Belvédère 360° in real life

From Investment Proposal to Wealth Architecture

A case study shows how a single inquiry for an investment proposal evolved into comprehensive wealth architecture, designed to serve generations.

By Fabian Schulze and Alessandro Bianchi, Partner and Senior Client Advisors

It did not start with a 360° question

Holistic wealth management rarely begins with a comprehensive mandate. More often, it starts with an isolated request: a portfolio needs to be analysed, the asset allocation must be adjusted to reflect a new life situation, or someone wants a second opinion on a recommendation made by a bank.

The following case fromt 2019 with a client of ours also began with a request for an investment proposal for a mandate. The amount was modest in relation to the client’s total assets. As later became clear, however, the real question was anything but modest.

Creating an overview first

We therefore did not start with developing an investment idea. Instead, we began with a thorough analysis of the client’s needs. What does he want? Where are areas of dissatisfaction? Which questions are causing concern?

This was followed by a comprehensive overview of assets, costs and risks. Which assets can be invested for the long term? And which matters affect not only the client himself, but also his family? These questions may seem straightforward. Yet they mark the crucial difference between pure asset management and a comprehensive wealth architecture. In this specific case, it quickly became apparent that this was not an isolated investment issue. It was about structure, transparency and the ability to make well-informed decisions.

The client’s total wealth was over ten millions, spread across several banks and mandates. A large proportion was lying idle in liquidity, without a clear purpose and without a defined time horizon. Each banking relationship made sense, individually. What was missing, however, was an overall perspective.

The client had a strong affinity with capital markets, was heavily involved professionally and was approaching a new phase of life. As a result, topics such as retirement, domicile change, pension planning, taxes, real estate, and family succession came increasingly into focus.

Assets need a purpose

Our approach was no longer to view the assets by banking relationships, but according to purpose. Each part needed to have a clear function. What serves stability? What finances ongoing expenses? What forms the long-term foundation? And where is deliberate room for market ideas and opportunities?

This led to an architecture with clearly defined building blocks. Each part was assigned to a specific task: liquidity for ongoing obligations, a globally diversified core portfolio for long-term wealth accumulation, specific satellites for growth, and a defined allocation for the client’s own short-term market ideas.

The added value does not lie in creating as many building blocks as possible. It lies in giving each building block a purpose, a risk budget and a control mechanism. In this way, a collection of portfolios becomes a manageable structure that gives the client the desired level of confidence and security.

From an individual mandate to a family perspective

With the transition into retirement, the perspective broadened. The client moved to Switzerland, began long-term financial planning and started involving the next generation, who were included in the considerations at an early stage.

This is where the core benefits of Belvédère 360° become apparent. We do not take on the role of every specialist, but we bring the relevant topics together, coordinate the necessary experts and oversee the financial architecture. All investment matters as well as legal and tax questions or pension planning are aligned with one another.

Together with the family, values, goals and guiding principles were established in writing. This resulted in a family charter to provide orientation for current and future decisions. From this, an individual investment policy was derived, governing not only the operational asset management but also the criteria for monitoring them.

Implementation with discipline and independence

Only after this family charter had been developed, the actual implementation began. Existing banking relationships were not replaced reflexively, but thoroughly challenged. Banking infrastructure, conditions and products were reviewed for their suitability and optimised when necessary.

As an independent asset manager, we are able to analyse these matters free from conflicts of interest. This creates scope for action. We make use of existing relationships, review alternatives and intervene in order to create tangible added value for the client. The investment quotea was therefore increased gradually, and each mandate was embedded in the overall architecture.

The 360° cockpit makes everything visible at a glance

Multiple banking relationships can be useful. Without a consolidated view, however, they make managing the assets more difficult. For this reason, client-specific reporting was established. It shows not only the performance of individual portfolios, but also makes the total wealth visible at a glance: asset classes, currencies, liquidity, costs, risks, performance, and deviations from the investment policy.

For the client and the family, this creates valuable transparency. The 360° cockpit is more than a report; it is a steering instrument. It shows whether the strategy is being adhered to, whether liquidity is available in good time, whether risks have increased and whether adjustments are becoming necessary.

At the same time, the reporting creates accountability. Decisions are documented, developments are discussed regularly and deviations are identified at an early stage. This is essential for wealthy families: not every market movement requires a reaction. But every structure requires ongoing monitoring.

What has changed

Over the years, an individual asset management mandate developed into a comprehensive partnership. The investment quote increased gradually, always aligned with liquidity needs, risk capacity and time horizon. More important than the figure itself, however, is the quality of the basis for decision-making.

Today, the family knows which part of the wealth fulfils which purpose. It sees the risks across all banks. It has a charter setting out the family values, a strategy and investment guidelines. It can understand decisions and pass them on to the next generation. And in Belvédère, it has a single point of contact that assumes overall responsibility for structure, implementation and monitoring.

What Belvédère 360° means for our clients

A 360° perspective means viewing wealth in the overall context of a client’s life situation, for today and tomorrow. Investments are important, but they are only one part of the solution. The added value lies in ensuring that all aspects of a wealth situation are coordinated and monitored within a robust structure.

Our role is clear. We create transparency, prepare the basis for decision-making, coordinate specialists and continuously monitor the implementation of the agreed strategy. We do so independently of banks, responsibly, reliably and with the aim of consistently safeguarding the family’s interests.

Many 360° partnerships began with a single question. That is precisely why it is worth taking such questions seriously and putting them in a broader context. Experience shows that clients greatly value the benefits of a holistic view, as it enables them to ensure that both the current and future management of their assets are aligned with their individual needs.

Fabian Schulze  Alessandro Bianchi