Mass Affluent Segment The Mass Affluent segment is the largest among the three segments defined here. Clients in this segment have smaller portfolios comparatively, and are typically more focused on financial planning. This could include budgeting, tax preparation, retirement planning,…

The CFA Institute Code of Ethics and Standards of Professional Conduct are great places for investment professionals and candidates to begin building their knowledge of ethics for finance. This section focuses on the unique considerations of private wealth management. Fiduciary…

Evaluating private wealth management program success is more involved than an a evaluating the success of an investment fund or ETF. The latter can often be compared to a benchmark. The same cannot be said of an individual investment management…

Portfolio Reporting Typically, a portfolio report will summarize the following: Portfolio asset allocation. Performance summary for the current (often year-to-date) period. Detailed performance (asset class and/or individual security performance). Performance reports covering the period since inception of the client's investment…

After creating the IPS wealth managers need to decide on an asset allocation that best fits the clients' objectives and constraints. This section covers 2 main approaches to asset allocation selection. Traditional Approaches The traditional approach is the most used….

After creating the IPS wealth managers need to decide on an asset allocation that best fits the clients' objectives and constraints. This section covers 2 main approaches to asset allocation selection. Traditional Approaches The traditional approach is the most used….

Background and Investment Objectives Background items commonly include the client's name and age, as well as relevant personal and financial information. Filling out this section helps the wealth manager gain an understanding of the client's investment objectives. Common objectives include…

Parts of the IPS Background and Investment Objectives This section outlines the goals for the wealth management program. It is discussed in more detail in the next Los. Risk Tolerance This portion of the IPS states the client's ability and…

The retirement problem is perhaps the most important set of financial decisions that an individual investor will make. At its core, retirement planning should bring clear answers to the following questions: What lifestyle in retirement is desired? When, and if,…

Capital sufficiency analysis (or capital needs analysis) is the process by which a wealth manager determines whether a client has, or will likely have, sufficient financial resources to meet his or her objectives. Methods Deterministic Forecasting Deterministic forecasts are simply…