We have to handhold them in the process of realignment of the portfolio with due focus on the thesis behind each advice. When we onboard such clients (with not so good experience with large brand names) we can feel their discomfort with the investment community in general. Wealth managers (not registered Investment Advisors) aren’t supposed to give advice in the first place……. They should ideally ask for the thesis of investment advice from their wealth manager, but wait…. I wonder if #riskmanagement or #riskintelligence is even a function in the larger investment proposition.Ĭlients tend to trust on the basis of brand, relationship and even perceived propriety of their wealth manager nothing wrong about it. The SVB collapse was maybe not a few weeks action but months in the making.Įven in the wealth management space we have seen similar performance in some large portfolios wherein duration bond funds were bought at the trough of the interest rate cycle, backed by some atrocious reasons, even worse was the promises to the investor that they are in a very low risk portfolio. How Risk matrices are changed to suit your desired outcomes is simply not fathomable. LEARNING FOR #FamilyOffices - Greed and short term profit pressures make you do a lot of things, both in banking and wealth management.

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