initial Overview of the Upscale Channels: Seeking to Serve the Ultra Affluent

Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its newly updated research report on Upscale Channels. This research release summarizes some of the report's key findings.

The purpose of this report is to provide readers with an initial understanding of the various upscale channels, including private banks, investment banks, processing banks, separate account managers, investment consultants, sports agents & business managers, and family offices. This is Tiburon’s second draft of this report.

Tiburon’s first draft of this report was written earlier in 2008; that draft sought to consolidate Tiburon’s prior research on this topic.

This is Tiburon’s second draft of this report; this draft brings this report into alignment with other Tiburon reports, and substantially enhances the profiles of some core Tiburon clients, including City National Corporation, State Street Corporation, The Bank of New York Mellon Corporation, & WR Hambrecht + Company.

Key Findings
This report outlines the evolution of the upscale channels industry, the seven types of upscale channels, and the future predictions for the upscale channels industry:

Market History

  • The Bank of New York Mellon Corporation’s predecessor Bank of New York is proud of its 1784 founding by Alexander Hamilton as the first bank in New York
  • Bank of America Corporation’s US Trust subsidiary was founded in 1853
  • Goldman Sachs Group was founded in 1869
  • The Bank of New York Mellon Corporation’s predecessor Mellon Financial Began in 1869 when retired judge Thomas Mellon founded T. Mellon & Sons Bank in Pittsburgh
  • Bessemer Trust was founded in 1907
  • The Bank of New York Mellon Corporation’s predecessor Bank of New York was established in today’s form by the 1922 merger of First Bank of New York and New York Life Insurance & Trust
  • The Bear Stearns Companies was founded in 1923
  • City National Corporation was founded in 1954
  • Fisher Investments’ CEO Ken Fisher began working as a sole proprietorship providing non-discretionary advice in 1973
  • Boston Private Financial Holdings was founded in 1987
  • WR Hambrecht was founded in 1998
  • Goldman Sachs Group went public in 1999
  • The Charles Schwab Corporation acquired US Trust in 2000
  • The Bank of New York Mellon Corporation sold its retail banks to Citizens Financial in 2001
  • The Bank of New York Mellon Corporation acquired Pershing in 2002
  • Lehman Brothers acquired asset manager Neuberger Berman in 2003
  • Bank of America Corporation acquired US Trust from The Charles Schwab Corporation in 2006
  • The Bank of New York Mellon Corporation was formed by the merger of Bank of New York and Mellon Bank in 2006

Market Growth

  • The upscale channels firms have $35.2 trillion assets under administration
  • The upscale channels firms have $5.2 trillion assets under management
  • The upscale channels firms custody $30 trillion
  • The upscale channels firms generate $24.2 billion in revenues

Leading Firms

  • Investment banks & boutique brokerage firms serve the greatest number of clients in the upscale channels with nearly 20,000 clients
  • Processing banks manage the most assets in the upscale channels with $3 trillion assets under management
  • Investment banks & boutique brokerage firms generate the most revenues in the upscale channels with over $16 billion
  • Investment banks & boutique brokerage firms earn the most in the upscale channels with $11.3 billion in net income

Market Segmentation

  • The upscale channels firms include firms in seven traditional market segments, including private banks, investment banks & boutique brokerage firms, processing banks, separate account managers, investment consultants, sports agents and business managers, & family offices
  • Private banks have $524 billion assets under administration
  • Northern Trust leads the private banks with over $300 billion in assets under management, followed by US Trust with only one-quarter the assets
  • Over one-third of high net worth investors say they would not use a private bank for estate planning, and nearly half say they might use their services
  • Investment banks & boutique brokerage firms generate $16.5 billions in revenues
  • Goldman Sachs Group leads the investment banks & boutique brokerage firms with $838 billions assets under management
  • Processing banks generate $7.5 billion of revenues, an increase of over 10% since 2000
  • The Bank of New York Mellon Corporation leads the processing bank channel with over 40,000 employees, 50% more than State Street Corporation
  • The Bank of New York Mellon corporation leads processing banks with $18 trillion assets under custody, $3 trillion more than State Street Corporation
  • Callan associates leads the investment consultants channel with 500 clients
  • Callan Associates leads the investment consultants channel with $3.1 trillion assets advised

Future Predictions for the Upscale Channels Markets

  • The upscale channels will see increasing growth as baby boomers age
  • The upscale channels industry is expected to have a larger number of assets under administration
  • The upscale channels industry is expected to generate a larger number of revenues

To better understand the developments for Upscale Channels, executives can purchase Tiburon's An Initial Overview of the Upscale Channels: Seeking to Serve the Ultra Affluent research report where the key findings highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.

Additional Information

The following links will open specific pages on Tiburon's web site:

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Tiburon Strategic Advisors

Tiburon Strategic Advisors, based in Tiburon, CA, was formed in 1998 to offer market research & strategy consulting services to all types of financial institutions and investment managers:

  • The firm has served over 300 corporate clients and completed over 1,100 projects since its founding, and today, its knowledge base includes mutual fund distribution, separately managed account programs, alternative investments, wealth management, insurance products, banking services, the fee-only financial advisor market, the CPA firm market, the family office market, & various international markets
  • Tiburon holds a series of CEO Summits semi-annually for its executive-level clients. Tiburon CEO Summit XVI is scheduled for April 15-16, 2009 at the Ritz Carlton Hotel in New York, NY, followed by Tiburon CEO Summit XVII, scheduled for October 7-8, 2009 at the Ritz Carlton Hotel in San Francisco, CA. Attendance is by invitation only and attendance at each Summit is managed to between 100 and 125 senior industry executives. Visit the CEO Summits section of Tiburon's web site for details on current and past CEO Summits, including attendee lists, meeting agendas, & highlights. Please contact Tiburon's Managing Principal Chip Roame at CRoame@TiburonAdvisors.Com or (415) 789-2541 if you are a Tiburon client and have an interest in attending a future Tiburon CEO Summit
  • Tiburon has published forty-seven ~300-400+ page research reports, which offer detailed analyses of growing business segments; each is available for $5,000; these reports can be ordered by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540
  • Tiburon offers an annual research report access program, whereby dozens of clients receive all Tiburon reports published within a year for $25,000; clients can subscribe to Tiburon's 2009 Research Report Access Program by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540
  • Tiburon also offers a database access program, whereby it shares its 300,000+ person industry executives contacts database with dozens of clients for $25,000 per year (distributed quarterly); clients can subscribe to Tiburon's Database Access Program by contacting Sarah Sage at SSage@TiburonAdvisors.Com or (415) 789-2540
  • Tiburon offers thirteen online business benchmarking tools that are available to all types of financial advisors in an effort to help them benchmark their business practices and build more successful businesses. The sites include www.BrokerBestPractice.Com for wirehouse & regional brokers, www.FABestPractices.Com for fee-based financial advisors, www.IndependentRepBestPractices.Com for independent reps, and www.PrivateBankerBestPractices.Com for private bankers. Almost 5,000 advisors have used these tools. By completing one of the online surveys, financial advisors can access a FREE copy of the relevant comprehensive Tiburon research report, which summarizes and analyzes the collective results
  • Tiburon's weekly research releases, like this one, are emailed for free to interested industry executives, media representatives, conference planners, and individual financial advisors. Over 55,000 industry executives now receive these releases. Feel free to sign up to receive future research releases at Tiburon's web site (www.TiburonAdvisors.Com) if this release was passed to you by a colleague and you would like to receive them directly in the future
  • Tiburon plans to expand its workforce in 2009. Specifically, the firm plans to add two-to-three incremental principals (the most senior role at the firm) and several more research managers in 2009.
  • Tiburon has built three executive programs (CEOs-in-Residence, Financial Advisor Roundtable, and Consulting Fellows) in an effort to bring the experiences of additional senior level industry executives to Tiburon clients. Feel free to contact any of the members of Tiburon’s executive programs directly or ask that they be included in any ongoing Tiburon project.

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