After global markets opened in 2016 with multiple record lows across the board, equally low equity appetites at Asia’s private banks led to depleted volumes for traditional flow structures. According to Asian Private Banker, equity-focused wealth managers saw volumes plummet by up to 40%, as clients retreated.
Nonetheless, staunch providers were able to find opportunities and introduce a sliver of equity exposure into client portfolios via non-flow structures. This year, bonus-enhanced notes led popularity rankings in the region, helping clients to materialise gains through both participation in rallies and yields through meeting various conditions.
Société Générale did not foresee this initial descent, Edward Lee, the bank’s head of cross-asset solutions sales in Hong Kong and Singapore admits, underlining the uncertainty that rules markets. But Société Générale’s early foundation in providing non-flow structured products allowed has enabled it to reap the rewards of an unexpected opportunity.
“Adaptation and preparation are key,” he says. “We have been building up our technology on pricing the bonus enhanced structure for over a year now.”
As an early, forward-thinking pioneer in non-flow solutions, Société Générale was selected by private banks as this year’s Best Provider of Non-flow Equity-linked Structured Products.