Managing Wealth: Clients Need to Align Assets with Financial Goals

Wealth management requires more than just possessing a variety of investment products. Clients must ensure that every asset held aligns with their financial goals, risk profile, and liquidity needs.

Stephanie Kristanto, Premier Banking Segment Head at OCBC, stated that wealth planning must begin with the client’s financial objectives. For instance, the strategy for short-term funds differs significantly from funds prepared for children’s education or retirement.

“In managing wealth, the focus is not merely on which products are held, but on how each asset can play its role in achieving the client’s financial goals,” Stephanie said.

According to her, clients also need to view their entire portfolio as a single entity. Holding deposits, bonds, mutual funds, gold, or other investment products does not automatically result in a diversified portfolio.

The characteristics and risks of each asset must be considered, including liquidity levels and the specific function of each within the portfolio. In doing so, the assets held can complement one another rather than simply increasing the number of investment products.

Furthermore, portfolios need to be reviewed periodically. Changes in market conditions, financial needs, or life stages can render previously suitable investment strategies in need of adjustment.

To assist in this process, OCBC provides a Wealth Report that clients can use alongside their Relationship Manager (RM) to conduct investment reviews. This report helps clients monitor their portfolio status and identify gaps that can still be optimised.

Through such evaluations, clients can determine whether their current asset composition remains aligned with their financial goals. Investment strategies can then be adjusted as needs or market conditions change.

Stephanie believes that this approach ensures wealth management does not stop at the selection of investment products. Clients must also ensure that all assets held serve a clear purpose in achieving long-term financial plans.