What does the Wealth Management division do?
Wealth comes in lots of forms; it isn’t simply a matter of having huge sums of cash in your bank account. People who have a lot of money often have complex financial arrangements in which their assets are widely spread and diverse in nature (‘assets’ is the term used for anything owned by an individual or business which has monetary value). Making those assets work most efficiently and productively takes an in-depth knowledge of both financial markets and the latest investment opportunities. This is where the Wealth Management division comes in.
It does exactly what it says – Wealth Management is about managing people’s wealth. The people in question are usually defined as high net worth individuals. ‘HNWs’ are generally defined as people who own financial assets over $1 million.
What types of clients are there? Well, they could be anyone – or rather anyone who has enough money to warrant employing a wealth manager: successful business owners, entrepreneurs, people who are rich through inheritance, perhaps even celebrities.
Given the often complex nature of a HNW individual’s assets, it is no good for a wealth manager just to advise on what to do with one lump of cash. Wealth managers provide comprehensive financial support for their clients. The advice they offer will be wide-ranging and varied. It can cover taxes and asset protection, investments to property advice. Of course they can’t be experts in everything - in many cases they’ll act as a ‘front’ for other departments in the bank, depending on the complexities of the services required.
The things they do will often touch on many aspects of their clients’ lives from business to family. Nurturing the relationship they have with their client is vital to retaining and growing their business.
Wealth Management services are offered on a discretionary or non-discretionary basis:
Clients who opt for discretionary support effectively hand over their finances to the bank to manage. Based on pre-determined criteria, the bank will make investment decisions (perhaps through its Asset Management division) on behalf of the client and assumes responsibility for protecting and growing their wealth.
‘Non-discretionary’ means that, although the client receives advice from the bank, ultimate decision-making still lies with the client.
I work in a division responsible for ‘discretionary portfolio management’ and ‘product management’. My major task is business development for the department and assuring compliance with local laws and regulations. My role comprises a very broad variety of different tasks and issues. I really like this particular feature of my job – it makes sure my job never gets boring! In fact, I have to know more or less all processes in the department and must have a very broad knowledge base.
Andreas, Wealth Management, Luxembourg
Meet the secret graduates
These recent graduates in Asset Management and Wealth Management tweet regularly to give you an insight into their daily lives.
- We focus on top down ideas, pick our product of the moment, then work on promoting/gathering commitment from other depts! #wealthmanagement
- Mon Oct 08 2012
What other names are there for Wealth Management?
Wealth Management is a fairly ubiquitous name for this line of business. You may also see it referred to as ‘Private Wealth Management’ or ‘Private Banking’.