Challenges and opportunities

Challenges and opportunities


2009 is proving to be a challenging year for many businesses. We have seen a significant deterioration in the economy and its likely long duration is touching Coutts and our clients alike. However, our commitment to our private banking business is undiminished and we will continue to offer clients an extensive range of banking, specialist and investment services.

Our trend of office opening continues, as we expand our business across the UK, with new offices recently opened in Exeter and Cheltenham, and the Guildford office relocating to larger premises. The increase in regional offices is a reflection of the increasing spread of wealth across the UK, and the rise in our client base last year.

As the impact of the economy affects businesses and lifestyles, our clients are changing their approach to wealth management. We are seeing a marked shift in client behaviour towards a preference for more
short-term liquidity, flexibility and investment products with greater transparency.

In a low interest rate environment, clients are looking for opportunities to achieve the best return available, whilst protecting the safety of their capital. We can offer a range of liquidity solutions which offer varying degrees of flexibility and capital protection with the potential for higher returns.

For our Discretionary Investment Management clients, we maintain the view that a multi-asset portfolio, containing both equities and hedge funds, has the highest likelihood of achieving long term objectives. In light of the present market environment, we are also responding to the immediate need of our clients to ensure their investment portfolios are working for them.

For this reason, we have developed a fixed income offering to complement our current discretionary managed portfolio suite, which may appeal to those clients with a low risk appetite and relatively short term investment horizon. Those with high equity exposure elsewhere may also find this to be a favourable option.

Also, with a sound, highly liquid, deposit led business model, we are in a strong position to provide clients with a flexible and tailored lending facility that meets their specific requirements. We discuss this in greater detail in the article ‘A personal approach to finance’ .

With a determination to continue to deliver a highly personalised wealth management service, we are taking action to ensure that Coutts remains one of the UK’s leading private banks. And the Coutts private banker is at the heart of the one-to-one relationship we have with clients. As one client recently remarked;

‘Coutts combines the attributes of a modern financial services group with the trust and continuity of a relationship that characterised the traditional bank manager/client relationship of the past’ 


Nick Pollard  
Managing Director, UK and International Private Banking