Asset Managment vs Wealth Management, and PCS - Private client Service (private banking)

[abc]

Is asset mgmt as in 'Citigroup' really a 'institutional' customer base, is that the point?

meaning if a company sells 'asset mgmt' then its customers are other companies... you know how MSFT has billions in cash, well it needs to have it invested when it's not in use.

Is Wealth Mgmt as in 'Citigroup Wealth Mgmt'.. well, I dont know.


And Private Client Services, as in Citigroup Wealth Mgmt, usually it's tied in with 'Private Banking'... so is this like your neighbor who owns 6 houses in your neighborhood and pulls in 10k each month in rental income?

I only use Citigroup because Citigroup is so huge, they offer all these businesses. Other companies may just carry one of these.

 

[patrick409]

citigroup private bank is only for customers with a sh*tload of money. You gotta have a certain net worth to qualify, and let's just say 99% of the people here could save all their life and not come close to qualifying. I think it's like 5 mil net worth or something.

even their asset management is geared towards people with more money. Everyday joe shmoe with a few thousand bucks to invest is better off with a discount brokerage.

 

[Doggiedog]

PCS is basically just brokerage services. Asset mgt is managing money for wealthy people but long only in most cases. Wealth mgt is just some cool term they made up. Managing money is usually broken out as mutual fund, hedge fund, asset managers and PCS.

 

[abc]

Originally posted by: Doggiedog
PCS is basically just brokerage services. Asset mgt is managing money for wealthy people but long only in most cases. Wealth mgt is just some cool term they made up. Managing money is usually broken out as mutual fund, hedge fund, asset managers and PCS.

oh, so PCS is like what etrade ameritrade datek TD does for individual consumers..only? or can it include clients that are corporate entities?...

What is Wealth mgmt. a cool term FOR... if anything.

 

[abc]

and what is financial engineering... and 'structuring'?

what's a credit derivative... is that just a futures instrument?


just like fixed income means bonds...

 

[Doggiedog]

You'd probably be better served reading a book on finance. For terms check out this website.

To answer your questions, PCS is basically stock brokering or administering to retail customers. Corporate customers can also fall under PCS but is usually served by more experienced money managers as they tend to have different needs.

Wealth management = financial planning

Structuring is just that. Structuring a derivative to meet some goal like reducing tax obligations or exposure to some kind of risk. Say for example you are the CEO of a company and you own a lot of options but you are locked in for years because of compliance regulations. You don't want to put your eggs in one basket and would like to diversify your risk. Investment banks can help you with that by creating a derivative for you so you can give up your options and get a more predictable return. The advantage for you is the downside is limited while the advantage for the IB is they get all the upside past a certain point.

 

[abc]

thats an okay site, but I like your 'english' explanations better 🙂

I searched for financial engineering... it couldn't come up with anything?