Rishabh Saksena of Merrill Lynch Global Wealth Management explains the decision-making process and criteria around how the firm selects products and investment solutions to offer to clients.

Date: Jun 2011

Tags: Research, Mutual funds, Asset allocation

• The starting point for Merrill Lynch Wealth Management in terms of deciding which products to put in front of clients is research
• At a higher level is the asset allocation, in terms of which sectors the research team is overweight relative to the global wealth management benchmark
• The firm has specialised due diligence teams looking into individual fund managers and their performance
• In terms of specific client requirements, solutions are based on and tailored to individual client needs

According to Rishabh Saksena in an interview, the starting point for Merrill Lynch Wealth Management in terms of deciding which products to put in front of clients is research.

The firm looks to its research team, which includes specialists in various asset classes, to come out with reports covering different stocks and markets on a monthly basis, he said, explaining that this provides some of the themes which can be effective from an investor perspective.

For example, said Saksena, the research committee currently favours three broad themes in the equity space – quality, yield and growth. The investment solutions experts then look at which individual equities fit these categories.

At a higher level is the asset allocation, added Saksena, in terms of which sectors the research team is overweight relative to the global wealth management benchmark. This then determines tactical allocation over a 12 to 18-month period.

Selecting funds

When looking at which criteria are important to determine which managers to recommend to clients, Saksena said the firm has specialised due diligence teams looking into individual fund managers and their performance.

This is a specialised area within the global wealth management part of the firm which is responsible for all fund manager selection and ongoing monitoring, he explained.

Differentiating the client experience

In terms of specific client requirements, which might be in the nature of over-the-counter derivatives, for example, Saksena said solutions are based on and tailored to individual client needs.

In general, he said it is critical to put in a lot of thought behind a product after looking at the market scenario and outlook.

This always starts with research, he clarified, to identify specific themes in line with asset allocation which might be tactical – forming a strong basis for originating products for clients to then build on.