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The course provides for an ideal opportunity for private bankers and advisors to gain the skills and understanding to formulate client-driven and innovative strategies. It allows participants to build an enhanced understanding of your client relationship skills and effectiveness in managing wealth of UHNWI.
Discussing and reviewing asset allocation, profiling and assessment tools and structuring portfolio’s and turn it into risk-adjustment excess return programs. Attention will be paid to building effective client relationships, developing roadmaps for clients and winning new mandates.
The full cycle will be considered starting from its biggest asset, i.e. the client and his views and expectations and rolling over into profiling and subsequent asset allocation programs. Agnostic of the asset class, we will review the process of product identification, estate planning facilities and the role of cross-border taxation and how to deal with specific non-recurring demands.
Methodology:
This is a highly interactive training combining presentations, group debates and group works for case studies to enhance the learning curve of the topics discussed.
Participants are encouraged to bring to the table real life cases and issues they encounter in their work-related environment, thereby hopefully being able to draw upon experiences in the different regions the clients will be coming from to explore difference and trends.
Ultimate objective is to link the 3 critical aspects of a high performing private banker together being:
- Customer knowledge
- Product knowledge
- Relationship management skill & expertise
This course is suitable for client relationship and asset managers including:
- Private banking executives
- Private wealth managers
- Fund managers
- Department heads
- Investment managers
- Legal, trust and admin staff
- Senior branch managers
- Corporate bankers
Course categories:Asset Management Inhouse, Private Banking / Wealth Management Inhouse
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Day 1
Overview of the private banking industry
- Where are we and where are we going?
- Scrambling things together after 2007-2008
- What are the critical country items for building a strong Private Banking (‘PB’) platform
- Offshore tax havens, banking secrecy and the future role of Singapore/Hong Kong as a PB hub
- The UHNWI in emerging markets- what is he looking for?
- Is it different than his Western peer?
- Growth of private wealth in this world: trends and dynamics
Profiling clients and needs analysis
- Know your client (KYC) methods and forms
- The customer life cycle
- The investor life cycle
- The client’s balance sheet & sources of income
- Redefining and unlocking paradigms
- Current and future needs
- Private versus business needs
- Traditional versus new approaches to client profiling
- Psychological aspects of investments after the recent turmoil
- Diagnostic questionnaires and their usefulness
- Legal and regulatory environments that will shape the process
- Cultural differences
- Country/regional/global
- Religious aspects (i.e. impact of Islamic finance)
- Ethical dimension
- Prioritizing: returns, asset protection, tax minimization and confidentiality
Case study: Diagnosing a number of client profiles
Risk-Return or stress-testing your clients
- Relative versus absolute returns
- What kind of investor is your client? Overview of classifications
- Does risk profiling captures it all?
- Risk profiling & consequences:
- For this level of risk, get me the best returns you can get, or
- I’m looking for this kind of returns/liquidity in my portfolio
Case study: How good do you really know your client
Can behavioral finance (‘BF’) help?
- What is BF and what does it try to do?
- Our efficient market beliefs and BF: does it add up?
- Key takeaways:
- Over-confidence
- Over- and under reaction
- Loss aversion
- Cognitive dissonance
- What structural errors/biases do we make/apply in our investment decisions?
- How do these things show up in the market?
- Impact of BF on portfolio planning and construction
- Herding behavior of investors
- Interpretation of investment results: objective versus subjective paradigms
- Relevance of correlation
Day 2
Asset allocation & portfolio construction for private banking clients
- The process of asset allocation
- Why, what, how, where and when?
- Diversification in a portfolio
- Portfolio risk and return
- Standard deviation as a measure of risk
- Systemic risk versus specific risk
- Rewarding risk
- Measuring performance of a portfolio
- Portfolio construction & strategies
- The investment landscape & process
- Brief review of assets and product classes
- Role of emerging markets
- Turn the clients’ beliefs into a policy blending in natural or artificial constraints
- Consequences if you do not?
- Monitoring & evaluation
- Active versus (enhanced) passive portfolio management
- Sector rotation
- Top-down asset allocation versus tactical securities’ selection
- Linking profiling and the portfolio construction process
- Matching assets with key client indicators
- Market cycle analysis
- Investors’ satisfaction relative to market outcomes
- Factors impacting performance trends for clients
- Strategy choice & type-casting of profiles
- Rebalancing/reconstruction of portfolio’s
- Principles
- When, why and how often
- Approaches
- Advantages and disadvantages
- Product choice, financial engineering and client satisfaction
- Absolute/total return versus relative return products
- Differences
- Why recommend them?
- To what extent does structured products/financial engineering adds to your performance as a private banker
- Risk reduction strategies
- Return enhancement strategies
Case studies: Number of portfolio construction exercises applying individual topics discussed
Estate planning
- Fundamentals
- Objectives
- Constraints
- Transmission of wealth across generations
- Why does reality show this to be an issue, particularly in Asia?
- Tax aspects involved
- Retirement and inheritance planning
- Tools and vehicles
- Trusts & Family foundations: objectives and review
- Jurisdictions and types of vehicles
- Issues
- Documentations
- Offshore or onshore?
- Tax issues and impact of choice and product selection
- Alternatives for these vehicles?
- Offshore companies versus these vehicles?
Group discussion: Debate around the location choice, vehicle choice and client profile
- Impact of recent affairs:
- OECD/G20 attack on tax havens/bank secrecy
- Taxation systems review for overseas income
- USA- Switzerland debacle over UBS client data transfers
- Rebalancing of attractiveness of locations
- Choice of domicile
- Product choice & recommendation: letting the genie out of the bottle
- Ethical aspects and pricing
Group discussion: Future of Singapore/Hong Kong as a PB hub: the good, the bad and the ugly
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Day 3
Business development & client relationship management in private banking
Where are the next opportunities?
- Changing of client profiles
- How much engineering do we really need?
- Emerging versus traditional Western profile of an UHNWI
- Wealth preservation over the generations
- What is needed to capture those opportunities?
- Client retention and satisfaction
Case study: Wealth preservation in Asia across generations: still on shaky grounds
Globalization of the private banking industry
- Implications of organizational implications
- Offshore or onshore PB
- Legal and regulatory implications
- Impact of product choice and range
Customer relationship management for private bankers
- How to structure your thinking about PB clients and your relationship with them?
- How to mature those relationships over time?
- Types of client relationships and its life-cycle (staging)
- Impact on sales process
- Hierarchy of client needs
- How to develop a plan for managing the life-cycle of a client relationship and how to take them to the next level?
- The private banking client and its exposure to alternative investments
- Account development
- Negotiation skills
Case study: In what kind of business do you want to be? And how does it affect your behaviors?
Consultative selling behaviors & techniques
- Private banking as big ticket sales
- Dealing with objections & managing them
- Acquisitions of new clients
- The art of networking: strategic approach
- Establishing client relationships:
- From the ice-breaker to a serious dialogue
- The 80-20 rule
- Structuring a conversation: uncovering needs
- Consolidating on a relationship:
- Uncovering needs and product opportunities
- The fee issue
- Capitalizing on an existing relationship and deepening a LT-relationship
- Changing in the outlook & views
- Pro-activeness in the client relationship
- Best practices
- Gaining effective commitments
- Maintaining momentum
Case study: Throughout this session, short role plays and/or factual situations will be discussed to illustrate (in) effective behaviour relative to the items discussed
Product development for private banking
- Bank products
- Risk profiling process
- Principal guaranteed products
- Trends in private banking and change management
- Types of family offices and their distinct behaviors
- External & internal forces to change
The way forward for private banking
- The PB landscape going forward
- Role of product development & engineering
- Impact of globalization on the industry & client needs
- The changing client profile
- Shifting paradigms on the regulatory level
- Changing nature of the client- private banker relationship
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