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How Does Wealth Management Work?
 

blackjack21's picture
(Orangutan, 268
 
Points)
 on 6/3/12 at 9:52pm

I'm doing a BB PWM internship this summer and considering I've come in with no prior finance experience, how does Wealth Management actually work?

I've heard of the high-net worth clients and institutional clients, but I don't know much else. Do these clients give them access to invest however they'd like with a specific sum of their money?

Can someone give me a full explanation? Thanks

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Rambo's picture

you cold call

(Baboon, 150
 
Points)
 on 6/3/12 at 10:42pm

you cold call

anaismalcolm's picture

It depends whether the

IB
(Orangutan, 329
 
Points)
 on 6/3/12 at 10:47pm

It depends whether the customer has a discretionary account or not...if discretionary, the WM rep can act in the "best interest" of the client.

I had a PWM internship at a now defunct BB back in the day in high school, and it was mostly a customer calling up my boss, saying they wanted X type of security/investment, me researching investments that fit the bill, and my boss selecting a few of those to present to the client. I made presentations for that purpose, as well. In general, a PWM guy or gal will look at the type of asset allocation the client wants, investment goals, etc. to determine what sort of security is suitable for their account and make a recommendation. A lot of times they will cold call, as mentioned above, if the company wants to sell a specific security, if they have one in mind that they want to sell, or if they are trying to find new clients. They also will accept orders from clients, sometimes with a price as specified by the customer, sometimes with the customer telling the PWM person to choose the correct price. They then enter in the orders for execution.

It can also go beyond securities into life planning, securing against potential "investment threats" like tax increases, new child eventually going to college, and so forth. http://www.smithbarney.com/products_services/wealt... seems to have a decent overview.

West Coast rainmaker's picture

A friend's dad did this for

ER
(Neanderthal, 2,072
 
Points)
 on 6/4/12 at 12:44am

A friend's dad did this for HNW guys (like 1-10 million). It seems pretty straightforward. He was the relationship guy, then out sourced a lot of the technical stuff (legal issues, tax planning, investments) to other professionals. He worked 25-30 hours a week, if that. Probably took home 300-500k annually in his early 40s.

I don't remember him advising clients on life events/goals (e.g. home ownership, paying for college) but I am sure he did.

As you start pushing into the Ultra-HNW range, you start seeing things like shared family offices, psuedo-concierge services, access to secondary markets and auctions, etc.

Powa23's picture

For me I had to do a lot of

(Orangutan, 291
 
Points)
 on 6/4/12 at 12:56am

For me I had to do a lot of portfolio analytic on the clients' holdings using Thomson One - Investment Management and do a report on the top holdings, biggest gains and losses. My bosses also made me learn VBA and program a lot of macros so we could format excel files easily and get information faster. I actually didn't do any cold-calling at all.

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