Even Art and Sculpture are now being used to manage wealth by some private investment teams.
I won't be surprised if portraits and handicrafts become a major asset class for the HNW Clients.
Due Diligence Risks remain, and the possibility of money laundering can't be ruled out!
Wealth Management as a subject is rapidly evolving.
Private Banking and Wealth Management Teams are offering all kinds of exciting financial and portfolio management solutions for the long term.
Hence, managing the risks of such transactions requires new paradigms.
For e.g. I was speaking to a Wealth Manager at a conference a few years back!
He told me that even Aged Cigars and certain Alcoholic Products such as Cognac, Wine, and Champagne, etc. It is a great investment, as their value augments, as time passes by!
What about ancient and medieval books?
What about memoirs, & monographs/treatises?
What about stamps?
What about ancient and medieval ornaments?
What about wartime collections such as Roman Era Military Helmets, etc?
What about ancient and medieval jewels, currency and coins?
They are collectors of both historic & luxury items everywhere
The Wealth Managers need to find ways of developing an auction market, bringing buyers and sellers together, and creating transparent prices for collections that should be recorded at the point of sale as transactions
The vibrant art scene and market in London can provide a setting for auctioneering of not just portraits, but, other collector items in a transparent manner.
That would provide wealth managers with more liquidity and better risk management options.
Period Homes are in great demand.
Most of the owners of period properties enlisted as per local property and national heritage regulations in different grades can also offer great wealth management avenues via RE/ PE investment houses that have an exit strategy
Pushing every HNWI High Net worth Institutional Client in the direction of Hedge Funds and Alternative Asset Management is the worst possible mistake wealth managers make!
Hedge Funds after fee deduction usually do not offer decent risk-adjusted returns.
Cash Commodities, Precious Metals and other Natural and Mineral Resources are offering decent returns in certain categories.
How to enter and exit from such a market requires a great deal of expertise.
Wealth managers and private bankers, usually are not equipped for it
How will you do the due diligence on vanilla plantations in Madagascar?
Vanilla is a highly lucrative plant that can offer superb financial returns on investment.
But, going through the Alternative Investment Route to park wealth is fraught with operational and financial risks.
I am not too sure how accounting for fungible items or non-traditional investment asset classes poses materiality risks within the book of accounts, etc
because accounting entries for certain wealth management activities might not be recognizable with the standards aka #IFRS.

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More from @SAH16928046

21 Jul
Can data science overcome quantitative finance in terms of employment and salary?
Well, I think you are asking a relevant question.

It can be explained using a Social Darwinian Perspective.
First, the Simple answer =>

YES =>
Quantitative Finance will get absorbed into Data Sciences and Machine Learning Areas as a sub-field.

Read 13 tweets
20 Jul
The impacts of exchange rate volatility on the monetary base has different scenario-based outcomes.
NFA and NDA both can increase and decrease with currency appreciation and depreciation over time.
It might become difficult for the central bank to mop up excess liquidity.
NFAs are Net Foreign Assets(foreign denominated balances) and NDAs(domestic currency denominated balances) are Net Domestic Assets.
That is how most central banks like to categorize the two components of the money supply.
It further breaks down into M1, M2, M3 and so on, etc.
Going back to the basics of Fixed Income Economics and Portfolio Investments aka Bond Markets, we need to understand, the liquidity preference theory, preferred habit theory, and market segmentation theory, to extrapolate yields & risk expectation formations across the rate-curve
Read 6 tweets
16 Jul
Should basic human needs be catered to as services within the framework of a market order, where forces of demand and supply shall determine the price for each interaction aka transaction and the social value created for the consumer via production, exchange and consumption?
For e.g. should the receiver of services in lieu of tax money and welfare benefits earmarked by a government in areas such as health and education be treated as consumers in any other industry?
Should we have the option to choose the most efficient hospitals, and schools?
Each public service providing institution should be corporatized?
Each public service institution should have a Profit and Loss A/c and a balance sheet?
Each public service institution should treat recipients as buyers of products and their interactions akin to transactions?
Read 4 tweets
15 Jul
Is this Unanticipated or Anticipated Inflation Risk?
This is what economists need to explain to us!
We knew it was coming due to the reflationary policy stance of central banks in the first world, and elsewhere.
But, the augmented rate was not unexpected.
But, this is not the 1970s, when oil price shocks, and other supply-side macroeconomic and microeconomic distortions of the postwar years raised the inflation rate unexpectedly to astronomical heights.
I don't see any massive stagflation developing due to technological gains.
Yes, the "PHILLIPS CURVE" is officially deceased.
won't return again!
Monetarists and some other schools of thought have created hues and cries of the return of the economic phantom, but, no, it won't happen.
Prices and #Unemployment have been disentangled.
Read 9 tweets
15 Jul
As part of the Financial Literacy Programs, all individuals must learn how to manage their retirement investment proceeds and personal wealth.
Many people misconstrue that such planning is not important and should be solely left to either the employer or the govt!
How wrong!
In most of the developing countries where old-age financial benefits are not sponsored or guaranteed by the government, via social safety nets, the vulnerable people are left at the mercy of the market, extended family network or the philanthropist to help them.
Even private sector firms, which provide access to #provident and #pension fund designed retirement investment planning schemes, are no guarantee, of a safe and smooth exit out of the workforce due to #Systemic Risk which can destabilize the economy or the society in the long run
Read 4 tweets
14 Jul
Late Lee Kuan Yew was right when he said that new businesses require new skills, which in return require more vocational and academic training for the workforce.
Any country aspiring to follow the Asian model of economic development must invest in human capital formation.
Hong Kong under the British, UAE, and Singapore are 3 perfect examples of how certain nations can arbitrage on the inefficiencies which exist in their neighbourhoods.
All three examples serve as a binding case study in #Geospatial #Economics and complex #Agglomeration Benefits
Look at the #City, in the UK!
Are the English-born bankers?
How did they manage to develop a major global financial centre over the last two hundred years?
Let's see how Brexit will affect the mystique which surrounds London as a major financial hub
Read 5 tweets

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