Malaysia’s multi-pronged economic dip last year spread well into the US$174 billion pool of local high net worth wealth, whose total value declined by nearly 11% in 2015. A plunge in the Kuala Lumpur Composite Index – one that touched a five-year low – and the upward trend in the US Federal Exchange’s interest rate cycle has made global diversification and world-class risk management even more crucial than ever.
In spite of such adversity however, Credit Suisse’s adeptness at sourcing global investment solutions for Malaysian clients saw them excel in a tumultuous year.
The bank’s efforts to reduce the Malaysian high net worth segment’s concentrated single-stock exposure in home markets continue to see steady progress, as the bank increasingly engages clients in serious dialogue about asset allocation and risk. Its success has led to robust inflows into US and European equity dividends, discretionary portfolio solutions and other defensive strategies to mitigate risks, especially in light of the raft of mid-cap stocks linked to oil that had lost more than half of their value in 2015.
One standout highlight for Credit Suisse’s Malaysia wealth management business was the bank’s completion of a discretionary hedge fund mandate – the first deal of its kind in the history of its Asia Pacific franchise.
The bank’s local presence, which includes a leading investment bank and equity trading platform and a 20-year representative office, played no small part in expanding its reach to clients in even the secondary cities. The bank’s strong integrated private banking and investment banking platform also enables it to provide corporate and financing solutions for Malaysian entrepreneurs. Such efforts have served the bank well, as reflected in a 14% CAGR growth of assets under management between 2011 and 2014.
A stellar portfolio of clients, a strong pipeline of new prospects and talent, and a successful year of gaining materially diversifying assets means Credit Suisse is undisputedly the winner of the 2015 Best Private Bank – Malaysia International Award.