⌂ Platform

FI-Sim — Global Wealth Management

Head of Wealth & Private Banking
Total AUM
$1.50T
MA $400B · HNW $600B
UHNW $350B · FO $150B
Net New Money
$40B/yr
Organic $28B · Acq $18B
Outflow −$6B
Blended Fee Rate
55 bps
Down from 65bps (5yr ago)
−2bps/yr compression
RM Count
8,000
AUM/RM: $188M
Rev/RM: $1.15M
Trust Index
0.82
Threshold: 0.70 AMBER
Status: GREEN
Lombard Book
$45B
NII $2.1B/yr · 50 facilities
Avg LTV 50%
AUM by Client Segment
27%

Mass Affluent

$400B
Allocation: Eq 50% · FI 35% · Alt 5% · Cash 10%
Fee rate: 40bps
RM capacity: Adequate
NNM trend: Steady digital onboarding
40%

High Net Worth

$600B
Allocation: Eq 45% · FI 30% · Alt 15% · Cash 10%
Fee rate: 55bps
NNM: Strong (+$18B/yr)
Key driver: RM relationship + advisory
23%

Ultra HNW

$350B
Allocation: Eq 40% · FI 20% · Alt 30% · Cash 10%
Fee rate: 70bps — Highest margin
NNM: Concentrated inflows
Key driver: PE/RE co-invest access
10%

Family Office

$150B
Allocation: Eq 35% · FI 25% · Alt 35% · Cash 5%
Fee rate: 45bps (bespoke negotiated)
NNM: Episodic, large tickets
Key driver: Institutional-grade reporting
Fee Revenue & Compression Dynamics
Fee Compression Forces:  (1) Time decay −0.5%/yr as clients negotiate on tenure |  (2) Scale discount for AUM >$50M mandates |  (3) Passive shift eroding active management premiums
UBS benchmark: 90bps (2005) → 65bps (2024) — industry-wide secular trend. Total revenue: $9.2B/yr (Mgmt $7.2B + Perf $0.8B + Txn $1.2B).
Trust Index — Behavioural AUM at Risk
Trust builds slowly: +0.002/month from consistent outperformance + RM quality
Trust decays 3–5× faster: underperformance, reputation events, regulatory fines
Credit Suisse: trust collapsed to near-zero Q4 2022 → CHF 110bn outflow in weeks
Panic threshold: below 0.45 triggers self-reinforcing outflow spiral
Current trust 0.82 is comfortably in GREEN zone. All segments above panic thresholds. Total BAR: $25B (1.7% of AUM).
Segment Trust Score Panic Threshold BAR ($B) Status
Mass Affluent 0.80 −10% drawdown $12B GREEN
High Net Worth 0.83 −15% drawdown $8B GREEN
Ultra HNW 0.85 −20% drawdown $4B GREEN
Family Office 0.88 −25% drawdown $1B GREEN
Total BAR — — $25B —
Relationship Manager Productivity — Peer Benchmark
Metric Model Bank MS UBS GS
AUM/RM ($M) 188 494 555 914
NNM/RM ($M) 5.0 15.8 7.0 27.1
Rev/RM ($M) 1.15 1.4 1.2 2.8
Model Bank RM productivity trails all three peers. AUM/RM at $188M is 2.6× below MS and 4.9× below GS. Priority: digital enablement + segmented service model to lift AUM/RM toward $300M target.
Lombard & Margin Lending Book
Book Size
$45B
50 facilities
Average LTV
50%
Margin call: 70%
Margin Calls MTD
0
Last call: 47 days ago
Lombard NII
$2.1B/yr
SOFR + 85bp avg
Expected Loss
$12M/yr
LGD 2–5% (collateralised)
Feedback Loop Λ
1.00
Dormant — activates in DD
Feedback loop Λ: Amplification factor for fire-sale dynamics.
Λ = 1.00 means no amplification (dormant). Activates when drawdown exceeds 15%.
Mechanism: Margin call → forced liquidation → price impact → further calls
Current buffer: 20pp headroom to margin threshold (50% → 70%)
Stress scenario: −30% equity shock would push ~15% of book above 70% LTV
Performance Attribution — Brinson-Hood-Beebower
Component Contribution (bps) Commentary
Allocation Effect +15 Overweight equities paid off in risk-on regime
Selection Effect +8 Active managers net positive vs benchmarks
Interaction Effect +2 Minor positive cross-effect
Total Active Return +25 Above benchmark — justifies advisory fees
+25bps total active return supports the fee proposition. Allocation effect (overweight equities) was the dominant driver. Selection alpha from active managers remains positive but under pressure from passive alternatives.
Suitability & Mandate Compliance
Metric Value Status
Clients within mandate 97.5% COMPLIANT
Drift alerts (active) 42 MONITORING
Breach threshold 5pp MiFID II / Reg BI
Rebalanced (MTD) 38 RESOLVED
Pending review 4 IN PROGRESS
42 drift alerts represent 2.5% of client base. 38 already rebalanced within SLA. 4 remaining in review (complex multi-asset mandates requiring CIO sign-off). No regulatory breaches. MiFID II suitability obligation fully met.
FI-Sim Global Wealth Management — Confidential — Internal Use Only — Model Bank Simulation — Not Investment Advice