….. strategies to make sure their value proposition fits their target market.

Private Bank Intelligence Unit founder and principal Andrew Inwood told a Professional Planner/Private Bank Intelligence Unit (PBIU) forum that it’s clear that individuals who retained the services of a good private wealth adviser – and followed their advice – have done substantially better than those who either abandoned their adviser or didn’t have an adviser to start with.

Figures from PBIU suggest that individuals who followed advice tended to remain invested in equities, while those around them were flocking to cash, and may be as much as 40 per cent better off today as a result.

Success in private wealth management will stem from first of all finding the clients that fit the firm’s value proposition – and where those clients come from tomorrow may be different from where they came from yesterday – and then having a very clear idea of what role the firm plays in a client’s financial life.

Ultimately, for the long-term benefit of both parties, the private wealth firm and its clients should be a good match, and the firm should be profitable.

Culling existing clients if they do not fit the private wealth business model may be appropriate, and the continuity of relationship between the client and the private wealth management firm is paramount in building long-term relationships.

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Simon Hoyle - Editor - Professional Planner Magazine
17th June 2013
Source:  Professional Planner    www.professionalplanner.com.au