tvPM Wrote: ------------------------------------------------------- > IH8-in the US, however, advisors can also manage > money on a discretionary basis I believe. Ok, well in canada " Financial Advisors" are nothing more than tellers with a high school degree who took a securities cousre and is licensed to sell mutual funds. That is why here in canada, and the tune of my posts, there is a HUGE difference between the 2.
bchadwick-I think you might have nailed it on the last comment…a person with good people skills, communication skills, and is a competent PM… When I started I didnt have relationships, that wasnt how our firm worked, that was the Relationship Mgr that had a book. It was important, though, to be able to work into that relationship as the investment person, thus people skills are important. I know its dif at dif shops, WS’s for example sounds a lot different.
Haha! Things become complicated when a bank holding company owns asset managment firm, brokerage firm and try to run HNW practice from both channel
I think things get complicated when you try to retail-ize an experience that used to be white-glove…both from a client view standpoint as well as employees. When the focus turns to products, profitability, and metrics then I think the company turns more advisory/retail/crap, top employees leave, top clients leave, ahhhh I am glad I left(not saying I was a top client or employee)
So true…if the client can’t be profitable within 1 quarter (even shorter), mangment doesn’t want you to spend any time with them anymore.
Wow, I missed a lot. There is a lot of good insight in this thread, I will try use it to my advantage. I have Warren Buffet’s notes, he mentions Mr. Market and margin of safety. I will read them before the interview. My previous work experience was in business development, I will emphasize my client relationship and retention skills. Moreover, reiterate the importance of the IPS.
good luck man, let us know how it goes, good debate/argument by all.
What kind of client interaction does a pm have?
depends on how good he is. the better he is, the less the clients want to call and complain to him about the alpha he ISNT bringing.
Interesting and informative thread. So in the PWM world, do you buy individual securities for a clients account, or are the assets managed externally? Or a combination? I’m thinking about PWM down the road as an interesting opp…currently at a large foundation where all money is managed by external managers.
It depends. In my previous role there was a mixture, and think dif places/people do it differently. For instance, I’d manage a individual security portfolio for Large Caps and bonds, but would use external mgr for emerging markets. Also in a lot of instances you will have legacy holdings to deal with, etc. I am sure many places are similar to your endowment where they have an AA and then plug managers in, while others probably are stock picking across the board.
- Being able to bring in business is abs. key. 2) Pay can hit ~250K for senior positions. 3) Marketing people bring in the initial leads, you help close the business. 4) It ain’t 9-5 all the time.
Currently at 152. 1. I like the role, it’s challenging demanding and rewarding. 2. 152 is a leading player in Canada. 3. Challenges are dealing with PAEs…they’re typically arrogant primadonas. 4. Hours are crazy if you don’t manage your time or have a huge terrain to cover but it can be crazy even with proven time management. 5. Head office and Senior Management often too far removed from life at Front Office. Or even worse: sitting across the board room from someone you know couldn’t close a door let alone a deal. 6. Also a challenge is a declining budget [industry wide] but I mean $250 quarterly for client entertainment? “Yes hi, Mr. HNW, I’d like to take you and Mrs. HNW out for a night on the town, how about bowling at White trash lanes followed by a sumptuous dinner at Wendy’s”. Willy
IH8FSA Wrote: ------------------------------------------------------- > T2 > > The key line where you are probably getting the 2 > busienss mixed up can be found in the below > profile for Deutsche banks Discretionary Division. > > > “Clients who wish to play a more active role in > investment decision-making may find our Active > Advisory more closely suits their needs” > > > http://www.db.com/pwm/en/select-services-dpm.html > > > Discretionary Portfolio Management > Finding time to manage investments effectively in > today’s fast-moving markets can be difficult. > Deutsche Bank’s worldwide network of investment > experts covers every major international market. > Our unique Global House View is backed by > expertise at both the regional and local level. > Discretionary Portfolio Management puts these > resources to work for you through the services of > a Portfolio Manager who handles all the day-to-day > management of your account. We provide regular > performance reporting, freeing you to concentrate > on other matters. > > In Line With Your Investment Strategy > Working from the personal investment strategy > devised for you, which takes into account your > risk preferences and overall goals, our Portfolio > Management team will seek to select suitable > investments for you. Your financial goals – such > as aggressive growth, growth, income or security – > will be reflected in the selection of asset > classes such as bonds and equities or alternative > investments and foreign exchange – with each one > given the appropriate weighting. > Active Management > > > Contact Us > Speak to one of our Relationship Managers > > Through ongoing active investment management, > portfolios are regularly monitored to see that > they continue to perform as intended. Our aim is > to maintain a carefully-constructed portfolio > positioned to deliver in accordance with your > agreed investment strategy. Clients who wish to > play a more active role in investment > decision-making may find our Active Advisory more > closely suits their needs. > > > > > > > > > > discretionary portfolio management > > Definition > Investment account arrangement in which an > investment manager makes the buy-sell decisions > without referring to the account owner (client) > for every transaction. The manager, however, must > operate within the agreed upon limits to achieve > the client’s stated investment objectives. > > http://www.businessdictionary.com/definition/discr > etionary-portfolio-management.html > > > > > > http://books.google.ca/books?id=uQOYqEqIiBcC&pg=PA > 146&lpg=PA146&dq=discretionary+wealth+manager&sour > ce=bl&ots=Ae0zr5lqCG&sig=Qm0XHQL1uL452m2E1syTclJOX > ok&hl=en&sa=X&oi=book_result&resnum=10&ct=result > > > > http://www.abnamroprivatebanking.com/switzerland/d > iscretionary-portfollio-management#switzerland/dis > cretionary-portfollio-management > > > > http://www.charles-stanley.co.uk/DiscretionaryMana > gement.jsp > > You simply agree your investment goals with your > Investment Manager, and then allow us to take care > of monitoring your holdings and making the > investment decisions regarding the content of your > portfolio. > > Your Investment Manager will provide you with > regular reviews and valuations of your portfolio. > If you wish, you may also access your valuations > and statements via this website. I know you work in this arena so maybe you can shed some light on a curosity I have. Do discretionary PMs also act as a QB for other financial needs of their clients like a private banker would. Such as help wth financing yatch purchases, second/third homes, insurance advice, or advice on other assets tha are not traded on a market, i.e real estate?
ideally everyone on the client’s team of advisors will be out to cross-sell…I mean advise…re other needs.
I try to pass along what I can but really I need to focus on new sales in 2009. I think that a lot of PMs are thinking they need to do the same. Willy
ws Wrote: ------------------------------------------------------- > Haha! Things become complicated when a bank > holding company owns asset managment firm, > brokerage firm and try to run HNW practice from > both channel they can be complicated, or they can be extremely efficient. POX AMERICANA So in the PWM world, do you buy individual securities for a clients account, or are the assets managed externally? Or a combination? its a combination. some hnw investors like playing the markets and owning stocks and enjoy the active role. others are old widows or dr’s that could care less. for the actives you incorporate a brokerage account, for the less active, you employ your team of PMs. then theres the fixed annuities (based off bond portfolios so many interest rates are high on ST annuities), life insurance, LTC (which every 1M-5M client should have), and fee based plans and specialty consults.
What is the general consensus about education in the HNW space? Do HNW clients tend to expect MBAs to manage their investments, or does CFA suffice? Just trying to get a feel for prospects in a few years. Thanks skip and tvPM for your comments, very helpful.
SeanC-in my experience the PM does the investments, the rest of the stuff you mentioned is handled by the relationship manager type person. They QB it all, pull in people they need (ie-estate planner, trust officer, pm, etc) as needed. Pox- I am sure it varies, the PMs I have dealt with in the space hold the CFA. I think that if your clients know what it is that they would appreciate that more than an MBA as you are focused on investments 100%, not whats a cash cow and what Home Depots new strategic vision is going to look like (yes these are important and can impact a value of an investment, but the focus is dif). They want to know you are competent, the letters dont matter as much.
Pox Americana Wrote: ------------------------------------------------------- > Do HNW clients tend to expect MBAs > to manage their investments, or does CFA suffice? > Just trying to get a feel for prospects in a few > years. I don’t think any letter matters to your HNW client. They expect you to listen to their needs, and arrive a solution…by the way, they also expect you to wipe their a** from time to time.