Wealth management, as it is commonly practiced, suffers from a number of serious pitfalls that often lead to inferior or even disastrous long-term outcomes for clients. A number of these
Wealth management, as it is commonly practiced, suffers from a number of serious pitfalls that often lead to inferior or even disastrous long-term outcomes for clients. A number of these pitfalls are damaging institutional clients as well. Neither regulation nor technology offer a solution unless the very foundation of the practice of wealth management is re-examined.
Different approaches to wealth management can be valid, provided that the basic pitfalls to be identified in this presentation are avoided. Among the main pitfall categories are: wrong focus and wrong priorities; misalignment of objectives; inadequate decision making methodology in the face of uncertainty; ignoring established evidence, particularly from financial history; and the failure to achieve a holistic view of asset, liabilities and financial objectives, particularly for investors with a global footprint.
These pitfalls unfortunately are exacerbated by the structure of the wealth management industry and the gap between the theory and the practice of finance. The ideas that resulted in the creation of the CFA program, particularly those of Benjamin Graham, are key to prevent these pitfalls.
(Tuesday) 12:15 - 13:45
Rue du Petit-Chêne 34
CFA Society Switzerland has determined that this program qualifies for one CE credit hour under the guidelines of the CFA Institute Continuing Education Program.
- Day 1
12.00 12.00 Registration * 12.15-13.45 Presentation * 13.45 Networking Lunch 12.00 - 13.45.
Dr. Giuseppe Ballocchi CFA
Dr. Giuseppe Ballocchi CFA
Dr. Giuseppe Ballocchi CFA, specialises in derivative-based strategies and is passionate about bridging the gap between the theory and the practice of finance. He is a partner with Alpha Governance Partners, which focuses on fostering excellent risk-based investment governance, and with a fintech start up. Dr. Ballocchi is a director and an FX advisor to the REGMIFA Fund, a member of CFA Institute Future of Finance Content Council and represents CFA Institute on the IFRS Advisory Council. He is writing a book on Pitfalls in Wealth Management, to be published by Wiley later this year. He is an Adjunct Professor at the University of Lausanne, where he is a member of the Steering Committee for the Master in Finance. Dr. Ballocchi was head of financial engineering and risk analytics at Pictet & Cie, chief investment officer at Olsen Ltd, a fixed-income manager at the Asian Development Bank in Manila and a high-energy physicist at CERN. Dr. Ballocchi is a past president of the CFA Society of Switzerland. He is a former Governor of CFA Institute, where he has chaired the Audit and Risk Committee, was a CFA exam grader, served on the Executive Advisory Board of the Education Advisory Committee of CFA Institute and on the Annual Conference Committee, and was on the Board of Regents of the Financial Analysts Seminar. He holds a laurea (MS) in physics from the University of Bologna (Italy), an MBA from the Open University (United Kingdom), and a PhD in high-energy physics from the University of Rochester (United States). He is the author of more than 50 academic publications in physics and finance and a frequent speaker at a number of international conferences.