Open architecture, recommended management, specific funds … Depending on the customer profile, private banks offer a whole range of investment methods on the markets.
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In private banking, the management of financial portfolios is deemed to make the difference. Whether through funds or mandate management, tailor-made or through profiles, it constitutes a key activity of these establishments. Their promise? Conviction management, reactive and efficient. In this, they stand out from the products marketed by most networks, generally very timid.
Indeed, these funds often only stick to market clues. In products dedicated to networks, which equip all customer profiles, difficult to make daring bets: it is to take the risk of significantly deviating from the walking of the index and having to explain it to customers. For advisers in contact with the latter, it is easier to follow the financial markets to the letter than to have to justify bad decisions.
In addition, private banks mandates can be wider in terms of asset classes. While the clientele of the banking networks will have to invest in very general categories of funds (European or international stocks, obligations of the euro zone, etc.), that of private banking may benefit from a finer segmentation, including for example an exposure to Chinese actions, and more specific markets (via sectoral funds, for example).
To build this differentiating offer, private banks also have an entity specializing in asset management. Despite this, one of their flagship arguments is that they are not limited to homemade products. This is called management in open architecture.
Bank specialists review the thousands of funds available on the market to identify the best strategies, especially on segments that are not covered by their own management company. “There is an offer in open architecture in online life insurance contracts, but the customer is then faced with many funds without benefiting from advice to help him choose, underlines Nicolas Hubert, Managing Director of Milleis Banque . We select between 30 and 40 funds, handpicked by our investment teams. “
greater transparency
Customers with a substantial amount to invest may also benefit from management on live actions, instead of funds. The interest of such an approach? Sweetly costs, on the one hand, and above all, on the other hand, greater transparency on the acts actually detained.
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