The scenario: what skills do I need in this situation?
You are an account manager in a wealth management firm. With recent events in the markets much of your recent work has been around wealth restructuring and coming to terms with a significant reduction in assets under management.
You have now been approached by an expat HNWI whose interests survived the last 12 months relatively unscathed due to a combination of a relatively strong domestic infrastructure and construction market in his country, and a fortuitously-timed flotation of his holding company. He is willing to discuss a portfolio of around £10m. He is highly aware of the misfortunes of others, including former associates who lost heavily in 2008/9, and has demanded reports covering the full process of how his wealth is managed. Following his associates’ experience, he is known to be unimpressed by the exorbitant fees he feels
HNWIs are charged for services and insists on starting with a portfolio of liquid, vanilla products.
Why is this course right for me, right now?
What do I need to know before attending this course?
What skills will I take away from this course?
The crisis of 2008/9 destroyed trillions of dollars worth of private wealth. Assets under management have reduced by as much as 75% as investors seek refuge in cash or lower-risk bonds. Previous avenues for high earning investment products – alternative investments, structured products, hedge fund strategies – have therefore been blocked, with corporate bonds representing the highest level of risk many investors are willing to take on. But with signs of improvement across the global economy, now is the time to be ready as HNWIs begin to seek higher returns. The willingness to reinvest will, however, come at a cost. Wealth managers can expect higher demands for transparency and disclosure from a client base whose understanding of the risks and complexity of financial markets has been sharpened through recent experiences. Clear and
convincing evidence of ROI, in a form amenable to the client, will assume far greater importance than before. In addition, the move away from high-margin products will continue to affect asset managers’ fee-earning potential.
The course is suitable for anybody working in asset management, with a particular focus on the wealth market. It will use role plays and case studies to allow participants to apply what they have learnt and test out their communication skills.
Technical
- Services offered – What services can we offer clients? How have these changed in light of recent events? What is the
competitive landscape? How will we distinguish ourselves against the competition?
- Lifecycle of a client – what does the client demographic look like, what are their different requirements at different stages of their lives and how do they perceive wealth managers?
- Tax, trust and regulations – how have the recent discussions on regulations and tax impacted on the client base and what can wealth managers offer that client base?
- Building and managing a portfolio – what are the different offerings available from discrete to advisory? What higher-margin
products meet the risk/return requirements of investors post-crisis? What solutions match which clients from Alternatives to Cash? - Towards client-centred reporting – procedures to ensure client reports are in the form clients want and that data from disparate sources has integrity, empowering clients to make decisions about
their wealth.
Personal Development Skills
- Understanding your client – develop the questioning skills to fully understand what drives client requirements post-crisis,
allowing you to build a bespoke solution.
- Gaining client trust – how to communicate with a client in a climate of scepticism. How to open the relationship and what to do to maintain that relationship.
- Influencing skills – how do you bring out the value add components that differentiate you from competitors? Have you
really understood your client and does it show in both your written and verbal presentation?
- Managing client expectations – learn how to deal with difficult situations, contextualise results for your client and build trust for the ongoing relationship.