Technical Skills Private wealth management resembles both an art and a science. That is, a wealth manager needs to have the professional aptitude to understand the client's financial goals, objectives, and constraints, as well as the financial acumen to recommend…

Risk tolerance: Refers to the level of risk an individual is willing and able to assume. Risk capacity: Refers purely to the ability to accept financial risk. Risk perception: This is an attitude toward risk. Risk Tolerance Questionnaire Risk tolerance…

Planned Goals Planned goals will be those which are easiest to account for, in that clients will bring them up with their wealth management team, hopefully at the outset of a relationship. The following are some examples of planned goals:…

Common Tax Categories Taxes on income: These include taxes on salaries, interest, dividends, capital gains, and rental income. Wealth-based taxes: These include taxes on the holding of certain types of property and taxes on the transfer of wealth. Taxes on…

Personal Information Several factors contribute to the success of a wealth management relationship. To provide comprehensive advice, managers require all pertinent details about the prospective client, avoiding fragmented advice based on a partial analysis of the client's wealth. Relevant personal…

Private clients typically refer to individuals and families looking to invest their wealth. In contrast, institutional clients encompass companies or organizations that pool funds to achieve specific goals on behalf of owners and potentially other stakeholders. This section aims to…

Reading 23: Overview of Equity Portfolio Management Los 23 a: Describe the roles of equities in the overall portfolio Los 23 b: Describe how an equity manager’s investment universe can be segmented Los 23 c: Describe the types of income…

Basics of Analytical Tools in Fixed-income Space Analytical tools in the fixed-income domain have evolved alongside the market's growth and technological advancements. Modern fixed-income analytics encompass some of the following tasks: Building portfolios. Analyzing risks. Facilitating trading and settlement. Managing…

Structured financial instruments are collections of assets backed by collateral. Collateral ensures that if a borrower defaults on loans, their assets can be seized and sold to recover part or all of the issuer's losses. These instruments offer various tranches,…

International effects can influence a fixed-income portfolio, even if they aren't immediately apparent. This is because numerous businesses, and increasingly so, derive a portion of their revenues and costs from foreign origins. Emerging Markets (“EM”) Credit The emerging market corporate…