Advice
Advice: Results of Private Banking Report
Dealing with Costs - Recommendations for Clients and Advisers
In our mystery shopping study we analyzed the investment proposals we received from the top-20 European wealth managers in respect to their asset allocation and cost structure. Both areas showed significant weaknesses and following we have compiled a list of recommendations for clients and as well wealth managers on how to deal with costs: ... more
Advice: Reduction of Wealth Management Costs
Specialised Providers Negotiate Fees and Kickbacks on Behalf of Clients
The majority of private banking clients underestimate the cost saving potential of their mandates. Not all costs are obvious to the clients and more often than not they don´t utilize the room for negotiations with their wealth managers to reduce the fees. However, new service providers are emerging to assist the client in gaining more cost transparency and realize the savings potential. They negotiate on the client´s behalf with the wealth managers... more
Advice: Meeting a Potential Client
Top Ten Things a Wealth Manager Should Ask
We believe that only a structured client questionnaire ensures a comprehensive profile. Unfortunately, we have found that only a small minority of banks is using structured questionaires or check lists to get a better understanding of their potential client. Some advisers don't even ask any questions at all. Therefore we have drawn up a list of ten things a wealth manager should at minimum ask from a potential client ... more
Advice: Results of Private Banking Survey
How to Improve Your Investment Proposal
At the height of the financial crisis, early in 2009 MyPrivateBanking conducted a mystery shopping study among the top-20 European wealth managers. The investment proposals of many of these banks revealed significant weaknesses in the process of determining the right asset allocation. We have compiled a list of the most important measures for an asset allocation that is not driven by the sentiment of the day but by objective criteria capturing the the goals and situation of the client. ... more
Interview with Raoul Hinder, CEO & Co-Founder of Portfolio Consulting AG
"It's All About Transparency"
All asset managers tell you that they are good. But are they? Portfolio Consulting, an independent service provider based in Switzerland and Germany, analyses the returns and costs of wealth managers and makes their performance and their risk transparent. Raoul Hinder is the co-founder and CEO of Portfolio Consulting AG. In this interview he explains how objective portfolio controlling works, what its benefits are and where the wealth management industry is headed. ... more
Advice: How to Invest in Mutual Funds
Ten Tips for Active Fund Investment
Many investors are wondering whether or not it makes sense to invest in active funds at all. Here are our top-10 guidelines for fund investment. The main take-away is: only when a fund manager can prove a long-term outstanding performance does it make sense to invest in an actively managed fund.... more
Interview: Alan Miller on the Fund Industry
"The More You Pay for It, the Worse the Product Is"
Alan Miller is Senior Partner and Fund Manager at Spencer-Churchill Miller Private, a boutique wealth management organisation. Alan Miller was formerly the Chief Investment Officer and founding shareholder of New Star Asset Management from early 2001 until his departure in early 2007. Recently he has made various critical comments about the high fees and the often low performance of the mutual fund industry.... more
Advice: Should You Really Become a Private Banking Client?
Private Banks Lowering Entry Hurdles
The CEO of Julius Baer declared that the bank would now accept clients with invest-able assets as low as 800,000 Swiss Francs (instead the previous minimum of 1 million). Likewise, the private banking service of the Spanish BBVA said that it would lower the minimum requirement for becoming a client from 2 million Euros to about 1.5 million Euros.... more
Wealth: Survey on Top European Private Banks
How to Improve Your Inquiry
During our visits of 20 of the most important private banks in Europe we learned a lot more about the customer interface and inquiry of private banks. Our recommendations for clients and banks... more
Advice: Fixed Income Strategies
Park Your Money in Short-Term Bonds Only
As the Wall Street Journal has reported, many private investors have recently moved their assets into bonds.But is it a good idea to move your assets to bonds or bond funds instead?... more
Interview with Kripa Sethuraman, Family Office Exchange
“We See a Shift in Strategy”
Kripa Sethuraman is Managing Partner of Family Office Exchange, London. Kripa is an expert on all matters related to family offices. In this interview she talks about the challenges in setting up and running a family office especially during times of financial distress.... more
Advice: Cut the Costs of Wealth Management (Part 4)
How Much Should You Pay Your Wealth Manager ?
The amount you should pay for your wealth management is determined by your ability to analyze the various cost factors and your willingness to pressurize your wealth manager. Research shows that your total costs of wealth management in most cases should not exceed ... more
Advice: Costs of Wealth Management
Kickbacks – The Way to Pay Your Wealth Manager Twice
As a client, you not only pay a substantial direct fee for your wealth management, but also indirectly for various hidden costs of products and services. However, while product issuers and banks charge these costs, they actually do not keep them entirely. They give back a huge chunk to the middlemen and the investors to “encourage” them to choose their products.... more
New Wealth Guide
First Steps to Wine as an Investment
It is definitely possible to make money through investing in top wines; however, it is certainly not as easy as is often suggested. Well known financial market-rules and risks do apply to wines also, sometimes even more so. ... more
Advice: Cut Your Costs of Wealth Managment (Part 3)
Watch Out for the Hidden Costs
In the third part of our series we focus on the hidden costs clients of wealth managers have to pay. By understanding their significance and structure, clients have big additional lever to cut their costs of wealth management. Because no matter what pricing model you choose, they have all one thing in common: You only see the direct costs ... more
Advice: How to Select Your Wealth Manager
First-Aid Question Kit to Ask Potential Adviser
Our readers frequently ask for advice on how to select a new adviser. Many clients are insecure about the method to identify the critical information they need to know before they pick a new wealth manager. ... more
Interview with Paul Amery, IndexUniverse.eu
"Wealth Management Still Dominated By Commission-Driven Funds"
Paul Amery is the managing editor of IndexUniverse.eu. In this exclusive interview for MyPrivatebanking.com Paul talks about the specific aspects of ETF and index investments... more
Advice: When to Say No to Your Adviser
Market Timing – Rarely a Good Strategy
In our latest Private Banking Study we found one quite surprising result: Many of the surveyed financial advisers recommended our test client to time the market. Their logic was that ... more
Advice: The Right Asset Mix (Part 3)
Take This Test to Determine Your Financial Personality
In the previous articles of our series we have talked about investment goals, risk tolerance and uncertainty. We have shown how these factors come together to form your investor personality. But you may ask yourself: How do I practically find out about my investor personality? ... more
Advice: The Right Asset Mix (Part 2)
What Is Your Financial Personality?
In part 1 of this series we talked about the three main factors that determine your outlook on investments: Your investment goals, risk tolerance and the ability to cope with uncertainty. If you take these three factors together you can determine a person’s overall financial personality.... more
Advice: Cut Your Costs of Wealth Management (Part 1)
Why Small Numbers Have A Big Impact On Your Wealth
In the first part of our series on how much clients should pay for their wealth management we look at the often underestimated significance of slight changes in costs on the overall performance. The costs that wealth managers show their existing or potential clients have always one thing in common: They look small.... more
Advice: Cut Your Costs of Wealth Management (Part 2)
Understanding Cost Drivers and Pricing Models in Wealth Management
In the first part of our series on how to cut the costs of wealth management we showed how small changes in costs will have a high impact on the overall performance. In the second part we analyse the various cost drivers and pricing models of wealth management. Only if a client understands all factors influencing his costs he will be able to reduce them.... more
Advice: The Right Asset Mix (Part 1)
Financial Personality Is The Key To Investment Success
What is the single most important factor that drives your financial success? You may think it is the right pick of stocks or the right timing (to invest when markets are rising and to pull the money out when markets are sinking). Wrong! ... more
Advice: How To Optimize Your Portfolio
Making the Right Asset Allocation
Asset allocation can make or break your financial future! MyPrivateBanking.com presents a new guide on the topic of “Making the Right Asset Allocation”. The return on and risk of your investment portfolio is mainly influenced by two factors that are under your control:... more
Advice: Watch Your Wealth Manager
How to Keep Your Banker from Disastrous Mood Swings
Have you also lost a ton of money with complicated structured products, hedge funds, private equity and financial stocks? Has your bank recommended and promoted these securities right when the markets were approaching their climax in 2007? Well, you are not alone. ... more
Advice: New Guide on Costs Analysis
How to Cut a Big Portion of Your Wealth Management Cost
With rather simple measures clients of wealth managers can reduce their costs of wealth management significantly. This is a main result of the new MyPrivateBanking.com guide... more