Investment advice

Significant assets are not managed solely according to return criteria. They are managed according to a hierarchy of objectives. Therefore, priorities must be defined among objectives such as:

• the preservation of capital;
• la génération de revenus réguliers ;
• long-term growth;
• protection against inflation;
• international diversification;
• preparing for retirement;
• transmission to children;
• protection of the spouse;
• philanthropy;
• liquidity available in case of crisis;
• confidentiality;
• administrative simplicity;
• Reducing family conflicts.

These objectives can be contradictory. A client may want returns, liquidity, security, low taxation, and seamless inheritance planning. This is understandable. But these objectives are not always compatible. The role of the wealth manager is precisely to organize these trade-offs clearly.

Risk profiling is not simply a matter of asking the client if they are “cautious,” “balanced,” or “dynamic.” This type of classification is often inadequate. Several types of risks must be distinguished:

• market risk;
• real estate risk;
• the risk of concentration;
• liquidity risk;
• exchange rate risk;
• the tax risk;
• the legal risk;
• counterparty risk;
• family risk;
• political risk;
• the risk of governance;

An estate can appear very solid but actually be fragile. For example, a family may own a lot of real estate but little cash. They seem wealthy. Yet, they can be vulnerable to a rental crisis, rising interest rates, unexpected repairs, or high inheritance taxes.

Conversely, a very liquid financial portfolio may be poorly diversified, too exposed to a currency, a sector, or a few historical stocks held out of habit.

The first duty of the wealth manager is therefore to identify hidden weaknesses.

La Wealth Management doit reposer sur une allocation globale. Celle-ci doit intégrer l’ensemble des actifs du client, et non seulement le portefeuille bancaire. Il faut raisonner par « poches » d’actifs :

• a cash reserve, for immediate needs and unforeseen events;
• a preservation pocket, intended to protect the capital;
• a pocket of yield, to generate income;
• a growth pocket, exposed to more dynamic assets;
• a real estate portfolio, optimized according to its yield, location and liquidity;
• an entrepreneurial portfolio, if the client holds professional interests;
• A pocket for transmission, structured to prepare for the family's future.

The common mistake is to manage each asset in isolation. The bank manages the securities. The notary handles the inheritance. The accountant looks at the tax implications. The real estate agent talks about rental yield. And nobody sees the big picture.  A good wealth manager, on the contrary, must coordinate these dimensions.

Real estate often plays a central role in large estates. However, it is sometimes overvalued, poorly assessed, or insufficiently managed. Each property must be analyzed according to objective criteria:

• realistic market value;
• net rental yield;
• rental vacancy;
• maintenance costs;
• future work;
• energy performance;
• quality of the location;
• liquidity upon resale;
• regulatory risk;
• local taxation;
• method of detention;

A distinction must be made between valuable assets and those held in place by inertia. Some buildings are excellent. Others tie up capital that generates low returns, with numerous constraints and limited prospects.

La question n’est pas : “Faut-il vendre un bien immobilier ?”, mais plutôt : “Ce bien mérite-t-il encore sa place dans le patrimoine familial ?”

Diversification is essential. But it shouldn't become a haphazard collection of investments. Intelligent diversification relies on several dimensions:

• asset classes;
• geographical areas;
• currencies;
• economic sectors;
• investment durations;
• types of income;
• liquidity levels;
• Methods of detention.

Two extremes must be avoided.

1. Excessive concentration: in local real estate, in the family business, in a few historical stocks, in a currency, in a geographical region.
2. The dispersion 'decorative'Too many products, too many accounts, too many banks, too many structures, too many intermediaries. This gives an impression of sophistication, but in reality, it complicates control and dilutes responsibility.

Good diversification is transparent, controlled, and justifiable.

In wealth management, fees are sometimes visible, but rarely presented in a comprehensive overview. Therefore, it's essential to clearly consolidate:

• training and management fees;
• entrance fees;
• exit fees;
• retrocessions;
• performance committees;
• internal fund fees;
• margins on structured products;
• bank charges;
• transaction fees;
• legal and accounting costs;

Un produit médiocre, avec des frais élevés, est rarement présenté comme tel. Il est généralement « emballé » dans un vocabulaire rassurant. Le gestionnaire de fortune doit savoir lire entre les lignes.

Managing a substantial fortune requires the involvement of several specialists: private bankers, lawyers, tax advisors, notaries, real estate experts, accountants, insurers, asset managers, family officers, and estate planning consultants. The problem isn't a lack of experts; it's often their lack of coordination.

Each person sees their own domain. LysImmo We consider the system as a whole. We play the role of heritage architects. We ensure all recommendations are consistent, identify contradictions, and make sure that every decision serves the overall strategy.