IN­VEST­ING IN RE­LA­TION­SHIPS

Wealth and in­vest­ment man­age­ment needs to be built on a com­pre­hen­sive un­der­stand­ing of the clients' ob­jec­tives and fi­nan­cial per­son­al­ity.

Qatar Today - - INSIDE THIS ISSUE -

Wealth and in­vest­ment man­age­ment needs to be built on a com­pre­hen­sive un­der­stand­ing of the clients' ob­jec­tives and fi­nan­cial per­son­al­ity.

The Mid­dle East and North Africa (MENA) re­gion is a key strate­gic mar­ket for Bar­clays. With strong link­ages with the UK, Bar­clays, a trusted and recog­nised part­ner for clients in the re­gion, of­fers its full range of fi­nan­cial ser­vices, in­clud­ing in­vest­ment and cor­po­rate bank­ing ser­vices, in ad­di­tion to the wealth and in­vest­ment man­age­ment propo­si­tion and the re­cently launched in­ter­na­tional bank­ing of­fer­ing. Bar­clays' strength in the wealth and in­vest­ment man­age­ment space is due to its Open Ar­chi­tec­ture Trad­ing Plat­forms, which pro­vide a va­ri­ety of in­vest­ment and credit op­tions and wealth ad­vi­sory ser­vices that are tai­lored to the needs of each and every client. This is in ad­di­tion to the unique In­te­grated Bank­ing Model, which of­fers clients the op­por­tu­nity to ac­cess Bar­clays' re­gional and global ca­pa­bil­i­ties in Cor­po­rate and In­vest­ment Bank­ing.

Clients rely on Bar­clays for our ex­per­tise in in­ter­na­tional mar­kets as we as­sist them in di­ver­si­fy­ing and pre­serv­ing their wealth while pro­vid­ing them with tai­lored in­vest­ment solutions that match their in­vest­ment pro­files. We do this by care­fully as­sess­ing each client's in­di­vid­ual needs and ob­jec­tives and cre­at­ing port­fo­lios that have a suit­able as­set al­lo­ca­tion that re­flect­s­the client's risk ap­petite. We en­sure that the ad­vice we pro­vide specif­i­cally caters to each in­di­vid­ual's needs to en­sure their wealth is

pre­served and their legacy con­tin­ues from gen­er­a­tion to gen­er­a­tion.

The foun­da­tion for a suc­cess­ful, longterm, and tai­lored Wealth Man­age­ment strat­egy in Bar­clays is pri­mar­ily driven by three fac­tors. First and fore­most, any strat­egy must be tai­lored to the client's ob­jec­tives and fi­nan­cial per­son­al­ity, in or­der to op­ti­mise as­set al­lo­ca­tion in their port­fo­lio. Se­condly, each in­di­vid­ual in­vest­ment within a port­fo­lio goes through a rig­or­ous re­search process by our team of global in­vest­ment an­a­lysts, to en­sure their qual­ity and po­ten­tial as suit­able in­vest­ments. Lastly, once the port­fo­lio is cre­ated, it is reg­u­larly mon­i­tored and re­bal­anced by our team of in­vest­ment spe­cial­ists, en­sur­ing the port­fo­lio is ad­justed for var­i­ous eco­nomic en­vi­ron­ments, and re­mains in line with the client's ob­jec­tives and in-house mar­ket re­search in­sights.

The im­por­tance of lis­ten­ing to clients is some­thing that may seem rel­a­tively ob­vi­ous, but it may be ne­glected in the re­gion. In our busi­ness, we take the time to lis­ten and un­der­stand what is most im­por­tant to our clients in terms of their ob­jec­tives, re­quire­ments and pref­er­ences and pri­ori­tise them. Tak­ing the time to lis­ten and iden­tify a client's goals and am­bi­tions is the main driver for build­ing long, trusted re­la­tion­ships with clients.

Our goal is to pre­serve and en­hance client wealth from gen­er­a­tion to gen­er­a­tion, which is in­her­ently long term. This in­cor­po­rates the im­ple­men­ta­tion of short and medium term in­vest­ment strate­gies as tac­ti­cal op­por­tu­ni­ties present them­selves in var­i­ous eco­nomic cli­mates. Given the level of up­com­ing un­cer­tainty within the global eco­nomic en­vi­ron­ment, from the im­pact of Brexit on Europe and the UK, to the US Elec­tions, we are rec­om­mend­ing that clients po­si­tion their port­fo­lios in a de­fen­sive man­ner. The po­ten­tial in­ter­est rate hike in the US is likely to present op­por­tu­ni­ties within the US fi­nan­cials space, while neg­a­tively af­fect­ing the fixed in­come mar­ket in the short term.

We have not seen a di­rect cor­re­la­tion be­tween in­vestor ap­petite and oil prices. In­vestors have ad­justed their in­vest­ment strate­gies to adapt to the new en­vi­ron­ment. Although there is a clear trick­le­down ef­fect that is caused by the ef­fect of lower oil prices, gen­er­ally we have seen in­vestors re­main strong and rein­vest in their com­pa­nies. How­ever, it fur­ther high­lighted to our clients in the re­gion the im­por­tance of di­ver­si­fy­ing their wealth across ge­ogra­phies, as­set classes and sec­tors and the im­por­tance of hav­ing a trusted fi­nan­cial ad­vi­sor who can pro­vide ad­vice and ex­per­tise. It is also worth men­tion­ing that a large num­ber of in­vestors within the re­gion have gath­ered the ma­jor­ity of their wealth from the real es­tate and trad­ing sec­tors as op­posed to di­rect oil-re­lated ac­tiv­i­ties.

Nor has the de­cline in oil prices di­rectly im­pacted the prof­itabil­ity of the wealth and in­vest­ment man­age­ment busi­nesses in the re­gion. While bank­ing, like other in­dus­tries, was af­fected by the de­cline in oil prices, the re­silience demon­strated by the re­gion's banks dur­ing these volatile times is promis­ing since they were able to main­tain a solid cap­i­tal. They were able to achieve this by fo­cus­ing their op­er­a­tions and re­struc­tur­ing their busi­ness model to suit the needs of the lo­cal mar­ket, which al­lowed the banks in the re­gion to re­main strong dur­ing this time.

We see a large amount of wealth be­ing man­aged by the younger gen­er­a­tion, as the pa­tri­archs of the fam­i­lies be­gin slowly pass­ing down their wealth and con­trol. At Bar­clays, we have been work­ing with fam­i­lies to help ed­u­cate the next gen­er­a­tion on fi­nan­cial mat­ters to en­sure the smooth tran­si­tion. We recog­nise the im­por­tance of coach­ing and sup­port­ing young lead­ers to en­sure they are pre­pared and ready to take on their fam­ily wealth and all the re­spon­si­bil­i­ties that come with it

IHAB AL DERZI Mar­ket Head of Qatar and Saudi Ara­bia Bar­clays Wealth and In­vest­ment Man­age­ment

Newspapers in English

Newspapers from Qatar

© PressReader. All rights reserved.