The transparency challenge
While these expanded investment opportunities offer more bespoke portfolios, investors should consider how issues of transparency and potentially lower levels of liquidity and data reporting in private capital may affect their investment strategy. As entry to private markets continues to evolve, a vital component of sound investing is ensuring access to quality fund manager selection and detailed research. That’s why we are actively providing feedback to the regulator on how to ensure services are transparent and deliverable.
Tailored advice models for complex needs
Private wealth management requires an advice framework that evolves with client needs today, and across generations. From the first share purchase through to a sophisticated, globally diverse investment portfolio, or helping families manage the $5.4 trillion that will be bequeathed over the next 20 years and the changing investment aspirations of newer generations. It’s a clarion call to the private wealth industry as there are few wealth management service providers equipped to provide a full-service offering.
An integrated approach to wealth management
An integrated approach starts with a sophisticated trading platform to provide insights and information to help clients choose the trades that meet their needs – whether that be local or international shares, fixed interest (bonds), managed funds, ETFs, commodities or real-estate investment trusts (REITs).
Beyond that, a bespoke model that, can scale up to full portfolio management services, including generational succession planning that may suit seasoned investors.
Beyond access: ensuring client protection
No matter the level of advice required, at the front end of any wealth management provider’s responsibilities is to maintain the highest level of risk controls.
A wealth management provider must be uncompromising when it comes to protecting clients from scams and ensuring the integrity of trading platforms. They must also fully understand the diversity of available investments and be able to deliver high level research on potential opportunities.
The future of private wealth services
While private wealth services will continue to advance through digitisation and “self-service”, so too will need for personal relationship banking and advice models. Providing personalised wealth management solutions means there is no “one size fits all”, nor should there be. We are all individuals with different goals and aspirations for our wealth, families, and passions.
Moreover, as the private wealth landscape evolves, individuals may have an increased need for a wealth services provider to be able to scale advice. Scaled advice progresses based on client need. It can be a single piece of advice on a fund, a specific issue or to be scaled up depending on the advice being sought. It’s not a simple space to work in, as the regulatory framework around scaled advice is complex and often requires significant investment in technology and processes.
Managing complexity across multiple dimensions
Of course, at higher levels of wealth, building a diversified portfolio, including for example, investing in multiple assets in different geographies and currencies means there is a lot of moving parts to consider.
If high net worth individuals are still working and do not have the time, or for those that simply do not have all the skills to analyse global trends, opportunities, and risks, the role of the trusted advisor comes to the force and can be valuable to manage complexity across multiple dimensions.
Delivering the right solutions is how trust is built, and how wealth is protected and enhanced, for generations to come.
Michael Saadie is executive, NAB private wealth and CEO, JBWere.
NAB Private Wealth offers an integrated approach to banking, investments, and advice together with its wholly owned, non-guaranteed subsidiaries nabtrade and JBWere, ensuring high-net-worth clients receive tailored solutions for their financial needs. Visit www.nabprivate.com.au to learn more about how our dedicated team can help you navigate the complexities of wealth management and build a portfolio that aligns with your unique goals and aspirations.
