Wealth Management Research Articles

Exploring the Potential of Turnkey Asset Management Platforms in Transforming China’s Wealth Management Landscape: A Comparative Analysis with the United States

Research background: China's wealth management landscape is evolving rapidly, driven by increased individual wealth accumulation and a shift towards comprehensive financial advisory services that emphasize personalized solutions and risk management. Research topic and method: This study examines the applicability of Turnkey Asset Management Platforms (TAMPs) in China by comparing their development and impact in the United States. Employing a comparative approach, the research combines literature review, case studies of notable TAMPs, and regulatory analysis to assess the feasibility and potential benefits of TAMP integration in the Chinese market. Research result: The analysis of TAMPs in the US highlights their role in reshaping wealth management by offering end-to-end services, from investment proposal generation to portfolio construction and reporting. TAMPs have proven effective in enhancing financial advisors' efficiency and client engagement. The study identifies key factors indicating TAMP relevance in China, including their potential to bridge advisor-client gaps, enhance investment decision-making, and provide scalable solutions. Research conclusion: This study suggests that TAMPs hold transformative potential for China's wealth management industry, addressing current advisor challenges and catering to diverse investor needs. However, successful implementation would necessitate adapting TAMP models to China's unique regulatory and market conditions. The research underscores the importance of considering TAMPs as a tool for enhancing efficiency, effectiveness, and client-centricity in China's evolving financial landscape.

Why do wealth advisors stay or leave their firms?

AbstractWe study the determinants associated with wealth advisors' consideration to leave or say at financial planning firms. Utilizing self‐determination theory as the foundational theoretical framework and focusing on the psychological aspect of the decision, we develop a structural equation model that defines the factors relating to work satisfaction, affective work commitment, and turnover intention in the wealth management profession. We provide evidence for the roles played by autonomous motivation, reward, and punishment in determining job retention and affective work commitment among wealth advisors in the United States. By showing the importance of autonomous motivation on retention, we are offering the wealth management industry one extra tool to influence employee retention.

Implementasi Pengelolaan Kekayaan Milik Desa Sebagaimana yang Diamanatkan dalam Pasal 77 Ayat (1) Undang-Undang Nomor 6 Tahun 2014

The aim of this research is to determine the mechanisms and obstacles to managing village property, as mandated in Article 77 paragraph (1) of Law Number 6 of 2014. The research method used is empirical juridical. The type of data, namely primary data, was obtained through interviews and discussions (group discussion forum) with several parties to provide information related to the management of village property. Secondary data is data obtained from library literature. Data collection techniques commonly used are literature studies, interviews, observations. Qualitative descriptive data analysis techniques. The results of the research show that the mechanism for managing village property as mandated by Article 77 paragraph (1) of Law Number 6 of 2014 is planning, procurement, use, utilization, security, maintenance, deletion, transfer, administration, assessment, guidance, supervision and control. . Inventory village assets in the SIPADES application, check the depreciation in the value of goods, including land, buildings and other assets. Providing information about village asset management to the general public so that village asset management is reported annually. Obstacles to managing village-owned assets include lack of knowledge of human resources regarding village asset management, SIPADES officers being disorganized in inputting data, the community not caring about maintaining village assets, lack of communication regarding the implementation of village asset management regulations. The conclusion of this research is that the village's wealth management mechanism is to inventory its assets in the SIPADES application and can reduce problems.

Can housing booms elevate financing costs of financial institutions?

We show that house price appreciation elevates financial institutions' financing costs because it can make households invest more in houses and invest less in or require higher returns on other assets. For identification, we employ the unique feature of wealth management products (WMPs, the largest component of China's shadow-banking sector) that the issuing markets are local whereas the markets of some products' underlying assets are national. Stocks, bonds, and deposits do not possess this feature. We find that house price growth raises WMPs' expected returns offered by banks. Household-level analyses further confirm that house price growth reduces households' WMP-investment demands.

Personalisation as a strategy for reversing traditional banks’ market share erosion in primary financial relationships and how to get started

From primary research conducted in 2022, customers said, ‘What personalisation?’ when asked if they received digital experiences or communications from their bank that seemed tailored to their unique account history. Although the concept of personalisation was described as early as 19891 and is effectively deployed in other industries (eg advertising, e-commerce, video streaming), customers report that their bank does not use customer knowledge to proactively anticipate their needs or wants. Enter FinTechs. Thanks to technology advancements, an entire subindustry within financial services has bloomed that provides banking services, including deposit accounts, lending and wealth management. For the first time, customers now have a choice outside traditional institutions for managing their money. This paper argues that effective deployment of personalisation is an experience that customers are looking for and that it can be deployed to help mitigate the market erosion of primary financial relationship (PFR) to FinTechs. The paper describes what we learned from customers and propose a framework that banks can use to deploy personalisation experiences that are minimally viable.

The Impact of Digital Finance on Tourism in Putuo Mountain

Digital finance is a contemporary financial paradigm that leverages information technology and Internet platforms for the execution of financial transactions and operations. Putuoshan, being one of the renowned Buddhist mountains in China, attracts a significant number of devotees and tourists. The advent of digital finance is expected to offer Putuoshan improved payment systems, wealth management options, and financial services, thereby positively influencing its economic growth and augmenting its tourism sector. The literature review approach is primarily employed to synthesize and assess the extant research findings through the collection, organization, and analysis of relevant literature. This process furnishes both theoretical and empirical substantiation for the research inquiries at hand. Digital finance plays a crucial role in mitigating the service-related challenges faced by the tourism industry. The findings indicate that the utilization of big data and mobile payment in the realm of digital finance has a substantial impact on the promotion of the tourism industry in Putuo Mountain. Based on this premise, digital finance plays a significant role in enhancing the tourism experience of travelers visiting Putuo Mountain. The advent of digital banking technology has significantly enhanced the visitor experience and revitalized classic tourist destinations such as Putuo Mountain.

Pengaruh Pendapatan Asli Daerah Terhadap Pertumbuhan Ekonomi di Kabupaten Paser Tahun 2010-2020

This study aimed to determine the size of the ratio and components of regional original income and determine the economic growth in Paser Regency from 2010 to 2020. The data collection techniques in this study were publication and documentation. The analysis technique uses the method of calculating financial performance and ordinary least squares (OLS). The results of this study indicate that the calculation of the two ratios for ten years has fluctuated. The average of this Efficiency Ratio is 76.67 Percent. At the same time, the average effectiveness ratio is 117.28 percent. The regression analysis results show that local taxes have a positive and significant effect on economic growth. In contrast, regional levies negatively and significantly impact economic growth. The results of separated regional wealth management and other legitimate local revenue have a negative and non-significant effect on the development of the Economy.

The link between MiFID and Risk Appetite Framework as an application of best practices for wealth management and the entire value chain of the financial industry

After a short review of the MiFID regulations and the RAF, the paper identifies the link between them which allows to mitigate a balance sheet risk sustained by the financial intermediary and, at the same time, to improve its stability and value creation, through a maximization of customer loyalty. The client’s attitude towards risk can be summarized in these terms: "I don't like risk, but I like to win". Thus, a three-dimensional approach towards expected utility is suggested for estimating risk tolerance: risk aversion, loss aversion and reflection. In addition, a definition of the client's financial objectives is required, combined with greater disclosure - which allows the construction of a financial statement – to attest that risk-taking is indeed a luxury, as indicated by the metrics of the discretionary wealth ratio, and therefore, of the Standard of Living Risk (SLR). The next step consists in the determination of a set of portfolios along the efficient frontier where risk is represented by the expected shortfall, the determination of which belongs to a Generalized Extreme Value Theory logic. The client's objectives are described in terms of probability of success, where the latter is a function of an initial endowment, a potential positive contribution of financial resources over time as well as an expected return level. The above is expressed through a practical case that envisages the determination of a set of EGPF portfolios and the identification of the specific portfolio, obtained as a solution to a static and dynamic optimization problem, where the objectives have been formalized through the calculation of the associated utility

Efektivitas dan Kontribusi Penerimaan Pendapatan Asli Daerah (PAD) dan Dana Perimbangan terhadap Pendapatan Daerah Kabupaten Barito Utara Tahun 2016-2020

This study aims to analyze how the growth rate of PAD revenue and PAD sources is, find out the low contribution of PAD sources and analyze the effectiveness and contribution of PAD and Balancing Fund revenues to North Barito Regency Regional Income in 2016-2020. This study uses descriptive quantitative methods using primary data sources and secondary data. The results showed that: (1) The growth rate of PAD was 8%, and the sources of PAD were taxes 16%, user fees 13%, legitimate wealth management 11% and other legitimate PAD 6%, all with unsuccessful criteria. (2) Regional retribution revenue is a source of PAD revenue with the lowest contribution of 9.17% (very low) in 2016-2020. (3) The average effectiveness of PAD in 2016-2020 is 96.46% (effective), and the average effectiveness of balancing funds in 2016-2020 is 99.88% (effective). (4) The average contribution of PAD revenue to regional income in 2016-2020 is 5.93% (very low) and the average contribution of balancing funds to regional income in 2016-2020 is 82.88% (very good).

KAJIAN PENGEMBANGAN AGROINDUSTRI PERTANIAN DALAM RANGKA PENINGKATAN PENDAPATAN ASLI DAERAH DI KABUPATEN KONAWE SELATAN

One of the government's strategic efforts in realizing increased economic development is development policy which should be based on strategic efforts to encourage an increase in Regional Original Income (PAD) through efforts to develop the role of industrialization in the agricultural sector in order to achieve successful regional economic development. The aim of this research is to determine and analyze the contribution of the development of agricultural agro-industry to society, and the development of Regional Original Income (PAD) as well as the development of the agricultural industry in increasing PAD in South Konawe Regency. This research uses quantitative and qualitative approaches. The data analysis method used is descriptive analysis. The research results show that the development of agricultural agro-industry in South Konawe Regency has made a significant contribution to society. This contribution can be in the form of producing various products such as tofu, tempeh, soy milk, banana chips, corn flakes, rice, and other products to meet community needs. Apart from that, the development of agricultural agro-industry has contributed as a source of income for the community, especially for those who work in agricultural agro-industry businesses. The development of agricultural agro-industry has made a significant contribution to development. It is good to see that the development of the number of business units is quite fast and opens up many new opportunities and jobs for the community, thereby reducing the level of open unemployment. The development of Regional Original Income (PAD) in South Konawe Regency fluctuates from year to year, which is greatly influenced by the regional revenue component from regional taxes, regional levies, separated regional wealth management results, etc. Apart from that, increasing PAD can be obtained through increasing people's income and purchasing power as well as increasing economic growth which can encourage the development of community economic activity so that it can encourage an increase in PAD.

Comprehensive Art Module of Waste to Wealth Management through Online Environment Learning

This paper elaborates on the recycling and upcycling application associated with collecting and selecting discarded materials to bring new value to discarded materials. This model broadens the curriculum concept of recycling and upcycling waste materials, facilitating knowledge, a practical and cognitive skill applied during production. The module applies technical, practical, and innovative processes of the 'Scavenging method' (waste hunting or collecting) implemented into the home learning curriculum. In conclusion, this module enables us to understand creative conversion practice through Art. The assembled scraps as functional products contribute to a new hybrid ideology of form following function in an online learning environment.

The impact of corporate culture on stock price crash risk: a firm-level analysis

PurposeThis paper aims to investigate the impact of corporate culture on stock price crash risk and explore the underlying mechanisms.Design/methodology/approachThis paper uses a novel firm-level culture measure of Li et al. (2020), which evaluates corporate culture from the perspectives of integrity, teamwork, innovation, respect and quality. Using a sample of 4,017 US firms from 2001 to 2018, this paper uses panel data regressions to explore the impact of corporate culture on stock price crash risk.FindingsThis paper finds that among five cultural dimensions, integrity reduces crash risk and quality increases crash risk. The mitigating effect of integrity culture on crash risk is concentrated among firms with a strong incentive or ability to hoard bad news. The exacerbating effect of quality culture on crash risk is concentrated among firms with low managerial flexibility.Social implicationsThis paper helps investors and regulators to understand the determinants of stock price crash risk, which facilitates investors’ wealth management and stabilizes social welfare.Originality/valueTo the best of the authors’ knowledge, this is the first study that uses time-varying firm-level measure of corporate culture to investigate its impact on stock price crash risk, contributing to the literature on the determinants of crash risk. Besides, this is the first study that explores the possible mechanism of managerial flexibility in influencing stock price crash risk.

Implementasi Islamic Wealth Management Dalam Mengembangkan UMKM (Studi Kasus Seblak Prasmanan Manggung Gajah Mojokerto)

MSMEs are one of the drivers of the economy in Indonesia. In its implementation, there are still many factors that cause MSMEs to still be able to develop as expected. Among them are constraints regarding the knowledge possessed by business managers, as well as related to their ability to manage their finances or business income. This research uses qualitative methods by combining field research and literature research. This study aims to examine the importance of managing wealth in MSMEs from a sharia perspective and to examine how Seblak Buffet Manggung Gajah Mojokerto implements Islamic Wealth Management in its business. The results of the research are in accordance with the stages in Islamic Wealth Management applied to MSMEs Seblak Buffet Manggung Gajah starting from the acquisition or creation of wealth, increasing wealth, protecting wealth, refining wealth and distributing wealth.

Research on the Path of Financial Technology Enabling Wealth Management

Research on the Path of Financial Technology Enabling Wealth Management

VRL Logistics Limited: Investment Dilemma Amidst the Global Pandemic

The case examined the investment dilemma faced by the portfolio manager Mr Thomas George of a leading wealth management company regarding investments in VRL Logistics Limited, a leading logistics company in India. As part of the portfolio evaluation and rebalancing exercise, the portfolio manager had to take a call on whether to retain VRL Logistics Limited in the portfolio or exit the stock. The share price had seen a drastic increase from ₹161.55 to ₹282 at the time of reviewing the portfolio. The logistics sector was one of the major sectors affected due to the lockdown announced by the Government on account of the global pandemic. With the imminent threat of multiple waves and lockdowns, determining the intrinsic value amidst the global pandemic poses a challenge to the portfolio manager. The case employed different methods of valuation, such as discounted cash flow and relative valuation, to arrive at the fair value of the stock. The case also discussed incorporating ‘risk’ in the valuation exercise by performing a sensitivity analysis of key variables.

Hydrocarbon Wealth Management: Rejuvenation of a Brown Field through Analysis of Existing Water Injection System

A private company acquired operatorship of a brown oil field in 2020 from a National Oil Company (NOC) of India to enhance production from the field. Due to Covid-19 outbreak, operatorship was transferred in 2021. Soon as the company took over the operation, it met with surprises in terms of a smaller number of flowing oil wells due to operational reasons. However, the most disturbing was the significantly lower field water injection rate than reported by the NOC. The company undertook pressure measurement in wells to find reasons for production non-sustainability and reduced injectivity. Based on poor analysis of pressure data, the best injection well in the largest producing reservoir was interpreted to be hydrodynamically unconnected with the up-dip producers and recommended for disconnection from injection network by subsurface team to increase water injection rate from the remaining injectors. The study team reviewed the geological model and categorically ruled out discontinuity of the sand body with its up-dip producers. The Management ordered third-party review to resolve uncertainty and suggest remedial measures to improve water injection performance. The review of historical production, injection, pressure data and movement of oil water contact with time has improved the understanding of the inter and intra reservoir pressure communications in the field. The data synthesis has confirmed sand/hydrodynamic continuity between producers and injectors. Performance review of injection wells and the Water Injection Plant (WIP) have brought out bottlenecks in the system. The poor-quality injection water and the lapses in upkeeping of WIP were the primary reasons for loss of injectivity. WIP revamping and replacement of the existing oversized micron filter with smaller size have been recommended. To ensure uninterrupted water injection, conversion of one injector to pilot dump flooder has been suggested, a first of kind in India.

Morgen Stanleys Acquisition of Etrade: Reasons, Purposes and Prospect

Morgan Stanley, the head of investment banking, announced a full-stock acquisition of Etrade on February 20, 2020. This paper intuitively presents the comparison of earnings before and after the acquisition by collecting the relevant data of the acquisition and using Excel to organize the analysis, to carry out a multi-level analysis of the acquisition. The research mainly includes the reasons for Morgan Stanley's business transformation as a top investment bank, acquisition objectives and acquisition future. The main findings of this article are as follows: Morgan Stanley's acquisition of Etrade continues its efforts to deepen the wealth management business since 2010 and pay attention to building a technology platform to assist the digital transformation of the wealth management business, bringing significant and sustainable growth in the net income of the wealth management business. This acquisition looks at the development opportunity of digital retail brokerages, conforms to the trend of industry integration, builds digital banks, expands customer groups, and jointly creates huge synergies. The significance of this paper lies in the complete analysis of the beginning and end of the second high-value transaction on Wall Street after the financial crisis from a long-term perspective, providing a reference for financial enthusiasts to understand the case. Through the study of this article, the advice given to investors is that from the perspective of fundamental analysis, Morgan Stanley's profit is growing steadily, and the relevant business needs of investing in its stocks or choosing the investment bank for personal asset management can be considered.

Der Euromarkt und die Internationalisierung der deutschen Banken

Abstract The tax exemption of interest revenues and the high level of professional secrecy were the unique selling points of Luxembourg for the German banking community. From the 1960s to the 1990s, they were the main causes for the rise of Luxembourg to one of the biggest euromarket places. The government of Luxembourg used these institutional factors to foster and accelerate the economic transformation from an industrial to a post-industrial country. The German banks did not reduce or even discontinue their presence in Luxembourg after the end of tax exemption and strict banking secrecy. Instead, they specialized on syndicated loans, treasury functions and Private Wealth Management for wealthy clients.

Capital structure of single family office-owned firms

Single family offices (SFOs) manage trillions of dollars worldwide. The enormous value of assets under management highlights their key role as a cohesive wealth management tool globally. Despite the increasing relevance of SFOs, research on SFOs is still in its early stages. Particularly little is known about the capital structure of the firms owned by SFOs. By drawing on a hand-collected sample of 173 SFO-owned firms in the DACH (Germany, Austria, Switzerland) region, we compare the capital structure of SFO-owned firms with the capital structure of family-owned firms. Our empirical results show that SFO-owned firms display a higher long-term debt ratio than family-owned firms, indicating that SFO-owned firms follow trade-off theory, similar to private equity-owned firms. Additionally, we show that this effect is stronger for SFOs that sold their original family firm. In contrast, family-owned firms tend to be more conservative in their financial decision-making and seem to follow the logic of the pecking order theory.

How does deposit insurance affect household's risk sensitivity？Evidence from China

Based on the differential protection of household deposits and wealth management products in the limited deposit insurance system, this paper explores effectiveness of bank market discipline and the impact of deposit insurance on market discipline. Using the panel data of Chinese banking industry during 2010–2016, the empirical result shows that, firstly, households are sensitive to bank risks such as capital to asset ratio and non-performing loan ratio (NPL ratio) during the period 2010–2016. Thus, market discipline plays a certain role in the banking industry before introducing deposit insurance. Secondly, deposit insurance increases the risk sensitivity of banks’ wealth management products to capital to assets ratio and NPL ratio, while reducing the risk response of household deposits to these two ratios.