Luxury Institute News

September 23, 2014

Luxury Institute Survey Of High-Income Travelers from Europe, China and Japan Reveals Brand Status Ranking Of World’s Top Luxury Hotels

NEW YORK) September 23, 2014 – The New York-based Luxury Institute has released findings of its 2014 Luxury Hotels Brand Status Index (LBSI) survey of affluent overseas travelers who shared detailed impressions and evaluations of 37 global luxury hotel brands.

LBSI scores (1-10) are based on each brand’s perceived quality, exclusivity, social status and overall guest experience. In addition, affluent consumers weigh in on whether a hotel deserves premium pricing, if they would recommend it to people close to them and how likely they are to stay at a brand’s property on their next trip.

Here are the top five brands as rated by wealthy consumers from each region, with Europe including the U.K., Germany, France and Italy.

Europe:Small Luxury Hotels of the World (7.96), The Ritz-Carlton (7.95),Armani Hotels (7.88), Mandarin Oriental (7.86), Leading Hotels of the World (7.77)

China: Leading Hotels of the World (8.62), Oberoi (8.57), The Luxury Collection (8.54), Firmdale Hotels (8.53), Raffles Hotels and Resorts (8.50)

Japan:Aman Resorts (8.19), Oberoi (7.83), Waldorf Astoria Hotels and Resorts (7.80), The Ritz-Carlton (7.73), Orient-Express Hotels (7.68)

“The luxury hotel industry is growing in potential, but also in the dramatic number of brands that have top tier offerings,” says Luxury Institute CEO Milton Pedraza. “The winners are those who can consistently provide remarkable guest experiences, as rated by the clients.”

Respondents reviewed the following hotel brands: Aman Resorts, Armani Hotels, Banyan Tree, Club Med, Como Hotels and Resorts, Conrad Hotels and Resorts, Fairmont Hotels and Resorts, Firmdale Hotels, Four Seasons, Grand Hyatt, InterContinental, Jumeirah, JW Marriott, Kempinski Hotels, Le Meridien, Langham, Leading Hotels of the World, Loews Hotels, The Luxury Collection, Mandarin Oriental, Oberoi, Orient-Express Hotels, Pan Pacific, Park Hyatt, The Peninsula Hotels, Raffles Hotels and Resorts, Regent, The Ritz-Carlton, The Rocco Forte Collection, Rosewood, Shangri-La Hotels & Resorts, Small Luxury Hotels of the World, Sofitel, St. Regis, Taj Hotels Resorts and Palaces, W Hotels and Resorts, and Waldorf Astoria Hotels and Resorts.

Contact the Luxury Institute for more details and complete rankings.

Visit us at www.LuxuryInstitute.com and contact us with any questions or for more information.

August 18, 2014

Convergent Wealth Advisors Shines as Luxury Wealth Manager

PRWeb
August 18, 2014

The Luxury Institute has announced Convergent Wealth Advisors as third out of 39 leading national wealth management companies and private wealth managers in their 2014 LBSI Wealth Management Survey. The survey asked affluent respondents nationwide to evaluate each firm based on such factors as service quality, exclusivity, social status, and the ability to deliver special client experiences.

Convergent’s expanding presence in the wealth management space comes at a time where investors demand more personalized attention. According to Luxury Institute CEO Milton Pedraza, affluent individuals and families place expertise, trustworthiness, and generosity high on their list of attributes needed in order to build strong client relationships. Convergent embraces these attributes as part of its core values and corporate vision that underpin each client relationship.

“We believe that living well is the ultimate goal of investing well,” says Convergent President and COO Douglas Wolford. “The modern notion of luxury is defined by a sense of ease, confidence, and authenticity. Wealthy families want an experience tailored to their individual needs and goals—and one that allows them to enjoy more of the benefits and avoid many of the burdens of wealth.”

Dave Zier, CEO, adds, “People want to be associated with a luxury brand. Convergent strives to provide our clients with an experience that money alone can’t buy—an experience in living well. Being highly ranked by the Luxury Institute only reinforces our commitment to offering what we believe is the finest in wealth management.”

For the entire article click the link:http://www.prweb.com/releases/2014/08/prweb12082567.htm

 

July 30, 2014

Atlantic Trust recognized as a top U.S. wealth management firm

PR Newswire
July 30, 2014

Firm ranked No. 1 for making clients feel special across the full customer experience, according to Luxury Institute survey

ATLANTA, July 30, 2014 /PRNewswire/ – Atlantic Trust, the U.S. private wealth management division of CIBC (NYSE: CM) (TSX: CM), is pleased to announce it has been recognized as one of the top U.S. wealth management firms in the 2014 Luxury Brand Status Index™ (LBSI) Wealth Management survey.

“We are very pleased that our dedication to serving as a trusted advisor to our clients and their families is being recognized by this independent research,” said Jack Markwalter, chairman and CEO of Atlantic Trust. “Atlantic Trust is committed to providing investment excellence along with the highest quality client experience.”

Atlantic Trust received the second-highest luxury brand ranking among 39 wealth management firms in the U.S., according to a survey of investors with an average net worth of $15 million and an annual average income of $800,000 by the Luxury Institute, a New York-based research firm. Investors were asked to evaluate the firms on four LBSI components: quality, exclusivity, social status of clients and the ability to make clients feel special across the full customer experience. Each firm was assigned a score based on the responses.

Atlantic Trust ranked No. 1 for making its clients feel special across the full customer experience and rated near the top for delivering superior quality products and services consistently, being truly unique and exclusive, and having clients who are admired and respected.

Atlantic Trust also ranked as the firm that the ultra-wealthy are most willing to recommend to friends, family and people they care about.

The Luxury Institute’s ranking of Atlantic Trust as a leading U.S. wealth management firm is further validated by the firm’s strong client retention, steady inflow of assets from existing and new client relationships, and the addition of senior talent across the country.

Click the link to read the entire article: http://www.prnewswire.com/news-releases/atlantic-trust-recognized-as-a-top-us-wealth-management-firm-269228641.html

July 23, 2014

UBS, Merrill Sink in Luxury Ranking as Rockefeller Reaches Top

By Danielle Verbrigghe
FundFire
July 23, 2014

Boutique wealth shops carry a much higher brand cachet than bigger firms among multimillionaires, according to a recent survey by the Luxury Institute. While Rockefeller Wealth Management rose to the top of the list, several of the biggest firms, including Merrill Lynch and UBS Private Wealth Management, continued an ongoing descent toward the bottom.

In the study, the Luxury Institute asked multimillionaires with an average net worth of $15 million and average annual income of $800,000 to evaluate wealth firms on factors including product quality, exclusivity, social status and ability to deliver special client experiences, and assigned firms a score based on the responses.

Rockefeller Wealth Management, a New York-based multi-family office, topped the list of highly ranked wealth managers. Coming second was Atlanta-based Atlantic Trust Private Wealth Management. Convergent Wealth Advisors was a close third, followed by First Republic Private Wealth Management and Bessemer Trust.

“Consumers are opting for boutique firms,” says Luxury Institute CEO Milton Pedraza. “Wealthy consumers really value relationships and the smaller boutique firms really deliver.”

Some of the biggest firms meandered at the bottom or sunk lower. Merrill Lynch tumbled to last place out of 39 firms, while UBS Private Wealth Management came in second to last. Bank of America, Goldman Sachs and Charles Schwab rounded out the bottom five.

The brand reputation problem facing some of the largest firms is partially driven by legal and regulatory woes and other negative press coverage some of the brands attracted since 2008, Pedraza says. “Any time you have news that’s a negative in the media, these firms are going to get hit,” he says. “The larger firms took a beating.”

Other big brands, including, Citi Private Bank, Barclays Wealth, HSBC Private Bank and Wells Fargo also ranked in the bottom half of brands.

The rankings reflect general wealthy individual perceptions of overall brands, rather than specific client experiences, Pedraza ways. While the specific rankings tend to vary from year to year, quartile placement remains relatively stable, he says. This year’s results continue an ongoing trend of boutique wealth shops rising in the rankings and wirehouses and bigger firms sliding lower, he says.

While dropping slightly from its number three spot in 2013, Bessemer Trust made the top five list several years in a row. Brown Brothers Harriman, which took the top spot last year and in 2012, tumbled off the top five list. Northern Trust, Vanguard Personal Investors and J.P. Morgan Private Wealth Management also fell out of the top five.

Brown Brothers Harriman’s absence on the list doesn’t indicate an image problem, Pedraza says. “I don’t think it’s so much that they’re faltering as consumers perceive other brands to be better,” he says.

Boutique shops have an advantage over larger firms when it comes to creating a connection with wealthy investors, says Linda Beerman, chief fiduciary officer and head of wealth strategies for Atlantic Trust.

“Our clients feel they have an exclusive relationship with their client service representatives,” says Beerman. “It’s really a high-touch, client-service driven model.”

Offering unique experiences and hosting events is one way Convergent Wealth Advisors positions itself as a luxury brand, says Douglas Wolford, president and chief operating officer for Convergent Wealth Advisors.

“Wealthy people can find any number of people who are good investors, but what most wealthy people want is an experience,” Wolford says. “Boutiques provide that experience better than big companies.”

To differentiate themselves from other firms offering advice to ultra-high-net-worth and high-net-worth investors and families, Convergent offers special events for wealthy clients. For example, the firm is hosting an event in which wealthy clients can have lunch with David Rubenstein, co-founder and co-CEO of the Carlyle Group. Convergent has also held events for clients where wealthy investors get to drive new models of luxury vehicles, such as Ferraris or Bentleys, before they become available to the general public.

“We focus on trying to provide clients with experiences that money can’t buy,” says Wolford

Such experiences go a long way in attracting wealthy clients and enhancing the firm’s reputation as a luxury brand, Wolford says. “Convergent is a luxury brand and we take care to protect that as part of our image,” he says.

And that image has contributed to client development, according to Wolford.

Convergent Wealth Advisors has seen its Independence by Convergent unit, which caters to investors with between $1 million and $10 million in assets, grow in recent years, driven in part by brand perception, Wolford says. That division has added about 300 new high-net-worth clients over the past two years.

“The brand has really driven that growth. People want to be associated with a luxury, boutique brand,” says Wolford. “I think Convergent is an aspirational brand for people in Indepencence.”

Overall, wealthy individuals are apt to place a greater degree of trust in smaller, boutique firms, says Pedraza.

For brands at the bottom, “There’s only up they can go,” Pedraza says.

Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: http://fundfire.com/c/934734/9128/merrill_sink_luxury_ranking_rockefeller_reaches?referrer_module=emailForwarded&module_order=0

 

July 22, 2014

Luxury Institute Wealth Management Survey Shows Multimillionaires Favor Boutique Money Managers for Client Experience

(NEW YORK) July 22, 2014 – In the latest edition of its Luxury Brand Status Index Wealth Management (LBSI) survey, the independent and objective New York-based Luxury Institute asked investors with an average net worth of $15 million and annual average income of $800,000 to share detailed opinions of 39 leading firms in the wealth management business. LBSI scores (1-10) comprise respondents’ evaluations of each firm’s product quality, exclusivity, social status and ability to deliver special client experiences.

Set up in 1882 as the Rockefeller family office, New York-based Rockefeller & Co. earns the highest overall LBSI score of 7.94. Ranking closely behind Rockefeller & Co. are Atlanta-based Atlantic Trust Private Wealth Management (7.93), and Convergent Wealth Advisors (7.92). First Republic Private Wealth Management (7.82), Bessemer Trust (7.68) round out the top five.

“Wealthy clients tell us that expertise, trustworthiness and generosity are the critical elements in building strong client relationships in wealth management,” Luxury Institute CEO Milton Pedraza. “Successful wealth managers are relationship builders first, and, since few can beat the markets in the long run, money managers second.”

Additional firms evaluated include Ameriprise Financial, Bank of America, Barclays Wealth Management, BB&T Wealth Management, Bernstein Global Wealth Management, BMO Harris Private Banking, BNY Mellon Wealth Management, Boston Private Bank and Trust, Brown Brothers Harriman, Charles Schwab, Citi Private Bank, Credit Suisse Private Banking, Deutsche Asset & Wealth Management, Deutsche Bank Alex. Brown, Fidelity Investments, Fifth Third Private Bank, Goldman Sachs, HSBC Private Bank, J.P. Morgan Private Bank, J.P. Morgan Private Wealth Management, Merrill Lynch, Merrill Lynch Private Banking & Investment Group, Morgan Stanley Smith Barney Wealth Management, National City Private Client Group, Neuberger Berman, Northern Trust, PNC Wealth Management, SunTrust Private Wealth Management, U.S. Bank Private Client Group, U.S. Trust, UBS Private Wealth Management, Vanguard Personal Investors, Wells Fargo Private Bank and Wilmington Trust Wealth Advisory Services.

Please visit www.LuxuryInstitute.com and contact us with any questions, or for detailed information about specific brand rankings.

The Luxury Institute, LLC

luxinfo@luxuryinstitute.com

May 2, 2013

Pentamillionaire Investors Reveal Whether 34 Top Firms Are Worth What They’re Paid To Watch Their Portfolios

(NEW YORK) May 2, 2013 – Affluent U.S. investors with at least $5 million in assets and $200,000 minimum annual income rate 34 national financial services firms in the Luxury Institute’s 2013 Luxury Brand Status Index (LBSI) wealth management survey. Wealthy individuals share opinions on each firm’s quality, exclusivity, social status and overall client experience.

Only 30% of firms achieved an overall LBSI score of 5.0 out of a possible 10.0, suggesting significant dissatisfaction from high-net worth investors with their wealth management providers. Brown Brothers Harriman earned the highest LBSI of 5.87.

“Especially in wealthy management, client relationships and trust can take years to cultivate and a short period to deteriorate,” says Luxury Institute CEO Milton Pedraza. “Smart firms need to listen to what wealthy individuals are telling them to maintain brand reputation and client loyalty.”

Respondents ranked the following 34 wealth management firms, listed alphabetically:

  • Ameriprise Financial
  • Bank of America
  • Barclays Wealth Management
  • BB&T Wealth Management
  • Bernstein Global Wealth Management
  • Bessemer Trust
  • BMO Harris Private Banking
  • BNY Mellon Wealth Management
  • Boston Private Bank and Trust
  • Brown Brothers Harriman
  • Charles Schwab
  • Citi Private Bank
  • Credit Suisse Private Banking
  • Deutsche Asset & Wealth Management
  • Deutsche Bank Alex. Brown
  • Fidelity Investments
  • Fifth Third Private Bank
  • Goldman Sachs
  • HSBC Private Bank
  • J.P. Morgan Private Bank
  • J.P. Morgan Private Wealth Management
  • Merrill Lynch
  • Merrill Lynch Private Banking & Investment Group
  • Morgan Stanley Smith Barney Wealth Management
  • Neuberger Berman
  • Northern Trust
  • PNC Wealth Management
  • SunTrust Private Wealth Management
  • U.S. Bank Private Client Group
  • U.S. Trust
  • UBS Private Wealth Management
  • Vanguard Personal Investors
  • Wells Fargo Private Bank
  • Wilmington Trust Wealth Advisory Services

About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

 

September 22, 2012

Consumers’ Expectations High for Luxury Brands on Mobile

The highest percentage of high-end consumers expect luxury apps to include a loyalty program

eMarketer
September 21, 2012

Luxury brands have been slow to the mobile party, with marketers steering clients toward traditional brick-and-mortar locations where products could be displayed in elegant surroundings and customers were treated to an impeccable shopping experience. But luxury brands are making up for lost time, according to a new eMarketer report, “Luxury Marketing: Recreating the One-on-One Experience with Mobile.”

Click the link to read the entire article: http://www.emarketer.com/Article.aspx?R=1009366&ecid=a6506033675d47f881651943c21c5ed4

September 12, 2012

In Asian Luxury Hotels, Wealthy Chinese Love Lodging With Hyatt And Marriot, But Japan Prefers Putting On the Ritz

(NEW YORK) September 12, 2012 – U.S. hotel operators prove popular among wealthy travelers in Asia’s two biggest markets, according to two new Luxury Brand Status Index (LBSI) surveys of affluent Chinese and Japanese by the independent and objective New York-based Luxury Institute. Japanese travelers earning at least 15 million yen per year ($190,000) evaluated 20 luxury hotel brands, and Chinese consumers with minimum annual income of one million yuan ($157,000) considered 26 luxury-lodging names.

Wealthy respondents rated hotels 1-10 on criteria including quality of accommodations, exclusivity, degree of status enhancement and ability to deliver special guest experiences.  They also indicated which hotel brands they planned to stay with this year, and whether they’re willing to pay premium prices or to recommend a brand to people close to them.

In China, St. Regis (8.41) earns the highest LBSI score, but the JW Marriott (36%) and Grand Hyatt (34%) were most frequently visited in the past year by wealthy Chinese travelers and are the two hotels where they plan to stay next. Along with InterContinental, Marriott and Hyatt are also the two most likely brands to receive favorable recommendations from wealthy Chinese travelers.

In Japan, Ritz-Carlton ranks at the top for both popularity and prestige. Ritz earns the second-highest (7.62) LBSI score, just behind Peninsula Hotels (7.66), but it is deemed the hotel most worthy of a price premium.  Ritz-Carlton is also the most popular choice for the next hotel visit.

“Luxury hotels don’t achieve consistently superior ratings by accident,” says Luxury Institute CEO Milton Pedraza. “Standards, systems and training underpin excellence in any service business, especially luxury.”

About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

Ralph Lauren And Calvin Klein Are The Most Popular Fashion Brands For Wealthy Shoppers, But Women See More Prestige In Chanel, Vuitton and Prada; Men Prefer Italian.

(NEW YORK) September 12, 2012 – Men and women earning at least $150,000 a year shared detailed opinions on 30 Ready-to-Wear luxury fashion brands in the latest Luxury Brand Status Index (LBSI) survey from the independent and objective New York-based Luxury Institute. LBSI scores comprise average (1-10) scores on product quality, customer service, social status and ability of the brand to deliver special customer experiences.

Chanel earns the highest LBSI score (7.49) from women, ranking comfortably above Louis Vuitton (7.29) and Prada (7.21). Chanel is also the leading brand for delivering the best customer experience, and the one most deserving of charging premium prices.

Among high-income men, the highest ranking brands are three from Italy: Canali (7.84), Brioni (7.80) and Ermenegildo Zegna (7.72). Canali earns the highest overall rankings for product quality and service experience, and it’s one of the top three brands most deserving of charging premium prices, along with Zegna and Brunello Cucinelli.

Brand prestige and popularity are two different matters. The top two brands purchased in the past year by both men and women are Calvin Klein and Ralph Lauren, and Ralph Lauren is the brand most mentioned as one wealthy consumers will buy in the coming year. Zegna ranks second for intended purchase among men.

“With luxury Ready-to-Wear, wealthy consumers certainly place tremendous weight on product quality, but those brands that combine great products with excellent service are the ones delivering superior overall experiences,” says Luxury Institute CEO Milton Pedraza. “Consistently delivering that kind of experience is at the heart of sustaining premium pricing.”

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

September 5, 2012

Wealth Management Boutiques Beat Big Banks In Luxury Institute Brand Status Survey Of Pentamillionaires

(NEW YORK) September 5, 2012 – Investors with at least $5 million in assets and minimum annual income of $200,000 prefer smaller boutiques instead of larger Wall Street firms in the latest Wealth Management Luxury Brand Status Index (LBSI) survey from the independent and objective New York-based Luxury Institute.  LBSI scores comprise respondents’ evaluations (1-10) of each brand’s quality, exclusivity, social status and ability to deliver special client experiences.

Brown Brothers Harriman earns top honors with the highest LBSI score of 7.01, and ranks first on each of the four sub-categories. Brown Brothers’ closest competition comes from Boston Private Bank and Trust (6.37), Neuberger Berman Private Asset Management (6.3) and Bessemer Trust (6.27).

Wealthy investors also show a strong streak of independence with the largest share (8.7%) saying that they would use Fidelity for future wealth management services. Fidelity is also the most recommended brand, with 61% of pentamillionaires saying they would refer friends and family to Fidelity.  Only 32% would recommend Goldman Sachs.

“Reputations for honesty and superior client service are what make the smaller firms standouts in this survey,” said Luxury Institute CEO Milton Pedraza. “This is demonstrated by revered brands Rockefeller and Glenmede, which barely missed the mark in attaining a statistical sample, but would have been in the top range otherwise.”

Respondents reported $15 million average net worth and average income of $720,000.

 About the Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

 

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