Always a pleasure to touch base with Asia’s fund selector community. Our two Funds Selection Nexus events in Hong Kong and Singapore this week yielded some sage insights, and while we run these sessions on an off-record basis, I will share with you a few data points from our surveys.
First things first, in terms of net asset inflows into funds, private banks recorded a 6.1% YoY decrease in 2016 but anticipated a 12% increase in 2017.
In fact, almost half of those banks surveyed this week said that they have seen a 21-40% increase and over one third have recorded a 1-20% increase in net inflows YoY. Around half expect net flows to increase on a YoY basis by 1-20% in 2018.
Around the topic of ESG, the community sits on the fence in terms of the potential of ESG funds in Asia over the next five years. While 39% said that ESG strategies for private clients have “fair potential”, 36% believe ESG funds have a “low potential” in the medium-term.
Also of note, fund selectors mostly have a “fair” or “good” view of asset managers’ understanding of their respective Asia wealth businesses although, as always, most of those polled believe that fund houses would do well to improve compatibility between their product offering and local clientele and for sales teams to better understand Asia-specific needs.
The good news is that private banks expect funds penetration in Asia to increase steadily from our current estimate of 11%.
To quote one attendee: “There is more to come, we can still easily double fund penetration”, and “the holy grail is to capture the equity share”.
Your Top Eight (plus a few bonus people moves) follows.
INDUSTRY | STRAIGHT TALK | EXCLUSIVE 9 October 2017
Minsheng Private Banking’s Kong: “We want to be the top choice private bank for entrepreneurs”
Kong Qinglong has big plans for China Minsheng Banking Corporation’s (Minsheng) private banking business. In this exclusive discussion, he tells Asian Private Banker that Minsheng’s ambition to build a “real” private bank has group-wide buy-in and that the days of straight product distribution are numbered.
INDUSTRY | EXCLUSIVE 10 October 2017
Noah’s Wang Jingbo: “Implicit guarantees cannot last forever – the key is to educate investors”
Asian Private Banker sits down with Noah Holdings’ co-founder and chairman of the board of directors, Wang Jingbo, to talk about the firm’s rapid development path and her thoughts on implicit guarantees for high yielding wealth management products (WMPs).
INDUSTRY | EXCLUSIVE 6 October 2017
CreditEase’s Tang: “There needs to be risk-based pricing, and market participants should bear the risk”
Asian Private Banker sits down with Tang Ning, CEO and founder of CreditEase, to talk about the firm’s evolving wealth management business, changing client demands, and the broader Chinese private wealth industry.
INDUSTRY | EXCLUSIVE 10 October 2017
China to account for half of DBS Private Bank’s North Asia business by 2020
Following a “relatively good year” for the bank, DBS Private Bank has set itself ambitious targets to expand its North Asia business by deepening its penetration into the offshore China market, according to Januar Jun Tjandra, North Asia private banking head at DBS Bank (Hong Kong).
APB MANDATE | ALTERNATIVES | EXCLUSIVE 11 October 2017
Noah to target China A-shares with smart beta strategy
Noah Holdings is talking to global institutions about co-developing a smart beta strategy that targets China’s domestic A-share market, according to William Ma, CIO of Noah Holdings (Hong Kong).
TECHNOLOGY | EXCLUSIVE 10 October 2017
UBS WM goes live with global tech project, One WMP, in Hong Kong and Singapore
Four years after UBS Wealth Management first announced the global tech project, the bank has gone live with its One Wealth Management Platform (One WMP) in its Hong Kong and Singaporean booking centres, Asian Private Banker understands.
FAMILY OFFICE/IAM | STRUCTURED PRODUCTS | TECHNOLOGY | EXCLUSIVE 9 October 2017
UBS and Synpulse enter into structured products partnership
Synpulse, a private banking integration advisor, has partnered with UBS to spearhead its actively managed certificates (AMCs) platform, Asian Private Banker can reveal.
TECHNOLOGY | EXCLUSIVE 11 October 2017
Hong Kong-based Privé Holdings acquires wealthtech firm
Independent asset management (IAM) tech specialist Privé Holdings has acquired a Singaporean fintech firm that specialises in providing an online marketplace for high net worth individuals, private banks and IAMs, according to a statement seen by Asian Private Banker.
Extra People Moves:
PEOPLE | EXCLUSIVE 10 October 2017
HSBC Private Banking loses North Asia market head
A Singapore-based market head for North Asia, Hong Kong, at HSBC Private Banking has stepped down from his role, Asian Private Banker can reveal.
PEOPLE | EXCLUSIVE 12 October 2017
UBP names new head of investment advisors for South Asia
A former equity sales director at Citigroup Global Markets has joined UBP as head of investment advisors for South Asia, according to an internal memo seen by Asian Private Banker.
PEOPLE | EXCLUSIVE 11 October 2017
Bank of Singapore names new NRI team head in Hong Kong
Bank of Singapore has nabbed a former senior NRI banker at Credit Suisse Private Banking to head its non-resident Indian (NRI) team in Hong Kong, Asian Private Banker has learnt.