Financial Education

Wealth Management: A look at the world of asset management

April 12, 2023
Wealth Management: A look at the world of asset management
The term "wealth management" is usually understood to mean asset management or investment advice in private banking. The definition of wealth management as comprehensive financial planning is also very common. The management of private assets is referred to as wealth management, while the management of foundation or institutional assets is referred to as asset management.

In recent years of crisis, many people have been concerned about the future of their assets. It is understandable that investors worry about their finances in times of unstable markets and uncertain real estate trends with rising interest rates. But despite the volatility of the markets and the various crises, many investors were still able to increase their wealth - as shown by the annual World Wealth Report *1), which examines the assets of the wealthy. The secret of how wealthy individuals increase their assets despite inflation and crises lies, among other things, in the amount of investable assets, but also in smart wealth management.

What is meant by wealth management?

The term "wealth management" comes from the English language and refers to the management of investment assets, the assets, whether they are stocks, bonds, real estate or other investments. A wealth manager (also called an asset manager for pension fund assets) decides how to optimally invest his client's assets and with which values the portfolio should be composed. These decisions are based on the client's specific objectives, risk tolerance and asset situation. At the same time, investments are made on the basis of market analyses and risk assessments. The main focus is on growing the customer's assets and minimizing risks in order to achieve an optimal overall return over the long term. Wealth management thus goes far beyond advisory activities in the context of conventional financial consulting. The investment strategy is developed and constantly monitored by the firm's experienced experts to ensure that the client's financial goals are met.

Realizing the client's goals with wealth management

Everyone has certain goals and desires when it comes to investing. Whether you want to realize sustainable visions for the future or safely invest your assets for a carefree retirement - your valuable capital should be used and increased and be available for later goals.

Wealth Management from Marmot helps you invest your assets in line with your wishes so that they deliver optimal returns. Risk management is one of the most important tasks for our wealth managers. In addition, wealth management can also include important aspects of succession planning can also be included in wealth management. 

A financial manager can preserve and grow your family wealth over the long term so that it can be passed on to future generations. This is especially important for family businesses. A professional wealth manager will first work with you to define your goals and develop an investment and portfolio strategy tailored to your needs.

Illustration of our Wealth Managers talking in the Marmot office

Wealth management: five steps to successful investing

1. Clearly defined goals

Only those who have clear goals can achieve them. Professional wealth management focuses on your goals. But our wealth managers also look at more: What type of investor are you? Do you need a lot of security, or do you sometimes accept risks in exchange for high profit opportunities? What is your financial starting position, and how long can you afford to do without individual sums? Based on your information and specifications, investment decisions will be made that are exactly right for you and that will help you to increase your assets over the long term.

2. Development of the portfolio strategy

Once goals are clearly defined, the wealth manager develops a portfolio strategy that is tailored to your exact needs. This can include either a specific focus, broad diversification, or even specific asset classes. Above all, wealth management must fit the investor mindset. Someone who likes to take risks from time to time so that the investment yields high returns will be just as unhappy with classic, rather immobile forms of investment such as bonds as a security-conscious investor whose stock portfolio is doing somersaults.

3. Asset allocation

Once the focus has been set, the next step in wealth management is asset allocation. This involves how the client's portfolio is divided into suitable asset classes. The main asset classes are usually equities, bonds and real estate. In addition, cryptocurrencies and commodities have increasingly been added in recent years. These individual asset classes have different returns and risk profiles. On average, a well-diversified portfolio has the best profit performance. However, fluctuations and short-term yield losses in individual asset classes are not uncommon.

4. Management of the investment

Once the portfolio is allocated according to the client's goals and wishes, the investment is actively managed by Marmot specialists. Private investors often do not have the time and knowledge to constantly review and optimize their portfolio - this can cost returns. Fortunately, that's what Marmot's professional wealth managers are there for. They control, monitor and manage the complete portfolio or individual properties from this portfolio and check whether it still meets the objectives or whether there is a need for optimization due to market trends, and it needs to be adjusted. Regular analysis of the market and monitoring in wealth management help to identify and react to risks in good time.

5. Risk management

It is in the nature of the financial market that it is influenced by many factors and shows frequent fluctuations. Economic and political developments influence the financial market, as do changes in monetary policy, international regulations or crises. Every financial strategy entails its own uncertainties and risks. Therefore, investments in wealth management need to be constantly reviewed and readjusted. There are many methods to reduce the risk of investing money. The most important is to achieve a broad spread of risk through diversification.

Diversification - minimizing risk in wealth management

Investing money is often an emotional matter for private investors. Many invest in areas in which they are knowledgeable or back favorite stocks, such as cars or leading brand manufacturers. They hold on to these stocks for a long time because they have an emotional connection with the company. But those who focus on their favorite industries or prefer only German stocks limit their returns in other promising areas. In addition, there is a risk of losses here if certain country markets or companies perform worse than expected.

Better than concentrating on one asset class is to spread the risk. A well-diversified investment has optimal profit and risk characteristics. Our asset managers invest in broadly diversified funds or ETFs with 50 to 70 stocks or bonds in each. If the assets rest on several pillars, the investment is less susceptible to crises and any losses can be offset. An experienced wealth manager can help you develop a long-term strategy and stick with that approach. Read more about the difference between shares and bonds.

Illustration of a woman walking of increasing piles of cash. With Wealth Management, your only responsibility is enjoying your gains.

What are the benefits of professional wealth management?

The essential question that arises when managing  wealth is: what steps can be taken to increase the return on my investment so that I achieve my goals? Let our free Financial Goal Planner answer this question for you and find out in just a few clicks how quickly you can achieve your goals with our wealth management services. There are many reasons why it makes sense to hire the experts at Marmot to manage your money:

  • Investing is a challenging job that takes a lot of time and commitment, and we at Marmot are happy to do it for you. Rely on our expertise and use your valuable time differently. Because of our financial strength, our wealth managers can offer you access to asset classes that are generally not available to private investors due to their high minimum investment amounts.
  • In addition, Marmot's professional wealth managers have access to global markets and all activities related to financial products. This is advantageous if you want to diversify your investment to maximize returns. Market trends and analysis are also a wealth manager's bread and butter - allowing them to react quickly to changes and adjust the portfolio.
  • Artificial intelligence, solar or hydrogen - many future industries promise high profits. But investors usually run after the trend. Our asset managers score with their fundamental market knowledge and overview. Even with rapidly changing markets, they can make profitable long-term investment decisions, while private individuals often act impulsively "on instinct."

Our Wealth Management Strategy

Why do you think your performance should be better than other banks, robo-advisors or other competitors?

How do you think a wealth manager can know if Samsung or Apple are the better stocks? Like you, he only has access to public information. Larger banks like UBS or CS have access to company earnings releases to get some information directly from the CFO, but even that is very limited. Making a recommendation on whether Samsung or Apple are the better stocks is just overestimating your own knowledge, and you should not trust it.

If Warren Buffet wants to know whether Samsung or Apple is the better stock, he can do that. He calls the companies and has lunch with both CEOs next week. He is invited to talk to management and visit factories. Thanks to his excellent network, he can also talk to competitors and major customers. Therefore, he has a clear information advantage.

Our strategy is to invest in line with these outstanding investment talents. We distribute the money you give us to manage to the best female and male investment talent we find. This strategy is combined with very cost-effective ETFs for tactical asset allocation. Over the long term, we stick with our preferred investment talent.

Conclusion: smart and relaxed asset management

Overall, professional wealth management can pay dividends and help you manage your investment more effectively, achieving your long-term goals while keeping risk low. Ask about our wealth management offerings "Marmot Easy", "Marmot Premium" and "Marmot Select" with different investment amounts and services. Manage your assets in a smart and relaxed way!


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The content in the blogs is solely for general information and to help potential clients get an idea of how we work. They are not recommendations that should lead to the purchase or sale of assets and are not investment advice. Marmot.Finance cannot judge whether and how the statements made fit your investment objectives and risk profile. If you make investment decisions based on this blog entry, you do so entirely at your own risk and responsibility. Marmot.Finance cannot be held responsible for any losses you may incur as a result of information contained in this blog entry.The products mentioned are not recommendations, but are intended to show how Marmot.Finance works and selects such products. Marmot.Finance is also completely independent and does not earn money in any form from product providers.

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