Wealth Management: Structured Products, Issues, and Solutions

This report provides a comprehensive analysis of wealth management, focusing on the role of structured products in portfolio construction and the challenges faced in developing effective wealth management strategies. It begins by defining wealth management and structured products, then delves into the issues that wealth managers encounter, such as increased competition, data challenges, and evolving client needs. The report also explores potential solutions to these issues, including adapting to dynamic client demands, embracing technology, and maintaining compliance with regulations. Research methodologies, including the use of qualitative and quantitative research, are discussed to provide a foundation for the analysis and findings. The aim is to identify the role of structured products in wealth management portfolio. The objectives include developing a basic understanding of wealth management, analyzing structured products, identifying issues, and exploring ways to overcome these challenges.

Wealth Management

ABSTRACT
This is the study which consist of the research over the wealth management in order to
identify the various aspect of the business organization. It is very important for the organization
to amuse the different factors in o0rder to identify the wealth management of the organization.
There is various types of research in this report which includes qualitative and quantitative
research. The report will include the objectives and aims in order to identify the importance of
wealth management.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................5
To develop the basic understanding regarding wealth management..........................................5
To analyse the structured products in wealth management........................................................5
To identify the issues faced in developing wealth management portfolio..................................6
To identify the ways to overcome the issues of wealth management.........................................7
RESEARCH PROCESS..................................................................................................................8
FINDINGS/ ANALYSIS...............................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Wealth management is considered as a investment related advisory service that combine
other financial services to find out the requirements of the rich clients. The wealth management
is done by the professional individual or a group who just control and manage the wealth of
those clients who have a large amount of money in their account. The wealth management is not
just gives the advise related to the investment but also control the finance related decision of the
person. The wealth management also include structured products which are considered as an
asset and also can be defined as investments which include bonds, securities, mutual funds,
equity share, preference shares and many more. Structured products are generally shown in the
portfolio of the clients in which their maturity dates, coupon date and date of issue are also
mentioned (Stibbard, 2019).
There are some issues which can be raised in the preparation of wealth management
faced by their managers like they can faces the issue in setting up of proper goals due to unclear
priorities of the clients. The another issue faced by the managers in wealth management are
unpracticable market conditions.
Aim: To find out the role of structured products in wealth management portfolio.
Objectives:
 To develop the basic understanding regarding wealth management.
 To analyse the structured products in wealth management.
 To identify the issues faced in developing wealth management portfolio.
 To identify the ways to overcome the issues of wealth management.
Research Question:
 What is wealth management?
 What are the structured products in wealth management?
 What are the issues faced in developing wealth management portfolio?
 What are the ways for overcoming the issues related to wealth management?

LITERATURE REVIEW
To develop the basic understanding regarding wealth management
As per the view point of Ganti, 2022 wealth management is a very important tool for the
financial service which is addressed to the needs of clients. To use of wealth management they
collect information of the clients. To determine the needs of clients they considered some factor
such as estate planning, accounting, retirement and tax services. The client assets determine on
the basis of the management. This services is help to taking decision for individuals with a broad
array of diverse needs. It is more important than the investment advice service. It includes all
parts of a person's financial life. The clients satisfy of different products so that increased the net
worth of the individuals. Under this method the wealth manager coordinates all the services
which is important to manage client assets. The wealth management makes the plan for the
current and future needs. It also provides various services such as financial field which is help to
identified the important area such as cross border wealth management.
Wealth management is important to create wealth process so that experts can determined
the financial needs of the clients. The wealth management includes the protection of wealth,
management risk, assembling of wealth and maintain proper position of the wealth. It is the
wider term of the management. It creates the income on the basis of assets. It provides services
direct and dynamic environment base. The wealth-management plays different role in
management such as asset allocation, tactical management and diversified management. It
includes the different process which evaluates the current financial situation of the client. It helps
in determining the financial objectives. It aides in designing the selected goals. To implementing
the strategies into the financial goals and the results of the plans (Souleles, 2019).
To analyse the structured products in wealth management.
One development that has gained some momentum as an enhancement to traditional retail
and institutional portfolios is the risk category, widely known as organized projects. Organized
programs provide retail finance backers with easy access to subsidiaries. This article presents
organized merchandise, with particular emphasis on their relevance in a differentiated retail mix.
Organised projects as value-linked derivatives are ubiquitous in the rich realm of boards.
Organised projects are a mix of subsidiaries and traditional monetary instruments such as stocks
and bonds. The different parts are combined into a single monetary instrument and securitized.

Check organized items for quality and viable uses. In addition to describing organized projects,
this book centres on their practical application, showing the ways in which they can create
additional respect as a feature of the process of incorporating risk (Sosner and Steblea-Lora,
2022). In this way, organized products can provide customized arrangements based on specific
technologies in all market designs. While they are invaluable tools for combining chessboard and
chance controls, they are still very modern. This improvement is expected to meet specific
prerequisites for financial backers, each with their own risk profile and market information.
To identify the issues faced in developing wealth management portfolio.
According to Ciriani, 2022 increased competition is one of the issues faced in
development of wealth management. As Wealth managers were acknowledged for presenting
notable client service, tailored funding advice and recommendation. But the factors of the value
chain are being seen by clients as a commodity. With self directed structures like Robinhood and
e-Toro shifting to zero commission online trading and extended variety of single family places of
work, customers have increasing alternatives for developing and protecting their wealth. As
markets maintain to remain robust, customers will shift to self directed making an investment
and look for virtual tools to manage their investments. A growing percent of excessive net worth
clients are actively using a WealthTech firm to manage their wealth. Wealth managers who are
not able to provide appropriate virtual systems may lose to new digital players. The capability to
offer incremental advisory assist at scale even as decreasing guide engagement may be a
differentiator. Incumbents and newones alike can see the attraction of customer and asset boom,
with the possibility to cast off structural inefficiencies. As a end result, the market is active with
consolidation, vertical integration and new market entries.
Even though the wealth management companies realize the benefits of going worldwide,
they have encountered large data challenges in achieving their global vision. Customer and
position data is frequently distributed across multiple systems. While data warehouses might also
exist, it is tough to collect and aggregate additional details from multiple repositories.
Unstructured records is especially challenging, as it is often held in multiple repositories and is
difficult to source. This creates a mission on the ability to screen and control the enterprise and
react to market conditions in a well times way (Sharma, Gupta and Gopal, 2018).
As per Jamie Forrester, 2022 the management faces crucial shortcomings and challenges
due to dynamic and versatile client needs and wants. Due to diversification and generational

gaps, the product and services offered by companies may fail to attract adequate group of
audiences, which leads to requirement of upgradation in technology for gaining attention of
different digital savvy investors, who find companies with growth prospects more beneficial and
advantageous. Moreover, the clients require assets which are capable of sustaining through
generations and impact the changing audience favourably. The wealth management of the
company is a long term aspect, which must be assessed regularly, due to change in market
conditions and clients expecting only the services or products which are in line with current
trends and conditions. Wealth managers must follow above mentioned facts to better manage the
wealth as well as keep track of future value of the company.
Also the solace which an individual experiences when he or she gets involved in self-
servicing, along with the zeal to buy new and modern products which usually requires less
advice or discretion creates barriers for effective wealth management. Additionally, the demand
for retail friendly vehicles are on the rise, which results in market being unabridged with advice
and discretion. By pressurizing the margin of discretion, the latitude generally accessible to
decision makers of the company for compliance with certain rules and regulations, the
management will not be able to wilfully and explicitly propose plans related to management of
wealth for future prospects. This will not only impact the employees of the company but also the
investors looking for justifiable future wealth for better return rates (Pratiwi and Sudradjat,
2018).
Even though the wealth management companies realize the benefits of going worldwide,
they have encountered large data challenges in achieving their global vision. Customer and
position data is frequently distributed across multiple systems. While data warehouses might also
exist, it is tough to collect and aggregate additional details from multiple repositories.
Unstructured records is especially challenging, as it is often held in multiple repositories and is
difficult to source. This creates a mission on the ability to screen and control the enterprise and
react to market conditions in a well times way.
To identify the ways to overcome the issues of wealth management.
As per the viewpoint of Spellacy, 2022 the competition in the wealth management
industry has been hiked up due to the increased investments in the banks in UK. The advisors for
making the portfolio has been increased in the industry and wants to invest in the same type of
asset. For this, the investor must enable itself to find a valid and a good advisor which will help it

in assessing and making a good and sound portfolio. The wealth management advisor should be
prepared for its dynamic clients and must give the accessibility to to it clients for convincing
them to investment in that particular product. It will be helpful for the industry to cope up with
the issues faced in wealth management. The advisory and the discretionary margins should be set
up to gain profits for the decisions that must be set up to remain in the engagement process. The
consumers are not being dealt in buying only those type of investment which adds value to their
investment and wealth management portfolio.
According to the view of Kunte, 2022 the wealth management portfolios are maintained
in the line with the investors which gives them agreed investment policies and those agreed with
the investors. The aggregate fees should be charged for the services that are provided for the
portfolio services. But a certain amount of provisional activities should be performed and given
in charge of the portfolio. Here, then come the wealth management and the regulation for these
have also been increased. this is the issue that needs to be overcome.
RESEARCH PROCESS
Research methodologies are referred as specific tools and techniques which are taken in
account for finding tools and processes which would help to select, analyse, determine and
process about the selected topic. In case of dissertation, the chapter of methodology would allow
the researcher to critically examine overall validity and reliability. This chapter clearly states in
what ways the data is being accumulated, generated or gathered and in what manner the
information is being assessed. It renders clear justification about about used methods for
collecting and examination of data in a better way (Ge, 2019). Some of the research
methodologies which are being considered in the present dissertation are as under:
Research Philosophy
Research philosophies can be explained as a set of beliefs which concentrate towards nature of
the reality which is being searched. It is the explanation of research philosophy, knowledge's
nature that could help in differentiating the objectives of research and the best way which may be
taken in account for achieving goals. In usual terms, it would provide researcher about the set of
principles and values which are linked with certain type of study and concerned about managing
studies as well. Research philosophies can be bifurcated in three main philosophy which are
necessary in the procedure of dissertation: epistemology, axiology and ontology (Freckleton,
2020). Epistemology can be explained as scientific philosophy which helps in collecting and

finding data which could prove without any doubt. Ontology is concerned and connected about
explaining nature of relativity which means what comes in mind while carrying out investigation
and what influence it would put on society and surroundings as well.
It is mainly categorized in three important variations such as interpretivism, positivism and
realism. IN epistemology, researcher has chosen positivism philosophy as it would assist in
evaluation of only quantitative based data so that objectives could be fulfilled in a more easy
manner. Axiology is about learning how valuable and opinions would be affecting the analysis
and accumulation of research. Positivism philosophy would likeably concentrate on evaluation of
numeric data in a very specific period of time (Ebomoyi, 2018).
Research approach:
It can be explained as a approach or method which would help in evaluating collected
information by a effective and efficient way. Usually such approaches are being bifurcated into
two sorts which are deductive and inductive approach. These two ways are great in their own
way and would facilitate researcher to examine the gathered data in a simple and easy form. The
two approaches in data analysis can be stated with proper justification in selecting current
research thesis. They are:
 Deductive approach: Deductive approach can be explained as one of the approach present
in research. It is very helpful for the evaluation of numerical data or quantitative
information. This is a sort of approach which would be focusing on statistical data or
accumulated number. It also would examine the primary information which is generally
gathered directly form the sources.
 Inductive approach: Inductive approach can be explained as a sort of approach which
would allow the investigator or research in the procedure of developing a theory rather
than accepting developed theory. This is a sort of approach which is mostly being sued
for evaluation of secondary as well as qualitative data.
Data collection: It can be explained as a strategy which is carried out by researcher for
determining and collection of information which is connected to the topic of investigation. For
researcher it is necessary to select relevant, reliable, accurate and valid way for collecting
appropriate data such that defined results could be obtained (Coën, Desfleurs, and Lecomte,
2019). Data collection is simply categorized in two sort which are: Secondary and primary data
collection.

 Secondary data collection: It can be stated as a sort which would focus on gathering
information from laid sources. This is the data which exists already in the environment
and the researcher concentrate on addressing the existing gap in published information.
Certain secondary resource consider journals, books, publications, articles, magazines
and newspapers.
 Primary data collection: Primary data collection is referred to the type which would
facilitate investigator in gathering first hand data or raw data. This is the information
which is being accumulated directly from the selected resource. This is usually being
carried out for the first time such that more data could have been which is related by the
reader (Chang, Krueger and Wrolstad, 2018).
FINDINGS/ ANALYSIS
The main findings of the current study are Wealth management can be explained as an
investment advisory services which would combine other financial related services that are
needed to be addressed by counting the needs and wants of affluent users. A wealth management
advisor can be explained as a higher level professional which would help to manage affluent
consumers wealth typically, holistically for one set fee. Wealth management can be quoted
through an example such as insurance company where agents which would be selling insurance
but define its insurance agents as rendering wealth management. The researcher is able to find
out ways which would help in analysis of structured products in wealth management. Structured
products could be loosely described as a investment or savings goods where the return is
connected to an underlying asset with pre defined attributes or features. It is being found that the
issues which are being faced in wealth management are due to increasing competition, data
usage and accessibility and dynamic clients as well. It is hence observed that there are
investment diversification, regulatory demands and scalability and greater effectiveness.
Growing private marketplaces allocations are progressively difficult the operating models of
asset owners and managers as well. It has also being found that there are changing taste and
preferences of clients, advice and discretionary margins are being pressured, desire for new
goods and more retail friendly vehicles. It has also been found that there are many issues that are
being faced by developing wealth management portfolio and to identify the ways which would
help to overcome issues related to wealth management. Wealth management can be explained as
a part of the financial based industry, professional who are working in such discipline would be

combining investment related advices with other financial services which are linked with
wealthy users. Risk in its most elementary form can be defined as a function of consequences
and the probability of such an event which could take place. The above prepared report helps to
assess operational risk management which would help in launching of new goods and setting up
of funds, monitoring, controlling of allocations which are based on investment exposures,
maintaining multiple fund hierarchies for various reporting scenarios. Wealth management is an
investment advisory service which would combine other finance based services for addressing
high end, and professional service combining financial counselling and investment as well. It
would also consider tax and accounting service and policies for achieving specific objectives
over a laid time period for achieving specific goals over a period of rime span and planning as
well. Wealth management is important for managing funds and finance which would be
reflecting well on the financial appearance of a firm or respective person. The report prepared as
above would be helping to understand which options to be taken in account and which measures
to be taken and also what would help the business to gain competitive advantage over others. It is
also necessary for every investor and researcher to find ways which would help the business
person to have a better understanding of the options to be chosen and taken in account by the
investor. The wealth management helps to find out where the business has been lacking and how
it could be improved by reading and analysing research papers which would give an overview of
the understanding which is being stated. It helps to find ways which are necessary to be taken in
account.
CONCLUSION
The aspect of wealth management is considered as an investment advisory service that
provide assistance in the process of combining other fiscal services in order to address the needs
as well as requirements of the affluent clients. The role of the wealth management is to advise
the private, high-net worth individuals as well as the affluent families regarding the process of
investing their portfolios along with then planning of their finances fir the purpose of
accomplishing the financial objectives and goals. Without properly manage the finances of an
organization, the company will be cast into a world of consequences. The wealth management
does not reflect on the fiscal appearance of an organization or an individual. Ineffective
management of the money or the finances result in the fiscal burden as well as ultimately debt.

The advantages of wealth management to an organization include that it accesses to the multiple
services for monitoring as well as controlling the financial situation of the organization. Another
advantage of the wealth management is that it provides assistance in the process of balancing the
major life changes. This also facilitates an organization in the process of setting the objectives as
well as goals of the company and also makes the advisor feeling confident in making the
decisions of an organization. The main motive of the wealth management is to attain the
particular personal financial goals instead of a risk return label like growth with income or
comparing the performance to the conventional market benchmarks.