World’s wealthiest ditch private money managers

EDINBURGH — With the world's financial intermediaries failing en masse to manage their clients' assets to better returns than market averages, it has been inevitable that the world's wealthiest would ditch them. The Economist magazine points to the rise of the family office. There is some concern that this trend will just facilitate a wider divide between the world's wealthiest and the poor masses. But, for now, those who have the most to fear are in the large, overpaid financial services army dedicated to rolling out the red carpet for high net worth individuals. – Jackie Cameron

By Thulasizwe Sithole

The image of the upper echelons of the money-management business operating out of fusty private banks in Geneva or London's Mayfair, with marble lobbies and fake country-house meeting-rooms, is out of date, says The Economist. "A more accurate one would feature hundreds of glassy private offices in California and Singapore that invest in Canadian bonds, European property and Chinese startups — and whose gilded patrons are sleepwalking into a political storm."

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