Institutional Wealth Management | Institutional Investors

Institutional wealth management involves the professional management of assets for organizations, endowments, and other large-scale entities. The goal is to grow and protect their wealth efficiently while managing risk. Institutional investors are corporations, trusts, or other legal entities that invest in financial markets on behalf of groups or individuals, including both current and future generations. Institutional wealth management is indeed a specialized field that requires expertise in navigating various financial markets and managing assets on behalf of large organizations. The goals of growing and protecting wealth efficiently while managing risk align with the fiduciary responsibilities these institutions have toward their stakeholders. It’s important to highlight some key points:

1. Diverse Range of Institutional Investors:
   • Defined benefit and defined contribution pension plans play a significant role, collectively representing a substantial portion of global institutional assets.
   • Sovereign wealth funds are government-owned and contribute to the investment landscape, often with a focus on both financial and real assets.
   • Endowments and foundations manage assets for charitable organizations, including educational institutions, hospitals, churches, museums, and others.
   • Banks and insurance companies act as financial intermediaries, balancing portfolios to meet the financial obligations to depositors, policyholders, and creditors.
2. Investment Challenges and Constraints:
   • Institutional investors operate in a complex environment and face various challenges, such as market volatility, regulatory changes, and economic uncertainties.
   • Managing large and diverse portfolios requires sophisticated strategies to optimize returns while staying within legal and regulatory constraints.
3. Fiduciary Responsibilities:
   • Institutional investors have fiduciary duties to act in the best interests of their clients or stakeholders. This involves making prudent investment decisions and actively managing risks.
4. Investment Risk Models:
   • The distinction between defined benefit and defined contribution pension plans emphasizes the different approaches to investment risk. In the former, the sponsor assumes risk, while in the latter, individuals make investment decisions and bear the risk.

Overall, institutional wealth management is a dynamic and multifaceted field that necessitates a deep understanding of financial markets, risk management, and the ability to navigate a constantly evolving economic landscape.

You will be learning the followings:

• Institutional Investors
• Pension Plan (DB vs DC)
• Defined Benefit Plans
• Return and Risk
• DB Plan – Time Horizon
• Foundation – Risk and Return Objectives
• Foundations – Constraints
• Endownments
• Objectives and Constraints
• Insurance Companies
• Life Insurance Companies – Return Objective
• Three Issues Affecting LI Liquidity
• Life Insurance – Time Horizon
• Non Life vs Life Insurance and Underwriting Cycle
• Non Life Insurance – Objectives
• Policy of Total Return
• Non Life Insurance Companies – Liquidity
• Bank Securities Portfolio Objectives
• Securities Portfolio – Objectives
• Securities Portfolio – Constraints
• Asset Liability Management
• Introduction to Concentrated Positions
• Overview of Concentrated Positions
• Investment Risk
• General Principles and Considerations
• Institutional and Capital Market Constraints
• Goal Based Planning
• Concentrated Wealth Decision Making
• Managing Risk and Tax
• Monitizing Strategies
• Concentrated Positions – Hedging
• Concentrated Positions – Heding Strategies
• Yield Enhancement
• Managing Risk of Private Business
• Considerations of Different Strategies
• Managing Concentrated Real Estate
• Linking Pension Liabilities to Assets
• Allocating Shareholder Capital to Pension Plans