Boston Private Bank & Trust, Inc. has knocked Bessemer Trust Co. off its perch in a survey of wealthy consumers that asked them to rate which wealth management firm had the most cachet in their social circles.
Bessemer fell to 12th place on the Luxury Institute LLC's annual survey of top wealth management firms, marking the first time in the survey's five years that the firm has not ranked in the top three, according to Luxury Institute chief executive Milton Pedraza.
Bernstein Global Wealth Management, a unit of
AllianceBernstein LP, ranked second this year, and Rockefeller & Co. Inc. ranked third, appearing on the Luxury Institute's list for the very first time.
Thirty-four wealth management firms on the list, which is determined by asking consumers whether firms offered superior service, enhanced their social status, were unique and exclusive, and made them feel “special.” The list this year included
trust companies, private banks and the high-end wealth operations of other financial services providers.
Some important wealth management players weren't even in the running. GenSpring Family Offices, the largest registered investment adviser, did not appear on the list of 34, for example, because not enough survey respondents recognized its name.
The lowest-ranked firms included Charles Schwab & Co. Inc.,
Bank of America Corp., and
Ameriprise Financial Inc., though BofA's U.S. Trust division scored higher than its parent.
The churn among the top names in the survey is likely less a product of the firms' performance and more the vagaries of consumer perception, and a crowded wealth management field, Mr. Pedraza said.
“Consumers are fickle, and especially in categories where there's not a high level of differentiation, like wealth management, things bounce around a bit,” Mr. Pedraza said. “Life is messy, and we don't have all the explanations for why consumers respond the way they do.”
The Luxury Institute surveyed 505 wealthy consumers online last month. Respondents live across the U.S., earn at least $200,000 a year and have a minimum net worth of $5 million.
The Institute, using its proprietary Luxury Brand Status Index, asked various questions to elicit respondents' views of firms' quality, exclusivity, clientele and customer service.
To reach its number one spot, Boston Private ranked highest across all questions, although other firms received higher marks in individual categories. Bernstein, for example, was considered most worthy of premium fees.
And even though Bessemer was no longer at the top, it still received high marks for being “unique and exclusive,” the Luxury Institute noted. A spokesman for Bessemer was not available for comment.
