A new portfolio management experience
Created more than two decades ago, discretionary management services (also known as delegated management services) are undergoing a transformation and seek to offer a personalised experience to clients choosing this type of management.
Having seen considerable development in the 1990s, these management solutions often served as an easy way of accessing the equity markets for anyone lacking the time or knowledge to manage a portfolio alone.
While this type of management approach has long consisted in offering different options based on the percentage of equities held in the portfolio and the client’s level of risk aversion, it is currently undergoing a shift owing to clients’ changing expectations, which are increasingly sophisticated, exacting and call for more than just ascertaining a degree of risk.
Indeed, clients increasingly want custom portfolios that reflect their sensitivity, meet their aspirations, and that are also capable of responding to market conditions in virtually real time. The technology and portfolio management techniques used allow precise adjustments to be made to investments more quickly in line with the markets and clients’ individual circumstances.
BNP Paribas Wealth Management has been moving in this direction for a number of years now and offers truly personalised mandates to meet the specific needs of each of its clients.
"Just like the approach a fashion designer would take when tailoring a suit, each portfolio is made to measure based on a detailed assessment carried out with each client."
Head of Discretionary Portfolio Management, BNP Paribas Wealth Management
And although this assessment may seem time consuming, it is crucial to building the “right” portfolio. What applies for one client will not necessarily be the case for another, given that no two situations are the same.
It is therefore a much SMARTer approach that offers an enhanced experience to both clients and the Bank and will create value.