When Interest Rates Rise: How High Net Worth Investors Can Prepare for the Inevitable

Jun 06, 2015 05:30 JST

Source: marcus evans Summits

Jeff Bates of Kings Point Capital Management, an investment management service provider at the marcus evans Private Wealth Management Summit Spring 2015, on adjusting strategies in a rising interest rate environment.

NEW YORK, N.Y., Jun 06, 2015 - (ACN Newswire) - "We are at the end of a 30-year secular decline in interest rates. While the current global interest rate environment remains benign, the long-term trend is going to rise. Hence, we are at an inflection point in interest rates. Managers will have to change their investment approach to adjust for this inevitable reversal," says Jeff Bates, Managing Partner, Kings Point Capital Management.

Kings Point Capital Management is an investment management service provider at the marcus evans Private Wealth Management Summit Spring 2015, in Palm Beach, Florida, June 7-9.

- What is your opinion on this? How are you approaching portfolio management in this new interest rate environment?

We are continuing to avoid utilizing ETFs for the most part. A rising interest rate environment is likely to pressure valuations over long periods of time. Thus individual equity and fixed income selection is likely to yield more control and better risk adjusted returns in a future of secular rising interest rates.

Importantly, overall equity returns are likely to be less robust than the last 20 years in this kind of environment. Moreover, fixed income returns are also likely to yield lower returns than in past interest rate cycles.

By focusing on individual equity and fixed income selection, the manager has more opportunity to generate alpha in a period where all stocks are not rising due to expanding market valuation.

- You mentioned risk adjusted returns. How should high net worth investors gauge portfolio risk?

Most high net worth investors are more focused on maintaining and improving their financial wealth in a prudent manner. In a rising interest rate environment, market volatility is likely to accelerate and market corrections could also be more pronounced than in the recent past. By focusing on a well-diversified but limited number of investments, they can achieve very good returns with lower risk than the market overall. That is the kind of portfolio that most high net worth investors should really seek.

We as financial professionals also need to educate our client base on risk adjusted returns that exceed inflation and achieve their long-term return goals. Additionally, more and more clients are requesting a total picture approach to understand all their financial investable assets and how risky those assets are in general.

- Why should they capture investment holdings from all their advisory accounts? How?

In the last few years many of our clients asked for a detailed analysis of all their investments. We created an aggregation product called WealthScope(TM). This aggregates all their investments with us and with outside managers. WealthScope gives them a risk adjusted picture of their total exposure by asset class, manager and benchmark. We can tell how much risk is being taken to achieve these reported results down to individual equity or fixed income by manager. This helps them avoid over diversification of the portfolio and gives them a clearer picture of how much risk is being taken to achieve these results. It has become a very powerful tool for clients in manager selection.

About the Private Wealth Management Summit Spring 2015

The 16th Private Wealth Management Summit is the premium forum bringing leaders from America's leading single and multi-family offices and service providers together. Taking place at the Eau Palm Beach Resort & Spa, Palm Beach, Florida, June 7-9, 2015, the Summit includes presentations on generational planning, trends in family office investing, conducting due diligence on alternative investments, strengthening client relationships and what to expect in the years ahead.

For more information please send an email to press@marcusevanscy.com or visit the event website at www.privatewealthsummit.com/JeffBatesInterview

marcus evans group - investment sector portal - www.marcusevans.com/reviews/investment

The Investment Network - marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.

- LinkedIn: www.linkedin.com/groups?mostPopular=&gid=3937929&trk=myg_ugrp_ovr
- YouTube: www.youtube.com/MarcusEvansInvest
- Twitter: www.twitter.com/meSummitsInvest
- SlideShare: www.slideshare.net/MarcusEvansInvest

Please note that the Summit is a closed business event and the number of participants strictly limited.

About Kings Point Capital Management

Kings Point Capital Management (KPCM) was founded in 2005 by two former Goldman Sachs professionals. We maintain offices in Great Neck, NY and Brentwood, TN. Our principals have managed portfolios for over 25 years. Our mission is to provide financial advisory services to a select group of high net worth families, endowments and foundations. We approach each client separately and from a preservation of capital perspective. Our software tools are designed to identify and understand the various nuances and risks associated with each client allocation. As such, the approach develops a unique, customized and dynamic solution for each engagement. The results culminate in a specifically designed reporting package trademarked as WealthScope(TM). www.kingspointcap.com.

Contact:

Sarin Kouyoumdjian-Gurunlian
Press Manager, marcus evans, Summits Division
Tel: +357 22 849 313
Email: press@marcusevanscy.com

Source: marcus evans Summits
Sectors: Daily Finance, Daily News

Latest Release

Kaplan Fox & Kilsheimer LLP Alerts Investors to a Securities Class Action Against Humacyte, Inc. (HUMA) - Deadline is January 17, 2025
Nov 22, 2024 11:00 JST

NaaS Q3 2024 Recap: Strategic Shifts and Tech Innovations for Growth
Nov 21, 2024 22:59 JST

Honda Unveils Demonstration Production Line for All-Solid-State Batteries Located in Sakura City, Tochigi Prefecture, Japan
Nov 21, 2024 15:35 JST

Deadline to Lead in Securities Fraud Lawsuit Against Humacyte, Inc. (HUMA) is January 17, 2025 - Contact Kaplan Fox & Kilsheimer LLP
Nov 21, 2024 09:00 JST

ALL Study Groups Using DehydraTECH Processing Outperform Rybelsus(R) in Body Weight Control in Lexaria's 12-Week GLP-1, Diabetes Animal Study
Nov 20, 2024 23:05 JST

Start of Demonstration Test of Two-Phase Direct-to-Chip Cooling in the Air-Cooled Data Center
Nov 20, 2024 15:30 JST

Rozebalamin for Injection 25mg (Mecobalamin) for Amyotrophic Lateral Sclerosis Launched in Japan
Nov 20, 2024 11:51 JST

Anticancer Agent "TASFYGO Tablets 35mg" (Tasurgratinib Succinate) Launches in Japan for Biliary Tract Cancer with FGFR2 Gene Fusion or Rearrangements
Nov 20, 2024 10:24 JST

Kingsoft Announces 2024 Third Quarter Results
Nov 19, 2024 18:54 JST

NTT and Olympus Joint Demonstration Shows IOWN APN's Low-latency Capability Can Be Used for Real-time Diagnosis and Treatment on a Remote Server to Realize World's First Cloud Endoscopy System
Nov 19, 2024 15:30 JST

Supercomputer Fugaku retains first place worldwide in HPCG and Graph500 rankings
Nov 19, 2024 09:02 JST

CleverTap Recognized as a Strong Performer in Cross-Channel Marketing Hubs, Q4 2024 Report
Nov 18, 2024 23:30 JST

World's First Successful Trial of Quantum Tokens Created Using Quantum Technology
Nov 18, 2024 17:29 JST

Fujitsu and SAP Fioneer enter partnership to accelerate digital transformation in the insurance industry and deliver services that contribute to customers' sustainable business
Nov 18, 2024 12:31 JST

Expanding Possibilities with the Liquid Hydrogen-Powered GR Corolla in the Season Final Round
Nov 18, 2024 09:25 JST

COP29: Indonesian Special Envoy Hashim Djojohadikusumo Announces EUR 1,2 Billion Green Funding
Nov 16, 2024 18:00 JST

Mitsubishi Shipbuilding Holds Christening and Launch Ceremony of LNG-Powered Roll-on/Roll-off Ship TRANS HARMONY EMERALD in Shimonoseki
Nov 15, 2024 18:58 JST

Nationwide TV Commercial Launched in Japan to Raise Awareness About MCI (Mild Cognitive Impairment)
Nov 15, 2024 17:33 JST

Eisai Receives Positive Opinion from the CHMP in the European Union for Lecanemab in Early Alzheimer's Disease
Nov 15, 2024 14:31 JST

Resorttrust Group and Mitsubishi Corporation Launch Joint Study in Medical Tourism
Nov 15, 2024 12:32 JST

More Latest Release >>

Latest Release

Related Release