Toward a New Framework for Private Wealth

To improve performance, better investment processes and structures are needed.

By Pranay Gupta. CFA ,  CFA Institute Magazine Jan/Feb 2015


Investment processes followed by private wealth need to improve to deliver better performance and risk management but must do in a manner that does not compromise customization and service quality. Institutional mostly fit into a common framework in wich assets are invested in multiple commingled fund structures. Private wealth is distinguish by the fact that every single client specifies constraints and preferences to be incorporated into portfolio, resulting in limits on investments, liquidity, leverage, single stock holdings, home bias, intergenerational requirements, and cash flows. Given the large numbers of accounts in private wealth , the customization requirement is a problem for large scale implementation.

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