Private banks persue philanthropy to assuage clients
With many wealthy individuals nursing losses on their investment portfolios it might seem an inappropriate time to raise the idea of giving away money.
But several private banks are putting more emphasis on philanthropy, despite the economic downturn prompting a decline in charitable giving.
Emma Turner, the recently appointed head of philanthropy at Barclays Wealth, says the rationale is to broaden and deepen relationships with clients. “Clients are pleasantly surprised when their relationship manager has something to talk about other than personal finance. But how you broach the subject is key. You don’t want to put people on the defensive,” she says.
Barclays off ers philanthropy advice for free and Turner says there is plenty of interest, particularly from wealthy parents who do not want to pass on their entire fortune to their children.
Other UK private banks expanding their philanthropy services include JP Morgan, Kleinwort Benson and SG Hambros.
NO STRINGS Coutts set up a three-strong philanthropy team four years ago, headed by Mark Evans, and is unusual in charging extra for advice. Evans says wealthy entrepreneurs tend to be the most receptive clients.
“Inherited wealth comes with its obligations – one doesn’t feel free to give it away to whichever charity one pleases,” he says. “Self-made money has no strings attached.”
Karin Jestin, head of philanthropy at Lombard Odier, a Swiss private bank, says that while donations to charities are down overall, many of her wealthier clients are maintaining their giving. “In these diffi cult times there is a heightened sense of responsibility to give,” she says.
Lombard Odier hopes to hire more staff to its four-person team in response to growing demand. Other large wealth managers do not share this enthusiasm for philanthropy. Goldman Sachs has not replaced Turner since she left for Barclays Wealth at the end of last year.
Morgan Stanley has no plans to expand its philanthropy service and Merrill Lynch says it does not intend to offer specialist advice in Europe.
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