Lobnek Wealth Management - Rethinking PWM

MONTREAUX, SWITZERLAND, November 03, 2010

Interview with: Marc Moret, Founder, Lobnek Wealth Management

The traditional business model of private wealth management is rapidly becoming obsolete, according to Marc Moret, Founder of Lobnek Wealth Management. Wealth managers need to adapt to a new paradigm based on independence, full transparency, and cost efficiency. There has to be a complete alignment between the interests of the client and those of the wealth manager. A keynote speaker at the upcoming marcus evans Elite Summit 2010 in Switzerland, 15 - 17 November, Moret shares his thoughts on how the sector should restructure itself and which strategies are likely to perform well in the coming years.

What is challenging the wealth management sector right now?

Marc Moret: Coming out of the 2008 crisis, wealth managers are faced with a very difficult investment environment where producing and maintaining positive performance is challenging. In addition, a number of common practices such as kickbacks and cascading fees that have had a negative impact on performance are increasingly being questioned by clients. It is urgent for wealth managers to address these issues and be creative.

Do you have any suggestions on how they can be creative?

Marc Moret: There needs to be a complete alignment between client and wealth managers' interests. In the new environment, the choice of products will play a key role - wealth managers should be actively seeking a number of broadly diversified best in class investments. A portion of the portfolio should also be dedicated towards investment products that are uncorrelated to the rest of the market. Successful managers will increasingly shift focus from chasing performance to better risk control.

Last but not least, a core/satellite approach to investing seems particularly well suited to generating alpha all the while tracking the broader markets.

Which strategies do you think will perform particularly well in the next few years?

Marc Moret: In the present uncertain environment, I would advise investors to position themselves cautiously by implementing strategies that hedge against various scenarios.

I recommend to put emphasis on ensuring a high degree of de-correlation between asset classes in order to avoid a repeat of the 2008 experience when practically all asset classes suffered substantial losses simultaneously.

The emerging markets are set to outperform the developed markets over the next few years. However, one has to bear in mind that the growth of the emerging markets by themselves will not suffice to lift up the global economy.

What is your outlook for the coming years and how should family offices prepare for upcoming changes?

Marc Moret: With the backdrop of the housing and debt crisis we are clearly entering a period in which visibility is likely to remain poor. It is far from being clear what direction the global economies are likely to take. Going forward, the likelihood of protectionism and currency wars is increasing. In addition, governments of developed market economies will be facing conditions of painful budget deficits. All these constraints will substantially limit growth opportunities over the next couple of years. In this context, it is all the more important to emphasise cost efficiency in wealth management.

Do you have a final message?

Marc Moret: I encourage family offices to ensure that the services they are obtaining are based on full transparency, independence and professionalism.

In the context of the paradigm shift we are experiencing, I strongly advise a two pronged approach: performance enhancement through a best in class selection process aiming at diversification and de-correlation, while ensuring that costs are kept to a strict minimum.


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About the Elite Summit 2010

This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, Switzerland, 15 - 17 November 2010. Offering much more than any conference, seminar or trade show, this exclusive meeting will bring together esteemed wealth management industry thought leaders and solution providers to a highly focused and interactive networking event. The summit addresses the most current wealth management trends, and provides attendees with fresh perspectives on adapting effectively to global changes and opportunities to sustain, grow and preserve family wealth.

For more information please send an email to info@marcusevanscy.com or visit the event website at http://www.elitesummit.com/MarcMoretInterview

Please note that the summit is a closed business event and the number of participants strictly limited.

About marcus evans Summits

marcus evans Summits are high level business forums for the world's leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit http://www.marcusevans.com

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