The price paid by wealth managers to purchase up assets from rivals has halved in the last two years, showing that in a rush to buy market share, buyers can drive harder bargains, research has found. A report by specialist consultancy Scorpio Partnership published on Wednesday shows that during 2011 and 2012, wealth management companies spent $9.42 billion on rich investors' assets or investment managers that run wealthy clients' money.This represents $635 billion run on behalf of wealthy investors, or 4 percent of the total amount managed by the global wealth industry, Scorpio said.The boom in demand to buy up wealth management businesses followed the 2008-2009 financial crisis, when many financial institutions looked to this sector as a source of steady revenue to offset more volatile areas, driving up their price tags.But the going rate for buying wealth management assets stands at around 2 percent of the funds, having halved since Scorpio's previous report in 2010, according to the research.
Financial Institutions, Inc. (FII) is a financial holding company. Shares of FISI traded higher by 1.44% or $0.27/share to $18.99. In the past year, the shares have traded as low as $12.18 and as high as $19.52. On average, 26405 shares of FISI exchange hands on a given day and today's volume is recorded at 26952.
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