Wealth management

From Wikipedia, the free encyclopedia Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. High Net worth Individuals (HNWIs), small business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking, estate planning, legal resources, tax professionals and investment management. Wealth managers can be an independent Certified Financial Planner, MBAs, Chartered Wealth Manager,[1] CFA Charterholders or any credentialed professional money manager who works to enhance the income, growth and tax favored treatment of long-term investors. Wealth management is often referred to as a high-level form of private banking for the especially affluent. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective.

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1 Private wealth management 2 References 3 Further reading 4 External links

[edit] Private wealth management
This section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (August 2007) Private wealth management (PWM) is the term generally used to describe highly customized and sophisticated investment management and financial planning services delivered to high net worth investors. Generally, this includes advice on the use of trusts and other estate planning, vehicles, business succession or stock option planning, and the use of hedging derivatives for large blocks of stock. Traditionally, the wealthiest retail clients of investment firms demanded a greater level of service, product offering and sales personnel than were received by the average clients. With an increase in the number of affluent investors in recent years, there has been an increasing demand for sophisticated financial solutions and expertise throughout the world. The CFA Institute curriculum on "Private Wealth Management" indicates that there are two primary factors that distinguish the issues facing individual investors from those of institutions.

Time horizons are different. Individuals face a finite life as compared to the potentially infinite life of institutions. This fact requires strategies for transferring assets at the end of an individual’s life. These transfers are subject to laws and regulations that vary from locality to locality and therefore the strategies available to address this situation vary. Individuals are more likely to face a variety of taxes on investment returns that vary from locality to locality. Portfolio management techniques that provide individuals

and communicate with advisers regarding their current relationship as well as the products and services that may satisfy future needs. and when things get tough. with the latter term used to describe the same type of services. have adhered to the core principles of asset allocation and earned their keep by preaching the mantras of 'buy and hold'.[2] while "Global Wealth Management" focuses on accounts smaller than $10 million. who. 'stay the course'. Morgan Stanley and Merrill Lynch) have "tiered" their platforms – with separate branch systems and advisor training programs. In the late 1980s private banks and brokerage firms began to offer seminars and client events designed to showcase the expertise and capabilities of the sponsoring firm. but with a lower degree of customization and delivered to mass affluent clients. These new entities were devoted to educating the ultra wealthy investor and providing a network of peers for the ultra high net worth individual and their families.[5] Large banks and large brokerage houses create segmentation marketing-strategies to sell both proprietary and non-proprietary products and services to investors designated as potential high net-worth clients. regarding all products and services owned by their clients to answer enquiries regarding performance and degree of riskat the client. Certain larger firms (UBS. for a generation. The first such program was offered by the American Academy of Financial Management (now branded as the AAFM Global Academy of Financial Management) who offers the CWM Chartered Wealth Manager Program and then the Wharton School of the University of Pennsylvania. At Morgan Stanley. Independent wealth managers use their experience in estate planning. Banks and brokerage firms use advisory talent pools to aggregate these same services. to manage the diverse holdings of high net worth clients. The term was first used by the elite retail (or "Private Client") divisions of firms such as Goldman Sachs or Morgan Stanley (before the Dean Witter Reynolds merger). Within a few years a new business model emerged – Family Office Exchange in 1990. access. independent financial advisers or multi-licensed portfolio managers whose services are designed to focus on high-net worth clients."[6] For this reason wealth managers must be prepared to respond to a greater need by clients to understand. Both The University of Chicago and Stanford University also offer 5 day programs.[4] The five-day program is offered twice a year and is a continuing partnership with the Institute for Private Investors. from objective sources. In 2009. over 5000 people from over 100 countries have completed the AAFM CWM Wealth Manager program. Wealth management education for private investors with substantial wealth is offered by several leading universities.”[7] . 'invest for the long term'. Since 1999. portfolio and individual security levels. [3] At Wharton. to distinguish themselves from mass market offerings. "Private Wealth Management" is the retail division focused on serving clients with greater than $20 million in investment assets. but since has spread throughout the financial services industry. and their affiliations with tax and legal specialists. investment assumptions have been overturned. Columbia University offered a three day program on value investing designed for high net investors Wealth management can be provided by large corporate entities. distinguishing Private Wealth Management from "Wealth Management". The events of 2008 in the financial markets caused investors to address concerns within their portfolios. risk tolerances have been tested. "This state of affairs poses a dilemma for wealth managers.with after tax returns that meet their objectives are necessarily going to be specific to these tax structures. diversification. and fundamental truisms have been questioned. advisors must have sufficient information. For individual investors. risk management. 520 investors from 29 countries have completed the course. and correlation. "The past 18 months have challenged traditional thinking about investing and asset allocation. and CCC Alliance in 1995. Their growth since the 1990s indicates a market eager to become more informed about private wealth management. Moreover. the Institute for Private Investors in 1991.

This repository must contain a current and readily available profile of the clients holdings. [edit] External links • • • • • • Investment Management U. ^ Yeh. ^ AAFM Global Academy of Financial Management 4.Motilal Oswal Wealth Management View page ratings Rate this page What's this? Trustworthy Objective Complete Well-written I am highly knowledgeable about this topic (optional) Categories: • • • • • • • Business and financial operations occupations Stock market Financial services Log in / create account Article Talk Read . CFA Institute Private Wealth Management. L: "Questions Replace Investment 'Truths': A Comment". May 2009.S. ^ Directory of wealth management providers for high-net worth clients. ^ CWM 2. CFA Institute Private Wealth Management. [edit] References 1. ^ Wharton Private Wealth Management Program Graduate Profile 5. [edit] Further reading • Beyer. "A Retrospective and A Prospectus for the Future". The Journal of Wealth Management. (2008). Charlotte B. 7. Treasury Handbook Dictionary – Wealth Management Wealth Management Certification Programs Wealth Management Steps Wealth Management Careers Purple . ^ Individual Investors – Private Wealth Management 3. MyPrivateBanking Research 6. August 2009.Today wealth management advisors must have access to an objective content repository. Winter 2008. C: "Investors Challenge Market 'Truths'". ^ Costa.

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