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Clients Move Toward Bonds

Monday, October 04, 2010 - 04:16

As more profitable prospects in the credit side of the bond markets emerge, Bessemer Trust CEO John Hilton seeing fewer and fewer all-equity portfolios as client interest moves to fixed income.

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That's as one of the largest US wealth managers and a top adviser to ultra rich families. Overseeing 55 point four billion -- assets. In this competitive industry the firm's clients look to them as a shelter in the recent stormy financial markets. John Hill Tennessee of that. Soared -- welcome good to see you. The validity. A lot of financial institutions customers actually had several strong years three running why I have clients stuck with you especially during these turbulent times. Clients of stuck with this because we have done well we certainly would do and I think that. During this challenging period. Most important thing we can do is does not only deliver our services to communicate extraordinarily well -- clients violence as over the last three years. We've done exactly that. -- clients putting their money now are we seeing it move away from equity centric portfolios. From equity centric where we are seeing. Fewer and fewer all equity portfolios. There's been a move to fixed income. I think that the greatest thing that that the clients learned about themselves over this. The last three years or so is they had developed a better understanding of the risk tolerances. And all equity portfolios. Are very rare these days. Where in the bond market facing some of that money go to see a little bit more risk playing out what's -- with a very good observation the answer is yes we're seeing some opportunities. In the criticize of the bond area not necessarily US government. And so there's there's a little push there Obama. How you manage your growth given the enormous cost you have for hiring. Upgrading technology it's communicating clients. Very another very good question and it's a balancing act -- our businesses are very. -- cause diseases that it is difficult to scale. So we need to basically find the right people we have to continue to invest in technology. You cannot be stagnant and we have to balance our growth in one of the things that we are. Very very cognizant. Is our ability to continue to serve existing clients and to become accustomed we conduct business. How is that different from now -- our clients I'm not sure there's any different than the way other well management firms may. Approach appliance I think one of the great differences we have is them. Being a privately held organization as opposed to a poll field organization. You don't have to drive on the on the quarterly earnings requirements. That. As a result of that perspective that alignment of interest. Is probably strong lines. You're reading ahead this year in terms of new client assets adding more assets from existing clients you mentioned that you're not seeing. Accounts closing issuing a turnover rate is lower. How are you able to maintain growth. And -- fronts lot of from struggled of these -- We work hard for. It worked hard but I think that it really gets down to a sticking to and hitting we know our clients are and with the right people for a new clients are. We've also hired some very strong people analysts that we use during probably. 2000 and we've we've really had the opportunity some wonderful talent. In terms of some of your new client your client base is seeing a difference geographically than what she saw. A couple of years ago. We have tremendous growth. On the West Coast and in the southeast this one time and we continue to have. Very attractive business in the midwest and that and that and the New England area that there's been a real push and a lot of growth. West Coast and the southeast ask us and our primary focus it's about six to 7% of our business it's more opportunistic to us. There are. The significant new business opportunities here we all speak the same language room three times on so. We're primarily focused unions it's got investment trust excellence. And I'd rather -- hit this writer.

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Clients Move Toward Bonds

Monday, October 04, 2010 - 04:16