Wealth Management Market

Wealth Management - financial services provided to wealthy

clients, mainly individuals and their families.
❖Private banking forms an important, more exclusive, subset
of wealth management.
❖largely consisted of banking services (deposit taking and
payments), discretionary asset management, brokerage,
limited tax advisory services and some basic concierge-type
services, offered by a single designated relationship
manager.
❖many clients trusted their private banking relationship
manager to ‘get on with it’, and took a largely passive
approach to financial decision making
Responsible Investment
 The Principles for Responsible
Investment (PRI) defines responsible
investment as a strategy and practice to
incorporate environmental, social and
governance (ESG) factors in investment
decisions and active ownership.
Offshore investing refers to a wide range
of investment strategies that capitalize on
advantages offered outside of an
investor's home country. There is no
shortage of investment opportunities
offered by reputable offshore companies
that are fiscally sound, time-tested, and,
most importantly, legal.
The term offshore refers to a location outside of one's
home country. The term is commonly used in the banking
and financial sectors to describe areas where regulations
are different from the home country. Offshore locations are
generally island nations, where entities set up corporations,
investments, and deposits. Companies and individuals
(typically those with a high net worth) may move offshore
for more favorable conditions, including tax avoidance,
relaxed regulations, or asset protection. Although offshore
institutions can also be used for illicit purposes, they aren't
considered illegal.
Offshoring is often referred to
as outsourcing when it comes to business
activity. This is the act of establishing
certain business functions, such as
manufacturing or call centers, in a nation
other than where the company is
headquartered.
This is often done to take advantage of more
favorable conditions in a foreign country, such as
lower wage requirements or looser regulations, and
can result in significant cost savings for the business.
Companies with significant sales overseas, such as
Apple and Microsoft, may take the opportunity to
keep related profits in offshore accounts in countries
with lower tax burdens
 Offshore investing can involve any situation in
which the offshore investors reside outside the
nation in which they invest. This practice is mostly
used by high-net-worth investors, as operating
offshore accounts can be particularly high. It often
requires opening accounts in the nation in which
the investor wishes to invest. Some of the
advantages of holding offshore accounts include
tax benefits, asset protection, and privacy
 Offshore investment accounts are generally opened in
the name of a corporation, such as a holding company or
a limited liability company (LLC) rather than an individual.
This opens up investments to more favorable tax treatment.6
The primary downsides to offshore investing are the high
costs and the increased regulatory scrutiny worldwide that
offshore jurisdictions and accounts face. This makes offshore
investing beyond the means of most investors. Offshore
investors may also be scrutinized by regulators and tax
authorities to make sure taxes are paid.
 Offshore banking involves securing assets
in financial institutions in foreign countries,
which may be limited by the laws of the
customer’s home nation—much like offshore
investing. Think of the famed Swiss bank
account— that James Bond-like account that
puts rich people’s money out of reach of their
own country’s government.
 People and companies can use offshore
accounts to avoid the unfavorable
circumstances associated with keeping money
in a bank in their home nation. Most entities do
this to avoid tax obligations. Holding offshore
bank accounts also makes it more difficult for
them to be seized by authorities.
 For those who work internationally, the
ability to save and use funds in a foreign currency
for international dealings can be a benefit. This
often provides a simpler way to access funds in
the needed currency without the need to account
for rapidly changing exchange rates.
Market Size & Market Share
 Market share is the percent of total sales in
an industry generated by a particular company.
Market share is calculated by taking the company's
sales over the period and dividing it by the total sales
of the industry over the same period. This metric is
used to give a general idea of the size of a company in
relation to its market and its competitors. The market
leader in an industry is the company with the largest
market share.
Benefits of Market Share
Investors and analysts monitor increases and
decreases in market share carefully as this can be a
sign of the relative competitiveness of the company's
products or services. As the total market for a product
or service grows, a company that is maintaining its
market share is growing revenues at the same rate as
the total market. A company that is growing its market
share will be growing its revenues faster than its
competitors.
 Market share increases can allow a
company to achieve greater scale with its
operations and improve profitability. A company
can try to expand its share of the market, either
by lowering prices, using advertising, or
introducing new or different products. In
addition, it can also grow the size of its market
share by appealing to other audiences
or demographics.
Driver
• a factor that has a material effect on the activity
of another entity.
• affect change in their targets and occur at many
levels of the economy and stock market.
• factor that has a large influence on some
outcome of interest (finance & economics).
Macro drivers
• cause changes at the overall market
level.
• affect large areas of the market at a time
(wars, trade agreements or other geo-
political events).
Micro drivers
• cause change at the company level.
• is anything that could materially affect either a company's
earnings or the price of its stock.
• release of new products or services, new financing,
commodity or resource prices, activities of
competitors, legislation, regulation, and product
diversification versus competitors.
• most often employed in bottom-up analysis.
Stock- qualitative in nature such as investor’s
sentiment.
• Qualitative drivers are often intangible and in-exact,
making it more difficult to collect and measure.
• Understanding people and company cultures are
central to any holistic analysis.
• Looking at a company through the eyes of a
customer and understanding its competitive
advantage assists with understanding drivers of
company success.
Example of a micro driver
• if a company like Coca-Cola acquired a
large up-and-coming beverage maker
that was stealing large parts of the total
beverage Coca-Cola market share . This
may have a positive effect on Coca-
Cola stock and influence the stock price
upwards.
Macro drivers - big area of interest for fund
companies running top-down strategies, as
they're often concerned with what the global
investment themes will be over their time
horizon.
• Fundamental investors may be more concerned
with micro drivers that affect the earnings and
stock prices of the companies they are
analyzing.
Example of a macro driver
• U.N. trade embargo on all of the countries in
Africa - affect a large portion of the market, as
natural resources that come out of Africa
wouldn't be able to reach their usual importers.
• This would potentially have a negative effect on
the industrials and materials sectors, as well as
emerging markets stocks.
Source: [Link]
Industry
• group of companies that are related
based on their primary business
activities.
Individual companies - classified into an industry
based on their largest sources of revenue.
• For example, while an automobile
manufacturer might have a financing division
that contributes 10% to the firm's overall
revenues, the company would be classified in
the automaker industry by most classification
systems.
Similar businesses - grouped into industries based on
the primary product produced or sold
• Investors and economist - study industries to better
understand the factors and limitations of corporate
profit growth.
• compared to each other to evaluate the relative
attractiveness of a company within that industry.
Stocks within the same industry often rise and
fall as a group because the same macro-
economic factors impact all members of an
industry.
• includes changes in market sentiment on the
part of investors as well as changes directed
specifically towards the specific industry like
new regulations or increased raw material
costs.
• Events relating to just a particular
business - can cause the associated
stock to rise or fall separately from
others within the same industry.
• result of certain events, e.g.
differentiating product release, a
corporate scandal in the news, or a
change in leadership structures.
Competitive landscape is a business
analysis method that identifies direct or
indirect competitors to help
comprehend their mission, vision, core
values, niche market, strengths, and
weaknesses.
• Business world - volatile in nature - companies represent a
competition to others. This helps to establish a new mind-
set which facilitates the creation of strategic
competitiveness.
• Due to the hyper-competition of the environment, the
traditional sources of getting competitive advantage does
not represent an effective strategy.
• Investment in strategic management is the foundation for
business stability because it helps to develop the
fundamental basis of the business and be competitive
inside the market.
Global economy - main aspects to consider before
starting a competitive landscape profile.
• helps to understand the global economic activity
where all the production factors (people, knowledge,
services, products) move without limits. This
constantly transform inside the business
environment that leads the companies to analyze the
market. The idea of a "global mindset" determines
the acceptance of organizational diversity in order to
prepare for challenges.
Technology - considered inside the competitive environment
• represents a tool to acquire competitive advantages
• improve the efficiency and the productivity of companies
because it helps to get new sources of growth.
• focuses on economic growth, and on the improvement of
quality, service, knowledge and innovation
• Technological framework Categories: Technology Diffusion;
Information Age; and Knowledge Intensity
• Technology diffusion - speed at which
technologies are globally available and used in
other companies.
• Information age - focused on the access to
information and its development through the
decades.
• Knowledge Intensity - considers the
transformation of knowledge into resources, the
ones that help the company to increase their
strategic flexibility.
Competitive Landscape Profile
After companies consider the influence of global
economy and technological changes in the strategic
management process, they focus on the competitive
landscape profile—a comparative analysis of products
between two companies—to understand the strengths
and weaknesses. Evaluating each competitor requires
a strategic division according to level of
competitiveness.[
Porter's Five Forces are considered because, according to that
analysis, Michael Porter establishes that competition depends
on five specific factors: potential new entrants, internal
rivalry, suppliers, buyers and substitutes. Unification of the
analysis of the competition with the Porter's Five Forces
creates a complete competitive profile which provides a
detailed guide to company managers, because it identifies the
company's advantages has over its—or, on the contrary, it
helps generate decisions and solutions to apply in cases of
similarities.
This competitive analysis takes place in three steps:
Step 1: Collect internal resources
• focus on internal aspect and its competitors to comprehend the global competition.
• helps the company analyze, through the Internet, company performance and also
general keywords.
Step 2: Investigate competitors resources
• focus on research of specific aspects to compare with the personal company.
• defines the management process, the decision making process and the
organizational service.
Step 3: Verify and Validate
• the analysis validates the veracity of the information found in the internet.
• transforms itself from being an internet research into a personal investigation.
• companies use the technique of personal appointments with the competition to
determine the real basis of competitive advantage.
 Ten Challenges
Faced by the Manufacturing Industry
● Skilled Labor Gap
● Machine Intelligence
● Maximizing Automation
● System Age & Usability
● Growing with Increasing Demand

Source: [Link]
● Trade War Effects
● Cyber Security Threats
● Supply Chain Visibility
● Reshoring
● Responding to covid-19
● Health Care
● Government Regulations
● Income Taxes
● Economy
● Tax Compliance
● Cash Flow
● Staying Passionate
● Not Diversifying Client Bases
● Growth vs. Quality
● Hiring New Employees
Source: [Link]
● Not having an answer to the customer’s
queries
● Transferring calls to another department
● Failing to understand what customers want
● Dealing with angry customers
● Exceeding customers’ expectations
● Serving multiple customers
● An outage or other crisis occurs
● Customers want a discount you can’t give
● Customers want a feature you won’t or can’t
add
● Flooded with service tickets
● You need to fire a customer
● Reply/resolution times are slow
Source: [Link]
Pricing

● Choosing the right pricing strategy

● When should I increase prices?
● How much are customers willing to pay?
● How to price different between
channels?
● How to commit all people to work
more data-driven?
● How to deal with bad data quality?
● How to execute good experiments?
● How to visualize important price
information?
Source: [Link]
● Organizational comms
● Deadlines
● Team Alignment
● Balancing Responsibilities
● Product Team Ops
● Creativity & Being Unique
● Keeping up with tech
● Research
● Training others
● Customer satisfaction
● Data management and privacy
● Finance
Source: [Link]