Wealth management is a complex of consulting services covering all aspects of the financial life of a private client with a large fortune – financial investments, planning, accounting and taxation, legal issues.

As a rule, such services include advice on the use of trusts and other mechanisms for asset management, advice on the transfer of business, including through options, on the use of hedging mechanisms through derivatives for large blocks of shares. Traditionally, high net worth clients of investment companies have demanded a higher level of service, exclusive offers and personalized service than was available to ordinary clients.

The step-by-step formation of the investment portfolio is accompanied by professional consulting support.

A list of consulting services

  • Needs analysis: Our advice is guided by your needs and goals – for example, capital gains. A personal consultant will regularly assess your personal and financial situation with you;
  • Financial concept: Based on the analysis of individual goals and needs, the bank managers will jointly prepare an overview of your personal assets, which will reflect the further financial concept;
  • Client profile: As part of the risk analysis, the bank and the client will discuss the willingness to take risks and the financial ability to bear such risks. The client profile based on the results of the risk analysis will form the basis of an investment strategy developed especially for you;
  • Strategy: The bank will offer you financial strategy options in accordance with your investment objectives and the agreed level of risk. A personal manager will give recommendations on the composition and parameters of your portfolio, taking into account your individual needs. The bank then use this strategy as the basis for portfolio management and tailor-made investment decisions;
  • Implementation: At the last stage, the bank will form an investment portfolio. Continuous management of your portfolio and regular review of the chosen strategy are key factors in this process. So they can together react to changes in the market situation and your personal circumstances, contributing to the achievement of your goals.

The term “wealth management” was first used in retail divisions of Goldman Sachs and Morgan Stanley to differentiate services to high-net-worth clients from the mass market, but later the term also spread to the financial services market.

In the late 1980s, private banks and brokerage firms began offering workshops and events designed to showcase the expertise, capabilities and tools of sponsoring firms. Over the course of several years, a new business model emerged – Family Office Exchange in 1990, Institute for Private Investors in 1991 and CCC Alliance in 1995. The activities of these new entities were aimed at educating and training wealthy clients and creating a network of relationships between such clients and their families.

Wealth management training programs for high net worth private investors are offered by several leading universities. The first such program was offered at the Wharton School of Business at the University of Pennsylvania. Since 1995, 573 investors from 32 countries have been trained under this program. The five-day program is offered twice a year in collaboration with the Institute for Private Investors. The University of Chicago and Stanford University also offer five-day programs. In 2009, Columbia University offered a three-day investment course targeted at high net worth private investors.

According to a study by the London-based consulting firm Scorpio, as of 2017, the largest banks in terms of managed capital were the Swiss UBS ($ 2.1 trillion), as well as the American Bank of America ($ 1.97 trillion) and Morgan Stanley ($ 1.95 trillion). The biggest leap forward was made by the Chinese bank China Merchants Bank, which moved up in the list by 5 positions and took 15th place in it.

Benefits of wealth management

  • Major decisions are made by the investment committee and a professional manager;
  • Market leader expertise;
  • Experienced and stable investment team;
  • Well-built and streamlined investment process;
  • An active approach to portfolio management focused on generating additional income;
  • Significant experience in managing large portfolios of private and institutional investors;
  • A personalized approach to information, marketing and reporting;
  • Individual approach to portfolio administration;
  • Achieving the investment goals of clients is the main priority of the company.