In a poll of bank wealth managers a day after Barack Obama was elected to become the 44th president of the United States, 50% said they expect their high-net-worth clients to be negatively impacted by the new administration, SEI found. Twelve percent said they expect a positive impact, but 38% said they were sure whether it will be positive or negative.
Eighty-eight percent said the biggest task ahead for Obama is restoring investor confidence, but they were split 50-50 on whether their clients will specifically be impacted by his decisions.
An overwhelming majority, practically 100%, said they expect the capital gains tax will rise from the current 15% to 20%, and as such, 44% said they have already applied tax-managed strategies to their clients holdings, and all of the remaining 56% plan to do so.
Its quite clear from these survey findings that wealth managers believe they will be operating in a different environment and that they need to adjust strategies for their clients accordingly, said Jim Morris, senior vice president for private banking at SEI.
Implementing these strategies will require clear communication so clients can understand how and why their wealth managers are making these changes, Morris added.
SEI conducted the poll during the Private Banking Asset Management Symposium last Thursday in Denver.