Tutorial 11
Question 1a:
Client retention. Robert is already a client of Juro Swiss Banking Corporation but is unhappy with the products and services provided by the bank. If his concerns are not addressed, there is a strong likelihood that he will leave for another private bank.
Question 1b:
Client acquisition. Annie is not a [private bank client yet. However, with the amount of money won in the lottery, it makes her a prospective client which Juro Swiss Banking should approach.
1c:
Client development. Due to his father’s wealth, Thomas is an existing client of the bank although he may not have a lot of assets for the bank to manage at this moment. However, the bank should understand the concept of client lifetime value and continue to service Thomas. There is a strong likelihood that he will succeed in venturing into renovation business and will ultimately inherit his father’s fortune.
2.
There are four stages: Client profiling, investment proposal & solution, agreement & implementation, review.
Rest of the answers are in the lecture slides.
3.
- Pure custodian; asset safekeeping, income collection, fund disbursement and reporting.
- Execution-only mandate; execute or select brokers to execute investment transactions behalf of clients.
- Advisory mandate blah blah blah
Discretionary mandate is the most suitable investment mandate for Annie as she does not have prior experience in investments. However, her expectations and needs should be properly communicated to Francis.
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