CEO – Association of International Wealth Managerment of India
AIM of this lecture
To define the wealth management market & the
Provide an idea of its size and recent growth
Examine the career opportunities in the wealth
Describe the competitive landscape and the ways to
Introduce CIWM Certification program as a gateway
to careers in Private Banking & Wealth Management
Definition of Wealth Management &
financial services provided to wealthy clients, mainly individuals and
their families , typically with $100,000+ investable assets
an important, more exclusive, subset of wealth management,
typically with $1 million + of investable assets.
Private banking traditionally consisted of banking services (deposit
taking and payments), discretionary asset management, brokerage,
limited tax advisory services and some basic concierge-type services,
offered by a single designated relationship manager. On the whole,
private banking relationships were mainly ‘passive’
Wealth management is broader and typically deals with managing both
the assets & liabilities side of clients’ balance sheets
Wealth Management - Products
While asset management is a key feature, wealth management has a greater emphasis on
financial advice and is concerned with gathering, maintaining, preserving, enhancing and
Core banking-type products
Lending products, such as margin lending, credit cards, mortgages and private jet
Insurance and protection products, such as property and health insurance, life assurance
Asset management in its broadest sense: discretionary and advisory, financial and non-
financial assets (such as real estate, commodities, wine and art), conventional,
structured and alternative investments.
Advice in all shapes and forms: asset allocation, wealth structuring, tax and trusts,
various types of planning (financial, inheritance, pensions, philanthropic), family-dispute
arbitration – even psychotherapy to children suffering from ‘affluenza’.
A wide range of concierge-type services, including yacht broking, art storage, real estate
location, and hotel, restaurant and theatre booking.
As we understand…….
Wealth managers coordinate retail banking, estate
planning, legal resources, tax and investment
Wealth managers can be an independent Certified
Financial Planner, MBAs, Certified International
Wealth Manager (CIWM), CFA Charterholders , etc.
Private banking targets only the very wealthiest
clients or high net worth individuals (HNWIs): broadly
speaking, those with more than around $1 million in
Wealth management, by contrast, targets clients with
assets as low as $100,000, i.e. affluent as well as high
net worth (HNW) clients.
Defining the Wealth Management
The following three criteria differentiate a firm as a wealth
The relationship that wealth managers have with their clients,
both in terms of breadth (where providers emphasise terms
such as ‘holistic’, ‘comprehensive’ and ‘all-inclusive’) and
depth (‘intimate’ and ‘individualised’).
The products and services provided, with a particular emphasis
on estate planning and multigenerational planning services,
as well as tax advisory expertise and alternative investments.
The specific objectives of wealthy clients, such as investment
performance, wealth preservation or wealth transfer.
Custodian for a client’s assets. That involves, essentially, asset
safekeeping, income collection, fund disbursement and
Execution-only mandate, the wealth manager executes, or
selects brokers to execute, securities transactions on behalf of
the client. Not investment advice, service aimed primarily at self-
The wealth manager usually has sole authority to buy and sell assets and execute
transactions for the benefit of the client, in addition to providing investment
Starts off with:
Construction of a brief with the client, detailing investment aims, level of risk-
aversion and other factors that will influence the portfolio (In some discretionary
accounts, the wealth manager is given only limited investment authority).
However, in all cases, major investment decisions, such as changing the
account’s investment strategy or asset allocation guidelines, may be subject to
the client’s approval.
The wealth manager is generally paid on the basis of a flat-fee arrangement
linked to the value of the assets under management.
The gross revenue margin of a discretionary mandate is typically at least double
that of an execution-only mandate.
Investment Mandates & Clients Wealth
The proportion of clients using advisory mandates is, in general,
relatively stable across the various client wealth bands.
Execution-only mandates become more prevalent the greater the
Discretionary mandates less prevalent, as client wealth rises.
Wealth management can mean different things in different geographic
In the US, wealth management is more closely allied to transaction-
driven brokerage and is typically investment-product driven.
In Europe, the term is more synonymous with traditional private
banking, with its greater emphasis on advice and exclusivity.
Onshore & Offshore Wealth
Onshore wealth management is the provision of products and services within
the client’s main country of residence.
Offshore wealth management, by contrast, serves clients wishing to manage
their wealth outside their main country of residence for reasons such as:
the lack of appropriate products and services onshore;
a low level of trust in domestic financial markets and governments; and
the need for safety and geographical diversification in response to domestic
political and macroeconomic risks.
Some clients treat their offshore account(s) primarily as a ‘vault’.
Key Wealth Drivers – Regional
Asia-Pacific: Strong economic development
Latin America: Traditional offshore-banking
Middle East: Oil-driven growth
Africa: Commodity-driven growth
Pure private banks
Retail and universal banks
Others – insurance companies, accountants, solicitors, financial
The Rich & Famous
The Ubiquitous Common Man
Does he require Wealth Management services ?
… or do they require it ?
Hobbies of a common man
Hobbies of the rich & famous
Major financial focus area for the
How to grow the income more than the growth in
inflation & expenses.
Three major financial focus area
for the HNI Client today
Preserve: How to transfer wealth to the next
Grow: How to earn tax-efficient & inflation-adjusted
growth to secure the family’s financial future?
Give: What is the most efficient way for charity?
Highly successful families manage their wealth by working with
combinations of in-house professionals and third party vendors
in a “family office.”
A Single Family Office (SFO) is a private structure created to
oversee personal financial matters for family members
A Multi-Family Office (MFO) is a commercial enterprise established
to meet the investment, estate planning and, in some cases, the
lifestyle and tax service needs of affluent families.
Types of Single Family Office
In an adminstrative family office, advisory and investment management services are managed
through contracts with external service providers. The administrative family office typically
directly employs staff to provide some level of bookkeeping, tax, or administrative
services—often on a part-time basis.
The hybrid family office keeps functions strategic to the family’s objectives in-house, and
outsources nonstrategic functions. Some families hire family members for certain strategic
activities, when the family member has a demonstrated expertise or when privacy and
continuity of management are top concerns. In addition to administrative functions, hybrid
family offices employ experts in tax, legal and/or asset allocation.
The comprehensive family office is designed to provide services for families who desire the
maximum degree of control, security, and privacy. All functions, including administrative,
tax, legal, risk management, and core investment management, are provided by in-house
employees. Specialized investment management activities such as hedge fund, venture
capital, private equity, or emerging market investments may be sourced externally
depending on each family’s objectives, budget, and their ability to recruit and retain such
Some of the Leading Multi-Family
Offices in India
1. Altamount Capital
2. Quant Capital
3. Client Associates
4. India Infoline Private Wealth
5. Karvy Private Wealth
6. ASK Wealth Advisors
7. Avendus Capital
Association of International Wealth Managers
Based in Switzerland, Non-profit Association
established in 2007 to promote & strengthen global
education in private banking industry
Awards the CIWM® Diploma : an internationaly
recognised qualification for wealth management
Offers private banking professionals platform for high-
quality education & international networking
Association of International Wealth Managers
Association founded by:
AZEK , founded in 1990, the Swiss Training Centre for
LawInContext, online legal & training service created
by global law firm Baker & McKenzie
Central Law Training(CLT), UK’s leading provider of
postgraduate legal training & course provider of
renowned STEP Diploma in International Trust
AIWM Member Nations
Currently present in Switzerland,
France, United Kingdom, Germany,
Italy, Luxemburg , Hong Kong &
Recently Launched in Asia & Gulf
region by AIWM India
Role of AIWM
Assists graduates in acquiring core competencies
in wealth management & in qualifying for key
positions within the industry
Established to set a globally recognised standard
for the qualification of wealth management
Facilitates client’s access to first-class, reliable and
comprehensive advice & services.
To facilitate research & high quality education in
field of international wealth management
To provide internationally recognized certifications
in wealth management & family office(CIWM®)
To create a forum for the interchange of ideas and
information in the finance and wealth
To assist a world wide network of private banking
AIWMI – International Alliances
1. Family Office Group, USA
2. NUS Business School, Singapore
3. Family Office Exchange (FOX), USA
4. Campden IPI, UK
5. Society of Trust & Estate Practitioners (STEP)
Wealth management & private banking business is currently a
major area for development for many of the worlds financial
The market is large, growing and highly profitable
Industry is fragmented & there is no agreed single ‘preferred’
Association of International Wealth Management India (AIWMI)
Regus, Level 9, Platina, G Block, Plot C-59, BKC, Mumbai-51
Ph: 022 67000572 Mob: +91 997017972
Email: email@example.com www.aiwmindia.com