The key problems
Most of banks and asset managers provide portfolio profiles based on a single period mean-variance portfolio optimization without taking into account liabilities (future expenses) of the client. Therefore, this methodology suffers from several limitations and cannot meet the needs of sophisticated investors.
On Risk Management side, banks provide risk reports related only to the portfolio managed without taking into account other portfolios and other asset classes (real estate, art). This triggers difficulties regarding global risk exposure which therefore creates challenges for the client – No global risk management overview.
Traditional private banking solutions do not meet Ultra High-Net- Worth (UHNW) from emerging markets. They need more wealth planning (structuring) than portfolio management.
