WEALTH MANAGEMENT - S1 (7th Oct 2023).pptx

WEALTH MANAGEMENT Sheikh Zayed Islamic Center 7th Oct 2023 Syed Muhammad Yaseen Ali Trainer Profile   Experience:  Bank Alfalah Islamic – Product Development  Soneri Bank Mustaqeem  Mashreq Bank UAE  Sheikh Zayed Islamic Centre / NIBAF / IBA  Faysal Bank Barkat  Meezan Bank E...

WEALTH MANAGEMENT Sheikh Zayed Islamic Center 7th Oct 2023 Syed Muhammad Yaseen Ali Trainer Profile   Experience:  Bank Alfalah Islamic – Product Development  Soneri Bank Mustaqeem  Mashreq Bank UAE  Sheikh Zayed Islamic Centre / NIBAF / IBA  Faysal Bank Barkat  Meezan Bank Education: ACCA, CSAA, PGD (IBF-CIE), CIFE-UAE) Outline  Introduction  Portfolio Perspective  Steps in the Management Process  Types of Investors Portfolio Perspective  Portfolio Approach: Evaluate individual investments by their contribution to the risk and return of an investor’s portfolio.  Portfolio diversification helps investors and disastrous investment outcomes. (Enron - 1999)  Portfolio diversification also helps investors reduce risk (Impact of Inflation/Interest Rate)  Composition matters for the risk-return trade off.   Portfolio 1: Stock A: 33.3%, Stock B: 33.3% and Stock C: 33.3  Portfolio 2: Stock A: 50%, Stock B: 25% and Stock C: 25% Portfolios do not guarantee downside protection. Step in Management Process    Planning:  Understanding the client’s needs  Preparation of an Investment Policy Statement Execution  Asset Allocation (Diff Asset Classes for instance Equity, Bond and Alt Investments)  Security Analysis (Identify Specific Securities )  Portfolio Construction (Purchase) Feedback  Portfolio Monitoring and Rebalancing (Check with Clients needs, performance etc)  Performance Measurement and Reporting (Periodically) Type of Investors Time Horizon Individual Investors DB Pension Plans Endowments Foundation Bank Insurance Co (P&C) Insurance Co (Life) Investment Companies Risk Tolerance Income Needs Liquidity Needs Type of Investors Time Horizon Risk Tolerance Income Needs Liquidity Needs Individual Investors Vary Vary Vary Vary DB Pension Plans Long High Mature New Low Endowments Very Long High Foundation Very Long Bank Low High Meet spending commitments Short Low Low High Insurance Co (P&C) Short Low Low High Insurance Co (Life) Long Low Low High Investment Companies Vary Vary Vary high Low