An investment bank provides professional management of equities, bonds and other securities, real estate and other asset for the benefit of pensions funds, corporations, educational institutions and high-net work individuals. They include well-know names (or subsidiaries) in financial industry, including J.P Morgan Chase, Goldman Sachs, Credit Suisse, HSBC and UBS.
They do so by investment contracts and through collective investment schemes–mutual funds or exchanged-trade funds.
When catering to private investors, invest banks present their expertise in advisory or discretionary services. They often advertise their firm for client looking for “money management, “portfolio management” or “private banking” services
In the past, individuals you would need to have a net worth of about $2 million to open an account with for this type of bank investment.
Even today, J.P. Morgan Private Bank requires a minimum of investable assets of $5 million. However, some investment bank account can be opened with as little as $1,000 to $250,000 depending on the firm.
Steven Crosby, who is director of the Price Waterhouse U.S .private banking and wealth management practice called PwC states that the global private banking industry has been growing by roughly 20 percent a year — despite sluggish economic growth recently.
Once you open an account, you will be assigned to a team of bank investment professionals. They will be able to assist you with investments, loans, estate planning and other services.
Many people preferred the relationship if an investment banker to that of traditional retail banks. You do not have to wait in line. Usually, you just a representative on the bank on your cell phone and schedule a time for him come by your home. They work on evening and Saturday.
Here’s a list of private banking services offered by a major investment bank:
- Investment consulting
- Direct trade access
- Asset management
- The RBC Wealth Management’s World Wealth Report states that 60 percent of the high-net worth individuals surveyed said they rather work with a single firm to handle all their financial needs.
About portfolio management services
Many wealthy people hire investment bankers for customized asset management services because they do not want the hassle of day-to-day portfolio management. They let an experienced portfolio manager implement their instructions of their goals for the assets– generate income, create long-term growth or combine the two strategies for a balanced investment approach.
The portfolio manager has the responsibility of implementing your investment requirements based on your personal situation, preferences, risk capacity and tolerance as well as on our investment approach.
If you are investors who prefer more active participation in your investment decisions, you will need a constant stream of information, research and education. Bruce Holley, senior partner and managing director at Boston Consulting Group. Say that besides having good products and services, investment bank consultants need to prepare themselves to offer clients quality investment advice.