The main recommendation is that clients have to follow a systematic selection process, proceeding step by step and always have to start with an honest self-analysis of their investment experience, know-how and goals. “Clients have to avoid emotional decisions in their selection of wealth managers” states Steffen Binder, Research Director of the guide. “It is not about finding the most likeable wealth manager, but about finding the best!”
The MyPrivateBanking.com guide identifies a five steps process for choosing the right wealth manager:
Step 1: Execute an honest self-analysis, in which investors have to determine their goals, analyse their risk tolerance and as well their ability to cope with uncertainty.
Step 2: Identify potential candidates by talking to other clients and independent experts as well as including providers from different categories in the short-list.
Step 3: Put your candidate through the paces by preparing a relevant list of questions as well as checking his ability to ask the right questions and provide a personalised proposal.
Step 4: Thoroughly analyse the investment proposals. In particular if the proposed asset mix corresponds with your investor profile. Carefully check the direct fees, the indirect costs and the amount of in-house products suggested in the proposal.
Step 5: Select one wealth manager, or many. Depending on your total investment amount and your strategy it can make sense to choose more than one wealth manager. This would allow a better comparison over time.
Last but not least: Clients should take their time. “In fact, most investors put more effort into finding their favourite restaurant than they do to identify the best wealth manager”, summarizes Christian Nolterieke, Managing Director of MyPrivateBanking.com. “A mistake that often costs millions.”
# # #
MyPrivateBanking.com is an independent platform for information and networking for wealthy private clients across the world. Established in 2009 in Switzerland, MyPrivateBanking.com offers a variety of information to assist investors in making their decisions. This includes in-house research, articles and updates related to wealth management, detailed bank directories and client evaluations of wealth managers across the world. The interactive “MyWealth”