Amid the market turbulence and anxiety, concerned high net worth individuals and families—those with substantial assets to invest—are looking for safer havens. Across the industry, wealth management arms of banks and brokerage firms are enveloped in high levels of uncertainty. As a result, wealthy clients, as well as financial advisors, are moving away from these large, well-branded financial institutions. Not the case for competitors like Atlantic Trust, whose offerings are tailored for clients with more than $5 million in investable assets. The firm has seen consecutive, quarterly positive net cash flows during this period of market stress.
As the wealthy shift their assets to stable, more conservative, yet highly competitive wealth management firms, Atlantic Trust is positioned to serve this clientele. The firm has not been exposed to the types of credit problems and balance sheet liabilities that are affecting broad-based financial institutions and their subsidiaries. “Both Atlantic Trust and our parent company, Invesco, are stable and strong,” said Jeff Thomas, chief investment officer of Atlantic Trust.
Invesco Ltd. (NYSE: IVZ), with approximately $450 billion in client assets under management (as of August 31, 2008), is a global firm focused exclusively on investment management. While Atlantic Trust is a wholly owned subsidiary of Invesco, it remains independent in its investment platform yet benefits from Invesco’s global resources. Executives stress that this unique structure preserves the objectivity of Atlantic’s Trust investment counsel, while providing the backing of a strong, financially sound parent company.
Raising the Client Relationship Minimum to $5 Million
Also in tune with Atlantic Trust’s growth, the firm is raising its account minimum for new clients from $2 million to $5 million in investable assets. Nearly $10 billion, of Atlantic Trust’s $16.3 billion in assets under management, is managed for families with accounts of more than $15 million. Of this client group, the average relationship size is approximately $46 million (as of August 31, 2008). While clients in this range are a large share of Atlantic Trust’s assets under management, the firm also manages family clients with accounts in excess of $500 million.
Offerings are particularly suited to meet the needs of these high net worth individuals, families, foundations and endowments, who are looking for broad wealth management services. The firm is experiencing an increase in the number of clients who seek access to high-quality alternative managers, as well as services beyond the management of their investment portfolio—including financial, trust and estate planning, family governance and philanthropic strategies.
“This move not only aligns with our expected short and long-term growth, but it also is clearly in step with our traditionally strong client service culture,” notes Eric Propper, managing director and member of the firm’s Executive Management Committee. Propper concludes, “As we transition to this higher account minimum, we will continue to provide the highest levels of service to our many clients with accounts below $5 million. They also will continue to have access to our full spectrum of investment and wealth management offerings.”
About Atlantic Trust
With more than $16 billion in clients’ asset under management, Atlantic Trust is one of the nation’s leading private wealth management firms. We offer integrated wealth management and investment counseling services for high net worth individuals, families, foundations and endowments. We take into consideration our clients’ financial, trust, estate planning and philanthropic needs in developing customized asset allocation and investment management solutions. Our experienced professionals deliver a broad range of offerings, including our proprietary investment solutions and robust open architecture platform of traditional and alternative managers. Atlantic Trust operates 12 full-service offices throughout the United States. For more information, visit www.atlantictrust.com.
Note to the editor:
This material is provided for information purposes and is not an offer to buy or sell any security. All material is compiled from sources believed to be reliable and current but accuracy cannot be guaranteed. The opinions expressed herein are based on current market conditions and are subject to change.
Bev Jones, 404-881-3419