Q1: How did the business perform in 2025, and what drove its growth over the past year? How has the cost-income ratio trended this year, and what were the key factors influencing it? Looking ahead, what are your main priorities and strategic plans for 2026?

2025 was a year in which Cathay United Bank Private Banking demonstrated both resilience and strategic conviction. Despite navigating volatile markets, from monetary policy uncertainty to shifting tariff developments and volatility associated with Liberation Day, we maintained steady forward momentum. Our AUM achieved double-digit growth, underscoring the strength of our platform and the deep trust clients place in us as their long-term partner. 

The market dynamics today reinforced the importance of building portfolios that can carry clients through different cycles. We focused on helping clients maintain balanced and resilient allocations by combining traditional assets with lower correlation alternative exposures. Our emphasis on semi-liquid private market solutions provided access to exclusive opportunities while preserving essential liquidity, an approach increasingly relevant for sophisticated wealth owners. 

At the same time, we advanced the capabilities that ensure our service model remains both forward-looking and client-centred. Our dual-system infrastructure, anchored by a completed core system upgrade and the integration of Aladdin Wealth, which will be launched in 2026, can significantly elevate precision in portfolio analytics and risk evaluation. 

We continued to strengthen our family office capabilities as well by deepening collaboration with leading legal and accounting partners, enabling holistic oversight, governance, and multigenerational planning. In parallel, we progressed the development of our Singapore-based discretionary portfolio management framework through a multi-manager approach, building an institutional foundation for goals-based portfolio construction ahead of its upcoming launch. 

The launch of the Kaohsiung Asset Management Zone marks an important milestone for both Taiwan’s wealth management ecosystem and our own strategic trajectory. As a key industry partner to the regulator, we contributed insights that helped shape a progressive framework aligned with long-term market development. For our clients, the Asset Management Zone delivers clearer and more streamlined processes, reinforcing Taiwan’s capacity to retain domestic wealth and strengthen its role as a competitive regional hub. 

The investments we made in 2025 were foundational. As these initiatives expand in 2026, they will further enhance the resilience, sophistication, and cohesion of our platform. Guided by a disciplined portfolio-centric philosophy, we remain committed to delivering lasting value to our clients and contributing meaningfully to the future of Taiwan’s wealth management industry.

Q2: Looking at the investment outlook for 2026, which markets and asset classes are you prioritising for client portfolios to capture opportunities while managing risks? How are clients currently allocating their portfolios, and what trends are you seeing in DPM adoption and investment behaviour?

Client allocation patterns this year reflected disciplined positioning in an environment defined by interest-rate uncertainty and uneven global growth. Most clients maintained balanced cores across equities and fixed income, while selectively incorporating alternative strategies to enhance resilience. This measured approach underscores the maturity of our client base and the strength of our advisory framework. 

Driven by expectations of rate cuts, clients steadily built their fixed income exposure from late last year through the first quarter of this year. This allowed them to lock in attractive yields ahead of a gradual normalisation of policy rates and position portfolios for more stable return profiles as interest rates gradually converge toward mid-cycle levels. 

The continued strength of the US equity market also encouraged incremental equity participation, primarily through risk-managed structured solutions. Instruments such as fixed coupon notes provided clients with downside protection while enabling participation in market appreciation, fully aligned with our emphasis on risk-managed participation. 

Alternative investments continued to gain momentum, led by private credit and infrastructure. Private credit fundamentals remain sound, offering compelling yields and defensiveness. Infrastructure strategies benefited from secular themes, AI-driven power demand, energy transition needs, and power constraints, providing long-term opportunities with low correlation to traditional assets. 

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As we look ahead to 2026, diversification and durability remain foundational to our portfolio guidance. While additional rate cuts are anticipated, policy rates are expected to normalise around the 3% range, suggesting that fixed income returns will be driven more by income than capital gains compared with previous easing cycles. In this context, we are helping clients secure stable income via structured notes, while using fixed coupon notes to selectively accumulate equity positions at more attractive entry points, balancing opportunity with discipline as macro conditions evolve. 

Discretionary portfolio management is also gaining relevance as clients seek greater structure, consistency, and professional oversight. While not intended for tactical manoeuvring, it provides an institutional framework that minimises emotional decision-making and keeps portfolios aligned to long-term objectives, particularly during periods of heightened volatility. 

Ultimately, our commitment is to help clients build portfolios that endure. Portfolios that remain resilient across cycles, capture long-term opportunity with clarity, and provide confidence even when the environment is uncertain.