Investment Management Excellence

The fundamental principles of the investment management excellence business are solidly intact, and the financial services industry as a whole is experiencing vibrant demands for new investment opportunities, products and services. Never before, has the importance of time-to-market been as critical as it is now, in order to rapidly meet the demand for new products and services with shorter windows of opportunity to do so.

Seismic shifts are occurring in the industry such as:

>	Large numbers of baby boomers are getting set to retire and begin to rollover retirement savings from 401(k) plans into mutual funds, brokerage accounts, separately managed accounts, and private client relationships.
>	Institutions and sophisticated investors are allocating greater percentages of their total assets to alternative investments and private equity, leading to dramatic asset growth and an increase in the number of hedge fund firms. Investors continue to recognize the advantages and invest in exchange traded funds.
>	Defined benefit plans are starting to fade away and US legislators continue to pass legislation with increased incentives and limits for investing in retirement vehicles including; defined contribution plans, SEPs, IRAs, etc.
>	Large new markets are beginning to emerge across the globe including in India and China.
>	Investment managers and service providers, such as global custodians, are continuing to merge as firms aim to remain competitive by achieving global reach and economies of scale.

EXPERTISE

BusinessEdge Solutions’ Investment Management Excellence practice offers solutions that include; business and technology strategy, (ii) front, middle and back office operations, and (iii) technology implementations that assist investment managers and service providers in rapidly meeting demands and challenges.

Examples of the ways our industry consultants help create value for our clients include:

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>	Conducting market research and leveraging BusinessEdge domain expertise to explore, evaluate and prioritize new business opportunities
>	Rapidly assessing the current state environment, future state direction and developing operations and technology-based roadmaps
>	Envisioning and transforming to the most optimal future state operating model leveraging BusinessEdges’ library of industry best practices, workflow and change management expertise
>	Conducting a diagnostic assessment of front, middle and back office processes, internal controls and related technologies that will result in a more streamlined workflow, stronger controls and appropriate technology
>	Assessing the current state environment surrounding specific areas such as: account opening or security reference data management, AML, future state models and underlying technology.
>	Searching for, evaluating and recommending vendor technology.
>	Assisting clients with technology implementations in a variety of facets from project management, business analysis, technical architecture, development, QA and rollout.

VALUE ADD

BusinessEdge Solutions Investment Management Excellence team has developed highly effective and efficient processes that rapidly apply the necessary rigor in accomplishing our client’s requisite goals and objectives. In addition to highly effective processes, our consultants are dedicated to the investment management excellence industry.

Our consultants have an average of 15 years of industry experience. Leveraging industry tailored processes with industry domain knowledge has proven to be a successful formula in delivering value to BusinessEdge Solutions clients.

If you are looking for an experienced partner with deep investment management excellence domain expertise, then please contact us – together we can plan and implement a winning solution that will provide you with a sustainable competitive advantage.

Sophisticated Clients, Increased Competition and Forecasted Growth: Are You Ready?

Today’s sophisticated clients are demanding more from their wealth management firms: holistic and timely advice, superior and complex services, unconstrained access to products, and of course, solid portfolio performance. Firms continue to seek the elusive turnkey client experience through client segmentation, the provision of tiered services via multiple distribution channels including advisor, online and call center, and the increased utilization of technology to automate key processes.

Wealth management organizations face increased competition for both up (U / HNWIs: private banks, family offices and trusts) and down (mass affluent / retail: banks, brokerages, independent advisors and online trading sites) market clients. Firms are consistently looking for ways to differentiate themselves and achieve a sustainable competitive advantage, while lowering internal costs and raising margins. To attain these goals, firms should focus on the following key areas:

>	People
	●	Clients – Firms must create a strong client segmentation and tiered services strategy that aligns each product and service offering with its appropriate market segment.
	●	Advisors – Today’s advisors spend too much time on administrative activities and not enough on high-value activities such as meeting with clients, portfolio management and cross-selling additional products and services.
>	Process
	●	New Products / Services Launch – For a new offering to successfully go to market, it is necessary that its value and differentiation be clearly articulated, a targeted segment identified and a defined process put in place.
	●	Client Servicing – Firms are challenged by account opening processes, are unable to provide aggregated client performance reporting, and are not in tune with actual advisor business processes – to the point that client servicing levels are adversely affected and advisor optimization is restrained.
>	Technology
	●	Advisor / Call Center Workstation – Firms continue to maintain and build redundant applications that are not integrated, do not provide value-added functionality and are increasingly being commoditized by third-party wealth management vendors.
	●	Client Online – Clients expect real-time account information, aggregated financial views, bill paying, alerts and notifications. The client experience, overall usability and capacity for online collaboration are key focus areas for firms striving to improve client satisfaction.
	●	Data Provision / Management – Firms must focus on the delivery of client centric views, the provision of aggregated account data (custodied / held-away), accurate performance data and robust portfolio accounting.

Expertise And Assets
Our approach to wealth management begins with our deep domain and content knowledge. Our industry thought leaders bring an average of fifteen years of experience to bear on the ever-shifting challenges facing today’s firms. Additionally, we have built a significant knowledge repository of wealth management solution assets, including market research and best practices, that jump-start initiatives and ensure the rapid and successful delivery of solutions to clients.

A Winning Combination
BusinessEdge wealth management offerings focus on addressing the major pain points of firms and the clients they serve. In addition to the traditional suite of capabilities – including requirements / process gathering, roadmap development, program / integration management, quality assurance, IT strategy and transformation, and regulatory and compliance – BusinessEdge provides the following offerings specific to wealth management:

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>	Channel Management – optimization of multi-channel advice delivery (advisor, call center and online) based on client preferences and segmentation.
>	Product Launch Management – product and services launch roadmap, new product platform requirements and design, dependency management and operations
>	New Account Opening – account opening process and forms redesign and automation, client-centric data model design, and family office client on-boarding
>	FA Desktop – the definition of leading practices and requirements for the FA desktop platform, business case development, vendor selection, proof of concept management and an implementation roadmap
>	Wealth Management Online – competitive benchmark, leading practices and requirements definition and user experience design
>	Client / Performance Reporting – AIMR 2010 performance measurement readiness and roadmap, client reporting design and client reporting delivery processes
>	Customer Data Architecture – data consolidation, stewardship and integration strategy
>	Advisor Adoption – change management strategy, communication planning, training and branch rollout planning

If you are looking for an experienced partner with deep wealth management domain expertise, then please contact us – together we can plan and implement a winning solution that will provide you with a sustainable competitive advantage.

Please, Go Ahead and Spend It

When my Uncle Ernie, a life-long bachelor, was in his 80’s and in declining health, he moved into an assisted living facility. He complained to my mother that living there was going to use up all his savings. Her answer was, “What do you think that money is for?”

A close friend’s elderly mother is currently in a similar situation. Nearing 90, she has enough money to provide comfortably for her needs—including assisted living or nursing home care, if necessary—for the rest of her life. Yet she frets about spending it. She tells her two sons, “That money is supposed to be for you.”

No, it isn’t. That money is supposed to be for her.

All sorts of investment options, from IRAs to 401(k) plans, are described as “retirement funds.” We talk routinely about “saving for retirement.” Providing for our needs in old age is one of the most important reasons for saving in the first place.

Yet, when retirement comes, it’s not easy to start spending that money. Such reluctance is understandable. When you’ve been in the habit all your life of saving and putting money away, it’s hard to make a 180-degree turn and start spending it instead. It may feel like jeopardizing the security you have from knowing that money is there. In addition, many people want to leave a legacy to their children or to charity.

There’s nothing wrong with wanting to leave money to your children. But the money you’ve saved for your retirement is yours. It’s there to provide for you. Your children aren’t automatically entitled to it, and you don’t owe it to anyone.

Speaking as a middle-aged daughter of elderly parents, what sort of legacy do I want from them? When it comes to material things, all I really care about are the family keepsakes which are valued for what they mean rather than what they are—such things as my mother’s handmade quilts and my father’s books. What I want most, though, is to have my parents in my life for as long as possible. I want them to be comfortable, able to have more than they need and to do things they enjoy. I want them to use their resources for themselves so they can be an active presence in my life and the lives of my children.

If it’s hard for you to think about spending your life savings on yourself, you might consider this: Taking care of yourself is not taking anything away from your children. Instead, it’s a way of giving to them. When you have—and use—the resources to provide for your own needs, your children don’t have to take care of you. That leaves them free to build their own savings.

So please, when you get to a point where it’s time to start using what you’ve saved, go ahead and use it. After all, as my mother would remind you, what else is it for?