Wealth Management Glossary

A working reference for the private banking, custody and investment terminology used throughout Truehn Bank Inc — written in plain language for clients, advisers and their families.

Assets Under Custody (AUC)

The total market value of client assets a financial institution holds for safekeeping. Unlike assets under management, AUC does not imply discretionary investment authority.

Asset Allocation

The mix of asset classes — equities, fixed income, cash, alternatives — held in a portfolio, chosen to balance risk and return against a client's mandate and time horizon.

Alternative Investments

Assets outside traditional public equities and bonds, including private equity, hedge funds, real estate, infrastructure, private credit and commodities.

Bridge Facility

A short-term loan used to cover a client's liquidity needs while awaiting longer-term financing or the realisation of an asset sale.

Custodian

A regulated financial institution that safeguards securities and other assets on behalf of clients, handling settlement, corporate actions and reporting.

Discretionary Portfolio Management

A mandate in which the portfolio manager makes buy and sell decisions on the client's behalf within pre-agreed investment guidelines.

Family Office

A private advisory firm that manages the investments, tax, estate and lifestyle affairs of a single family (single-family office) or several families (multi-family office).

Fiduciary Duty

The legal obligation to act solely in the best interest of the client, avoiding conflicts of interest and disclosing all material information.

Global Custody

The safekeeping and administration of client securities across multiple jurisdictions and asset classes, typically for institutional investors.

Multi-Currency Account

A single account that holds balances in several currencies simultaneously, used to manage FX exposure and pay obligations in different jurisdictions.

Private Banking

Personalised banking, credit and investment services offered to high-net-worth individuals and families through a dedicated relationship manager.

Segregated Client Account

An account structure in which client assets are legally separated from the institution's own balance sheet, protecting them in the event of insolvency.

Structured Products

Pre-packaged investments whose returns are linked to one or more underlying assets (e.g. equity indices, rates, commodities), often incorporating derivatives.

Tier-1 Capital Ratio

A regulatory measure of a bank's core equity capital relative to its risk-weighted assets — a primary indicator of financial resilience.

Trade Finance

Financing and risk-mitigation instruments — such as letters of credit and guarantees — that support international trade transactions.

Wealth Management

A comprehensive advisory practice covering investments, tax, estate planning and philanthropy, coordinated around a client's long-term objectives.