Five Tools for Wealth Managers

Abstract

The authors provide an operating manual for some useful, beyond-the-basics private wealth management tools. In this article, they have assembled a set of practical quantitative tools that private wealth managers can benefit from knowing and using. Believing wealth managers must embrace the tools of mathematics and statistics, they focus on five quantitative tools. Their presumed audience is a private wealth manager who has mastered the elementary quantitative toolkit. While the more-specialized tools presented in this article are developed in more detail elsewhere, the authors offer a curated selection of the large literature of private wealth management and attempt to convey the underlying intuition in plain English. Further, they offer shortcuts to implementing the calculations in Excel.