ton kentgens ortec finance - verdict · - assessment client investment goals - translation into...
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Ton KentgensOrtec FinanceTon KentgensOrtec Finance
Private Banking InternationalLondon, 3 June 2015
Our company
Ortec Finance is a global provider of solutions for measuring and managingboth long- and short-term risk and return for Institutional and Private investors
Founded in 1981 Global and long-standing clients manage over $ 2 trn in AuM Independent – 100% owned by employees 180 employees
International Offices- Netherlands – Rotterdam, Amsterdam- United Kingdom – London- Switzerland – Pfäffikon SZ
Ortec Finance is a global provider of solutions for measuring and managingboth long- and short-term risk and return for Institutional and Private investors
Founded in 1981 Global and long-standing clients manage over $ 2 trn in AuM Independent – 100% owned by employees 180 employees
International Offices- Netherlands – Rotterdam, Amsterdam- United Kingdom – London- Switzerland – Pfäffikon SZ
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Ortec Finance is a global provider of solutions for measuring and managingboth long- and short-term risk and return for Institutional and Private investors
Founded in 1981 Global and long-standing clients manage over $ 2 trn in AuM Independent – 100% owned by employees 180 employees
International Offices- Netherlands – Rotterdam, Amsterdam- United Kingdom – London- Switzerland – Pfäffikon SZ
Our markets and solutions
SOLUTIONSINSTITUTIONAL CLIENTS
PRIVATEWEALTH REAL ESTATE
PENSIONS &ASSET MGMT.
SOVEREIGNWEALTH INSURANCE
INVE
STM
ENT
DEC
ISIO
N P
RO
CES
S ALM BALANCE SHEET STRATEGY PRIVATE ALM STRATEGIC ADVICE
INVE
STM
ENT
DEC
ISIO
N P
RO
CES
S ALM
ECO
NO
MIC
SC
ENA
RIO
GEN
ERA
TIO
NR
EAL
WO
RLD
& R
ISK
NEU
TRA
L
BALANCE SHEET STRATEGY PRIVATE ALM STRATEGIC ADVICE
STRATEGIC ASSET ALLOCATIONGOAL-BASED
FINANCIALPLANNING
FINANCIALPLANNING
INVESTMENT PLANINVESTMENT CONSULTING
STRATEGICASSET
ALLOCATION
PORTFOLIOPLANNINGPORTFOLIO
CONSTRUCTION
ASSETMANAGEMENT
RISK
AMBITION COST
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INVE
STM
ENT
DEC
ISIO
N P
RO
CES
S
ECO
NO
MIC
SC
ENA
RIO
GEN
ERA
TIO
NR
EAL
WO
RLD
& R
ISK
NEU
TRA
L
ASSETMANAGEMENT
MONITORING(EX-ANTE)
RISK MANAGEMENT & MONITORINGPROJECT
CALCULATIONSTREASURY
(EX-POST) PERFORMANCE AND RISK MEASUREMENT & ATTRIBUTION VALUATIONS
Some important global trends in the wealthmanagement market
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HNWI growth accelerates, reaching newrecord levels
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HNWI growth accelerates, reaching newrecord levels
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Top four markets generate majority of HNWIgrowth in 2013.
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HNWI’s increase alternative investments
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Overall, the home bias of investors isdecreasing
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A new landscape: a shift from distributingproducts to goal based advice
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Product orientedfinancial advice
Shift in financial advice
Client orientedfinancial advice
Advice and monitoring of the client situation:- Inventory client situation- Cash flow planning- Assessment client investment goals- Translation into optimal strategic asset allocation- Portfolio construction and optimizing- Ongoing monitoring off feasibility of goals- Active adjustments to investment strategy
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Advice and monitoring of the client situation:- Inventory client situation- Cash flow planning- Assessment client investment goals- Translation into optimal strategic asset allocation- Portfolio construction and optimizing- Ongoing monitoring off feasibility of goals- Active adjustments to investment strategy
What do you need for this shift?
Insight into risk and return on a client level using real worldeconomic scenarios in combination with a holistic approach.
Multi disciplinary approachthat considers a broad spectrumof variables.ImprovingManagement of expectations
Deposits
Insight into risk and return on a client level using real worldeconomic scenarios in combination with a holistic approach.
Multi disciplinary approachthat considers a broad spectrumof variables.ImprovingManagement of expectations
Macroeconomicrealistic
scenarios
Macroeconomicrealistic
scenarios
DepositsDeposits
Assetallocation
Assetallocation
Allocationstrategy
Allocationstrategy
Interestrate riskInterestrate risk
GoalsGoals
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Macroeconomicrealistic
scenarios
Macroeconomicrealistic
scenarios
Allocationstrategy
Inflationrisk
Inflationrisk
Currencyrisk
CurrencyriskCostsCosts
TaxesTaxes
Interestrate risk
How can compliance add value?
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HNWI preferences: major developments
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The risk profiling, advice and monitoringprocess is as strong as its weakest link
1. A UNIFORM RISK & NEEDSASSESSMENT AT EVERY BRANCH,
LEADING TO AN OPTIMAL RISKPROFILE PER GOAL OR SET OF
GOALS?
WHEN A CLIENT APPROACHES ABANK OR ADVISOR, DOES HE OR
SHE GET…
1. A UNIFORM RISK & NEEDSASSESSMENT AT EVERY BRANCH,
LEADING TO AN OPTIMAL RISKPROFILE PER GOAL OR SET OF
GOALS?
2. UNIFORM ASSET ALLOCATIONIN EVERY BRANCH, BY EVERY
ADVISOR?
4. CONSISTENT MONITORING OFPORTFOLIO RISK AND
REACHABILITY OF GOALS?
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3. GOAL BASED ADVICE,PORTFOLIO CONSTRUCTION
FOLLOWING RULES?
Willingness and ability to take risk
How much risk is client willing to take?How much risk is client willing to take? How much risk is client able to take?How much risk is client able to take?
Willingness Ability
measured with use of questionnaire(the emotional risk willingness)
measured with use of questionnaire(the emotional risk willingness)
measured with use of scenarios(risk, return and feasibility)
measured with use of scenarios(risk, return and feasibility)
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Risk profile of the portfolio, strategic asset-allocation needs to be in line with the riskprofile of the client
Risk is also not reaching goals: a savings account is not always the best alternative Risk profile of the client: ability to take risk and the willingness (restriction) to take risk
Suitability connected to portfolios instead ofproducts
Risk profile of the portfolio, strategic asset-allocation needs to be in line with the riskprofile of the client
Risk is also not reaching goals: a savings account is not always the best alternative Risk profile of the client: ability to take risk and the willingness (restriction) to take risk
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Importance of monitoring
Have the appropriate arrangements in place to meet the requirements on an on-goingand consistent basis for any client and irrespective of the distribution channel used.
Maintaining adequate and update information about the client: adopt procedures toregularly update information (monitoring).
Have the appropriate arrangements in place to meet the requirements on an on-goingand consistent basis for any client and irrespective of the distribution channel used.
Maintaining adequate and update information about the client: adopt procedures toregularly update information (monitoring).
“Who to contactwith priority?”
Insight into the entire client base
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Insight into individual clients
And how can digital add value?
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Preferences of HNWI clients
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Despite digital, HNWI’s prefer to get advicein person
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HNWI’s propensity to leave a firm if thechannel experience is not integrated
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Support the advisory journey with adedicated client portal…..
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…with up to date information on goals
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Summary:
• Goal Based advisory, guidance and execution only• Fully compliant processes• Digital, omni channel approach
(U)HNWI
PRIVATE BANKING
MASS AFFLUENT
RETAIL MARKET
SELF-DIRECTED VALIDATORS ADVICE SEEKERS DELEGATORS
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(U)HNWI
PRIVATE BANKING
MASS AFFLUENT
RETAIL MARKET
The Netherlands, RotterdamBoompjes 40, 3011 XB RotterdamP.O. Box 4074, 3006 AB RotterdamTel: +31 (0)10 700 50 00Fax: +31 (0)10 700 50 01E-mail: [email protected]: www.ortec-finance.com
Thank you!
Ton Kentgens
United Kingdom, London23 Austin Friars, London EC2N 2QPTel: +44 (0)20 3178 39 13Fax: +44 (0)20 3178 61 64E-mail: [email protected]: www.ortec-finance.co.uk
The Netherlands, AmsterdamBarajasweg 10, 1043 CP AmsterdamTel: +31 (0)20 700 97 00Fax: +31 (0)20 700 97 01E-mail: [email protected]: www.ortec-finance.com
Switzerland, PfäffikonPoststrasse 4, 8808 Pfäffikon SZTel: +41 (0)55 410 38 38Fax: +41 (0)55 410 80 36E-mail: [email protected]: www.ortec-finance.ch
+31655874126
Ton Kentgens
Global Business Development
Private Wealth Management
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Switzerland, PfäffikonPoststrasse 4, 8808 Pfäffikon SZTel: +41 (0)55 410 38 38Fax: +41 (0)55 410 80 36E-mail: [email protected]: www.ortec-finance.ch