Clients seek risk management and returns

Slovenians still keep most of their money in bank deposits, with the total exceeding 30 billion euros, but interest in individual wealth management is increasing. The product has become more familiar in recent years, and companies are showing particularly strong interest.

Vid Pajič, a member of Ilirika’s management board, said the share of companies interested in the service had risen from about 15% to approximately 35%. He said the main factor in choosing between classic individual management and an individual investment account is the amount of money available.

“

Recently, the share of such companies increased from around 15% to approximately 35%.

At Ilirika, classic individual management requires at least 50,000 euros. Pajič said the company had lowered the threshold to make the service more accessible to demanding clients, noting that minimum amounts abroad often range from 500,000 euros to 1 million euros, and can reach 5 million euros at some highly regarded global banks. For clients with roughly 5,000 to 20,000 euros in savings, he said, an individual investment account is more suitable.

“

For classic individual management, Ilirika’s minimum entry amount is 50,000 euros.

Pajič presented transparency as a major advantage of individual management. Clients often do not know exactly which fees and costs financial products charge, or when and how they are applied. At Ilirika, advisers begin with a broad discussion of the client’s circumstances, including investment horizon, desired risk and ability to bear it.

Portfolios and strategies can change when clients face unexpected inflows or outflows, accidents or other unforeseen events. Pajič said adapting the portfolio is one of the service’s main added values, although the final decision remains with the client unless the client’s preference would be explicitly harmful. He also said many Slovenians hold too much wealth in real estate, while some financially secure, wealthy clients take an overly conservative approach. At the same time, many investors have learned from past mistakes that portfolios should be diversified across asset classes in line with their savings goals.

“

We discuss not only the time horizon, but also what risks the client wants to take and what ability the client has to do so.