The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content



Banks must manage Wealth Management arms

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

The wealth management business hinges on two things: bull markets and relationships. The current run in stocks – the S&P 500 hit an all-time high this week – is doing its bit. A rising market means increased activity, which boosts transaction fees, and asset appreciation, which increases asset-based fees. Even better, it means more money coming through the door. U.S. equity funds this week notched their biggest weekly inflow since the 2008 financial crisis.