Aditya Gadge -Presentation - ICAI | Online Web TV

snowpeaschocolateΔιαχείριση

18 Νοε 2013 (πριν από 3 χρόνια και 4 μήνες)

78 εμφανίσεις



Wealth
Management



Presented by:


Aditya Gadge

CEO


Association of International Wealth Managerment of India
(AIWMI)


To define the wealth management market & the
services.


Provide an idea of its size and recent growth


Examine the career opportunities in the wealth
management industry.


Describe the competitive landscape and the ways to
reach there.


Introduce CIWM Certification program as a gateway
to careers in Private Banking & Wealth Management


AIM of this lecture

Entry Test

Definition of Wealth Management &
Private Banking


Wealth Management:


financial services provided to wealthy clients, mainly individuals and
their families , typically with $100,000+ investable
assets



Private banking:


an important, more exclusive, subset of wealth management,
typically with $1 million + of investable assets.



Private banking traditionally consisted of banking services (deposit
taking and payments), discretionary asset management, brokerage,
limited tax advisory services and some basic concierge
-
type services,
offered by a single designated relationship manager. On the whole,
private banking relationships were mainly ‘passive




Wealth management is broader and typically deals with managing both
the assets & liabilities side of clients’ balance sheets

Wealth Management
-

Products


While asset management is a key feature, wealth management has a greater emphasis on
financial advice and is concerned with gathering, maintaining, preserving, enhancing and
transferring wealth.



Products include:


Brokerage.


Core banking
-
type products


Lending products, such as margin lending, credit cards, mortgages and private jet
finance.


Insurance and protection products, such as property and health insurance, life assurance
and pensions.


Asset management in its broadest sense: discretionary and advisory, financial and non
-
financial assets (such as real estate, commodities, wine and art), conventional,
structured and alternative investments.


Advice in all shapes and forms: asset allocation, wealth structuring, tax and trusts,
various types of planning (financial, inheritance, pensions, philanthropic), family
-
dispute
arbitration


even psychotherapy to children suffering from ‘
affluenza
’.


A wide range of concierge
-
type services, including yacht broking, art storage, real estate
location, and hotel, restaurant and theatre booking.



Wealth

managers

coordinate

retail

banking
,

estate

planning
,

legal

resources,

tax

and

investment

management

.


Wealth

managers

can

be

an

independent

Certified

Financial

Planner,

MBAs
,

Certified

International

Wealth

Manager

(CIWM),

CFA

Charterholders

,

etc
.

As we understand…….

Client Segments


Private banking targets only the very wealthiest
clients or high net worth individuals (HNWIs): broadly
speaking, those with more than around $1 million in
investable assets.


Wealth management, by contrast, targets clients with
assets as low as $100,000, i.e. affluent as well as high
net worth (HNW) clients.


Defining the Wealth Management
Service Proposition


The following three criteria differentiate a firm as a wealth
manager:


The
relationship
that wealth managers have with their clients,
both in terms of breadth (where providers
emphasise

terms
such as ‘holistic’, ‘comprehensive’ and ‘all
-
inclusive’) and
depth (‘intimate’ and ‘
individualised
’).


The
products and services
provided, with a particular emphasis
on estate planning and multigenerational planning services,
as well as tax advisory expertise and alternative investments.


The
specific objectives of wealthy clients
, such as investment
performance, wealth preservation or wealth transfer.


Investment Mandates


Custodian
for a client’s assets. That involves, essentially, asset
safekeeping, income collection, fund disbursement and
associated reporting.


Execution
-
only mandate
, the wealth manager executes, or
selects brokers to execute, securities transactions on behalf of
the client. Not investment advice, service aimed primarily at self
-
directed clients.


Advisory mandate


Discretionary mandate



Discretionary Mandates


The wealth manager usually has sole authority to buy and sell assets and execute
transactions for the benefit of the client, in addition to providing investment
advice.


Starts off with:



Construction of a brief with the client, detailing investment aims, level of risk
-
aversion and other factors that will influence the portfolio (In some discretionary
accounts, the wealth manager is given only limited investment authority).
However, in all cases, major investment decisions, such as changing the
account’s investment strategy or asset allocation guidelines, may be subject to
the client’s approval.


The wealth manager is generally paid on the basis of a flat
-
fee arrangement
linked to the value of the assets under management.


The gross revenue margin of a discretionary mandate is typically at least double
that of an execution
-
only mandate.


Investment Mandates & Clients Wealth


The proportion of clients using advisory mandates is, in general,
relatively stable across the various client wealth bands.


Execution
-
only mandates become more prevalent the greater the
clients wealth


Discretionary mandates less prevalent, as client wealth rises.


Wealth management can mean different things in different geographic
regions.


In the US, wealth management is more closely allied to transaction
-
driven brokerage and is typically investment
-
product driven.


In Europe, the term is more synonymous with traditional private
banking, with its greater emphasis on advice and exclusivity.


Onshore & Offshore Wealth
Management


Onshore wealth management is the provision of products and services within
the client’s main country of residence.


Offshore wealth management, by contrast, serves clients wishing to manage
their wealth outside their main country of residence for reasons such as:



financial confidentiality;


legal
-
system flexibility;


tax considerations;


the lack of appropriate products and services onshore;


a low level of trust in domestic financial markets and governments; and


the need for safety and geographical diversification in response to domestic
political and macroeconomic risks.

Some clients treat their offshore account(s) primarily as a ‘vault
’.

13

Key Wealth Drivers


Regional
Differences


Asia
-
Pacific
: Strong economic development


Latin America: Traditional offshore
-
banking
stronghold


Middle East: Oil
-
driven growth


Africa: Commodity
-
driven growth


14

Main players


Pure private banks


Trust banks


Retail and universal banks


Family offices


Financial advisors


Stockbrokers


Direct
banks


Asset managers


Investment banks


Others


insurance companies, accountants, solicitors, financial
planners



The Rich & Famous



The Ubiquitous Common Man

Does he require Wealth Management services ?


… or do they require it ?


?

Hobbies of a common man


Black Jack


Golf


Ice Sculpting


Yachting


Polo


Collecting Cars

Hobbies of the rich & famous


Skydiving


Flying


Deep
-
Sea Diving


Art


Buying Islands


Space Travel


Some more


How to grow the income more than the growth in
inflation & expenses.

Major financial focus area for the
common man

Preserve: How to transfer wealth to the next
generation ?


Grow: How to earn tax
-
efficient & inflation
-
adjusted
growth to secure the family’s financial future?


Give: What is the most efficient way for charity?

Three major financial focus area
for the HNI Client today

Highly successful families manage their wealth by working with
combinations of in
-
house professionals and third party vendors
in a “family office.”


A
Single Family Office (SFO)
is a private structure created to
oversee personal financial matters for family members


A
Multi
-
Family Office (MFO)
is a commercial enterprise established
to meet the investment, estate planning and, in some cases, the
lifestyle and tax service needs of affluent families.


Family Offices

In an
adminstrative

family office, advisory and investment management services are managed
through contracts
with external service providers. The administrative family office typically
directly employs staff to provide some level of bookkeeping, tax, or administrative
services

often on a part
-
time basis.


The
hybrid family office keeps functions strategic to the family’s objectives in
-
house, and
outsources nonstrategic
functions. Some families hire family members for certain strategic
activities, when the family member has a demonstrated expertise or when privacy and
continuity of management are top concerns. In addition to administrative functions, hybrid
family offices employ experts in tax, legal and/or asset allocation.


The
comprehensive family office is designed to provide services for families who desire the
maximum
degree of control, security, and privacy. All functions, including administrative,
tax, legal, risk management, and core investment management, are provided by in
-
house
employees. Specialized investment management activities such as hedge fund, venture
capital, private equity, or emerging market investments may be sourced externally
depending on each family’s objectives, budget, and their ability to recruit and retain such
talent.

Types of Single Family Office

1.
Altamount

Capital

2.
Quant Capital

3.
Client Associates

4.
India
Infoline

Private Wealth

5.
Karvy

Private Wealth

6.
ASK Wealth Advisors

7.
Avendus

Capital

Some of the Leading Multi
-
Family
Offices in India

Association of International Wealth Managers

(AIWM
®

)


Based

in

Switzerland,

Non
-
profit

Association

established

in

2007

to

promote

&

strengthen

global

education

in

private

banking

industry


Awards

the

CIWM
®


Diploma

:

an

international
y

recognised

qualification

for

wealth

management

experts


Offers

private

banking

professionals

platform

for

high
-
quality

education

&

international

networking

Association of International Wealth Managers

(AIWM
)

Association

founded

by
:



AZEK

,

founded

in

1990
,

the

Swiss

Training

Centre

for

Investment

professionals


LawInContext
,

online

legal

&

training

service

created

by

global

law

firm

Baker

&

McKenzie


Central

Law

Training(CLT),

UK’s

leading

provider

of

postgraduate

legal

training

&

course

provider

of

renowned

STEP

Diploma

in

International

Trust

Management
.


Currently

present

in

Switzerland,

France,

United

Kingdom,

Germany,

Italy,

Luxemburg

,

Hong

Kong

&

Monaco
.


Recently

Launched

in

Asia

&

Gulf

region

by

AIWM

India

AIWM Member Nations

Role of
AIWM


Assists

graduates

in

acquiring

core

competencies

in

wealth

management

&

in

qualifying

for

key

positions

within

the

industry



Established

to

set

a

globally

recognised

standard

for

the

qualification

of

wealth

management

professionals



Facilitates

client’s

access

to

first
-
class,

reliable

and

comprehensive

advice

&

services
.

AIWM

s Objectives


To

facilitate

research

&

high

quality

education

in

field

of

international

wealth

management



To

provide

internationally

recognized

certifications

in

wealth

management

&

family

office(
CIWM
®
)



To

create

a

forum

for

the

interchange

of

ideas

and

information

in

the

finance

and

wealth

management

field


To

assist

a

world

wide

network

of

private

banking

experts



1.
Family Office Group, USA

2.
NUS Business School, Singapore

3.
Family Office Exchange (FOX), USA

4.
Campden

IPI, UK

5.
Society of Trust & Estate Practitioners (STEP)


AIWMI


International Alliances

Conclusion


Wealth management & private banking business is currently a
major area for development for many of the worlds financial
firms


The market is large, growing and highly profitable


Industry is fragmented & there is no agreed single ‘preferred’
model




Thank You



Association of International Wealth Management India (AIWMI)

Regus
, Level 9,
Platina
, G Block, Plot C
-
59, BKC, Mumbai
-
51

Ph: 022 67000572 Mob: +91 997017972


Email:
aditya@aiwmindia.com

www.aiwmindia.com




Queries