Trust assets held by banks edged up three percent in value in 2012, a new report shows.
Cerulli Associates published this finding in the third quarter issue of the “Cerulli Edge-Advisor Edition.” The report examines the integration of bank organizations as banks evaluate wealth management as a core business, as well as trends in the retail broker-dealer and registered investment advisor channels.
The report estimates bank trust assets at the close of 2012 at $2.252 trillion, up from $2.188 trillion in 2011. The 2012 figure is just shy of the total reached before the onset of the 2008 credit crisis, when bank trust peaked at $2.329 trillion.
Cerulli defines a bank trust organization as a division of a bank or registered broker/dealer that provides fiduciary wealth management advice under the 1940 Investment Advisors Act, which exempts banks from securities registration.
“Cerulli anticipates moderate growth (3%) during the next four years, which reveals the obstacles that lie ahead for the industry,” the report states. “A consequence of the recent financial crisis includes [high net worth] investors diversifying wealth managers, with an average of 3.7 providers in 2010.