For relationship managers (RMs), client conversations have often started with a product to meet an immediate need. Bank of Singapore’s Whole Portfolio Advisory (WPA) takes a different path, focusing instead on a broader, more holistic view. So how is the bank preparing its RMs, the core front-facing advisers, for this shift?

Speaking to Asian Private Banker, Vivienne Chia, global head of investment solutions group, explained that, particularly in Asia, conversations with an RM typically begin with a product and how it can help to achieve investment objectives.

“What we are trying to do now is shift this conversation towards a more holistic approach, hence the term Whole Portfolio Advisory. It is not just about a single product or immediate client need, but about considering the client’s entire portfolio and long-term objectives,” Chia told APB.

In other words, the WPA, which was launched in January, combines strategic asset allocation (SAA) with discretionary portfolio management. Using the SAA model as a foundation, RMs can present clients with solutions tailored to their risk appetite.

For example, clients can personalise their portfolio by deviating from the SAA model, such as creating a satellite portfolio to capitalise on short-term opportunities, giving them greater flexibility beyond the long-term SAA.

RM education

To embed this shift, the bank has structured RM training into multiple phases.“In terms of the education process, we view it as a multi-phase approach. It can be considered a three-phase or even four-phase approach if the end clients are ultimately included,” Chia said.

The first phase focuses on investment specialists, ensuring everyone understands the concept. The second phase involves generalist investment advisers, while the third phase trains RMs, which includes role-playing exercises.

For Chia, the priority is ensuring that RMs understand how the SAA applies to different risk profiles, as this forms the foundation for learning the WPA approach.

“The second challenge is educating RMs on the benefits of a WPA approach versus a product driven approach.”

“The first part, which RMs undergo, is what we call WPA level one, where all the products in the portfolio are broken down into single asset classes,” Chia continued.

“This 101 training gives RMs a solid foundation, ensuring they understand how different asset classes interact, such as the often inverse relationship between equities and bonds, before moving on to portfolio construction,” she said.

At level two, different product solutions are commingled. For example, equities can be combined with FX to hedge currency risk, or leverage can be added to see its impact.

The training, which runs half to a full day, brings together colleagues from multiple functions. The CIO office covers asset allocation, followed by discretionary portfolio management and other advisory products, with role-playing exercises to help RMs practise delivering a WPA conversation.

Measure readiness

One of the main challenges in implementing the WPA approach is that RMs come from different educational and professional backgrounds, with differing levels of knowledge in finance and products. So, the course needs to be designed to address this uneven base.

“The second challenge is educating RMs on the benefits of a WPA approach versus a product-driven approach. The WPA approach requires more time and effort from RMs compared with a single-product approach, where they can simply present the product and its story,” Chia pointed out.

This raises the challenge of limited time for RMs, which is why all specialists are brought together to cover all the topics. Chia said that the bank is still in the early stages of implementation and is using a combination of approaches to assess RM readiness.

“Firstly, we will work with a few key opinion leaders who are closely involved with us and are already prepared to engage in these discussions. These could be RMs with significant experience in discussing the whole portfolio, whether through the DPM concept or otherwise, as they already provide a strong foundation to build upon,” she said.

“So, like-for-like, the fees do not increase, but the quality of the advice has improved.”

Through their help, Chia will also be able to identify people in their respective teams who are capable of having this conversation. The second phase focuses on expanding readiness across the wider RM team, as it is quite different having 10 RMs ready compared with 400 RMs ready to have this conversation.

This will involve a longer learning and development journey, potentially including staged certification and modular training with a clear progression path to assess readiness. Through the support of experienced RMs, Chia will also be able to identify others in their teams who are capable of engaging in these discussions.

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Fees and returns

WPA fees depend on what the client chooses to include in their portfolio. Although the advisory approach has changed, the fees are similar to a traditional approach, according to Chia. For example, whether a client gets advice on individual stocks or a dividend-focused equity portfolio, the fees remain comparable since the underlying product type is the same.

“So, like-for-like, the fees do not increase, but the quality of the advice has improved,” Chia explained. “The comparison lies in the advice itself, a holistic approach that considers your longer-term needs and includes an assessment of your overall situation, rather than focusing solely on a single goal, such as achieving a higher yield today.”

When asked about returns, Chia said that the WPA approach is a balancing act between returns and risk. “I would not compare a traditional approach and a WPA approach purely by returns, because from a returns perspective, it is a single dimension and may not conclusively indicate a superior outcome,” she concluded.