Private Wealth Management: Financial Planning, Investment Solutions & Goal Based Investing

Duration:
2 days
Location:
Prague, NH Hotel Prague
  • New Paradigms of Wealth Management
  • Applying Behavioural Finance in Financial Planning
  • Asset Classes and Investment Solutions
  • Strategies for Asset Allocation and Risk Reduction
  • Goals-Based Investing
  • Constructing Optimal Portfolios
  • Performance Measurement, Client Reporting, Ethics and Regulation
A two-day course that will provide you with the skills, tools and inspiration needed to deliver top-quality, state-of-the art advice and investment solutions to wealthy clients

The purpose of this seminar is to give you a thorough introduction to the business of "Private Wealth Management" and a good understanding of how the goals and needs of clients can be met through careful financial planning and well-designed investment solutions.

We start with an overview of the private wealth management market. We look at recent developments in private wealth globally and regionally. We discuss the paradigm shift that has occurred in the wake of the global financial crisis and explain the challenges – and opportunities – of investing under the "new normal" of low returns.

We then take a closer look at the wealth planning process. We discuss how clients can be categorized according to various wealth and personal characteristics and we explain how wealth should be managed according to the client's situation and psychological profile. We also explain and demonstrate how an investment policy statement should be written to reflect the client's objectives and constraints.

We then turn to the asset management process. We give an overview of traditional and alternative asset classes and their characteristics. We give practical examples of investment solutions that are offered to private banking clients. We explain the risk and return characteristics of the products, and we discuss their suitability for private banking clients.

Further, we explain how to build the investor's portfolio in accordance with expectations and investment policy. We discuss how traditional portfolio theory and behavioural finance can be integrated in the portfolio construction process, and we explain the concept of "goals-based investing. We also explain how financial and human capital can be optimally balanced according to the client's risk-return objectives and investment constraints.

Finally, we explain how investment performance can be measured, appraised and communicated to the client. We also discuss the all-important ethical and regulatory aspects of the advisory/wealth management business.

09.15 - 12.00 Introduction to Private Wealth Management

  • Overview of the Wealth Management Market
  • New Paradigms in Private Wealth Management
  • Investing Challenges in a Low-Returns Environment

Financial Planning for Private Clients

  • Client Profiling
    • Psychographic profiling of clients
    • Assessing the ability and willingness to take risk
    • Understanding clients’ cognitive and emotional biases
  • Identifying Objectives and Constraints
    • Return objectives
    • Risk objectives
    • Horizon, liquidity, tax and personal considerations
  • Preparing the Investment Policy Statement
  • Case Study: Investment Policy Statement for “Ms. Mary Hope”
  • Small Exercises

12.00 - 13.00 Lunch

13.00 - 16.30 Asset Classes and Investment Solutions

  • Equities and Fixed Income Investments for Private Clients
    • Government and corporate bonds
    • Inflation-linked notes and bonds
  • Investing in Traditional Investment (Mutual) Funds
  • Alternative Investment Applications for Private Clients
    • Hedge funds
    • Private equity
    • Real estate
    • Commodities
  • Derivatives Applications for Private Clients
  • Using Structured Products in Investment Solutions for Private Clients
    • Principal-protected structures
    • Bull and Bear Certificates
  • Using “Exotic” Investments to Achieve Return Enhancement and Diversification
    • Wine
    • Precious metals
    • Antiques
  • Case Studies and Exercises

Day Two

09.00 - 09.15 Recap

09.15 - 12.00 Asset Allocation and Portfolio Construction

  • Basic Strategies for Asset Allocation and Risk Reduction for Private Clients
    • Human capital
    • Financial capital
    • Stage of life cycle
    • Bequest preference and risk aversion
    • Asset allocation and life insurance
  • Portfolio Construction
    • Constructing mean-variance efficient portfolios
    • Tactical asset allocation
    • Core-Satellite Investing Using ETFs
  • Portfolio Rebalancing Strategies
  • Goals-Based Investing
    • Integrating traditional and behavioral finance
    • Identifying and understanding lifestyle objectives and aspirations
    • Building portfolios as layered pyramids
    • Constructing optimal portfolios based upon client aspirations
  • Case Study and Exercise

12.00 - 13.00 Lunch

13.00 - 16.30 Performance Measurement, Client Reporting, Ethics and Regulations

  • Traditional Measures of Return and Risk
  • How Private Clients Think about Return and Risk
  • How to Measure the Risk of not Meeting the Client’s Aspirations
  • Measuring Risk-Adjusted Return
    • Sharpe ratio
    • Sortino ratio
    • RoMAD
  • Benchmarks and Benchmarking
  • Attribution Analysis – Explaining the Sources of Returns in Goals-Based Investing
  • Style Analysis
  • GIPS-Compliant Client Reporting
  • Ethical Aspects of Wealth Management
  • MiFID, PRIPS and other Relevant Regulation
  • Case Study and Exercise

Summary, Evaluation and Termination of the Seminar

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