Private Banking Wealth & Portfolio Management

Date: 15-16 March, 2010
Time: 9 am to 5 pm
Venue: Towers Rotana, Sheikh Zayed Road, Dubai, UAE

Training Fee: USD 2250 per participant

Early Bird Discount:
Register before 14th February 2010 and pay USD 1900 per participant only
OR
Register 3 participants per firm and save 20% per participant

Introduction
These are both exciting and challenging times for the Private Banking and Wealth Management sector. The industry continues to grow strongly with the emerging markets, notably Russia, the Middle East and Asia creating a steady stream of new high net worth individuals. These wealthy entrepreneurs represent a real marketing opportunity for those banks able and prepared to offer a professional service, delivered expertly by dedicated relationship managers. However, the competition for this custom has never been stronger  and only those banks who can offer genuinely expert personnel,  a sophisticated set of global financial services and who know, above all,  how best to meet their investors individual requirements, will succeed.

Course Description
This course offers an opportunity for staff engaged 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.  The focus of this course is on equipping delegates to help their bank to grow and win new business, to retain and develop existing client relationships and to defend against clients leaving. Delegates will develop an understanding of the nature, origins and characteristics of private banking wealth together with a comprehensive knowledge of clients’ requirements and expectations and how these can be managed effectively and profitably.   

Learning Objectives
Upon the completion of this training event participants will have gained an understanding of
• The nature, origins and characteristics of private banking
• Growth and opportunities in the private banking market
• Private client profiling and changing characteristics
• Private client requirements and expectations
• Appealing to both macro and micro markets
• The challenges of investor choice
• The challenge of competition
• Asset allocation and portfolio structuring techniques
• Structured products and solutions for private banking clients
• How to make a high quality service deliver rewards for the bank as well as the client
• Risk reduction and return enhancement opportunities and strategies

Programme Director:  Mark Andrews
Mark is a chartered investment banker with over 30 year’s management experience in the UK corporate and international banking sector including Board level and senior management roles at Lloyds TSB (Corporate banking), and Granvile Holdings Plc. He is known for his ability to communicate complex issues and concepts in practical, relevant terms for banks, corporations and other financial institutions.

After 20 years as a banker Mark established and successfully developed his own banking, investment management and financial consultancy. He specialises in management restructuring, corporate valuations, capital management and customer relationship management training for financial service institutions in the UK, Europe and the GCC region. He is a qualified specialist in Islamic Banking and Finance by examination granted by the Ecole Superieur des Affaires (Lebanon) and the Chartered Institute of Securities and Investment (UK).

Most recently he has advised and trained numerous key public and private sector entities in the GCC region among them Al Rajhi Capital, the Islamic Development Bank, and International Finance Corporation (Egypt).
 
Who Should Attend
 Existing Relationship Managers and Asset Managers wishing to consolidate or refresh their client skills and product knowledge
 Corporate or retail bankers requiring an insight into their private banking functions
 Employees in legal and accountancy practices working with private bankers Legal & Trust Staff
 Branch staff and Credit Officers who need to understand the complementary nature of private banking services
 Staff entering Private Banking and Asset Management
 Service Providers

Methodology
Classroom style lectures featuring intensive use of up-to-date and real-life case studies.

Course Outline

Day 1
Session 1:  Introduction to Private Banking Industry
• What is Private Banking
• A brief history of the industry
• Products & Services
• Classification of the main global/regional players
• Organisation & structure of a Private Bank
• Defining roles: teamwork or superstars
• Cross-selling problems & solutions
• Size of the private banking and wealth management industry
Case Study:  Delegates will classify their own bank, identify the competition and identify their strengths & weaknesses

Session 2:  Sales Process – Client Targeting & Segmentation Methods
• Difference between accounts, customers & clients
• Private, retail, business or a mix
• Strategic tiering of bank relationships
• Client acquisition v existing client base
• Client size, large, small and Pareto principle
• Segmentation techniques and criteria by size, income and branch
• CIS solutions
Case Study:  Consider customer “A”, a high net worth individual with owner managed business

Session 3:  Client profiling Process & SPQR method
• Customer Life cycle (student loan, car loan, housing etc)
• Investor life cycle – accumulate, consolidate, retirement.
• Client balance sheet, sources of income, wealth & risk
• Clients paradigms
• Customer lifecycles in relation to sales process.
Case Study:  Delegates will profile customer “A” and the potential business using the SPQR template.

Session 4:  Client Relationship Management
• General framework for CRM and consultative selling skills
• Investment needs
• Interpersonal skills for selling
• The questioning structure
• Converting features into benefits
• Handling customer objections

Session 5:  Account Development Planning
• Developing a systematic approach
• Assessing potential
• Types of client advisor relationship
• Transactional, niche & diversified relationships
• Probability analysis and moving clients to higher tiers
• Customer tiering, wealth and share of wealth
• Customer lifecycles & the sales process
• Transactional, niche & diversified relationships
Case study:  Delegates will complete a sales cycle and account analysis plan for a potential client

Session 6:  Selling Investment Products to Private Investors
• Establishing client investment needs
• Client cues – specific investment products
• Unclear needs & general benefit statements
• General benefit statements applied to investment products
• Blending alternative with traditional investment solutions
• Proposing & recommending investment products to clients
• Objections – misunderstanding, scepticism or genuine drawbacks
• Handling objections: explaining, proving, offsetting

Session 7:  Product Development for Private Banking
• Core private bank products – the essential or minimum range of  products
• Risk profiling – green, orange and red lights
• Traditional v alternative investments & hedge funds
• Principal guaranteed products
• Outsourcing part of the investment management – do’s & don’ts
• Growing the asset management business – implications and pre-requisites
• Defending against huge competitors

Session 8:  Establishing a Budget template for Frontline Business Units – Year One
• The financial model, accounts, revenue drivers, revenues
• Forecasting volumes for deposits, loans, assets under management
• Revenue drivers & pricing decisions.
• Setting challenging targets – must be achievable
• Account numbers and key client relationships
• Segmentation, strategies & assumptions
•  Managing limited resources
Case study:  Delegates will participate in a hypothetical planning exercise.

Session 9:  Marketing, Communications & Managing the Brand
• Creating & developing the brand, image & style of the Private Bank
• Positioning the bank, products and the people
• Communications, PR, sales & marketing literature
• Client marketing – broad brush v narrow
• Marketing via adverts, the web, sponsorship, annual reports
Case study:  Delegates will review the cost benefit and quantify the return on various marketing efforts and recommend a strategy

Day 2:

Session 10:  Critical Management functions
• Information technology & operating platforms
• Human resources & private banking

Session 11:  Trends in Private Banking & Change Management

• Family offices – definition & background
• Family offices – classification
• Family office services as a strategy
• Recent industry surveys & reports
• External forces: technology, competition from non-banking sector

Session 12:  Investor Profiling

• Traditional approaches to profiling private investors
• Understanding what motivates other peoples’ investment and financial behaviour
• Efficient markets and behavioural finance
•  What private bankers and their clients need to understand about behavioural finance
• Systematic errors and mistakes in investment thinking
• Common behavioural finance traits
• Overconfidence and over-reaction bias
•  Myopic loss aversion

Case study:  Investor temperament analysis & why investors make systematic errors in their investment decision making

Session 13:  Portfolio Planning
• Investor herding behaviour and portfolio planning
•  How do investors really interpret the behaviour and performance of assets
•  Portfolio diversification – the importance of correlation
•  Absolute vs. relative return objectives and benchmarks
• Benchmarks and benchmarking
Case study:  Portfolio planning Exercises

Session 14:  New Approaches to Asset Allocation and Portfolio Structuring for Private Clients
• Foundations of post-modern portfolio theory
•  What private bankers need to know about post modern 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

Session 15:  Asset Allocation and Portfolio Structure
• 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

Session 16:  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

Session 17:  Derivatives, Hedge funds, Structured Products and Total Return Solutions for Private Banking 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

Session18:  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

The Workshop will be highly interactive in nature because we truly support deeper learning with high levels of interaction and involvement. All participants will be encouraged to “Think Out of the Box” on developing solutions and plans to facilitate their function in their respective organizations.

In-House Training Courses 
In addition to Open Trainings Total Solutions Middle East also provides In-House Training. The benefit of In-house training is highly customised trainings to suit your specific needs. You can save up to 40% of the costs by choosing In-house trainings.

In order to register for the program please call Renuka on +971 50 458 2243 or email on renuka@ts.eu  We would be delighted to answer any of your queries and are looking forward to hear from you soon.