R9 - Private Wealth Flashcards
Tax Basis
Denote starting value of an inv for capital gain
Accrual taxes
Tax due is postponed to future date
Formula- div income after taxes
F- Price apreciation after taxes
IPS
Private document with cient’s investment objectives, riso tolerance, time horizon, liquidity and other constrains
How to use
Use tax column 1 for values at limit and apply the percentag
How to use
Use tax column 1 for values at limit and apply the percentag
Risk tolerante
Risk tolerance
ability to take risk given restrictions, goals, time horizon
Risk tolerance
Willigness and ability to take risk
Risk capacity
Ability to take risk considering the limitations (time horizon, goals, liquidity)
Risk perception
Perception of risk clients regarding certain asset class
Risk perception
Perception of risk clients regarding certain asset class
Equities caracteristcs
Outpace inflation
More volatile
May not outpace persistent inflation
Commodities
Outpace inflation
Might not outpace persistent inflation
Inflation LinkedIn bonds - caracteristcs
Follow inflation
Low return
Real estate- caracteristcs
Hedge against inflation
Low liquidity
Discretionary autority
Wealth mgmt can take action without clients approval
Taticall allocation
Active mgmt that seek a range for each asset class
Strategic allocation
Mantain specific target
North América wealth
Entreperneurship, business formation
Europe wealth
Hélder famíily business and inherited real estatE
Ásia wealth
Agrária to manufacturing
Difference between risk capacity and risk tolerance
Risk capacity is the willines and ability to take risk take in consideration client’s wealth, income, investment time horizon and liquidity needs.
While risk tolerance is more subjective measure.
