The CWM Program Manila

CONFIDENTIAL © Aprikot Pte Limited

Chartered Wealth Manager ® ”The premier practitioners’ program for global wealth managers”

Training Program 29th Jan – 1st Feb, 2013

Manila, Philippines


The American Academy of Financial Management TM is a worldwide Board of Standards and financial professional organization, with members in 150+ countries offering our exclusive certified designations, charters, and masters certification to candidates who meet the high standards.

As for recognized training, AAFM Board of Standards approves and recognizes top 560+ accredited business schools, law schools and programs around the world. AAFM offers several industries recognized graduate designations to qualified professionals.

AAFM Board Certification and Designations: are certification credential marks for Wealth Managers, Financial Analysts, Investment Bankers, Accountants etc. and Degree holding Financial Planners conferred by the

American Academy Board of Standards. To receive authorization or accreditation to use AAFM Board Certification and Designations, the candidate must meet education, degree, examination, experience,

continuing education, and ethics requirements, and pay good standing or certification fees.

American Academy of Financial ManagementTM


§  The AAFMTM is a USA-based independent worldwide board of Standards, certifying body and accreditation Council dedicated to the finance sector and management

professionals.

§  Global self regulatory organization that recognizes the highest criteria in academic standards, industry experience, ethics, and

continuing education mandates.

§  Founded in 1996 through a merger of the American Academy of Financial Management & Analysts (AAFMA) and the

Founders Advisory Committee of the Original Tax and Estate Planning Law Review.

USA-‐based board of Standards, cer2fying & accredita2on council

Global self regulatory

Founded in 1996

Membership in 150 countries

Professional associa2on member of ACBSP and the AACSB™

Interna2onal

Alliance with the Asian Center for Professional Excellence, The Asian Bankers Associa2on, The RSOF

Royal Society of Fellows Worldwide

§  Membership in 150+ countries.

§  AAFMTM is best known as the 1st to extend direct global recognition to the top 2 business school accreditation agencies that accredit 560+ business schools worldwide. AAFM® is a professional association member of ACBSP and the AACSB™ International, which are the Top 2 Government

Recognized Accreditation Agencies Worldwide for Business Schools and represent 560 of the top business schools.

§  AAFMTM also has an alliance with the Asian Center for Professional

Excellence, The Asian Bankers Association, The RSOF Royal Society of Fellows Worldwide, and AAFMTM has provided some of the most elite global conferences on finance, tax, investments, law, wealth management, portfolio management, economics, and ecommerce issues on several

continents over the last several years.


The Asia-Pacific HNWI population grew 9.7% to 3.3 million in 2010, exceeding Europe and nearing North America. The region’s HNWI wealth grew 12.1% to US$10.8 trillion. Japan remains the single largest HNW segment in Asia-Pacific, accounting for 52.5% of the region’s HNWIs, followed by China (16.1%), and Australia (5.8%). Asia-Pacific is home to many of the world’s fastest-growing HNWI populations. The 20 fastest-growing HNWI populations were in Asia-Pacific and MEANA markets, including Hong Kong, Vietnam, Sri Lanka, Indonesia, Singapore, Thailand, Malaysia and India1.

Product Push

§  Malaysia continues to be a product-push market, despite talk about the concepts of financial planning and wealth management (most of Asian markets are also product-push markets).

§  Regulations provides help in changing the mindset, through greater disclosure in fees and charges.

Skill/Knowledge

§  Regulators are ramping up their efforts in terms of the qualifications of people who sell wealth management products.

§  The shortage of skilled people is a big challenge in the market.

Regulators

§  There are two regulators in Malaysia, covering the securities industry and the banks. Therefore, Industry Association (IBBM) need to play a very active role in the shaping the industry needs and requirements.

Client Education

§  The education level of clients varies greatly between customers. In the mass, low-affluent space, client education is weak. In the priority banking segment, clients are used to the product- pushing culture, so seldom question investment decisions made by bankers – which actually puts the bankers are risk of mis-selling. In the private banking sector, while clients are a bit more sophisticated, it is generally only those clients who have access to private banks in Singapore, Europe or elsewhere who are well-educated enough to question their bankers.

Need/Requirement

§  As Malaysia liberalizes further and allows more money to flow in and out of the market, more clients are getting exposure to new asset classes. This requires Malaysian bankers to acquire Wealth Management skills and competency quickly and effectively.

Why Wealth Manager?

1 Capgemini and Merrill Lynch Global Wealth Management - 2011 World Wealth Report.


Need for Wealth Manager; not just specialists

AAFM’s CHARTERED WEALTH MANAGER®

This program is designed to enhance wealth management career. It’s a must for all banking, insurance and financial professionals who have a minimum of 3 years experience as an practitioner in the financial industry. The program is specially designed for adult learning, it’s light on theory, heavy on results, practical and pragmatic – a true practitioners knowledge series.

The CWM® focuses on developing relationships with HNWI, sales, wealth advisory and core financial planning skills to equip Wealth Managers with global best practices.

Banks relationship manager’s don’t work in isolation – A relationship manager typically would have access to 3 platforms: specialists; products; and technology. The Relationship Manager must have the ability to assimilate all these platforms and channel these to the client’s benefit – the Associate CWM™ / CWM® program was developed to cater to the needs of a Relationship Role, and NOT that of a specialist function.

Specialist Platform!

Technology Platform!Product

Platform!

Wealth Manager!Managing the client relationship, the

wealth.!

Investment Research CFA Financial Planning CFP Lawyers Trust Specialists Accountants Mortgage Specialist Insurance Specialist

Trading Portal Por?olio Construc@on Bloomberg CRM Consolidators Etc.

Structured Products Mutual funds Equi@es Bonds Mortgages Life Insurance General Insurance Custody Access to Investment Banking


There are three (3) components in learning ……….

Learning Process

1 Knowledge This is the theory, the academic knowledge – prerequisite. For example – how to calculate Price/Earning Ratio?

2 Skill (Application) Skill is “How to use Knowledge” Skill is the art of applying. How do you apply the knowledge you have acquired. For example – what does the P/E ratio tells us and what is it’s relevance?

3 Universe / Advisory The final step is applying in the real world - You may have the “knowledge” and the “skill”, you will be a good wealth manager only if you are able to operate the knowledge and skill in the environment.

Acquire the theory knowledge – the road signals, which and what is a steering, breaks, accelerator, gears, signals etc. Can you drive with theory knowledge ? NO You have the theory knowledge of the various parts of the car (steering, breaks etc) and you also know the road signals etc. The driving school will then teach you the skill of driving in a controlled environment ( within a specific area & with a Learner’s plate). Are you now fully skilled to drive ? Yes, but lack confidence. You may know how the steering works, press the breaks to slow or stop etc – you will only be able to drive on the road (environment) – only if you practice and aware of what’s happening on the road. Can you now drive confidently ? YES

Driving a CAR


In a classroom setting with highly interactive and experiential sessions where the participants are:

§  Challenged in the way they think about the importance of clients’ perception

§  Engaged in practical training on realistic cases (through case studies and role plays)

§  Learning in a fun and engaging way (through experiential learning)

§  Sharing ideas in a collaborative environment

§  Discussing best practices / success stories

§  Creating and committing to a personal action plan to apply their new knowledge at the workplace (transfer)

Learning Structure – this training program is for practitioner's with adequate knowledge acquired thru academic qualification and/or experience. The scope of this training program is fill the knowledge gap and build the skill for application of this knowledge.

§  Knowledge

§  Skill (application of Knowledge)

Learning Experience


Chartered Wealth Manager ® ”The premier practitioners’ program for global wealth managers”

Entry Qualification Graduate and minimum 3 years related experience, or Graduate, ACWM® and minimum 1 year related experience, or Non-Graduate, ACWM® and 3 years related experience

The CWM™ is the core program to the world of Wealth Management. This program is best suitable for candidates with experience within the wealth management industry. The CWM program will provide knowledge & skill ….

Knowledge:

Get the latest update and learn about the opportunities of wealth management, with specific relevance to Asia

Understand the capital markets and the forces of change, post‐2008 crisis

Appreciate the market dynamics influencing wealth management

Gain an overview on the latest innovations in financial products in wealth management

Gain an insight to global best practices and achieving success in wealth management

Understand the options and issues in wealth planning

Skills:

Develop skills in building wealth management solutions for clients

Able to present wealth management concepts and strategies confidently through customer friendly language

Able to create strategies to build effective relationship with clients

Create and/or increase their capability to think strategically by using a structured process


Advisory relationship

§  The core of any successful wealth management offering is the relationship developed between the wealth manager and the client. Successful advisors develop a relationship with clients by demonstrating that the clients’ interests are the advisor’s paramount concern.

Integrated information

§  Few clients maintain all of their accounts with a single bank; an integrated view of the clients overall financial picture is critical if clients are to be able to make informed decisions. Wealth manager, should be able to

access and analyze customer data efficiently.

Multichannel access

§  Customers want the ability to access their account information when they want, how they want and where they want. The combination of integrated information and multichannel access empowers clients by enabling them to access constantly updated, accurate information, whether in person, over the telephone or online.

Perception

§  To win new customers and retain existing ones, wealth management firms and the wealth manager must be

perceived as competent , dependable and empathetic. Clients must also perceive that they are paying a justified price for the value that they are receiving. Client opinion is formed through a combination of personal experience, word of mouth and marketing.

Personal touch

§  A major component of successful wealth management offerings is human touch. Clients respond to charismatic guidance and a high level of attention; they feel valued when their queries are addressed promptly and

personally.

Prerequisites for Wealth Management Division

Wealth Manager’s Influence

✔✔

✗

✗

✔

✔

HIGH Influence

NO Influence

NO Influence

MODERATE Influence

MODERATE Influence


A wealth manager’s competencies are encompassed into three distinct layers –

§  Build trusted relationship – client relationships that result in a successful partnership.

§  Realistic Goals - recommendations leading to the creation and implementation of

a comprehensive whole-life wealth management plan.

§  Wealth Accumulation - implement wealth accumulation by managing strategies and monitoring developments.

§  Wealth Preservation – preserve and optimize wealth by managing an optimal strategy of generating income from assets.

§  Wealth Transfer - Legacy and Estate planning - implement strategies to transfer

assets as per the legacy plan of the client.

§  Implement & Monitor – Coordinate a trusted and respected team of specialists to provide a well- rounded wealth management advice and service to the client.

To achieve the client centric competencies, Wealth Manager must have the necessary knowledge and skills of wealth planning, products, services, legal & compliance, capital markets and the Industry.

Competencies Standards – Wealth Manager


CWM M1 Update on global wealth management

This module aims to provide an overview to the world and definition of wealth management and an appreciation of the latest updates, developments and trends globally. With the ever-changing regulation, ethics and compliance, this subject will provide a broad spectrum to the various changes with detailed practical discussion and case studies focusing on the wealth management industry.

KEY LEARNING OBJECTIVES:

Knowledge – Position and Value Proposition: Provides the WM a strong foundation on what is wealth management and private banking. Better understanding and appreciating the international competitive landscape including UBS, Julius Baers, Credit Suisse, as well as local private banking player such as DBS, UOB and OCBC.

Advisory Skills – Engagement: WMs will learn to engage prospects and clients on meaningful conversations about the financial crisis, how it may affected personal wealth, and therefore highlighting needs for diversification, which provides good positioning for portfolio-based solutions.

§  Update on latest developments in wealth distribution and products trends

§  In today’s context, what is wealth management?

§  What is driving wealth management to become one of the fastest growing sectors in financial services?

§  The aims and objectives of wealth management

§  Market segmentation and key differences between retail banking; priority banking and private banking

§  The role of a wealth manager

§  Updates on the financial and capital markets – latest wealth management products being introduced

§  Discussions on last 3 major global financial crises and market crashes and the impact on the wealth manager


12 CWM M2 Global investment strategies and wealth products

This module covers the investment process from constructing investment objectives and policies to asset allocation and types of financial products selection attribution for individual and institutional clients. This subject also covers quantitative methods which are essentially the mathematics behind the analysis of risks and returns of investments and capital market theories. Concepts on risk and return plus modern portfolio theory and its market anomalies will be discussed in great depths leading to the appropriate asset allocation for private clients.


Technical Skills: Understand key quantitative methods, risks and returns, ROI, modern portfolio theory and having the ability to “draw” these concepts into “easy-to-understand” client language.

Investment Knowledge: Understand key concepts in investment approach.

Product Knowledge: Understand the breadth of products available in the world of wealth management, issues/challenges and recent market experiences in these products. Products are non-specific to the banks, rather a variety of examples of products will be presented, to increase awareness of what are some of the solutions that private banking clients are being exposed to and buying.

Portfolio Advisory: Ability to engage the client to appreciate what are some key financial products and the benefits of diversification through asset allocation, therefore positioning portfolio solutions.

§  Introduction to financial mathematics (Importance of TVM) §  Concept of risk and return and Modern Portfolio Theory §  Key concepts on portfolio construction and asset allocation §  Investment philosophy and ecosystem §  Equity and mutual funds §  ETF (Exchange Traded Funds) §  Fixed income §  Derivatives and Structured Products (including DCIs, ELNs, Interest Rate,

Commodities) §  NTAC (Non Traditional Asset Classes) e.g. Commodities, art, antique and wine

investment §  Private equity and venture capital §  Hedge Funds §  Real Estate Investment Trusts (REITs) and Real Estate Banking Limited Partnership §  Islamic financial products §  Charity and philanthropy


13 CWM M3 Global wealth and portfolio management strategies

One of the key strategies in wealth management is to understand the client’s needs and risk profile.

This subject covers a broad and yet in-depth discussion ranging from understanding client’s investment behaviours, due diligence procedures and methods, appropriate asset allocation, as well as client profitability analysis.

This module covers portfolio strategies such as strategic and tactical asset allocation, monitoring the portfolio and re-balancing a portfolio of financial assets.


Financial Technical Skills: Understand how to provide appropriate financial advice and planning, including asset allocation and management, with consideration to understanding the client through KYC, risk profile and individual financial behavioral tendencies. These skills will support the rationale of portfolio solutions.

Investment Knowledge: Appreciate and explain, at a client-level, the key investment tactics, including SAA and TAA, and how these approaches work in favor of the client.

Advisory Skills: Ability to develop a wealth accumulation and management plan (dependent on the client’s lifecycle) with suitable actions, including rebalancing.

§  Understanding client motivations and wants

§  Assessment of client risk appetite, investment objectives and needs

§  Segmentation based on client investment personality profile

§  Due diligence procedures and methods

§  Client wealth analysis and planning

§  Client “mental accounting”

§  Impact of behavioral finance and bad investment habits

§  Strategic Asset Allocation and Tactical Asset Allocation

§  Core-satellite approach

§  Asset allocation strategies including alternative investment strategies

§  Portfolio management (discretionary and non-discretionary)

§  Monitoring and review of client portfolios and re-balancing strategies

§  The “family balance sheet” and wealth planning considerations


14 CWM M4 Risk management and wealth planning strategies

This module focuses on the current role and the position of risk management practices within the wealth management industry especially its application to private clients. Mitigation of risk and strategies deployed will be discussed concurrently with the identification of risk. In the light with wealth preservation, this subject will focus on asset ownership structures devised specifically to address the incidence of taxes and to manage estate protection and generation planning. It will identify and discuss the different categories of taxes in various countries that are relevant to the private client and how these impact wealth accumulation and the ultimate wealth distribution in the context of generation planning. Further understanding on international client’s tax regime and in-depth discussion on its treatment is advocated.


Financial Technical Skills: Ability to explain the importance and mechanics of wealth preservation, including the key tools used, such as Universal Life. Investment Knowledge: Understand various financial instruments that can be used for enhancing a client’s financial well-being, which may include derivatives and other risk management strategies. Financial Advisory Skills: Provide sound advice to clients by helping clients formulate suitable wealth and tax optimization strategies through various structures, including off-shore options.

§  Risk management framework in wealth management

§  Life insurance products and its critical roles in wealth management

§  Universal life and legacy planning

§  Concepts and applications on reverse mortgage

§  Risk Management Strategies for Equity, Foreign exchange, interest rate related products

§  The world of derivatives

§  Appreciating international taxation planning and off-set strategies

§  Taxation aspects of different investment structures

§  Asset protection (on-shore and off-shore) and succession planning strategies, including wills, trust and foundations

§  Philanthropy and charitable planning


15 CWM M5 Client advisory and relationship management skills

The moment-of-truth in wealth management is often during the client interface and engagement process. Moving away from “selling to clients”, this module focuses on advisory skills, where the wealth manager is “helping clients buy.”

Participant will understand the key interpersonal concepts in wealth management based on the consultative selling methodology.

The executive will learn how to define, implement and secure a premium service culture and using this as a key differentiator.

The course will strengthen personal skills in handling the higher demands of a wealth management client.


Consultative Advisory Skills: Ability to secure client interests in exploring investment solutions, specifically for uncovering needs and wants, through a structured “best practices” KYC process.

Financial Advisory Skills: Ability to develop specific and appropriate financial solutions, which are based on model portfolios, and to successfully pitch to the client.

§  Securing Client Opportunities §  Effective prospecting and networking §  Creating opportunities for initial client contact §  Marketing and communication strategies to prospective clients §  Your personal brand §  Financial Advisory Skills §  Consultative Selling Methodology §  Structuring for success – ROADMAP §  Becoming a trusted advisor §  Profiling your client’s buying behavior – DISC §  Creating engagement, awareness and uncovering needs – The Questioning Loop §  Targeted KYC – HCF Grid §  Advancing - Active Listening and ABCs §  Developing value propositions with features and benefits §  Pitch book and impactful pitching techniques – 6Cs §  Effectively handling objections – 3Es §  Win-win negotiations §  Client book management and profitability analysis/strategies.


Ready for Business

The last module is preparing the financial service participants to face the real environment - Knowledge & skill (Module 1 to 6) are very important functions, however communicating your message is equally important. 50% of the battle is “presenting” or communicating is a manner conducive to the ultimate client.

Presentation Skills: A very important part of being a financial service participant is to communicate in the language that a customer will understand – power-point presentation are important aid, the attempt will be briefly show the goods & bads of a power point presentation.

Personal Grooming: Participants will be prepared to face the business world with confidence – understanding business etiquettes, body language and appropriate dressing codes.

§  Presentation Skills

§  What makes a good presentation?

§  Presentation Styles Inventory for Audience Adaptation

§  Controlling Nervousness

§  Body Language & Speaking Clearly

§  Selling Your Message

§  Preparing and Making a Presentation exciting, including the use of Presentation Aids

§  Handling Questions

§  Business Dress Grooming – Dress Considerations, Attributes, business Professional attires.

§  Electronic Communication Etiquettes – Telephone, Mobile, e-mail, black-berry etc

§  Dining Etiquettes – Style of eating, basic guidelines for business dining, manners for difficult to eat foods and Cultural variations.

§  Business Entertaining – Wine & Toasting Etiquettes, Cocktail parties and receptions, Restaurant Entertainment, Entertaining International Visitors.


Accelerated Session Plan for 5 days Program

Day

1 Da

y 2

Day

3 Da

y 4

Day

5

Module 1 Update on global wealth management

Module 2 Basics investment and asset classes

R4B Ready 4 Business – Presentation Skills

Module 3 Global Wealth and Portfolio Management

Module 4 Risk management and wealth planning

strategies

R4B - Case Study How to write a Case Study

Case Study Home Assignment

SESSION 5 – Module 5 Client advisory and relationship

management

ASSESSMENT 75 Q&A

Business Etiquettes Dressing & Dinning Etiquettes … followed by dinner.

Paul is a highly experienced and energe@c training professional with over 25 years experience in banking, insurance and wealth management. He has held senior roles in leading financial ins@tu@ons including Westpac

Banking Corpora@on (Australia), UBS AG and Barclays Bank Plc. At both UBS and Barclays, Paul was responsible for

establishing and managing the UBS Wealth Management Academy and the Barclays Wealth Sales & Advisory

ins@tute.

Paul Arundell Trainer for Module 1 & 2, R4B

Kevin Ho Trainer for Module 3 & 4

Kevin is Head of Por?olio Management at SJS Capital Management, where he oversees family office, private

client and ins@tu@onal quan@ta@ve investment strategies. Previously, Head of HSBC Wealth Management Advisory,

where he managed a large wealth advisory. Kevin is passionately involved in the training and

development, specially for the newer genera@ons of investment advisors & product specialists. Teaching mandates in Wealth Management at the Singapore

Management University. Master of Science in Finance – City University of New York, USA

Suraj is a leader in the financial industry, being a prac@@oner with over 22 years experience as senior

execu@ve with year-‐a_er-‐year success achieving revenue, profit, and business growth objec@ves within start-‐up,

turnaround, and rapid-‐change environments in the fund management industry with specializa@on in life insurance

investment products. Extensive experience in Asia – associated in building a true regional fund management en@ty opera@ng in 10 countries within Asia and Middle-‐

East, plus sebng-‐up pla?orms in Luxemburg and Mauri@us.

Suraj Mishra Trainer for Module 5 & R4B

R4B Dinner