Course Structure

This newly updated financial training course represents the ideal opportunity for relationship managers and asset managers in private banking / private wealth management to equip themselves with the skills to formulate innovative strategies, improve their customer relationships and effectively manage their clients' wealth.

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• Private Banking Relationship Managers and Asset Managers wishing to consolidate and/or refresh their client liaison skills and product knowledge

• Executives in legal and accountancy practices working with private bankers to improve their service to clients

• Corporate bankers requiring an overview on their transfer to the private banking function

• Senior Managers responsible for planning the private wealth management function or its subsequent management

• Legal & Trust Staff

• Branch Managers and Credit Officers who need to understand the complementary nature of private banking services

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Day 1

Introduction and Welcome

• Objectives

• Workshop style

• Introductions

• Programme overview

• A Day in the life of a private banker

The Global Private Wealth Market Place

• Industry trends

• Wealth forecasts

• Distribution of wealth

• Changing client behaviour and needs

• Offshore vs Onshore

Discussion:The challenges facing the industry

Investment Management Process, Asset Allocation and Portfolio Construction – The Basics

• Investment management process

• Five golden rules

• Asset allocation

• Risk, return and correlation

An Overview of Alternative Investments

• Hedge funds

• Real estate

• Commodities

• Private equity

• The universe of alternative investments

• Pure Alpha

Case Study:The importance of a structured investment process

New Approaches to Asset Allocation and Portfolio Structuring for Private Clients Applying the Principles of Post-Modern Portfolio Theory to Private Clients

• Foundations of post-modern portfolio theory

• What private bankers need to know about
  postmodern portfolio theory

• Problems with standard deviation as a measure
  of risk

• Downside deviation and the minimum acceptable return (MAR)

• The target rate of return and upside potential

• Applying the principles of post-modern portfolio
  theory in private client portfolio management

Case Study:Post-modern portfolio theory applied to private investors – features and benefits of different
approaches to asset allocation
 

Asset Allocation and Portfolio Structure – Advanced Concepts

• Phases and cycles in asset allocation

• Matching asset classes with wealth levels and
  income needs

• Factors affecting individual investors’ asset
  allocation decisions

• Determinants of individual investors’ asset
  allocation

• The influence of investors’ actions and market
  outcomes on investor satisfaction

• Market cycle analysis – Factors influencing asset
  prices in different phases

• Individual investor behaviour and insights from
  behavioural finance

Case Study: Examining Asset Allocation in private client portfolios

Diagnostic and Profiling Tools to Help in Designing the Portfolio Structure
 

• Factors affecting the performance orientation of
  a private client

• Individual investor satisfaction and utility
  analysis

• An integrated approach to asset allocation decision making for private clients

Case Study: Strategies for maximisers, builders, preservers, and conservative managers

Case Study: Modelling investor satisfaction and utility analysis

Asset Allocation Rebalancing and Restructuring
in Response to Market Moves

• Principles of asset allocation rebalancing

• Advantages and disadvantages of rebalancing

• Scope of rebalancing

• Asset allocation rebalancing approaches

• Critical success factors in rebalancing

• Choosing a rebalancing approach to match the
  client’s risk tolerance

Day 2
Structured Products and Total Return Solutions
for Private Banking Clients

The Demand for Total Return and Absolute Return Products by Private Clients

• Why private clients are becoming more absolute
  and total return oriented

• The differences between absolute and total
  return

• The convergence of absolute and total return

• Why do investors buy total return and structured
  products

• Overview of total return and structured products

• Uses and applications of total return and
  structured products in portfolios

Case Study:Positioning absolute and total return products appropriately

• What role can structured hedge funds play in a
  private client portfolio

Building Blocks of Financial Engineering for Private Bankers

• Structural alpha Vs Investment alpha

• What is a structured derivative Vs an exchange
  traded derivative

• The basic building blocks

• Some common structures found in practice –
  Spreads, volatility structures, arbitrage structures, exotics

• How to lock in the absolute return when achieved

• Downside protection vs upside return potential

Practical Exercise: Designing simple structures to match a client’s views and risk tolerances

Risk Reduction and Return Enhancement Opportunities and Strategies

• Risk reduction and return enhancement opportunities

• Currency markets

• Equity markets

• Credit markets

• The structured product menu

• Commodity linked notes

• Credit linked notes

• Currency linked structures

• Equity linked notes

• Interest rate linked notes

Case Study: Applications of Structured Products
 

Day 3
CRM and Account Development Skills for Private Bankers

Customised CRM for Private Bankers

• The “Wealth Management Loop”

• Developing a systematic way to think about
  clients

• Identifying new opportunities within a
  relationship

• Different types of client-advisor relationship

• Characteristics of relationship levels and
  indicators of success

• Understanding customer lifecycles and the sales
  process

• Moving towards customised relationship management

Case Study: Customer lifecycles and the sales process – Lifecycle portfolio exercise

Case Study: The rationale for segmentation
 

Diagnostic Frameworks

• The client’s mission statement

• Clients’ emotional needs

• The hierarchy of client experiences

• Client diagnostics drive client needs

• Diagnostic framework for approaching the client
  and recommending the proper solution

Practical Exercise: Emotional needs and diagnostics

Customer Tiering and Account Analysis

• What is strategic tiering of customer
  relationships ?

• Customer tiering concepts – buying centres,
  wallet size, share of wallet

• Old, new and emerging customer buying centres

• Assessing the potential of your accounts

• Steps in the account analysis process

• Strategies for moving clients to a higher tier

Case Study: Moving clients to a higher tier

Devising and Structuring a Relationship and
Development Plan

• Understanding the different phases of the sales
  cycle

• Identifying which phase of the sales cycle you are currently in

• Assessing the potential and problems in an account

• How to devise and structure a relationship and
  development plan

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