Hens / Bachmann Behavioural Finance for Private Banking

1. Auflage 2011
ISBN: 978-0-470-74207-5
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 270 Seiten, E-Book

Reihe: Wiley Finance Series

A complete framework for applications of behavioral finance in private banking, Behavioural Finance for Private Banking considers client needs specific to private banking like personal circumstances, objectives, and attitude to risk. This book includes the theoretical foundations of investment decision-making, an introduction to behavioral biases, an explanation of cultural differences in global business, a guide to asset allocation over the life cycle of the investment, and several case studies to illustrate how can be applied. A must-read for anyone in private banking, this book demonstrates how to satisfy client needs.

Autoren/Hrsg.

Hens, Thorsten

Bachmann, Kremena

Inhaltsverzeichnis

Preface.
1. INTRODUCTION.
1.1 The Private Banking Business.
1.2 Current Challenges in Private Banking.
1.3 Improving Service Quality with Behavioural Finance.
1.4 Conclusion0.
2. DECISION THEORY.
2.1 Introduction.
2.2 Mean-Variance Analysis.
2.3 Expected Utility Theory.
2.4 Prospect Theory.
2.5 Prospect Theory and the Optimal Asset Allocation.
2.6 A Critical View on Mean-Variance Theory.
2.7 A Critical View on Expected Utility Axioms.
2.8 Comparison of Expected Utility, Prospect Theory, and MeanVariance Analysis.
2.9 Conclusion.
3. BEHAVIOURAL BIASES.
3.1 Information Selection Biases.
3.2 Information-Processing Biases.
3.3 Decision Biases.
3.4 Decision Evaluation Biases.
3.5 Biases in Inter-Temporal Decisions.
3.6 Behavioural Biases and Speculative Bubbles.
3.7 Cultural Differences in the Behavioural Biases.
4. RISK PROFILING.
4.1 Dealing with Behavioural Biases.
4.2 The Risk Profiler and its Benefits.
4.3 Designing a Risk Profiler: Some General Considerations.
4.4 Implemented Risk Profilers: Case Study former Bank Leu.
4.5 A Risk Profiler Based on the Mean-Variance Analysis.
4.6 Integrating Behavioural Finance in the Risk Profiler.
4.7 Case Study: Comparing Risk Profiles.
4.8 Conclusion.
5. PRODUCT DESIGN.
5.1 Case Study 'Ladder Pop'.
5.2 Case Study 'DAX Sparbuch'.
5.3 Optimal Product Design.
5.4 Conclusion.
6. DYNAMIC ASSET ALLOCATION.
6.1 The Optimal Tactical Asset Allocation.
6.2 The Optimal Strategic Asset Allocation.
6.3 Conclusion.
7. LIFE CYCLE PLANNING.
7.1 Case Study: Widow Kassel.
7.2 Main Decisions over Time.
7.3 Consumption Smoothing.
7.4 The Life Cycle Hypothesis.
7.5 The Behavioural Life Cycle Hypothesis.
7.6 The Life Cycle Asset Allocation Problem.
7.7 The Life Cycle Asset Allocation of an Expected UtilityMaximizer.
7.8 The Life Cycle Asset Allocation of a BehaviouralInvestor.
7.9 Life Cycle Funds.
7.10 Summary 207.
8. STRUCTURED WEALTH MANAGEMENT PROCESS.
8.1 The Benefits of a Structured Wealth Management Process.
8.2 Problems Implementing a Structured Wealth ManagementProcess.
8.3 Impact of the New Process on Conflicts of Interests.
8.4 Learning by 'Cycling' Through the Process.
8.5 Case Study: Credit Suisse.
8.6 Mental Accounting in the Wealth Management Process.
8.7 Conclusions.
9. CONCLUSION AND OUTLOOK.
9.1 Recapitulation of the main achievements.
9.2 Outlook of further developments.
References.
List of Notation.
List of Figures.
List of Tables.

Über Autor(innen)

Thorsten Hens, born in Germany 1961, is SFI Professor ofFinancial Economics at the University of Zurich's Swiss BankingInstitute, a Fellow of CEPR and Adjunct Professor of Finance at theNorwegian Business School in Bergen. He studied at Bonn and Parisand held professorships in Stanford, Bielefeld and Zurich. Since2007 he is the Director of the Swiss Banking Institute and since2003 the scientific coordinator of NCCR-Finrisk. His research areasare -- among others -- behavioural and evolutionary finance.Thorsten Hens is ranked among the top 10 economics professors inthe German spoken area (Germany, Switzerland and Austria). Inresearching how investors make their decisions, Professor Hensdraws on work in psychology and applies insights from biology inorder to understand the dynamics of financial markets. Hisconsulting experience includes application of behavioural financefor private banking and evolutionary finance for asset management.
Kremena Bachmann, born in Bulgaria in 1976, currentlyholds a postdoctoral position at the University of Zurich's SwissBanking Institute. She received an MS in Finance from theUniversity of St. Gallen (HSG) and a PhD in Finance from theUniversity of Zurich, where she held a research position at theInstitute for Empirical Research in Economics. Her researchinterests are behavioural finance and investment management. Mrs.Bachmann worked on different projects for Credit Suisse AssetManagement and Bank Wegelin. Her teaching experience includeslectures on behavioural finance and wealth management at theUniversity of Zurich and the Swiss Training Centre for InvestmentProfessionals (AZEK).