In private banking, the management of financial portfolios is deemed to make the difference. Whether through funds or management under mandate, tailor-made or through profiles, it is a key activity of these establishments. Their promise? Management based on conviction, responsive and efficient. In this, they stand out from the products marketed by most networks, which are generally very timid.
Indeed, these funds often only stick to market indices. In products dedicated to networks, which equip all customer profiles, it is difficult to make bold bets: it means taking the risk of deviating significantly from the market of the index and having to explain it to customers. For the advisers in contact with the latter, it is easier to follow the financial markets to the letter than to have to justify bad decisions.
Also, the mandates of private banks can be broader in terms of asset classes. While banking network customers will have to invest in very general fund categories (European or international equities, euro zone bonds, etc.), private banking customers will be able to benefit from finer segmentation, including, for example, exposure to Chinese equities, and more specific markets (via sector funds, for example).
To build this differentiating offer, private banks almost all have an entity specializing in asset management. Despite this, one of their key arguments is that they are not limited to homemade products. This is called open architecture management.
The bank’s specialists review the thousands of funds available on the market to identify the best strategies, particularly in segments that are not covered by their own management company. “There is an open architecture offer in online life insurance contracts, but the customer is then faced with many funds without benefiting from advice to help them choose, emphasizes Nicolas Hubert, CEO of Milleis Banque. We select between 30 and 40 funds, handpicked by our investment teams. »
Greater transparency
Clients with a substantial amount to invest will also be able to benefit from direct equity management, instead of funds. The interest of such an approach? Lower costs, on the one hand, and above all, on the other hand, greater transparency on the securities actually held.
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