Q1: Private banks in Asia have faced a number of challenges in 2024, from uncertainty around interest rate cuts in the US to volatile markets and geopolitical tensions. Considering this background, how did you safeguard AUM and revenue streams in 2024, while also attracting net new assets? What will your strategy be in 2025?

In 2024, we prioritised resilience by diversifying portfolios and emphasising defensive assets like high-quality bonds and sectors that are resilient to economic downturns including AI plays. We also advised clients to gain strategic exposure to alternative assets and incorporate structured products for downside protection.

These strategies have proven to work well for our clients. Our diversified Managed Product Solutions Strategy Portfolio, which consists of CIO-recommended funds, has outperformed the 60/40 MSCI-Bloomberg Global Aggregate Index over the past five years.

In 2025, we will continue to expand advisory-led services and enhance personalised client engagement through both in-person and digital channels. We will strengthen our relationships with regional HNWIs and UHNWIs, which entails building dedicated teams and resources for client acquisition and retention in ASEAN and Greater China.

Proximity to our clients will allow us to offer local insights and on-the-ground support, encouraging clients to consolidate assets with UOB. Our comprehensive suite of investment solutions and proactive strategic advisory will also continue to equip our clients with the necessary options in navigating the sea of uncertainties.

Q2: How are you advising clients in terms of investment opportunities in 2025? Which markets and asset classes will provide the best opportunities? And how can clients balance leveraging these opportunities while managing risks to their portfolios?

A major risk to watch out for in 2025 would be higher US interest rates should a Trump 2.0 realignment result in a larger deficit and inflation. Our 2025 investment strategy will revolve around safeguarding client assets against major shifts in geopolitical conditions, with a focus on US risk assets which are relatively insulated against potential trade conflicts.

Meanwhile, bright spots remain in ASEAN. We remain constructive on global equities, especially in the US. The US exceptionalism looks set to persist, with the US economy likely to outperform the rest of the world against the backdrop of a Republican sweep. Imminent deregulation and corporate tax cuts under Trump’s new administration bode well for the stock markets, especially for sectors like communication services, financials and industrials.

To capture opportunities and mitigate risks, clients can consider adopting a barbell strategy of growth and value stocks, with a focus on quality cyclicals. We will continue to advocate effective portfolio diversification via high-quality bonds, and strategic allocation to alternative assets like private market funds and gold. Gaining defensive exposure to the stock markets via structured products remains appropriate in view of higher geopolitical and market volatility.

Q3: China’s announcement in 2024 of a series of monetary and fiscal stimulus measures has helped re-energise the world’s second-largest economy, bringing optimism and momentum to the market. What opportunities has this created for your bank? How would you advise clients when it comes to investing in China?

China’s stimulus announcement in 2024 demonstrates a greater sense of urgency for the government to reflate its economy. This policy shift has created the momentum for us to deepen client engagement and strengthen our foothold in the market. We have since expanded our product offerings and provided clients with targeted exposure to China’s revitalising economy through bespoke mandates.

As regional wealth grows and investors look for stability amid global uncertainties, UOB’s presence and expertise in ASEAN position us as a natural partner for HNWIs and family offices looking to diversify their wealth in stable growth markets. For China, the government seems to be adopting a gradual approach in policy implementation on concerns over the US tariff and trade policy overhang. Investors remain on the sidelines as they await further clarity from China’s stimulus plans; many are unconvinced that China’s forthcoming fiscal policies can fend off external shocks.

Indisputably, the economic growth outlook for China is challenged by protracted trade wars with the US and potentially the rest of the world. Consumer sentiments are depressed as evident in China’s undemanding valuations, alongside the absence of a highly-anticipated fiscal boost to arrest the housing crisis and consumer retrenchment. We reiterate preference for defensive high-dividend stocks and domestically-oriented companies which are less susceptible to external headwinds. We also continue to advocate gaining defensive exposure to quality Chinese stocks via structured products.

Q4: The wealth management industry is increasingly subject to oversight and regulation, with this issue once again being brought into the spotlight with high-profile compliance breaches in the last couple of years. How are you addressing regulatory challenges while minimising the impact on clients?

Our key priorities lie in being well-versed and fully committed to complying with all the relevant regulatory requirements while ensuring that our clients’ financial needs and goals are met. To achieve this, we take a proactive approach to monitoring regulatory changes and maintaining close communications with regulators. We also aim to integrate these regulatory changes into our operations in a seamless manner, minimising any disruptions to our clients.

Our goal is to ensure compliance without compromising the quality of our clients’ experiences.

Q5: With wealth clients being increasingly sophisticated, tech-savvy, and time-conscious, they are demanding more expertise and capabilities when it comes to discretionary portfolio management offerings. How is this reflected in your long-term approach to DPM in Asia and efforts to deepen client penetration of these solutions?

Clients in this modern age are well-informed and sophisticated, leading to a strong need for accountability in analysing both successful and unsuccessful investment calls and highlighting areas for improvement. It is essential to demonstrate to clients that our strategies are agile, with active management of risk-adjusted returns while navigating complex market conditions.

As part of our efforts to deepen client penetration of our solutions, we constantly upgrade our portfolio management systems to ensure portfolio information is presented to clients in a timely, engaging and useful format. Consistency in performance and risk mitigation actions also build trust with clients over time, leading to higher client retention and penetration.

More importantly for us, is to fully understand clients’ wealth and financial objectives, benchmarked against their risk appetites, to curate a DPM strategy and solution that can help them achieve their goals.

Q6: Trillions of dollars of wealth are expected to be passed down to the next generation of clients in Asia over the coming years, bringing into the spotlight services targeted at next-generation clients. What is your bank doing to ensure it captures the full potential of this opportunity, whether via content, outreach, or solutions like family office and wealth planning?

We adopt a two-prong approach by making early engagement with clients and having a holistic next-gen programme.

Making early engagement with clients is effective in ensuring that all stakeholders are aligned on shared values, purpose and positive change before we put in place strategies and frameworks for the family’s inter-generational transfer and succession planning.

Having said that, making early engagement with clients is only half the work done, as the next generation has needs and concerns different from their parents. UOB’s next-gen programme aims to prepare the next generation of successors for their future responsibilities and enhance their competency to protect and grow the wealth that they would inherit. Our next-gen programme helps the younger successors uncover underlying concerns and instil financial literacy and a sense of stewardship at an early stage.

Q7: In 2024, the private banking industry witnessed organisational restructurings, leadership reshuffles, as well as heavyweight departures. Looking forward, what are the priorities for your private bank in terms of attracting and retaining talent across the front, middle, and back office? What measures do you have in place for managing personnel transitions?

UOB remains committed to expanding its private bank franchise through judicious front office growth. Despite recent challenging market conditions, we maintain a steady posture of hiring exceptional talent with proven track records of success aligned with our core values of taking the long-term view, which has served us well for the past 90 years.

Our middle and back-office functions grow in tandem with our front-office expansion, and we continue to invest in both people and technology to ensure high productivity and operational efficiency standards are reached and maintained. The result is best-in-class client experiences and advisory services for our clients.

We also have a dedicated Private Banking Academy programme with a robust curriculum that seeks to empower our staff with the knowledge and tools to keep up with the latest competencies required to succeed in the fast-evolving wealth management industry.

Q8: Much hype has been made about the transformative potential of artificial intelligence. What opportunities does AI present to your financial institution, and how does it fit into a broader strategy of technological upgrade and digitisation?

UOB Private Bank continues to invest in new technologies, including leveraging Gen AI to enhance our clients’ experiences and boost the productivity of our operations. On the front end, we are constantly upgrading the private bank platform and adding new features to cater to the complex needs of our HNW clients. These enhancements include incorporating risk management tools, self-service functionalities, and straight-through processing for account opening, all aimed at improving the client experience and accelerating business operations.

We also see the critical importance of leveraging AI along with big data and advanced analytics to enable more proactive risk management to identify and mitigate existing and emerging risks. This will help us pre-emptively adapt and react to unexpected events or crises, particularly in the areas of investor protection and fraud controls. Additionally, AI technologies assist relationship managers (RMs) in client management by offering tailored tips and solutions based on client preferences and personalised market reports, thereby enhancing customer engagement and service to achieve their long-term financial goals.

Collectively, these ensure that our clients’ legacies can last through the generations to come. However, our approach remains grounded on UOB’s broad omni-channel strategy. Specifically for our HNW clients, we offer them options as to how and when they wish to be engaged – whether it is via the traditional dedicated RMs or digital self-service because we understand that some clients prefer the physical facetime for high-value transactions or confidential discussions.