Table of contents
Contrary to popular thinking, wealth management is not limited to the management of real estate assets. It is a multidisciplinary field that involves a plurality of branches. Professionals in the field structure the activities of an asset manager around four main areas. Let's take a look at these different areas.
The asset audit
This is the most popular and undoubtedly the most accessible service offered by property management firms. Even renowned firms such as Hawksford, based in the UK, have this service in their catalogue as an entry-level service. What does the asset audit consist of?
It is an account service that consists of drawing up an inventory of the client's assets and liabilities (debts, financial resources, property assets, descendants, investments). The aim is to really get to know the client in order to be able to advise him or her effectively in the future.
Wealth engineering
Complementary to the wealth audit, wealth engineering calls upon a multitude of knowledge and skills, including taxation, accounting, notaries, architecture and many others. In order to make an effective diagnosis that is consistent with the client's situation, the wealth management advisor must implement different solutions in each of the above-mentioned areas. Moreover, it is up to the advisor to take the appropriate measures and steps to promote the sustainability of these solutions.
Open architecture
In wealth management, open architecture means diversifying the client's investments. The idea here is to prevent the client from putting all his eggs (assets) in the same basket. This is where the financial institutions in partnership with the wealth management firm come in. Together, they will have the imperative responsibility of guaranteeing the client access to all possible asset classes on the financial markets.
Delegated management
Securities accounts, savings, life insurance, all these investments that are part of the capital are managed and monitored by the wealth management firm.