WEBVTT
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Good morning, good
afternoon, or good evening

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wherever you're located.

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A warm welcome from my side to
the Global Wealth Management

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4.0 webinar.

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My name is
Jean-Francois Lagasse.

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And I lead wealth management
for Deloitte globally.

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Today, we have a
great agenda for you.

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First, to set the scene, we
will start with the presentation

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of the Wealth
Management 4.0 Report

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that was authored by ThoughtLab
and for which Deloitte

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was a co-sponsor.

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As you will see
from the study, it

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is based on a survey of
more than 2,000 customers,

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and approximately 500
wealth providers globally,

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and provide great
insight as to what

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is expected from the
different market participants.

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The key of this study will
be presented by Lou Celi, who

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is the CEO of ThoughtLab.

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And with great pleasure
that I welcome him today.

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After that, we're going to move
to a panel discussion composed

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of four great panel members.

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First, we will have on the
panel Ryan McNally, who's

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a private banking
leader at TD group.

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And for those who don't
TD, it's a leading

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Canadian universal bank with
an important wealth management

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division.

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Second person on the panel
is Michelle Longhini,

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CEO private bank at Edmond
de Rothschild Group.

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Edmond de Rothschild is a
family-owned private Bank

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based in Switzerland with
a strong European network.

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Then we will have
Andreas Przewloka,

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CEO of wealth management at UBS.
For those of you who don't know

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UBS, it is a leading
universal bank headquartered

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in Switzerland and represents
the largest wealth management

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firm globally.

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To finish out our
panel, John Taft,

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vice chairman of RW Baird.

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And Baird is a leading
multidisciplinary financial

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advisory firm based in the US
and with a global footprint.

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I will have the pleasure of
moderating that panel today.

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And we will leave enough
time at the end for Q&A.

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So we will invite you
throughout this session

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to submit your question
through the Q&A button.

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Without further wait,
I leave the floor

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to Lou Celi, who will run you
through the Wealth Management

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Study.

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Lou.

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Thank you so much,
Jean-Francois.

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It's a pleasure
to be here today.

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And as was mentioned,
I am the CEO

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of ThoughtLab, a
global think tank that

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specializes on financial
management and the impact

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that technology is having on it.

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We conducted the study late last
year about how digital, social,

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and regulatory shifts were
transforming the industry.

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I'd like to first give you
some background on that study.

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We surveyed 500 providers
that accounted for about 1/3

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of the world, AUM.

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You could see that we
surveyed a group of providers

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across countries.

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12 countries were represented.

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And you also can
see from this slide

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that it was a very high
level study, sea level

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and direct reports.

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And we covered a
range of providers, so

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broker dealers,
online brokerages,

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private banks, and as
you see, the whole span

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of organizations.

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As Jean-Francois said, we
also surveyed over to 2,300

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investors around the world
in the same countries.

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And these investors represented
different wealth levels,

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different generations,
different demographics.

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So it was a good cross-section
of the kinds of investors

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that institutions
are addressing.

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This study was conducted
during a pandemic.

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So we found that the pandemic
accelerated six market

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megatrends that were already in
motion before the pandemic hit.

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And I'd like to talk
about these today.

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The first megatrend is
the shift to digital.

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The second was
investing with purpose,

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the third democratization,
the fourth higher standards,

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the fifth transparent lower
fees, and the sixth one

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is about switching providers.

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And all of those trends were
heightened by the pandemic.

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So let's talk about the first
trend the shift to digital.

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You can see in this slide
that the pandemic accelerated

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the use of digital innovation
by organizations and also

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the expectations of investors.

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So when we asked
the providers what

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would be the primary engagement
channel for the next few years,

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digital came out much
higher than non-digital.

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And when we asked the
same question of investors

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which channels
are they using now

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and which would they would
like to use more in the future,

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you can see some of
the digital channels

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really did become much
more popular in the future.

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So mobile trends, you
can see there, also,

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digital conferencing,
social media.

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Those are the ones
that are going

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to grow the most, also,
face-to-face meetings, which

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is interesting to
see that people want

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to go back to those as well.

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But the real story here
is that in two years,

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investors want to carry out most
of their financial activities

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in the palm of their hand.

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And you can see that
pretty strikingly in this

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slide, where it
looks at how they

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plan to use mobile
to access information

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get market insights,
learn more about products.

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What you also see if you
look at the right-hand side

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of this slide is that
virtual conferencing

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is going to start to become
more popular among investors

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and face-to-face meetings.

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Although, face-to-face meetings
will continue, but virtual

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will be a more easier
way for investors

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to talk with their bankers.

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Now one thing to keep in mind
is that the pandemic really

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updated some of the
old conventional wisdom

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about investors.

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And so what you
see here is a slide

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that shows some of the
myths that have been

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busted by the health crisis.

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So one is that digital is for
the young and the mass market.

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We hear a lot about the
millennial investor wanting

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everything digital, and it's not
just about millennials anymore.

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It's really gone mainstream.

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And so we see very similar
trends for the use of digital

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and the desire to use
mobile apps, and websites,

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and virtual conferencing by
people of different generations

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and different wealth levels.

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So it's starting
to all converge,

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but the reverse is also true.

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Millennials do not just
want things digital.

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They are digital natives,
but they also appreciate

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phones and face-to-face visits.

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So I think it's less important
to just pigeonhole investors

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by their demographic.

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And it's more about thinking
about their individual needs

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in today's environment.

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The second big trend is the
rise of social impact investing.

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And it's very clear
that ESG investing

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is very important to clients.

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And 4 out of 10 of the
organizations that we surveyed

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said that they are committed
to social and cultural values

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and that they are
moving more into ESG.

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And moving into ESG is not
just about providing products.

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It's now about even
incorporating ESG principles

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into your mission
and your culture.

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And investors
increasingly expect that.

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And those expectations are
happening all around the world.

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And some of them are
even more prominent

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in places like Japan, France,
and the United States.

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But COVID-19 also upended
conventional wisdom about ESG.

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When we were going
into the pandemic,

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many believe that
ESG was really more

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for the younger generations.

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That's no longer true.

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In fact, baby boomers plan to
invest more than millennials

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in green bonds and ESG funds.

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They're looking for
more advice, not less.

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So it's something, again,
which is going mainstream.

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And this concept that wealthy
investors care less about ESG

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is not true either.

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They, in fact, billionaires
in the study that we conducted

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are much more interested in
ESG investing, green bonds,

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ESG funds, than the
average investor.

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And philanthropy
itself is moving

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from a silo approach for the
very wealthy to something which

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they want to incorporate
more into their investments.

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The third lodge trend
is democratization,

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and this is both
products and services.

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So what you see
on this screen is

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that investors
across the board are

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planning to use more specialized
products over the next two

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years.

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And those can be anything
from alternatives and IPOs

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to other kinds of
unique products.

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And these are being
the plans to use

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them is not just among the very
rich as it was in the past.

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It's also more
the mass affluent,

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and the folks that are more
on the lower end of the wealth

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scale

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And they're expecting to
use these tools to drive out

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for the expecting
digital innovation

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to help make a lot
of these products

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available to them, a trend
that we're already seeing.

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And at the same time,
you need to have--

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the advice is also
democratizing.

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And there is a
much greater demand

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for personalized gold-based
planning you can see there,

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and for tax planning,
and for estate planning.

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And this is happening again
across different wealth levels

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and different generations.

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So we're seeing also
wealth management service

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needs converging across
investor segments.

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The fourth big trend is
that investors expect

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firms to meet higher standards.

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And, in fact, we asked the
investors about the best ways

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to build the relationship
and what their key criteria

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for selecting firms.

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And what comes out quite high
is acting in my best interest

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available when I need them
stay in touch during market

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disruptions, support social
community and philanthropy,

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all come out pretty high as
ways to build a relation.

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And the key criteria
that folks are using now

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have to do with, of course,
ethical business practices,

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very important, but also want
to work with institutions

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with a vision and
integrity with an approach

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to inclusiveness with
a social purpose.

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So they're thinking beyond
just investment returns,

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and this is even more
relevant to billionaires

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and the super rich in our study.

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The other standards,
the other reason

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the standards are heightening
is because the regulators,

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which are upping the stakes.

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And we're seeing these
regulations increase

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across the board.

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We asked providers to
tell us where they think.

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Regulations would grow over
the next two years at the top.

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The list was data privacy
and cybersecurity,

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which is already happening.

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And, in fact, as
the war in Ukraine

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has made it even of
greater interest.

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Fintech-minded regulation,
investor protection

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you can see the list goes on.

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It's a very daunting list
of regulations to deal with.

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The map shows you where some of
the biggest pockets of pressure

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will come from, Japan, and
Canada, and the United States.

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And you can see France,
and Australia, and Benelux.

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So those are the
areas that providers

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were seeing some of the biggest
increases in regulations

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for the future.

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And clearly, this
have an impact,

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but once again digital
can help, because folks

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are putting in digital
onboarding that

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takes into account
compliance with regulations

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and using other
digital innovation

15:26.380 --> 15:31.050 align:middle line:84%
to deal with the
complexity of regulations.

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The fifth trend is
about lower fees.

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And we all know that
during the pandemic,

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people traded more than ever.

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There was almost
a trading frenzy

15:41.790 --> 15:45.210 align:middle line:84%
that made investors much more
aware of competitive pricing,

15:45.210 --> 15:47.880 align:middle line:84%
much more aware of
firms like Robinhood

15:47.880 --> 15:50.640 align:middle line:84%
and others that
were reducing fees.

15:50.640 --> 15:58.110 align:middle line:84%
And it has raised expectations
for lower fees and greater

15:58.110 --> 16:00.910 align:middle line:90%
transparency.

16:00.910 --> 16:02.820 align:middle line:84%
And you can see
that in this slide.

16:02.820 --> 16:09.068 align:middle line:84%
And there's a lot of
reasons for that happening.

16:09.068 --> 16:10.485 align:middle line:84%
You have pressure
from regulators.

16:10.485 --> 16:14.700 align:middle line:84%
You have account
aggregation, competition,

16:14.700 --> 16:16.380 align:middle line:90%
passive investments.

16:16.380 --> 16:19.590 align:middle line:84%
There's a lot of reasons
that firms are seeing

16:19.590 --> 16:22.450 align:middle line:90%
greater pricing pressure.

16:22.450 --> 16:26.010 align:middle line:84%
And they are all
feeling the pinch.

16:26.010 --> 16:29.400 align:middle line:84%
All the providers that we talked
to from institutional asset

16:29.400 --> 16:34.230 align:middle line:84%
managers, to the private banks,
to retail asset managers,

16:34.230 --> 16:38.100 align:middle line:84%
to broker dealers,
everyone is under the gun,

16:38.100 --> 16:40.200 align:middle line:90%
and it's affecting margins.

16:40.200 --> 16:43.210 align:middle line:90%


16:43.210 --> 16:49.200 align:middle line:84%
So the fees really are a
sore spot for many investors.

16:49.200 --> 16:51.840 align:middle line:84%
And this came out
pretty loud and clear

16:51.840 --> 16:53.280 align:middle line:90%
when we did our study.

16:53.280 --> 16:57.570 align:middle line:84%
And many there were writing
questions and answers.

16:57.570 --> 17:00.870 align:middle line:84%
And many of them talked
about fees and structures

17:00.870 --> 17:03.540 align:middle line:90%
being daunting.

17:03.540 --> 17:09.869 align:middle line:84%
Only 37% said that they were
happy with their providers

17:09.869 --> 17:10.740 align:middle line:90%
fees.

17:10.740 --> 17:16.980 align:middle line:84%
And even fewer, ultra-high
net worth, said that.

17:16.980 --> 17:25.140 align:middle line:84%
And the same is true of fee
structures, not very popular.

17:25.140 --> 17:28.140 align:middle line:90%
Only 36% said they were happy.

17:28.140 --> 17:29.910 align:middle line:90%
And the number was higher--

17:29.910 --> 17:35.370 align:middle line:84%
was less I should say
for ultra-high net worth.

17:35.370 --> 17:37.020 align:middle line:84%
And then there
was other concerns

17:37.020 --> 17:40.500 align:middle line:84%
about not understanding
how wealth managers are

17:40.500 --> 17:43.950 align:middle line:84%
compensated, that they're
paying too much for transaction

17:43.950 --> 17:48.120 align:middle line:84%
services, and many other trends
that you can see on this slide.

17:48.120 --> 17:55.890 align:middle line:90%


17:55.890 --> 17:59.490 align:middle line:84%
Then finally there's the
sixth and final trend,

17:59.490 --> 18:02.010 align:middle line:84%
which really has to do
with switching providers.

18:02.010 --> 18:05.220 align:middle line:84%
Now one thing to keep in
mind is that about a third

18:05.220 --> 18:08.130 align:middle line:84%
of providers, a
third of investors

18:08.130 --> 18:12.160 align:middle line:84%
switched their providers
during the pandemic.

18:12.160 --> 18:18.630 align:middle line:84%
And when I say switch, I mean
they moved about at least 25%

18:18.630 --> 18:22.410 align:middle line:84%
of their investments to
a different provider.

18:22.410 --> 18:25.290 align:middle line:84%
Now over the next
two years, investors

18:25.290 --> 18:29.250 align:middle line:84%
have said that they
want to do more of that.

18:29.250 --> 18:34.560 align:middle line:84%
And it's actually going to
be a number closer to 44 that

18:34.560 --> 18:36.110 align:middle line:90%
are planning to switch funds.

18:36.110 --> 18:38.850 align:middle line:84%
So there's going to
be a lot of activity

18:38.850 --> 18:46.950 align:middle line:84%
over the next few years as
folks decide to move funds

18:46.950 --> 18:48.570 align:middle line:84%
to different
institutions, which can

18:48.570 --> 18:52.500 align:middle line:84%
be either an opportunity
or a problem,

18:52.500 --> 18:54.660 align:middle line:90%
depending on where you fall.

18:54.660 --> 18:57.180 align:middle line:84%
But one thing I want
to leave you with

18:57.180 --> 19:01.380 align:middle line:84%
is when we went into this study,
there was a lot of thought

19:01.380 --> 19:05.820 align:middle line:84%
that investors wanted
to consolidate accounts.

19:05.820 --> 19:09.930 align:middle line:84%
And that could be a way that
some big institutions could

19:09.930 --> 19:15.180 align:middle line:84%
really gain a more
profitable relationship with,

19:15.180 --> 19:19.048 align:middle line:84%
an investor that they would
be able to consolidate more

19:19.048 --> 19:21.090 align:middle line:84%
of the business, but it
looks like investors want

19:21.090 --> 19:22.890 align:middle line:90%
to go the opposite direction.

19:22.890 --> 19:28.150 align:middle line:84%
They'd rather add providers
than consolidate them,

19:28.150 --> 19:29.730 align:middle line:84%
and they're doing
that because they

19:29.730 --> 19:33.000 align:middle line:84%
want to get more
products and services.

19:33.000 --> 19:39.390 align:middle line:84%
They're moving into more
areas for meeting their wealth

19:39.390 --> 19:41.590 align:middle line:90%
management advisory needs.

19:41.590 --> 19:48.660 align:middle line:84%
And so there's this movement to
go to more, rather than less.

19:48.660 --> 19:51.150 align:middle line:84%
That might affect the market
over the next few years.

19:51.150 --> 19:52.650 align:middle line:84%
So I'm going to
leave you with that.

19:52.650 --> 19:55.980 align:middle line:90%


19:55.980 --> 19:57.330 align:middle line:90%
Thank you.

19:57.330 --> 19:59.490 align:middle line:84%
All right, thank
you very much, Lou,

19:59.490 --> 20:03.780 align:middle line:84%
for setting the scene
and your presentation.

20:03.780 --> 20:08.070 align:middle line:84%
We're going to move to
the panel discussion.

20:08.070 --> 20:10.920 align:middle line:84%
And we're going to cover
a number of the points

20:10.920 --> 20:13.820 align:middle line:84%
that you highlighted
to get the perspective

20:13.820 --> 20:17.310 align:middle line:90%
of our different panel members.

20:17.310 --> 20:19.920 align:middle line:84%
And before moving
into that, I think

20:19.920 --> 20:24.120 align:middle line:84%
it'd be interesting to get
the perspective of the panel

20:24.120 --> 20:26.160 align:middle line:84%
members here,
particularly in terms

20:26.160 --> 20:28.840 align:middle line:84%
of the performance
in the market.

20:28.840 --> 20:33.870 align:middle line:84%
I think it's fair to say that
over the last 12 to 18 months

20:33.870 --> 20:36.990 align:middle line:84%
wealth management firms
across geographies

20:36.990 --> 20:39.610 align:middle line:90%
have posted very good results.

20:39.610 --> 20:45.150 align:middle line:84%
And this was obviously fueled by
booming equity markets, record

20:45.150 --> 20:48.150 align:middle line:90%
savings due to the pandemic.

20:48.150 --> 20:53.730 align:middle line:84%
Strong money inflows
was also a contributor.

20:53.730 --> 20:59.380 align:middle line:84%
That said, more recently, stock
markets have been challenged.

20:59.380 --> 21:02.290 align:middle line:84%
They've stagnated, or
there was some corrections.

21:02.290 --> 21:07.010 align:middle line:84%
There's obviously soaring
inflation in the US

21:07.010 --> 21:09.530 align:middle line:90%
and also in Europe.

21:09.530 --> 21:12.380 align:middle line:84%
Supply chains are
being challenged.

21:12.380 --> 21:16.550 align:middle line:84%
There is also interest rate
hikes, interest rate hikes

21:16.550 --> 21:18.200 align:middle line:90%
on the horizon.

21:18.200 --> 21:20.690 align:middle line:84%
And there's obviously
geopolitical tension

21:20.690 --> 21:23.690 align:middle line:84%
and the war in
Ukraine and in Europe.

21:23.690 --> 21:27.980 align:middle line:90%
So quite a different landscape.

21:27.980 --> 21:30.110 align:middle line:84%
And the question I
had for the panel

21:30.110 --> 21:34.010 align:middle line:84%
members is, how do you
cope with these challenges?

21:34.010 --> 21:36.710 align:middle line:84%
And what are the main
areas you see growth,

21:36.710 --> 21:42.190 align:middle line:84%
both for your organization
and for the broader industry?

21:42.190 --> 21:46.100 align:middle line:84%
I don't know who would want
to take that question first.

21:46.100 --> 21:49.260 align:middle line:90%
Michel, Ryan.

21:49.260 --> 21:53.310 align:middle line:90%
I can start if you want.

21:53.310 --> 21:54.560 align:middle line:90%
Good afternoon.

21:54.560 --> 21:56.560 align:middle line:90%
For me, it's afternoon.

21:56.560 --> 21:58.290 align:middle line:90%
Good afternoon to everybody.

21:58.290 --> 22:04.430 align:middle line:84%
I think, Jean-Francois,
you highlighted the year

22:04.430 --> 22:08.460 align:middle line:84%
2021 has been exceptional
I think for the industry,

22:08.460 --> 22:12.270 align:middle line:84%
in particular with this
very strong savings effect,

22:12.270 --> 22:18.120 align:middle line:84%
very high transaction levels,
M&A transactions, real estate,

22:18.120 --> 22:20.610 align:middle line:84%
everything supported
by central banks,

22:20.610 --> 22:25.010 align:middle line:84%
and the fact that the
actual impact of COVID

22:25.010 --> 22:28.680 align:middle line:84%
was less on the economy than
we thought at the beginning.

22:28.680 --> 22:31.110 align:middle line:84%
So that was a very
positive trend.

22:31.110 --> 22:35.040 align:middle line:84%
I think the major
change is inflation more

22:35.040 --> 22:36.150 align:middle line:90%
than anything else.

22:36.150 --> 22:37.950 align:middle line:84%
I think the perspective
of inflation

22:37.950 --> 22:42.090 align:middle line:84%
on the change of trend
in interest rates

22:42.090 --> 22:49.140 align:middle line:84%
and what it means in terms of
actual capacity to save money

22:49.140 --> 22:51.060 align:middle line:90%
is major.

22:51.060 --> 22:54.820 align:middle line:84%
And I think it's clearly a very
big challenge for our industry,

22:54.820 --> 22:59.790 align:middle line:84%
which has been used to manage
assets in the last 20 years

22:59.790 --> 23:03.660 align:middle line:84%
at least without inflation
with the capacity

23:03.660 --> 23:10.740 align:middle line:84%
to offer performance yield,
which were almost constantly

23:10.740 --> 23:12.360 align:middle line:90%
above inflation.

23:12.360 --> 23:14.250 align:middle line:84%
Today, the biggest
challenge for our industry

23:14.250 --> 23:21.750 align:middle line:84%
is to continue to offer higher
performance than inflation,

23:21.750 --> 23:26.580 align:middle line:84%
which in the current type
of interest rate environment

23:26.580 --> 23:27.650 align:middle line:90%
is not very obvious.

23:27.650 --> 23:31.210 align:middle line:84%
So we have an asset class,
which are essentially

23:31.210 --> 23:34.590 align:middle line:84%
in the offering and asset
allocation of private banking,

23:34.590 --> 23:38.710 align:middle line:84%
particular fixed income,
which is in partial debt.

23:38.710 --> 23:43.390 align:middle line:84%
So I think that's the
clearest challenge for me.

23:43.390 --> 23:46.240 align:middle line:84%
Well, Jean-Francois,
I'll jump in and just

23:46.240 --> 23:50.710 align:middle line:84%
to provide some context
on all my remarks.

23:50.710 --> 23:56.440 align:middle line:84%
The firm I work for, Baird,
manages about $250 billion

23:56.440 --> 23:59.140 align:middle line:84%
in individual client
assets separate

23:59.140 --> 24:01.510 align:middle line:84%
and apart from
institutional all of the US.

24:01.510 --> 24:04.850 align:middle line:84%
These are all US national
individual investors.

24:04.850 --> 24:08.380 align:middle line:84%
So that's the perspective
in that business.

24:08.380 --> 24:12.640 align:middle line:84%
I would just point out that,
yes, the market tailwinds

24:12.640 --> 24:16.810 align:middle line:84%
of the last several
years have been offset

24:16.810 --> 24:22.870 align:middle line:84%
by headwinds related to
low short-term interest

24:22.870 --> 24:24.640 align:middle line:90%
rates in the US.

24:24.640 --> 24:29.620 align:middle line:84%
The business model consists
of sweeping client cash

24:29.620 --> 24:33.700 align:middle line:84%
into primarily bank
deposit accounts.

24:33.700 --> 24:39.820 align:middle line:84%
And that is traditionally
a product category,

24:39.820 --> 24:44.230 align:middle line:84%
where advisors are not
compensated for client

24:44.230 --> 24:46.150 align:middle line:90%
cash in those deposit accounts.

24:46.150 --> 24:48.910 align:middle line:84%
And, therefore, any
revenues generated

24:48.910 --> 24:52.690 align:middle line:84%
drop to the bottom line
is a huge contributor

24:52.690 --> 24:55.630 align:middle line:84%
to wealth management
profitability in the US.

24:55.630 --> 24:58.360 align:middle line:84%
That disappeared in
the wake of COVID.

24:58.360 --> 25:02.780 align:middle line:84%
So we've had the return
of higher interest rates,

25:02.780 --> 25:04.960 align:middle line:84%
particularly at the
short end is actually

25:04.960 --> 25:09.040 align:middle line:84%
a harbinger of improved
profitability contribution

25:09.040 --> 25:09.920 align:middle line:90%
from that sector.

25:09.920 --> 25:11.740 align:middle line:90%
So that's one thing I would say.

25:11.740 --> 25:14.650 align:middle line:84%
The second thing,
again, US perspective

25:14.650 --> 25:18.340 align:middle line:84%
is just what's going on in
the US, if you look at it,

25:18.340 --> 25:24.340 align:middle line:84%
is a migration of advisors a
net outflow from larger banks

25:24.340 --> 25:28.090 align:middle line:84%
and what we call wire houses,
the Morgan Stanleys, UBS

25:28.090 --> 25:29.710 align:middle line:90%
Americas--

25:29.710 --> 25:34.880 align:middle line:84%
due respect-- Wells Fargo
into several channels.

25:34.880 --> 25:41.050 align:middle line:84%
One is independent channels,
where the advisors and teams

25:41.050 --> 25:44.290 align:middle line:84%
are incorporated as
their own businesses

25:44.290 --> 25:50.540 align:middle line:84%
and then plug into platforms
and smaller regional broker

25:50.540 --> 25:52.880 align:middle line:84%
dealers, such as
the firm I work for.

25:52.880 --> 25:55.940 align:middle line:84%
So in the US for my
firm, a source of growth

25:55.940 --> 26:00.650 align:middle line:84%
is simply to stand in front
of that flow of advisors

26:00.650 --> 26:04.910 align:middle line:84%
and make the case for why our
platform and our business model

26:04.910 --> 26:07.830 align:middle line:84%
should be where they
move their practices.

26:07.830 --> 26:13.455 align:middle line:84%
So just a couple of perspectives
from the US for participants.

26:13.455 --> 26:14.330 align:middle line:90%
That's helpful, John.

26:14.330 --> 26:17.150 align:middle line:84%
I think, Ryan, you wanted
to also provide maybe

26:17.150 --> 26:19.720 align:middle line:90%
the Canadian perspective, no?

26:19.720 --> 26:20.220 align:middle line:90%
Good.

26:20.220 --> 26:21.223 align:middle line:90%
Thanks Jean-Francois.

26:21.223 --> 26:23.140 align:middle line:84%
And good morning and
good afternoon, everyone.

26:23.140 --> 26:25.740 align:middle line:84%
I'll just build
on John's comments

26:25.740 --> 26:28.420 align:middle line:84%
in terms of sharing a little
perspective for TD Bank.

26:28.420 --> 26:30.000 align:middle line:90%
We're a North American bank.

26:30.000 --> 26:31.830 align:middle line:84%
We would rank in the
top eight in the US,

26:31.830 --> 26:34.920 align:middle line:84%
but I'm responsible for leading
our advice business here

26:34.920 --> 26:36.180 align:middle line:90%
in Canada.

26:36.180 --> 26:39.010 align:middle line:84%
We have the largest direct
investing business in Canada.

26:39.010 --> 26:41.280 align:middle line:84%
Our advice business
would focus mass affluent

26:41.280 --> 26:43.950 align:middle line:84%
right up to ultra-high net
worth with a family office.

26:43.950 --> 26:46.140 align:middle line:84%
So from a Canadian
perspective, I

26:46.140 --> 26:49.830 align:middle line:84%
won't repeat some of the
comments on market factors.

26:49.830 --> 26:52.440 align:middle line:84%
What I will share is if you
look in the Canadian context

26:52.440 --> 26:56.400 align:middle line:84%
in terms of growth opportunity,
we are a story of immigration.

26:56.400 --> 27:00.030 align:middle line:84%
Some of the most significant
growth over the past 10, 20

27:00.030 --> 27:01.920 align:middle line:84%
years in Canada
have been the result

27:01.920 --> 27:05.958 align:middle line:84%
of Canada attracting strong
immigration opportunities

27:05.958 --> 27:08.250 align:middle line:84%
and working with families,
particularly in the high-net

27:08.250 --> 27:11.670 align:middle line:84%
worth space to build enterprise
and build success in Canada,

27:11.670 --> 27:14.760 align:middle line:84%
but also to continue
to leading their family

27:14.760 --> 27:16.010 align:middle line:90%
business internationally.

27:16.010 --> 27:19.260 align:middle line:84%
And so if I were to reflect on
where our strongest growth has

27:19.260 --> 27:21.050 align:middle line:84%
been and I would say
will continue to be,

27:21.050 --> 27:23.730 align:middle line:84%
it's really working
with our family clients

27:23.730 --> 27:27.330 align:middle line:84%
to bring a full experience in
terms of balance sheet to them.

27:27.330 --> 27:29.430 align:middle line:84%
Our business model,
not unlike many

27:29.430 --> 27:31.080 align:middle line:84%
of the others on
the panel, would

27:31.080 --> 27:34.872 align:middle line:84%
be to certainly lead with
portfolio construction,

27:34.872 --> 27:36.330 align:middle line:84%
but we're also very
much interested

27:36.330 --> 27:39.730 align:middle line:84%
in looking at cash servicing
and debt financing,

27:39.730 --> 27:43.360 align:middle line:84%
but also, I would say the
overall planning discussion.

27:43.360 --> 27:45.072 align:middle line:84%
And one of the
biggest opportunities

27:45.072 --> 27:46.530 align:middle line:84%
I would see in
Canada, I think this

27:46.530 --> 27:48.197 align:middle line:84%
would be true for
many of the panelists,

27:48.197 --> 27:50.010 align:middle line:84%
is if you look at just
demographic shift,

27:50.010 --> 27:54.330 align:middle line:84%
we are seeing more of our female
clients are inheriting wealth,

27:54.330 --> 27:57.120 align:middle line:84%
are creating wealth, and
that our market has typically

27:57.120 --> 27:57.930 align:middle line:90%
underserved them.

27:57.930 --> 28:00.630 align:middle line:84%
And so appointed part
of our growth strategy

28:00.630 --> 28:02.700 align:middle line:84%
would actually be
to really target

28:02.700 --> 28:04.920 align:middle line:84%
female entrepreneurs in
the Canadian landscape

28:04.920 --> 28:07.560 align:middle line:84%
to ensure that we are
meeting their needs

28:07.560 --> 28:11.580 align:middle line:84%
and building their
story with them.

28:11.580 --> 28:12.080 align:middle line:90%
Very good.

28:12.080 --> 28:14.960 align:middle line:84%
Andreas, did you want to
provide the perspective

28:14.960 --> 28:20.770 align:middle line:84%
from UBS, which is perhaps
more a global perspective, no?

28:20.770 --> 28:25.540 align:middle line:84%
Yeah, and good afternoon,
good morning, everybody.

28:25.540 --> 28:27.880 align:middle line:90%
Many things were said already.

28:27.880 --> 28:30.020 align:middle line:90%
So let me say the following.

28:30.020 --> 28:33.310 align:middle line:84%
It is actually, I would say,
very complicated at the moment

28:33.310 --> 28:37.870 align:middle line:84%
to give the right advice,
where things go and what to do.

28:37.870 --> 28:40.690 align:middle line:84%
Clearly, for us,
what is important is

28:40.690 --> 28:43.430 align:middle line:84%
to stay very close to
our clients these days,

28:43.430 --> 28:49.150 align:middle line:84%
which means you have
to have the experts.

28:49.150 --> 28:54.940 align:middle line:84%
I agree that we see also some
shifts into intermediaries

28:54.940 --> 28:57.740 align:middle line:84%
as it was described, but
I think most importantly,

28:57.740 --> 28:59.830 align:middle line:84%
you need to have
now good advice.

28:59.830 --> 29:02.140 align:middle line:84%
I think that's also
probably very interesting

29:02.140 --> 29:04.870 align:middle line:84%
when we discuss later on
how to use digital channels

29:04.870 --> 29:08.800 align:middle line:84%
and how to link the
direct digital line

29:08.800 --> 29:11.890 align:middle line:84%
or channel to obviously
the human-based advice.

29:11.890 --> 29:16.840 align:middle line:84%
But at the moment,
expertise is really key.

29:16.840 --> 29:20.020 align:middle line:84%
Basically on a day-to-day
basis, that's what we try to do.

29:20.020 --> 29:21.940 align:middle line:84%
We provide through
our house view

29:21.940 --> 29:23.980 align:middle line:84%
and through our
experts every day

29:23.980 --> 29:26.950 align:middle line:84%
a view to our clients to
really stay on course.

29:26.950 --> 29:28.570 align:middle line:84%
That's the only thing
I wanted to add.

29:28.570 --> 29:33.010 align:middle line:84%
Other things have been
said by my colleagues.

29:33.010 --> 29:34.510 align:middle line:90%
Thank you, Andreas.

29:34.510 --> 29:37.800 align:middle line:84%
We're going to thank you all,
the four of you for that,

29:37.800 --> 29:39.050 align:middle line:90%
answering that first question.

29:39.050 --> 29:41.260 align:middle line:84%
We're going to move
now to the trends that

29:41.260 --> 29:42.880 align:middle line:90%
have been highlighted by Lou.

29:42.880 --> 29:46.060 align:middle line:84%
And I'd like to go to
the first one, which

29:46.060 --> 29:49.360 align:middle line:90%
was the shift to digital.

29:49.360 --> 29:52.870 align:middle line:84%
Obviously, COVID has
accelerated the digital adoption

29:52.870 --> 29:58.960 align:middle line:84%
and the shift to digital is
significantly wealth managers

29:58.960 --> 30:02.650 align:middle line:84%
and how they interact
with their clients

30:02.650 --> 30:06.130 align:middle line:90%
as the survey has revealed.

30:06.130 --> 30:08.920 align:middle line:84%
Digital client
engagement is becoming--

30:08.920 --> 30:12.010 align:middle line:90%
is increasing very fast.

30:12.010 --> 30:16.030 align:middle line:84%
Mobile investing also
almost has become the norm.

30:16.030 --> 30:18.640 align:middle line:84%
So the question to
you is, where do you

30:18.640 --> 30:22.930 align:middle line:84%
see digitalization going
in wealth management, which

30:22.930 --> 30:27.010 align:middle line:84%
is at the end of the
day, a business of people

30:27.010 --> 30:30.370 align:middle line:84%
based on trust and
personal relationships?

30:30.370 --> 30:33.370 align:middle line:84%
And, perhaps, I don't
know, Andreas, you're the--

30:33.370 --> 30:35.770 align:middle line:84%
I'm sure you're facing
that question every day

30:35.770 --> 30:39.490 align:middle line:84%
from your relationship
managers who are asking you

30:39.490 --> 30:41.740 align:middle line:84%
the new recent
tool that you need

30:41.740 --> 30:45.233 align:middle line:84%
to be developing to
make them more efficient

30:45.233 --> 30:46.900 align:middle line:84%
and how they interact
with their client.

30:46.900 --> 30:50.485 align:middle line:84%
But how at UBS do you
do you deal with that?

30:50.485 --> 30:53.530 align:middle line:90%


30:53.530 --> 30:56.270 align:middle line:84%
I think I can speak
quite some time about it.

30:56.270 --> 30:59.650 align:middle line:84%
I'll try to stay
afloat with some facts,

30:59.650 --> 31:02.170 align:middle line:84%
and then maybe you can
ask further questions.

31:02.170 --> 31:06.070 align:middle line:84%
But obviously, first
of all, I think

31:06.070 --> 31:10.030 align:middle line:84%
it's known that the
client's we have

31:10.030 --> 31:11.620 align:middle line:84%
and others have in
wealth management

31:11.620 --> 31:14.530 align:middle line:90%
are a relatively old.

31:14.530 --> 31:18.610 align:middle line:84%
The average age is still in the
50s, 60s depending on the firm,

31:18.610 --> 31:20.650 align:middle line:84%
but the young
generation is coming.

31:20.650 --> 31:22.930 align:middle line:90%
So there is a need for change.

31:22.930 --> 31:25.420 align:middle line:84%
And clearly what
we are doing now

31:25.420 --> 31:29.380 align:middle line:84%
is we have to divide into
the ones who want to go

31:29.380 --> 31:31.610 align:middle line:90%
as we call it digital first.

31:31.610 --> 31:35.290 align:middle line:84%
So they want to have the
first contact, the onboarding,

31:35.290 --> 31:36.400 align:middle line:90%
and everything digital.

31:36.400 --> 31:38.710 align:middle line:84%
So they basically have
their mobile phones,

31:38.710 --> 31:40.120 align:middle line:90%
and they want to connect.

31:40.120 --> 31:43.270 align:middle line:84%
And then you have the
others who want to--

31:43.270 --> 31:45.970 align:middle line:84%
I would call it digital
with human advice.

31:45.970 --> 31:50.450 align:middle line:84%
So they want to use digital
tools, but at the same time,

31:50.450 --> 31:53.230 align:middle line:84%
they want to have a contact,
a person someone they

31:53.230 --> 31:57.100 align:middle line:84%
can speak to, a
person they can trust,

31:57.100 --> 31:59.410 align:middle line:90%
to really engage and discuss.

31:59.410 --> 32:03.100 align:middle line:84%
And then I would say there's
the third tier or the third part

32:03.100 --> 32:06.010 align:middle line:84%
of our clients, where
it is really bespoke,

32:06.010 --> 32:08.830 align:middle line:84%
and I would say the traditional
model of having a client

32:08.830 --> 32:10.570 align:middle line:84%
advisor, or
relationship manager,

32:10.570 --> 32:15.670 align:middle line:84%
or financial advisor directly
linked to the clients

32:15.670 --> 32:18.580 align:middle line:84%
is the key model, more
bespoke solutions,

32:18.580 --> 32:21.070 align:middle line:90%
more complex solutions then.

32:21.070 --> 32:25.090 align:middle line:84%
We try to develop an operating
model and a business model that

32:25.090 --> 32:29.590 align:middle line:90%
caters for all three segments.

32:29.590 --> 32:31.240 align:middle line:90%
The segments overlap clearly.

32:31.240 --> 32:33.880 align:middle line:84%
So it's not very
much delineated.

32:33.880 --> 32:37.840 align:middle line:84%
So you have the very
rich clients also wanting

32:37.840 --> 32:40.360 align:middle line:84%
very digital and
typekit solutions.

32:40.360 --> 32:44.140 align:middle line:84%
So it's quite a complicated
effort to get this right.

32:44.140 --> 32:47.440 align:middle line:84%
It's lots of investments
that everybody knows,

32:47.440 --> 32:49.960 align:middle line:84%
but it's clearly something
that we have to do,

32:49.960 --> 32:52.750 align:middle line:84%
because I started with
the age of-- average age

32:52.750 --> 32:53.920 align:middle line:90%
of our clients.

32:53.920 --> 32:58.540 align:middle line:84%
Now like 40%, 50%
of the new clients

32:58.540 --> 33:02.830 align:middle line:84%
come from the new generation
from the millennials and after.

33:02.830 --> 33:07.060 align:middle line:84%
And clearly, they will not
go only the traditional way

33:07.060 --> 33:08.120 align:middle line:90%
any longer.

33:08.120 --> 33:10.750 align:middle line:90%
So let me pause here.

33:10.750 --> 33:13.810 align:middle line:84%
And my colleagues may
want to add something,

33:13.810 --> 33:16.400 align:middle line:84%
but I I'm happy
to go deeper also

33:16.400 --> 33:19.540 align:middle line:90%
what we do in various areas.

33:19.540 --> 33:22.210 align:middle line:84%
Well, in his earlier
remarks Andreas

33:22.210 --> 33:25.150 align:middle line:84%
talked about starting
with a client.

33:25.150 --> 33:30.820 align:middle line:84%
And there's a woman who founded
a compliance system in the US.

33:30.820 --> 33:34.000 align:middle line:84%
Her name is Clara
Shih, and she wrote

33:34.000 --> 33:36.760 align:middle line:84%
a book called The Omnichannel
Advisor, where really

33:36.760 --> 33:43.240 align:middle line:84%
the concept is that you need
to meet the client where

33:43.240 --> 33:45.510 align:middle line:90%
they want you to meet them.

33:45.510 --> 33:46.960 align:middle line:90%
It doesn't matter what you want.

33:46.960 --> 33:48.460 align:middle line:84%
It matters what
the client wants.

33:48.460 --> 33:51.160 align:middle line:84%
And that's very
true right now when

33:51.160 --> 33:56.050 align:middle line:84%
it comes to the delivery
of and accessibility

33:56.050 --> 33:57.670 align:middle line:90%
of wealth management advice.

33:57.670 --> 34:03.580 align:middle line:84%
Some people are still only
want an in-person model.

34:03.580 --> 34:07.030 align:middle line:84%
We have clients who want
paper statements sent to them.

34:07.030 --> 34:08.800 align:middle line:84%
They're afraid--
well, you laugh,

34:08.800 --> 34:13.060 align:middle line:84%
but they're afraid of in the
case of a cyber meltdown,

34:13.060 --> 34:16.030 align:middle line:84%
they want a record
of what they own.

34:16.030 --> 34:17.797 align:middle line:90%
And everything is digital now.

34:17.797 --> 34:18.880 align:middle line:90%
So where do you have that?

34:18.880 --> 34:21.850 align:middle line:84%
You have it in a paper
file in your desk.

34:21.850 --> 34:24.670 align:middle line:84%
We have folks that
want to communicate

34:24.670 --> 34:28.639 align:middle line:84%
via social media, all the
different channels email,

34:28.639 --> 34:31.040 align:middle line:90%
phone, video, you name it.

34:31.040 --> 34:34.750 align:middle line:84%
And so her notion is that the
advisor of the future of today

34:34.750 --> 34:36.639 align:middle line:84%
actually needs to
be omnichannel,

34:36.639 --> 34:39.850 align:middle line:84%
needs to be able to communicate
with clients, including

34:39.850 --> 34:43.000 align:middle line:84%
through a hybrid model,
maybe once a year meet

34:43.000 --> 34:46.909 align:middle line:84%
in person, and the rest all
digital one way or another.

34:46.909 --> 34:49.600 align:middle line:84%
So I think it's
evolving, but it's

34:49.600 --> 34:53.320 align:middle line:84%
got to be a customized advice,
delivery, and communication

34:53.320 --> 34:55.600 align:middle line:84%
strategy for every client,
because every client

34:55.600 --> 35:01.220 align:middle line:84%
in this regard, as in many
regards, is different.

35:01.220 --> 35:04.950 align:middle line:84%
Yeah, maybe one
word, I fully agree.

35:04.950 --> 35:08.420 align:middle line:84%
I think we have a more
traditional and more European

35:08.420 --> 35:11.630 align:middle line:84%
client base, but as we said
before, the average age is not

35:11.630 --> 35:15.230 align:middle line:90%
moving that much honestly.

35:15.230 --> 35:18.380 align:middle line:84%
And the older you get,
the richer you get, which

35:18.380 --> 35:21.320 align:middle line:90%
is a rule in our business.

35:21.320 --> 35:23.420 align:middle line:84%
But globally, I
think the digital

35:23.420 --> 35:28.100 align:middle line:84%
for me is a tool for the
advice is not the only link.

35:28.100 --> 35:31.040 align:middle line:84%
And as Andreas was saying,
there are different categories

35:31.040 --> 35:36.620 align:middle line:84%
of users, but clearly it's a
major tool to an hybrid way

35:36.620 --> 35:41.840 align:middle line:84%
to advise that it has to stay
as a tool and not the only way

35:41.840 --> 35:43.640 align:middle line:90%
to interact with clients.

35:43.640 --> 35:46.730 align:middle line:84%
But in some cases,
and I want to mention

35:46.730 --> 35:49.940 align:middle line:84%
that just for one
anecdote, I had

35:49.940 --> 35:54.210 align:middle line:84%
this morning of an official
complaint from a former client,

35:54.210 --> 35:57.650 align:middle line:84%
the a lady of 85 years
old was complaining

35:57.650 --> 36:02.720 align:middle line:84%
against the relationship manager
because he self-censored,

36:02.720 --> 36:05.780 align:middle line:84%
did not offer the digital
access because she was 85.

36:05.780 --> 36:10.520 align:middle line:84%
So you see that any category
of clients and any age

36:10.520 --> 36:16.330 align:middle line:84%
should be offered, because
today it is standard.

36:16.330 --> 36:17.580 align:middle line:90%
I think Ryan--

36:17.580 --> 36:18.150 align:middle line:90%
Oh, sorry.

36:18.150 --> 36:18.930 align:middle line:90%
Excuse me.

36:18.930 --> 36:21.450 align:middle line:84%
I think Ryan wanted to react
to this, if you don't mind,

36:21.450 --> 36:22.127 align:middle line:90%
Andreas.

36:22.127 --> 36:22.710 align:middle line:90%
No, no, sorry.

36:22.710 --> 36:24.207 align:middle line:90%
Go ahead.

36:24.207 --> 36:26.040 align:middle line:84%
I would just build on
a few of the comments.

36:26.040 --> 36:28.470 align:middle line:84%
I think you have to treat
digital not as a channel,

36:28.470 --> 36:30.640 align:middle line:84%
but as an overall part
of the experience.

36:30.640 --> 36:34.440 align:middle line:84%
So at TD, our perspective
would be digital.

36:34.440 --> 36:37.440 align:middle line:84%
And particularly mobile-based,
actually allows the advisor

36:37.440 --> 36:40.050 align:middle line:84%
to extend their practice
out to the client on a more

36:40.050 --> 36:40.980 align:middle line:90%
dynamic fashion.

36:40.980 --> 36:43.020 align:middle line:84%
And so what we're
looking at is moving away

36:43.020 --> 36:45.750 align:middle line:84%
from a trading access
or let me go and see

36:45.750 --> 36:49.350 align:middle line:84%
my balances to let me interact
with my financial plan.

36:49.350 --> 36:51.900 align:middle line:84%
Let me actually access
my financial planning

36:51.900 --> 36:55.200 align:middle line:84%
at 11 o'clock at night when
the kids are in bed or work

36:55.200 --> 36:57.750 align:middle line:84%
is finally done, if I
want to revisit some

36:57.750 --> 36:59.400 align:middle line:84%
of the assumptions
I've made and think

36:59.400 --> 37:03.240 align:middle line:84%
about buying that cottage,
or potentially gifting

37:03.240 --> 37:07.205 align:middle line:84%
to my favorite charity,
we want our clients

37:07.205 --> 37:09.330 align:middle line:84%
to feel that they're
empowered to ask that question

37:09.330 --> 37:11.310 align:middle line:84%
and interact with
their plan digitally.

37:11.310 --> 37:14.610 align:middle line:84%
That needs to then carry through
the next morning to the advisor

37:14.610 --> 37:16.680 align:middle line:84%
so the advisor when she
goes in in the morning

37:16.680 --> 37:19.387 align:middle line:84%
can see that client was
interacting with their plan,

37:19.387 --> 37:20.220 align:middle line:90%
I need to call them.

37:20.220 --> 37:22.020 align:middle line:84%
And that should drive
a service model.

37:22.020 --> 37:24.180 align:middle line:84%
And I think to the
point on, and we'll

37:24.180 --> 37:27.780 align:middle line:84%
get to it later in the panel,
if you look at fees, if we can

37:27.780 --> 37:30.060 align:middle line:84%
marry digital and allow
the clients to feel they're

37:30.060 --> 37:32.313 align:middle line:84%
actually driving the
relationship through digital,

37:32.313 --> 37:34.230 align:middle line:84%
but they still have the
benefit of the advisor

37:34.230 --> 37:36.690 align:middle line:84%
for the big decisions,
the big advice moments,

37:36.690 --> 37:40.290 align:middle line:84%
I think that sense of
value becomes much more

37:40.290 --> 37:42.330 align:middle line:84%
evident to the client
on a regular basis,

37:42.330 --> 37:45.450 align:middle line:84%
rather than once a quarter or
once a year when you sit down

37:45.450 --> 37:47.190 align:middle line:90%
and have a formal annual review.

37:47.190 --> 37:49.050 align:middle line:84%
So we would say
that we do digital

37:49.050 --> 37:51.240 align:middle line:84%
actually as a great
enabler for the business.

37:51.240 --> 37:53.310 align:middle line:84%
And it offers us a
chance to take value

37:53.310 --> 37:55.860 align:middle line:84%
to a different level of
activity with our clients.

37:55.860 --> 37:58.890 align:middle line:90%


37:58.890 --> 38:01.050 align:middle line:84%
Andreas, you wanted to
say something before.

38:01.050 --> 38:03.570 align:middle line:84%
Yeah, I just wanted to add
a quick data point, which

38:03.570 --> 38:08.820 align:middle line:84%
might be very interesting and
must be similar in other banks,

38:08.820 --> 38:12.900 align:middle line:84%
but in UBS, when we
look at our clients

38:12.900 --> 38:17.470 align:middle line:84%
is that 40% of our clients
are above the age of 65.

38:17.470 --> 38:21.300 align:middle line:84%
So they will actually transfer
their wealth within the next 10

38:21.300 --> 38:24.690 align:middle line:90%
years to their next generation.

38:24.690 --> 38:27.300 align:middle line:84%
And that means if we
do the calculation,

38:27.300 --> 38:31.980 align:middle line:84%
40% of our revenues if
are translated in revenues

38:31.980 --> 38:38.110 align:middle line:84%
will be in motion in
between now and 2030.

38:38.110 --> 38:41.460 align:middle line:84%
And that really means
we need to do something

38:41.460 --> 38:44.610 align:middle line:84%
to really address that big
portion of our revenues.

38:44.610 --> 38:47.790 align:middle line:84%
And that's I think why I
think on the one hand side

38:47.790 --> 38:52.290 align:middle line:84%
I respect obviously the client,
what he or she wants today,

38:52.290 --> 38:54.240 align:middle line:84%
but we need to think
about the ones that

38:54.240 --> 38:58.090 align:middle line:84%
take over the wealth
in the next 10 years.

38:58.090 --> 38:59.380 align:middle line:90%
OK, very good.

38:59.380 --> 39:00.500 align:middle line:90%
Thank you very much.

39:00.500 --> 39:03.580 align:middle line:84%
We're going to move on to
the second megatrend, which

39:03.580 --> 39:06.795 align:middle line:90%
is investing with purpose.

39:06.795 --> 39:08.170 align:middle line:84%
You know, obviously,
investing it

39:08.170 --> 39:10.060 align:middle line:84%
with purpose is
certainly, as we've

39:10.060 --> 39:15.040 align:middle line:84%
seen from the steady global,
the growing global trend,

39:15.040 --> 39:19.150 align:middle line:84%
lots of clients are now
asking to have a social impact

39:19.150 --> 39:21.400 align:middle line:90%
investing.

39:21.400 --> 39:25.930 align:middle line:84%
Clients are also expecting
that wealth management

39:25.930 --> 39:27.430 align:middle line:90%
meets the higher standards.

39:27.430 --> 39:30.760 align:middle line:84%
And obviously, the regulators
across the globe, the globe

39:30.760 --> 39:35.180 align:middle line:84%
are putting in
place ESG standards.

39:35.180 --> 39:39.290 align:middle line:84%
We've also seen in the study
that by contrast greenwashing

39:39.290 --> 39:42.260 align:middle line:84%
or commoditize ESG
labels no longer

39:42.260 --> 39:45.680 align:middle line:90%
work for sophisticated clients.

39:45.680 --> 39:49.250 align:middle line:84%
So I mean, the
question to you perhaps

39:49.250 --> 39:52.070 align:middle line:84%
is where do you see
opportunities and threats

39:52.070 --> 39:55.220 align:middle line:84%
in your organization to
build from the benefit

39:55.220 --> 39:56.900 align:middle line:90%
from sustainability.

39:56.900 --> 39:58.550 align:middle line:84%
And perhaps, Michel,
if I could ask

39:58.550 --> 40:03.080 align:middle line:84%
you to start with that, because
I know that at Rothschild

40:03.080 --> 40:06.380 align:middle line:84%
Environmental Impact
Investing has always

40:06.380 --> 40:08.300 align:middle line:84%
been at the heart of
the Rothschild family

40:08.300 --> 40:09.170 align:middle line:90%
for many years.

40:09.170 --> 40:12.630 align:middle line:84%
Would you mind
commenting on this?

40:12.630 --> 40:14.520 align:middle line:90%
Yes, yes.

40:14.520 --> 40:17.220 align:middle line:84%
I mean that for
us clearly this is

40:17.220 --> 40:22.170 align:middle line:84%
at the very center of
our offering for not only

40:22.170 --> 40:27.210 align:middle line:84%
since it has been a
trend, but the investment

40:27.210 --> 40:29.010 align:middle line:84%
from the Rothschild
Family, which

40:29.010 --> 40:35.070 align:middle line:84%
is the owner of the bank
on the non-profit or social

40:35.070 --> 40:40.390 align:middle line:84%
responsibility has been for
decades and even before.

40:40.390 --> 40:43.170 align:middle line:84%
And it was one of
the first family

40:43.170 --> 40:46.530 align:middle line:84%
to invest into very large
charity organization,

40:46.530 --> 40:49.957 align:middle line:84%
like free hospital
in France and so on.

40:49.957 --> 40:51.540 align:middle line:84%
So clearly, it's not
something that we

40:51.540 --> 40:53.320 align:middle line:90%
have discovered recently.

40:53.320 --> 40:56.400 align:middle line:84%
But I think the change
in trend is also linked

40:56.400 --> 40:58.350 align:middle line:90%
to the change in generation

40:58.350 --> 41:03.690 align:middle line:84%
Today, you can see people
where they have a big--

41:03.690 --> 41:05.310 align:middle line:90%
they have created a big wealth.

41:05.310 --> 41:10.110 align:middle line:84%
And their children or the people
who will inherit their wealth

41:10.110 --> 41:14.070 align:middle line:84%
will have a very, very
strong willingness

41:14.070 --> 41:19.270 align:middle line:84%
to be fully compliant with
this type of criteria.

41:19.270 --> 41:25.560 align:middle line:84%
So there is a big change in the
expectation from our clients,

41:25.560 --> 41:27.900 align:middle line:84%
in particular the
younger generation.

41:27.900 --> 41:30.720 align:middle line:84%
But on the other side and
as your study was showing,

41:30.720 --> 41:35.880 align:middle line:84%
I think it's not 100%
of the clients today.

41:35.880 --> 41:40.020 align:middle line:84%
I mean, they are a service
client experience performance,

41:40.020 --> 41:42.660 align:middle line:84%
which are still
the first criteria

41:42.660 --> 41:46.130 align:middle line:90%
to select the global advisor.

41:46.130 --> 41:50.700 align:middle line:84%
And I think you need to
organize so that you can serve

41:50.700 --> 41:53.740 align:middle line:84%
both the people
who are, let's say,

41:53.740 --> 41:59.400 align:middle line:84%
actually expecting a full
purpose-driven investment

41:59.400 --> 42:03.270 align:middle line:84%
and people who are more
and more conscious.

42:03.270 --> 42:06.960 align:middle line:84%
And obviously, we have a
very, very strong change,

42:06.960 --> 42:10.020 align:middle line:84%
which is the
regulators who are now

42:10.020 --> 42:15.210 align:middle line:84%
implementing with some
difficulty criteria

42:15.210 --> 42:19.020 align:middle line:90%
to define what ESG means.

42:19.020 --> 42:24.180 align:middle line:84%
And we have already seen that
ESG classification can become

42:24.180 --> 42:28.950 align:middle line:84%
an actual risk for certain
organization, which are perhaps

42:28.950 --> 42:33.070 align:middle line:84%
poorly defining it or
poorly implementing it.

42:33.070 --> 42:37.220 align:middle line:84%
So today, it becomes both a
risk from a regulatory point

42:37.220 --> 42:37.720 align:middle line:90%
of view.

42:37.720 --> 42:39.420 align:middle line:84%
It becomes an
opportunity for those

42:39.420 --> 42:44.070 align:middle line:84%
who have had a strong
commitment to this.

42:44.070 --> 42:51.000 align:middle line:84%
I think it will be clearly
defining the competition.

42:51.000 --> 42:53.310 align:middle line:84%
And today, when you
have, let's say,

42:53.310 --> 42:55.080 align:middle line:84%
for example, selection
criteria which

42:55.080 --> 42:58.980 align:middle line:84%
are in place, for
example, in Russia,

42:58.980 --> 43:04.320 align:middle line:84%
we have a proprietary
research in ESG, for example,

43:04.320 --> 43:06.280 align:middle line:84%
for rating for all
our investments

43:06.280 --> 43:09.070 align:middle line:90%
which is more than 10 years old.

43:09.070 --> 43:10.980 align:middle line:84%
And it means that
it's established.

43:10.980 --> 43:15.090 align:middle line:84%
It's part of the behavior of
our old firm with our fund

43:15.090 --> 43:16.020 align:middle line:90%
managers.

43:16.020 --> 43:18.280 align:middle line:84%
And that would
make a difference,

43:18.280 --> 43:22.110 align:middle line:84%
but I think the main-- we
have to look at both the risk,

43:22.110 --> 43:25.650 align:middle line:84%
because I think the
definition of ESG,

43:25.650 --> 43:28.710 align:middle line:84%
the risk of greenwashing
is very, very important

43:28.710 --> 43:29.280 align:middle line:90%
these days.

43:29.280 --> 43:31.830 align:middle line:84%
And it is becoming
a true and real risk

43:31.830 --> 43:33.900 align:middle line:84%
for the organizations,
because it

43:33.900 --> 43:37.110 align:middle line:84%
would become a criteria
for central banks

43:37.110 --> 43:40.281 align:middle line:84%
and for regulators to
monitor our activity.

43:40.281 --> 43:43.920 align:middle line:90%


43:43.920 --> 43:44.670 align:middle line:90%
Thank you, Michel.

43:44.670 --> 43:47.520 align:middle line:84%
Anybody else wants to
comment on the ESG?

43:47.520 --> 43:49.980 align:middle line:84%
Is that a topic in
the US and in Canada?

43:49.980 --> 43:53.290 align:middle line:84%
Is that big for
you, John and Ryan?

43:53.290 --> 43:54.780 align:middle line:90%
Yes and no, yes and no.

43:54.780 --> 44:01.020 align:middle line:84%
So we are behind,
a, Europe in the US.

44:01.020 --> 44:05.910 align:middle line:84%
Individual investors are behind
institutional investors who

44:05.910 --> 44:11.250 align:middle line:84%
where adoption in the
US is accelerating.

44:11.250 --> 44:14.760 align:middle line:84%
And at the individual
level, I would

44:14.760 --> 44:17.670 align:middle line:84%
say most of the need from a
wealth management perspective

44:17.670 --> 44:18.990 align:middle line:90%
is educational.

44:18.990 --> 44:20.340 align:middle line:90%
People have heard it.

44:20.340 --> 44:23.040 align:middle line:84%
They're confused,
the acronym soup,

44:23.040 --> 44:26.130 align:middle line:84%
the conflicting standards,
they read, they know.

44:26.130 --> 44:31.140 align:middle line:84%
And fundamentally, most
individual investors

44:31.140 --> 44:34.800 align:middle line:84%
we deal with have not
thought through the question,

44:34.800 --> 44:37.860 align:middle line:90%
what am I trying to accomplish?

44:37.860 --> 44:42.840 align:middle line:84%
In other words, if the
topic is aligning my values

44:42.840 --> 44:47.550 align:middle line:84%
with my investments or
values-based wealth management,

44:47.550 --> 44:49.810 align:middle line:84%
well, exactly what
are those values?

44:49.810 --> 44:51.990 align:middle line:84%
And what are you
trying to achieve

44:51.990 --> 44:56.400 align:middle line:84%
through one or more types of
socially responsible investing,

44:56.400 --> 45:01.470 align:middle line:84%
screening, ESG, impact and
all the different flavors

45:01.470 --> 45:02.440 align:middle line:90%
in between?

45:02.440 --> 45:06.390 align:middle line:84%
So it's an emerging
area of interest.

45:06.390 --> 45:10.170 align:middle line:84%
I would say it's five
years ahead of where crypto

45:10.170 --> 45:11.880 align:middle line:90%
decentralized finance's.

45:11.880 --> 45:13.158 align:middle line:90%
People are reading about it.

45:13.158 --> 45:13.950 align:middle line:90%
They're interested.

45:13.950 --> 45:16.320 align:middle line:84%
Their friends are talking
about it at cocktail parties,

45:16.320 --> 45:20.220 align:middle line:84%
but they haven't thought
through what it could or should

45:20.220 --> 45:21.150 align:middle line:90%
mean for them.

45:21.150 --> 45:27.010 align:middle line:84%
And that's the advice value
that we can help them with.

45:27.010 --> 45:28.450 align:middle line:84%
Ryan, you want to
comment on this?

45:28.450 --> 45:31.260 align:middle line:90%
How is it in Canada?

45:31.260 --> 45:33.840 align:middle line:84%
Similar to John's perspective,
I would say Canada

45:33.840 --> 45:36.930 align:middle line:84%
and the US are behind
Europe, I would say.

45:36.930 --> 45:39.360 align:middle line:90%
We're well past it being a fad.

45:39.360 --> 45:43.980 align:middle line:84%
Call it a trend or call
it just a fact stage.

45:43.980 --> 45:47.010 align:middle line:84%
We just completed a quantitative
research study with high-net

45:47.010 --> 45:48.180 align:middle line:90%
worth Canadian investors.

45:48.180 --> 45:52.260 align:middle line:84%
And just a couple stats that
stood out for us, less than 10%

45:52.260 --> 45:55.770 align:middle line:84%
of the respondents feel
that they are actively

45:55.770 --> 45:57.840 align:middle line:84%
investing in a
responsible manner

45:57.840 --> 45:59.490 align:middle line:90%
right now with ESG factors.

45:59.490 --> 46:01.080 align:middle line:84%
They may have bought
a product or two,

46:01.080 --> 46:04.290 align:middle line:84%
but they don't actually feel
that they have an ESG strategy

46:04.290 --> 46:05.940 align:middle line:90%
embedded in their portfolio.

46:05.940 --> 46:08.700 align:middle line:84%
Over 60% of the
respondents want to.

46:08.700 --> 46:12.030 align:middle line:84%
And so there's a gap between
desire and reality today.

46:12.030 --> 46:15.600 align:middle line:84%
What was telling for us was
over 70% of the respondents

46:15.600 --> 46:18.390 align:middle line:84%
said they don't
understand the topic.

46:18.390 --> 46:21.090 align:middle line:84%
They are cynical
about greenwashing.

46:21.090 --> 46:23.910 align:middle line:84%
To John's point,
they have a series

46:23.910 --> 46:26.370 align:middle line:84%
of motivations,
values based or impact

46:26.370 --> 46:28.450 align:middle line:90%
based or wanting to avoid risk.

46:28.450 --> 46:30.480 align:middle line:84%
And I think increasingly,
in Canada, the topic

46:30.480 --> 46:32.700 align:middle line:84%
is actually risk
mitigation, meaning

46:32.700 --> 46:34.650 align:middle line:84%
if you're investing
in a company that

46:34.650 --> 46:37.200 align:middle line:84%
is going to be
under ESG pressure

46:37.200 --> 46:38.910 align:middle line:84%
and falls on the
wrong side of that,

46:38.910 --> 46:40.432 align:middle line:84%
you may have risk
in your portfolio

46:40.432 --> 46:41.640 align:middle line:90%
you've not even contemplated.

46:41.640 --> 46:44.310 align:middle line:84%
So our view is there
is a need to start

46:44.310 --> 46:46.740 align:middle line:84%
with the basics of
education, both with advisors

46:46.740 --> 46:50.820 align:middle line:84%
and with clients, and then
to embed ESG or responsible

46:50.820 --> 46:53.190 align:middle line:84%
investing at an
overall portfolio level

46:53.190 --> 46:56.670 align:middle line:84%
and avoid the temptation
to sell product on this.

46:56.670 --> 46:59.510 align:middle line:90%


46:59.510 --> 47:03.430 align:middle line:84%
But maybe just one word, I mean,
to illustrate the difference as

47:03.430 --> 47:07.270 align:middle line:84%
of August in Europe,
we have a regulation

47:07.270 --> 47:12.610 align:middle line:84%
where we will have to
implement a new profile, ESG

47:12.610 --> 47:15.550 align:middle line:84%
profile for all
our clients, which

47:15.550 --> 47:18.730 align:middle line:84%
means that as of this
time, we will have

47:18.730 --> 47:21.130 align:middle line:90%
to take into account in any--

47:21.130 --> 47:25.450 align:middle line:84%
like we do for a risk of
the investment profile,

47:25.450 --> 47:29.660 align:middle line:84%
we will have the ESG profile
that we need to comply with.

47:29.660 --> 47:32.770 align:middle line:84%
So it actually means
that, in a way,

47:32.770 --> 47:34.780 align:middle line:84%
our regulators are
going to be ahead

47:34.780 --> 47:39.730 align:middle line:84%
of what the actually the clients
are able to do, as you said.

47:39.730 --> 47:44.440 align:middle line:84%
And I really agree in Europe,
the training and the education

47:44.440 --> 47:46.540 align:middle line:90%
is a key topic.

47:46.540 --> 47:49.630 align:middle line:84%
And let's start with
this, but regulators

47:49.630 --> 47:52.270 align:middle line:84%
are going very, very quickly
in the implementation.

47:52.270 --> 47:54.340 align:middle line:84%
Michel, you point
to a regulation.

47:54.340 --> 47:58.930 align:middle line:84%
In this area in the US, we've
been witness to and subject

47:58.930 --> 48:01.300 align:middle line:90%
to a regulatory whiplash.

48:01.300 --> 48:05.530 align:middle line:84%
So from Obama to
Trump to Biden now,

48:05.530 --> 48:09.820 align:middle line:84%
we've gone from permissive
to restrictive to now

48:09.820 --> 48:15.760 align:middle line:84%
almost required
ESG considerations

48:15.760 --> 48:17.650 align:middle line:90%
in the role of fiduciaries.

48:17.650 --> 48:21.550 align:middle line:84%
And so the US
financial institutions

48:21.550 --> 48:25.130 align:middle line:84%
are waiting for the
next shoe to stop--

48:25.130 --> 48:26.680 align:middle line:90%
drop.

48:26.680 --> 48:28.780 align:middle line:84%
It's a volatile
political environment.

48:28.780 --> 48:32.920 align:middle line:84%
And ESG is one of
the edge-wedge issues

48:32.920 --> 48:35.530 align:middle line:90%
in our political debates.

48:35.530 --> 48:42.460 align:middle line:84%
So it's confusing and hard to be
compliant with what the latest

48:42.460 --> 48:45.980 align:middle line:84%
rules are that we're
supposed to be following.

48:45.980 --> 48:46.670 align:middle line:90%
Very good.

48:46.670 --> 48:46.970 align:middle line:90%
Very good.

48:46.970 --> 48:47.300 align:middle line:90%
Thanks.

48:47.300 --> 48:47.840 align:middle line:90%
Thanks, John.

48:47.840 --> 48:49.090 align:middle line:90%
Thank you all for that answer.

48:49.090 --> 48:50.840 align:middle line:90%
I see that time is running.

48:50.840 --> 48:53.510 align:middle line:84%
And we've received-- I'd
like to go to all the trends,

48:53.510 --> 48:56.150 align:middle line:90%
but time is limited today.

48:56.150 --> 48:58.430 align:middle line:84%
And we've received a
number of questions

48:58.430 --> 49:01.530 align:middle line:84%
from the audience,
which obviously I'd

49:01.530 --> 49:03.260 align:middle line:90%
like us to run through.

49:03.260 --> 49:05.510 align:middle line:84%
One of the questions
was in relation

49:05.510 --> 49:10.640 align:middle line:84%
to crypto and digital
assets and how

49:10.640 --> 49:13.370 align:middle line:84%
your respective
firms are adopting

49:13.370 --> 49:14.610 align:middle line:90%
that as an asset class.

49:14.610 --> 49:16.850 align:middle line:84%
And I think somebody
else has mentioned it.

49:16.850 --> 49:19.550 align:middle line:84%
What's your respective,
the respective views

49:19.550 --> 49:26.090 align:middle line:84%
of your organization's
on that asset class?

49:26.090 --> 49:31.400 align:middle line:90%
Maybe I can start here.

49:31.400 --> 49:36.230 align:middle line:84%
As many, I would say, we
probably do the logical

49:36.230 --> 49:39.380 align:middle line:84%
and say, first of all, the
technology, the distributed

49:39.380 --> 49:41.420 align:middle line:84%
ledger, the
blockchain technology

49:41.420 --> 49:45.350 align:middle line:84%
is clearly the interesting
part is here to stay.

49:45.350 --> 49:49.940 align:middle line:84%
We'll probably also
revolutionize the way business

49:49.940 --> 49:51.620 align:middle line:90%
is done peer-to-peer.

49:51.620 --> 49:57.230 align:middle line:84%
While the cryptocurrencies are
suspicious, you don't know.

49:57.230 --> 50:00.930 align:middle line:84%
But I would say, more and more,
we need to get used to it.

50:00.930 --> 50:04.950 align:middle line:84%
We need to get it
into our day to day.

50:04.950 --> 50:06.890 align:middle line:84%
We need to answer
questions to clients.

50:06.890 --> 50:08.640 align:middle line:90%
We need to have a point of view.

50:08.640 --> 50:11.660 align:middle line:84%
We need to be able to
have them under custody.

50:11.660 --> 50:14.150 align:middle line:84%
As assets, we need
to keep them safe.

50:14.150 --> 50:17.330 align:middle line:84%
And all these questions
are on our table.

50:17.330 --> 50:22.040 align:middle line:84%
From UBS perspective, we
are working intensively

50:22.040 --> 50:27.860 align:middle line:84%
on several ideas and how we
use the distributed ledger

50:27.860 --> 50:29.960 align:middle line:84%
technology, the
blockchain technology

50:29.960 --> 50:33.920 align:middle line:84%
for different business models,
different operating models,

50:33.920 --> 50:38.630 align:middle line:84%
and also how we can support
our clients in the attempt

50:38.630 --> 50:41.570 align:middle line:84%
to build an ecosystem
where our clients come

50:41.570 --> 50:45.530 align:middle line:84%
to us with all kinds of
financial investment-related

50:45.530 --> 50:48.710 align:middle line:84%
questions that we can also
answer all the questions

50:48.710 --> 50:50.060 align:middle line:90%
around cryptocurrencies.

50:50.060 --> 50:54.450 align:middle line:90%


50:54.450 --> 51:00.420 align:middle line:84%
Anybody else would like
to supplement here?

51:00.420 --> 51:04.650 align:middle line:84%
Well, regulatory, it's
not possible to hold

51:04.650 --> 51:10.950 align:middle line:84%
crypto direct digital
coins on our platform,

51:10.950 --> 51:13.440 align:middle line:84%
but we are restricted,
as we are, by the way,

51:13.440 --> 51:18.720 align:middle line:84%
with cannabis businesses
in the US from doing much

51:18.720 --> 51:19.740 align:middle line:90%
for our clients.

51:19.740 --> 51:21.630 align:middle line:84%
All we can do is
really point them

51:21.630 --> 51:26.490 align:middle line:84%
to other platforms that
can enable their desire

51:26.490 --> 51:30.060 align:middle line:84%
to invest in various
types of crypto exposure.

51:30.060 --> 51:33.160 align:middle line:90%


51:33.160 --> 51:35.830 align:middle line:84%
Yeah, I mean, we are on
our side, where we decided

51:35.830 --> 51:39.940 align:middle line:84%
not to go into to this
kind of crypto offering,

51:39.940 --> 51:43.420 align:middle line:84%
even though we hear and we
have seen many requests,

51:43.420 --> 51:47.080 align:middle line:84%
but we consider that also
from an ESG perspective,

51:47.080 --> 51:50.870 align:middle line:84%
we have are quite
reluctant to go into this.

51:50.870 --> 51:54.190 align:middle line:84%
So we will not offer
in the short term,

51:54.190 --> 51:58.840 align:middle line:84%
but we look at the blockchain
component and the NFTs

51:58.840 --> 52:01.190 align:middle line:84%
and all these developments
around blockchain,

52:01.190 --> 52:06.370 align:middle line:84%
which I think as, Andreas said,
is the real long-term interest

52:06.370 --> 52:10.680 align:middle line:84%
I think in this
change of technology.

52:10.680 --> 52:12.300 align:middle line:84%
Very similar on
the Canadian front,

52:12.300 --> 52:14.730 align:middle line:84%
I would say in our business
on the advice level,

52:14.730 --> 52:16.860 align:middle line:84%
we simply aren't going
to recommend something

52:16.860 --> 52:18.060 align:middle line:90%
we don't fully understand.

52:18.060 --> 52:20.580 align:middle line:84%
And so most of the
cryptocurrency's profile

52:20.580 --> 52:21.750 align:middle line:90%
is speculative for us.

52:21.750 --> 52:24.300 align:middle line:84%
I would say at a
technology level,

52:24.300 --> 52:26.370 align:middle line:84%
we do see huge opportunity,
and an opportunity

52:26.370 --> 52:28.410 align:middle line:84%
with our business owners
to start to help them

52:28.410 --> 52:31.080 align:middle line:84%
understand how they can actually
leverage some of the underlying

52:31.080 --> 52:33.830 align:middle line:90%
technologies.

52:33.830 --> 52:36.200 align:middle line:84%
OK, Ryan, there's
a question that

52:36.200 --> 52:38.870 align:middle line:84%
came through that
makes me happy, which

52:38.870 --> 52:41.390 align:middle line:90%
is about M&A and consolidation.

52:41.390 --> 52:44.450 align:middle line:84%
Being a practitioner
in the sector,

52:44.450 --> 52:48.020 align:middle line:84%
is consolidation a must,
given all the challenges

52:48.020 --> 52:51.840 align:middle line:84%
that the industry is facing
and the pressure on pricing?

52:51.840 --> 52:55.370 align:middle line:84%
Do you need to gain in scale
or be different and acquire

52:55.370 --> 52:57.860 align:middle line:90%
some capabilities?

52:57.860 --> 53:00.110 align:middle line:84%
And obviously, I
mean as we have seen

53:00.110 --> 53:05.360 align:middle line:84%
some of the recent transactions,
RBC Wealth Management

53:05.360 --> 53:09.080 align:middle line:84%
has announced the acquisition
of Brevan Howard last week.

53:09.080 --> 53:13.550 align:middle line:84%
And, of course, Andreas, I need
to ask you the question that--

53:13.550 --> 53:16.660 align:middle line:84%
I don't think it
was Brevan Howard.

53:16.660 --> 53:17.870 align:middle line:90%
It was--

53:17.870 --> 53:19.130 align:middle line:90%
Brewin Dolphin, I think.

53:19.130 --> 53:20.320 align:middle line:90%
Brewin Dolphin, sorry.

53:20.320 --> 53:21.020 align:middle line:90%
Sorry.

53:21.020 --> 53:23.070 align:middle line:84%
I don't want to
start the rumor here.

53:23.070 --> 53:24.123 align:middle line:90%
Yeah, Yeah, yeah.

53:24.123 --> 53:25.790 align:middle line:84%
Thank you for pointing
that out, Michel.

53:25.790 --> 53:29.390 align:middle line:90%


53:29.390 --> 53:31.910 align:middle line:84%
And Andreas,
obviously, UBS has made

53:31.910 --> 53:35.780 align:middle line:90%
an acquisition of Wealthfront.

53:35.780 --> 53:38.120 align:middle line:84%
Do you want to comment
on that perhaps what was

53:38.120 --> 53:39.300 align:middle line:90%
the rationale for you?

53:39.300 --> 53:43.490 align:middle line:84%
And do you expect to be further
active into consolidation

53:43.490 --> 53:45.370 align:middle line:90%
going forward?

53:45.370 --> 53:48.010 align:middle line:84%
Now let me first say,
before I comment on wealth,

53:48.010 --> 53:51.890 align:middle line:84%
from that consolidation means
going in both directions,

53:51.890 --> 53:55.450 align:middle line:90%
so expanding, but also focusing.

53:55.450 --> 53:59.200 align:middle line:84%
And you can see when you look
at what UBS has done recently,

53:59.200 --> 54:00.610 align:middle line:90%
we go in both directions.

54:00.610 --> 54:04.240 align:middle line:84%
So we try to focus on the key
markets, the key segments,

54:04.240 --> 54:10.660 align:middle line:84%
and we try to invest or
sell in smaller markets,

54:10.660 --> 54:12.280 align:middle line:90%
where we don't see the scale.

54:12.280 --> 54:14.420 align:middle line:90%
I think that's important.

54:14.420 --> 54:18.370 align:middle line:84%
We need that for operational
leverage to address the fees,

54:18.370 --> 54:21.040 align:middle line:84%
the pricing concerns
you raised earlier.

54:21.040 --> 54:24.910 align:middle line:84%
And with Wealthfront,
that particular reason

54:24.910 --> 54:27.730 align:middle line:84%
and investment we
took our transaction,

54:27.730 --> 54:32.410 align:middle line:84%
we initiated in the US, that's a
way to go further into digital.

54:32.410 --> 54:34.990 align:middle line:84%
Wealthfront is
known in the US as I

54:34.990 --> 54:38.590 align:middle line:84%
think one of the leading
firms as a robo advisor

54:38.590 --> 54:41.440 align:middle line:90%
and for affluent--

54:41.440 --> 54:44.320 align:middle line:84%
the affluent purely
digital segment.

54:44.320 --> 54:49.180 align:middle line:84%
I think it has around half a
million of clients around 27

54:49.180 --> 54:51.110 align:middle line:90%
or so billion of assets.

54:51.110 --> 54:57.040 align:middle line:84%
And we think that will serve as
our nucleus in the US to serve

54:57.040 --> 55:01.780 align:middle line:84%
further that huge part of the
market that it cannot really

55:01.780 --> 55:03.902 align:middle line:84%
tap into without
such an offering.

55:03.902 --> 55:05.110 align:middle line:90%
They have a leading platform.

55:05.110 --> 55:07.570 align:middle line:84%
They have a leading
approach there.

55:07.570 --> 55:11.200 align:middle line:84%
And we will use
that as our entry

55:11.200 --> 55:15.140 align:middle line:90%
into that segment in the US.

55:15.140 --> 55:16.130 align:middle line:90%
Any other views?

55:16.130 --> 55:24.970 align:middle line:84%
Any other-- TD, any plans
or at Baird, or Rothschild?

55:24.970 --> 55:27.520 align:middle line:90%


55:27.520 --> 55:29.730 align:middle line:84%
So from the TD
perspective, Jean-Francois,

55:29.730 --> 55:31.420 align:middle line:84%
we recently
announced acquisition

55:31.420 --> 55:34.613 align:middle line:84%
of First Horizon, large retail
and commercial bank in the US.

55:34.613 --> 55:36.280 align:middle line:84%
We'll continue to
look for opportunities

55:36.280 --> 55:39.490 align:middle line:84%
to build our platform and
our opportunity in the US.

55:39.490 --> 55:43.420 align:middle line:84%
The Canadian competitive
front is more stable,

55:43.420 --> 55:46.060 align:middle line:84%
I would say from a
wealth perspective.

55:46.060 --> 55:48.040 align:middle line:84%
What we're finding
is demographics

55:48.040 --> 55:49.900 align:middle line:84%
wise there are a
lot of practices

55:49.900 --> 55:52.302 align:middle line:84%
and significant practices
in smaller boutiques that

55:52.302 --> 55:53.260 align:middle line:90%
are starting to mature.

55:53.260 --> 55:56.500 align:middle line:84%
And they don't have an
option around succession.

55:56.500 --> 55:58.958 align:middle line:84%
And I would say for some of
the larger, more dominant firms

55:58.958 --> 56:00.500 align:middle line:84%
like ours, there's
a real opportunity

56:00.500 --> 56:02.050 align:middle line:84%
to do competitive
recruiting and look

56:02.050 --> 56:06.220 align:middle line:84%
both at boutiques and individual
practices to consolidate.

56:06.220 --> 56:09.190 align:middle line:84%
Yeah, we've acquired
three wealth management

56:09.190 --> 56:13.210 align:middle line:84%
firms, Jean-Francois,
in the last four years.

56:13.210 --> 56:16.630 align:middle line:84%
With us, it's almost always
driven by relationships.

56:16.630 --> 56:19.300 align:middle line:84%
In all three cases, we've
known the principals

56:19.300 --> 56:21.100 align:middle line:90%
for 20 plus years.

56:21.100 --> 56:24.430 align:middle line:84%
And there's no question
that smaller firms

56:24.430 --> 56:28.180 align:middle line:84%
are facing a variety of
competitive pressures making

56:28.180 --> 56:30.010 align:middle line:84%
it more and more
difficult for them

56:30.010 --> 56:33.940 align:middle line:84%
to remain competitive and
offer a competitive value

56:33.940 --> 56:35.240 align:middle line:90%
proposition a client.

56:35.240 --> 56:38.200 align:middle line:84%
So in those cases,
where the cultures fit,

56:38.200 --> 56:41.620 align:middle line:84%
the principles are like minded,
it makes sense for firms

56:41.620 --> 56:42.410 align:middle line:90%
to come together.

56:42.410 --> 56:44.590 align:middle line:84%
But as a strategy,
we're not looking

56:44.590 --> 56:46.480 align:middle line:90%
to grow through acquisition.

56:46.480 --> 56:52.330 align:middle line:84%
It's not an aggregation
player for us.

56:52.330 --> 56:54.910 align:middle line:84%
I mean, here at
Edmond de Rothschild,

56:54.910 --> 56:58.700 align:middle line:84%
we have been investing
into partnerships.

56:58.700 --> 57:04.030 align:middle line:84%
So we have a long-term
experience, positive experience

57:04.030 --> 57:11.050 align:middle line:84%
in investing in partnerships
with either private equity GPs

57:11.050 --> 57:15.670 align:middle line:84%
or with experts on for
our real estate business.

57:15.670 --> 57:20.260 align:middle line:84%
We also invested recently as a
partner in multifamily office

57:20.260 --> 57:20.830 align:middle line:90%
in London.

57:20.830 --> 57:23.500 align:middle line:84%
So that's a model that
we are still considering

57:23.500 --> 57:27.580 align:middle line:84%
and we are looking at, but
also potential acquisitions

57:27.580 --> 57:30.340 align:middle line:84%
in the markets,
where we are present.

57:30.340 --> 57:35.580 align:middle line:84%
And that's also an
opportunity we would look at.

57:35.580 --> 57:37.470 align:middle line:90%
It sounds as if M&A--

57:37.470 --> 57:43.080 align:middle line:84%
I'm happy M&A is on the agenda
of everyone, which is good.

57:43.080 --> 57:46.140 align:middle line:84%
And I see that where we're
coming to the top of the hour,

57:46.140 --> 57:50.640 align:middle line:90%
close to the end of our session.

57:50.640 --> 57:51.953 align:middle line:90%
We would have obviously like--

57:51.953 --> 57:53.370 align:middle line:84%
there's been a
number of questions

57:53.370 --> 57:54.930 align:middle line:90%
that have been posted through.

57:54.930 --> 57:56.970 align:middle line:90%
We'll answer them separately.

57:56.970 --> 57:59.280 align:middle line:84%
We haven't been able to go
through all the megatrends,

57:59.280 --> 58:03.660 align:middle line:84%
but hopefully this
webinar will have provided

58:03.660 --> 58:08.940 align:middle line:84%
you insight from wealth
management leaders that

58:08.940 --> 58:12.060 align:middle line:84%
have provided their
insights in the market

58:12.060 --> 58:15.480 align:middle line:84%
and in their respective
markets and would provide you

58:15.480 --> 58:16.920 align:middle line:90%
a different perspective.

58:16.920 --> 58:22.590 align:middle line:84%
I want to extend a big thank you
to to Lou for the presentation

58:22.590 --> 58:27.390 align:middle line:84%
and also to Ryan,
Andreas, John, and Michel

58:27.390 --> 58:30.780 align:middle line:84%
for participating
in the panel today.

58:30.780 --> 58:35.820 align:middle line:84%
Wishing you all a great
day, and end of day

58:35.820 --> 58:37.870 align:middle line:84%
for those of you
who are in Europe.

58:37.870 --> 58:40.140 align:middle line:90%
Thank you very much, and goodbye

58:40.140 --> 58:41.960 align:middle line:90%
Thank you.

58:41.960 --> 58:52.000 align:middle line:90%