French institutional manager follows American peers to capture clientele.

European institutions are taking the lead from Americans when it comes to wealth management.

Some providers believe guarantees are an important part of third-party products for the wealthy, reports Yuri Bender.

“We have a robust process for selecting third-party funds,” says Christine Ross, the managing director of distribution through financial advisers for private bank SG Hambro, which runs assets worth e11.7bn.

From the Far East to the US, and now responsible for Europe, the Middle East and Africa, Declan Sheehan, an Irishman now living in London, has been there and done it. But with a brief to put JPMorgan on the map for private investment, he has a little way to travel yet, reports Anna Bawden.

Dutch-based Rabobank, seeking its perfect match, wanted size, scale, brand credibility and distribution power. Its acquisition of a substantial part of the Swiss bank Sarasin goes a long way in satisfying its hunger, reports Henry Smith.

Rabobank’s requirements are hardly the usual lonely-hearts wish-list. But they are very understandable for a firm seeking a strategic partner to propel it into the big time in the lucrative onshore private wealth market through joint exploitation of distribution channels.

Cap Gemini Ernst & Young and Merrill Lynch’s latest report on the world’s wealthy reveals that despite the difficult economic conditions in 2001, growth in high net worth individuals rose by approximately 3 per cent. Elizabeth Cripps reports.

Money market funds offer greater efficiency and sophistication in addressing the challenges of cash management, boosting returns, without compromising liquidity or security.

Cash is an important asset class in any investment portfolio. The aim of money market funds is to make cash work harder for investors by pooling assets across a number of high-quality money market instruments with the aim of obtaining the highest possible return.

USFs make buying and selling across borders that much simpler – and hefty settlement costs are lower too.

The latest single-stock futures products, Universal Stock Futures (USFs), aim to simplify cross-border investment strategies such as pairs trading. They do this through exposure to a range of equities from different countries, as well as to a range of currencies.

If they choose the right indices and the right vehicles, wealthy investors can gain many benefits from the growing number of indexed funds.

Wealthy individuals are emulating institutions, moving towards the core-satellite model of an indexed core with satellites invested in active funds and strategies.

Mandatory convertible instruments give equity investors increased income in exchange for reduced upside participation. These “convertibles” mandatorily convert into ordinary shares at maturity. Thus, there is only limited optionality for the investor.

The key difference between a mandatory and a traditional convertible is that, as shares are always issued, the investor cannot receive cash on redemption. There are two basic structures, with variations on these structures sometimes altering their characteristics.

Credit indices offer quick, easy and liquid access to the credit markets in a single bond.

Index tracking funds have been an excellent addition to the marketplace, providing an attractive option for those investors who do not want to take the risk of selecting the best fund manager, or have not wanted to pay the high fees associated with active managers.

Exchange-Traded Funds (ETFs), one of the fastest growing financial products around, are single shares that give the investor the benefit of tracking the whole of an index. They can be traded as easily and simply as any share and settlement is quick and paperless.

The trend for third-party fund offerings is growing and providers are finding alternatives to fund supermarkets for reaching customers. Elizabeth Cripps reports.

UK bank Abbey National has just launched a fund supermarket, ABN Amro in the Netherlands is offering third-party funds for the first time and Citibank has signed a deal that adds the Santander Central Hispano Asset Management fund range to its Independent Advice Service platform. Third-party funds, it seems universally agreed, are the way forward.

We asked three European experts how they would spend E500,000 in a funds supermarket for a fairly conservative investor with a balanced strategy.

Ultra high end investors have managed to hold on – not so the less well off, writes Brian Spoors.

Europe’s high net worth private equity investors may need a few more months to lick their wounds following the savaging their capital took when the dotcom bonanza turned on them two years ago. But already some industry insiders see signs of a return to health amid the pain.

‘Due diligence’ might now be an in-vogue term, but there is value in its meaning, writes Kristin Fox.

The first commandment of hedge fund investing is: Know thy manager as thyself. No one knows this better than the fund of funds manager, whose reputation and returns ride on the backs of his underlying managers.

Residential property continues to hold up, but watch out for offices, writes Roxane McMeeken.

The European property market has suffered from a demand shock in the past year. Rents have dropped and even flattened, while the number of empty buildings has soared. But with average returns of 8 per cent, few are complaining.

Any proposals the UK Chancellormakes for changing residence and domicile rules will be assessed on whether they contribute to the country’s overall economic well-being, writes John Battersby

International relocation is becoming almost standard practice. Whether it is short-term secondment for career development or a considered decision to relocate for personal circumstances, more and more individuals are grappling with unfamiliar tax systems.

Multi-currency debt management can be a useful tool in running a high net worth client’s portfolio, making good use of borrowing power and capital gains. Elizabeth Cripps reports.

For high net worth individuals, multi-currency debt management adds a new dimension to portfolio planning.