This is a sponsored advertorial from Neuberger. A shifting rate environment and narrowing margins for error are raising the bar for fixed income investors and rewarding those with the breadth and skill to navigate it. The question facing allocators is no longer whether to own bonds, but which ones to own and which to avoid.  The easy gains are behind […]

The post In fixed income, precision is now the alpha appeared first on Asian Private Banker.

This is a sponsored advertorial from MSCI. As clients demand more personalisation and portfolios become increasingly multifaceted, wealth managers across Asia Pacific are evolving. Hassan Suffyan, head of wealth for APAC & EMEA at MSCI, shares how firms are balancing the discipline of house views within both advisory and discretionary portfolios while adapting to a new era of client personalisation. […]

The post The model portfolio dilemma: Aligning house views with client reality – A Q&A with MSCI appeared first on Asian Private Banker.

This is a sponsored article from Schroders. It is time we acknowledge that active investment management is more than stock selection, writes Schroders group chief executive Richard Oldfield. Where is the familiar scepticism toward active management? That was only a few years ago, but the debate has moved on by leagues. The binary poles of active and passive are less […]

The post The old “active vs passive” debate is dead – here’s why appeared first on Asian Private Banker.

This is a sponsored article from Endowus. Endowus is leading innovation to bring private market investments to a wider pool of investors in Hong Kong and Singapore. Just half a decade ago, private wealth solutions were exclusively available only to the ultra wealthy, those with investable assets of US$5 million or more, and large institutions such as family offices, sovereign […]

The post Bridging the gap: Elevating standards in private wealth appeared first on Asian Private Banker.

The more than decade-long low-interest environment in the wake of the 2008 global financial crisis has upended the 60:40 portfolio as investors seek yield-delivering substitutes from the traditional fixed-income portion of the balanced investments model. The portfolio of dividend-paying stocks and coupon-yielding bonds did well through the 80s and 90s but has since been questioned for its relevance in today’s […]

The post It may be time to rethink the 60:40 portfolio model, not shun fixed-income entirely: PIMCO, J.P. Morgan Private Bank, Credit Suisse appeared first on Asian Private Banker.

DBS Bank has unveiled its Portfolio Advisory Enablement Tool (PAET) to private wealth clients in Asia, the bank announced today. The analysis tool was co-developed by DBS and wealth tech provider Edgelab. It is designed to “swiftly perform in-depth assessments of a client’s portfolio performance and risk exposures, to ultimately produce richer insights focused on clients’ needs”. PAET has been […]

The post DBS launches portfolio advisory tool for wealth clients appeared first on Asian Private Banker.

This is a sponsored article from Vanguard. Factor-based investing has boomed in popularity in recent years as accelerating technology offers investors a systematic and disciplined approach to enhancing returns and controlling risk. When it comes to portfolio construction, how can factors be used? Since each investor has a unique combination of objectives, constraints, due-diligence capabilities, and belief sets, it is […]

The post Catching the uptrend: Four factor applications to power up your portfolio appeared first on Asian Private Banker.

Heads of discretionary portfolio management are cautiously optimistic that relationship managers’ (RM) knowledge of the discretionary offering is on the rise, as evidenced by a survey conducted at Asian Private Banker’s Discretionary Portfolio Management Peer-to-peer Connect in Hong Kong today. The event’s attendees, primarily comprised of DPM heads, senior private bankers and external asset managers, rated RM knowledge of their […]

The post Asia's discretionary heads rate RMs' DPM knowledge a mediocre 6 out of 10 appeared first on Asian Private Banker.

Heads of discretionary portfolio management are cautiously optimistic that relationship managers’ (RM) knowledge of the discretionary offering is on the rise, as evidenced by a survey conducted at Asian Private Banker’s Discretionary Portfolio Management Peer-to-peer Connect in Hong Kong today. The event’s attendees, primarily comprised of DPM heads, senior private bankers and external asset managers, rated RM knowledge of their […]

The post Asia’s discretionary heads rate RMs’ DPM knowledge a mediocre 6 out of 10 appeared first on Asian Private Banker.

Asia’s private banking industry has been pushing hard to increase the discretionary penetration rate throughout the region; but this ambition will require bankers and clients to revisit their perceptions of the discretionary offering, and to shift their focus beyond headline performance figures. “One of the major problems the industry faces with growing discretionary assets is that clients and, often, bankers, […]

The post DPM is a practice and not a product appeared first on Asian Private Banker.

Global macro hedge fund strategies are gaining speed on the back of improved economic momentum in developed markets, with exposure to European and Japanese equities reaping the best return within the product group, says Lyxor, a hedge fund platform. Lyxor’s Global Macro index has led the pack this past week, growing 0.4% week-to-date, from 24th of May to 31st May, 2016. The […]

The post Global macro hedge fund strategies being driven by improving conditions in developed markets, says Lyxor appeared first on Asian Private Banker.

Divergence and a lack of conviction in market calls could be generating abstruse correlation risks for Asia’s HNWIs, whose multi-banking ways and a tendency to focus on headline figures could be offsetting returns. Well known for their tendencies to multi-bank and shop around, Asian HNWIs may be generating correlation risks within their total portfolios without even knowing it. For example, a […]

The post Divergent markets could create correlation risks for Asia’s multi-banking investors appeared first on Asian Private Banker.

While Julius Baer believes that proactivity towards accessibility issues bodes well for the inclusion of Chinese A-Shares on the influential MSCI, the Swiss lender also deems that China’s economy is hanging on “just enough fiscal measures” to maintain a “fragile stability”. “Probability increased” on MSCI inclusion Julius Baer is of the position that the odds have improved for A-Shares to […]

The post A-Shares inclusion on MSCI more likely, but “fragile stability” typifies Chinese economy, says Julius Baer appeared first on Asian Private Banker.

While Julius Baer believes that proactivity towards accessibility issues bodes well for the inclusion of Chinese A-Shares on the influential MSCI, the Swiss lender also deems that China’s economy is hanging on “just enough fiscal measures” to maintain a “fragile stability”. “Probability increased” on MSCI inclusion Julius Baer is of the position that the odds have improved for A-Shares to […]

The post A-Shares inclusion on MSCI more likely, but "fragile stability" typifies Chinese economy, says Julius Baer appeared first on Asian Private Banker.

2016 may well be typified by a lack of conviction about markets and a divergence of views on asset classes, but UBS Wealth Management still believes that there are pockets for returns, primarily in US equities and Eurozone credit. Positive on US equity and investment grade bonds; negative on US HY versus European HY 1-1.5% boost in earnings growth from […]

The post UBS adds US equities, Eurozone credit risks appeared first on Asian Private Banker.

Multi-asset funds and income strategies continue to top rankings in terms of selector interest in Asia Pacific, according to research provider Cerulli. A recent survey shows that asset managers, benefiting from high-yield bond fund outflows, are actively promoting multi-asset strategies in Hong Kong, China and Taiwan. Also piquing interest are European and Japanese equity funds, although equity fund appetite in most Asian markets […]

The post In APAC, appetite for multi-asset and income funds remains appeared first on Asian Private Banker.

Event-driven hedge fund strategies have performed well and should continue to do so due to a cocktail of positive macro factors, including low global interest rates, near-record cash holdings on corporate balance sheets, and sky-high stock prices in the US, reports Lyxor, a hedge fund platform. Event-driven fund indices, including the Special Situations and Merger Arbitrage hedge fund indices, have […]

The post Event-driven hedge funds benefiting from spry M&A activity, says Lyxor appeared first on Asian Private Banker.

Discretionary portfolios remain a tough sell to Asian – and especially Chinese – HNWIs, due to the “current client culture”, notes Value Partner’s head of institutional sales, Marcella Lui, speaking with APB Mandate. Lui notes that the “younger generation” of bankers, facing heightened pressure to onboard new clients, is finding the going tough, given that recently-minted HNWIs are more self-directed in […]

The post Discretionary portfolios still a tough sell in Asia, says Value Partners appeared first on Asian Private Banker.

2016 has been a sluggish year thus far for net fund sales via the private banking channel in Asia, with 50% of relationship managers and investment advisors reporting year-to-date decreases in fund inflows, according to a survey conducted by Asian Private Banker. The poor result is likely attributable to an earlier slump in the global equities market, and a looming rates hike […]

The post Private bankers report sluggish fund sales across Asia appeared first on Asian Private Banker.

Against a backdrop of depressed growth and limited returns, J.P. Morgan Private Bank believes that compelling opportunities can still be found, particularly in developed markets and among the sectors of China’s new consumption-driven economy. However, the bank suggests that investors avoid new commodity plays. Developed markets over emerging markets Positive on Europe and Japan versus US According to Michael Vaknin, chief markets economist at J.P. […]

The post J.P. Morgan Private Bank positive on developed markets and new China sectors appeared first on Asian Private Banker.

An exhausted yen rally USDJPY 3-month forecast: 106; Downgrade view from bullish to neutral Swiss pure play Julius Baer believes that visible headwinds and market over-optimism warrant a downgrade of the currency – from bullish to neutral – and the retention of a USDJPY three-month forecast of 106, even if the yen has some upside remaining. In addition to possibly […]

The post Julius Baer downgrades yen, stays bearish on iron ore and steel appeared first on Asian Private Banker.

In a move aimed to enhance its structured products offering, Bank of Singapore has licensed the Morningstar Exponential Technologies Moat Focus Index, in the process becoming the investment research provider’s first client of its kind in Asia. The index builds on the the concept of an economic moat, or sustainable competitive advantage that allows companies to maintain – if not, […]

The post BoS to leverage Morningstar indices to manufacture structured products appeared first on Asian Private Banker.

The uphill battle to convince Asian HNWIs to invest into discretionary mandates continues, with 68% of private banks in the region indicating that penetration rates remain below 10%, according to a recent survey conducted by Asian Private Banker. Of the 68%, more than half recorded penetration rates below 5%, while 30% of respondents said that discretionary portfolio management (DPM) rates […]

The post 68% of region's private banks report DPM penetration rates of less than 10% appeared first on Asian Private Banker.

Oil prices continue to surge following two consecutive 4% increases, but Julius Baer is cautioning investors against riding the wave, for fear that disruptions in supply-demand rebalancing will be short-lived. Brent crude exceeded US$48 per barrel after yesterday’s closing, a 2016-high for the troubled energy commodity. The price rise occurred after US data indicated large declines in both domestic oil […]

The post Stay calm and don’t buy oil: Julius Baer appeared first on Asian Private Banker.

Oil prices continue to surge following two consecutive 4% increases, but Julius Baer is cautioning investors against riding the wave, for fear that disruptions in supply-demand rebalancing will be short-lived. Brent crude exceeded US$48 per barrel after yesterday’s closing, a 2016-high for the troubled energy commodity. The price rise occurred after US data indicated large declines in both domestic oil […]

The post Stay calm and don't buy oil: Julius Baer appeared first on Asian Private Banker.

Lombard Odier’s CIO APAC, Jean-Louis Nakamura, has come out in favour of emerging market (EM) credits and assets, citing the dovish shift in US monetary guidance, and continued easing from developed central banks. “The Fed has quite explicitly made the choice of an asymmetric priority between growth and inflation public and will clearly take the risk of being behind the […]

The post Overweight emerging credits and assets: Lombard Odier appeared first on Asian Private Banker.

In its drive to generate recurring income, Bank of Singapore has raised US$143 million year-to-date from its UHNW clients with a diversified portfolio of Asian equities and bonds. According to the bank, the strategy offered “timely respite to clients looking for steady returns” amidst heightened and persistent market turbulence since 2015 In addition, the Singaporean private bank has also raised […]

The post Managed investment assets grow at BoS; multi asset strategy raises US$143 million from UHNWIs appeared first on Asian Private Banker.

Although it has been a rough year for global equities — the MSCI World index is down more than 4% year-to-date — UBS Wealth Management advises investors to stay invested in equities over bonds, due to earnings tailwinds for the former asset class and deteriorating credit fundamentals in the latter. Retain overweight on AxJ versus Asian credit “Nascent signs of […]

The post Stay positive on equities over bonds: UBS Wealth Management appeared first on Asian Private Banker.

Singaporean lender, DBS, has said that it expects a correction in global equity markets due to heightened FX volatility and central banking policies. Since 19 April, 4% has been shaved off the MSCI All Country World Index, reversing a short-lived, two-month rally. Risk aversion has since intensified, as investors keep a cautious eye on: a surge in FX volatility widely perceived […]

The post Equity correction to persist: DBS appeared first on Asian Private Banker.

Persistent market turbulence, while undermining confidence in conventional investment approaches, is piquing some interest in beta solutions including quant strategies. However, a survey conducted by Asian Private Banker reveals that general client hunger for such products remains muted, and that private banks across Asia are reticent to assume early mover status in the beta space, instead preferring to wait out the […]

The post Private banks, clients remain lukewarm on quant strategies appeared first on Asian Private Banker.

Amidst ongoing market hostility, BNP Paribas Wealth Management in Asia is recommending that clients add exposure to hedge fund strategies combined with credit-linked notes (CLNs), so as to better manage portfolio volatility and minimise correlations to traditional assets. The French wealth manager is advising clients, where suitable, to pick up exposure across a range of long-short equity strategies – the […]

The post BNP Paribas WM recommends long-short strat with CLN appeared first on Asian Private Banker.

Lombard Odier, citing concerns about Japan’s higher tolerance for economic weakness and “muddled communication”, has opted to “modestly reduce” its Japanese equity exposure, on the back of the Bank of Japan’s (BoJ) decision to not change its monetary policy. The BoJ has revised a number of earlier forecasts, pushing back its target date for reaching 2% inflation from 2015H1 to […]

The post Lombard Odier limits Japan exposure following BoJ inaction appeared first on Asian Private Banker.

The first quarter of 2016 was virtually a consensus write-off for fund selectors at private banks, with over 69% meeting less than 15% of their annual target, according to a survey conducted by Asian Private Banker. The poor result confirms the fact that this has been the worst start for equities in two decades, with looming FICC (fixed income, currencies and […]

The post Asia’s selectors lag behind in annual targets appeared first on Asian Private Banker.

Notwithstanding concern over fundamentals in emerging markets, BNP Paribas Wealth Management is betting on India and Indonesia equities on the back of accommodative monetary policies and low consumer debt levels. The French private bank likes India equities in the long-term, especially after they underperformed against emerging markets year-to-date despite tailwinds generated by high growth prospects relative to other major nations, a slowing […]

The post BNP WM sounds positive note on India and Indonesia equities appeared first on Asian Private Banker.

On the back of positive macro data, Julius Baer believes that China is showing signs of stabilisation – and perhaps even improvement – but cautions against overzealous ventures into iron ore. According to Eric Mak, China and Hong Kong analyst at the Swiss private bank, the Shanghai benchmark continues to experience strong resistance at 3,000 points — a key psychological marker […]

The post Julius Baer positive on a stabilising China, negative on iron ore appeared first on Asian Private Banker.

Dragged by concerns about cost and liquidity, hedge funds are losing out in target-date asset managers’ portfolios, according to a report from analytics firm Cerulli Associates. The survey finds that demands for liquidity and the expense of adding high fee alternatives are the two foremost obstacles preventing asset managers from including alternatives such as hedge fund strategies in portfolios. Of those target-date fund managers […]

The post Asset managers facing hedge fund hurdles: study appeared first on Asian Private Banker.

Rather than merely hammering home the academics of long-term investing, UBS has launched a discretionary portfolio management (DPM) solution designed to aggressively minimise downside participation when risks arise. Driven excessively by emotional swings and a general lack of investment discipline, high net worth individuals (HNWIs) in the region remain averse to staying invested and reaping the benefits of long-term active management. “We’ve noticed that in more […]

The post UBS to manage emotionally-driven redemptions with new DPM solution appeared first on Asian Private Banker.

Amid a low-to-negative rate environment with little sign of any material reversal in the near-term, the hunt for yield is becoming increasingly onerous. Consequently, Lombard Odier is advising investors to rethink their emerging market (EM) fixed income allocations, as the catch-all classification loses its functional relevance. “We believe that the need for yield coupled with signs of attractive valuations demands […]

The post Rethink EM yields: Lombard Odier appeared first on Asian Private Banker.

UBS has extended its advisory and mandate solution offerings through a digital platform aimed at affluent Taiwanese clients with assets as little as US$250,000 invested with the bank on a contract-based flat-fee basis. In addition to customized advisory and mandate solutions, the new “smart wealth management offering”, which has over 1000 mutual funds available on the investment selection platform, will […]

The post UBS launches smart wealth management offering for Taiwan affluent appeared first on Asian Private Banker.

Following the acquisition of Coutts’ private banking business in Asia Pacific, UBP has said that it intends to expand its discretionary portfolio offering in Hong Kong and Singapore, relying on the asset management arm of the bank to offer product expertise in A-Shares products. Currently the Swiss pure play has no onshore presence in China, but UBP seeks to leverage its team […]

The post UBP plans to expand DPM offering in A-Shares products appeared first on Asian Private Banker.

Noah International has further bolstered its investment capabilities – particularly in private equity – with the hire of a new co-CIO. Wang Piau Voon, formerly a partner with Adam Streets, joins the Shanghai-based wealth manager as its new co-CIO, to alongside William Ma, while also overseeing private market strategies. “We are very excited to have PV (Piau Voon) on board. He […]

The post Noah hires new co-CIO from Adam Streets Partner appeared first on Asian Private Banker.

Compressed and volatile public global capital markets are driving private banking clients’ appetite to trade illiquidity for higher long-term returns. Accordingly, UBS is hoping to tap into this demand by launching ‘endowment-styled’ discretionary mandates in the latter part of 2016. “We have further innovation in our investment mandate offering on the way … as we look to launch additional portfolio strategies […]

The post UBS to launch 'endowment style' discretionary mandates in Asia appeared first on Asian Private Banker.

HSBC Private Bank has announced a new head of investment strategy for its APAC advisory services. Fan Cheuk Wan has been appointed managing director, head investment strategy Asia. Her duties as head of investment strategy will include developing regional investment strategies and themes across all asset classes, and, additionally, she will oversee the management of HSBC Private Bank’s advisory framework and the […]

The post HSBC Private Bank appoints managing director to APAC advisory team appeared first on Asian Private Banker.

Banks remain in the driver’s seat of China’s onshore asset management industry, which turned in a “record-high” RMB23.5 trillion (US$3.6 trillion) in wealth management product (WMP) assets under management (AUM) in 2015, notes a global analytics firm. This means that banks maintain their leading position in the sector “ahead of trusts, insurers, and fund management companies”, said Cerulli in a […]

The post Mainland WMP assets set for more growth, regulation appeared first on Asian Private Banker.

As markets continue to test traditional investment assumptions and scrutiny of fundamental active management grows, private banks in the region continue to gauge interest on quantitative investing with scant but material interest, and not just in commodity trading advisors (CTAs). In addition to CTAs, private banks and asset managers are in the midst of distributing other quant strategies in the […]

The post Asian HNWIs begin dipping into more quant strategies appeared first on Asian Private Banker.

China plans to kickstart the long-awaited stock connect scheme between Hong Kong and Shenzhen in 2016, the country’s premier Li Keqiang revealed today at the country’s annual parliamentary National People’s Congress. This will expand on the current trading link between Hong Kong and Shanghai that kicked off in November 2014 to great fanfare. Sentiment however, has soured since Chinese equities market […]

The post Shenzhen-HK Stock Connect could start this year, says China premier appeared first on Asian Private Banker.

Investment banks continue to have a brokerage approach to structured product distribution, even as private banks are adamant that they focus on a more sophisticated advisory role. “Best execution is no longer a differentiator,” says a capital markets veteran at a major private bank in Asia, echoing the sentiments of many industry players. “Any investment bank that isn’t truly committed […]

The post I-bankers need to generate more ideas, say p-bankers appeared first on Asian Private Banker.

Just less than three years ago, the distribution of exchange-traded funds (ETFs) at private banks in Asia was still in its embryonic stages, and it was anybody’s guess when or if the market would grow to rival its western counterparts. This is no longer the case, with ETF assets owned by wealthy Asian investors rising by as much as 200% […]

The post ETFs gain private banking boost appeared first on Asian Private Banker.

Cognisant that this is the year to time markets to move in and out to generate meaningful total return, Credit Suisse is launching a tactical fund recommendation list in the region, with a focus on the short-term trading elements of exchange-traded funds (ETFs). “[The list] mainly consists of ETFs,” says Rodolphe Larqué, Asia Pacific head of funds and ETFs at Credit […]

The post Credit Suisse launched tactical fund list in Asia appeared first on Asian Private Banker.

The seemingly unstoppable slowdown of China’s economy has triggered a chain reaction in the emerging markets, the chief strategist of Group Crédit Mutuel-CIC told wealthy clients yesterday. François Duhen advised “extra caution” when investing in emerging markets, noting that developed markets are preferred as they are “able to withstand external pressure.” In a CIC Banque Privée finance seminar titled “China: Domino Effect?” […]

The post “Continued slowdown” expected in emerging markets appeared first on Asian Private Banker.

Private banks in Asia are witnessing an evolution of the fixed income trading platforms that they are plugged into. However as Asian Private Banker finds out, distributors and technology platform providers remain divided on what the perfect platform should look like. (This article first appeared in Issue 96 of Asian Private Banker’s monthly print magazine, published in the first week of February 2016.) […]

The post Tech platforms: More bang for your bond? appeared first on Asian Private Banker.

Weak growth and diverging monetary policies to set the stage for fixed income operations this year, experts tell Asian Private Banker. (This article first appeared in Issue 96 of Asian Private Banker’s monthly print magazine, published in the first week of February 2016.) Leveraging is set to be a thing of the past, risk control will take priority, and the fixed income business may […]

The post Fixed income to stay elusive in 2016 appeared first on Asian Private Banker.

As oil prices may be bottoming out, smart solutions are available that “can be tailored to express and capture such particular market views”, says the head of investment services in Asia for BNP Paribas Wealth Management (WM). Oil prices have been on the slide since 2014, with Brent, in particular, at its 13-year low, Arnaud Tellier tells Asian Private Banker, […]

The post Volatile oil market calls for yields enhanced products, says BNP Paribas WM appeared first on Asian Private Banker.

Amidst an outflow of asset from equity funds due to a China-induced turmoil, US equities may provide a safe haven due to the strengthening dollar, research shows. Market watchers may find US equity funds facing macro headwinds such as a potential “risk-off” stance by the investors, sparked by the run-up to the US presidential election, rich valuations, and more importantly the FX […]

The post Soaring greenback benefiting European funds appeared first on Asian Private Banker.

“If you want to differentiate, you’ll need to stick your neck out,” says one private banker, lamenting on the lacking diversity of discretionary offerings in Asia and blaming it on the risk averseness of product launches. “With just generic multi-asset or equity mandates divided into three or five risk profiles, we are all competing for the same assets,” notes the […]

The post Private bankers blame lagging DPM sales on lack of specialised mandate appeared first on Asian Private Banker.

While the Chinese market made an unpleasant start to the year with a 7% tumble in the Shanghai Composite, private banks were largely insulated as appetite has not yet recovered from last year’s second half malaise, say private bankers. China kicked off the year with a less-than-ideal reading from the Caixin Purchasing Managers’ Index (PMI) which sent markets in the region […]

The post Asian HNWIs largely untouched by Chinese market plunge, say wealth managers appeared first on Asian Private Banker.

Starting 4 January 2016, China’s central bank said the country will double the renminbi’s trading hours, as it prepares to join the International Monetary Fund’s (IMF) reserve currency basket in October. This, experts note, is the first step toward making yuan trading hours in line with currencies like the greenback, euro and yen. The People’s Bank of China said yesterday that yuan […]

The post China extends yuan trading hours, may revoke fund management registrations for banks appeared first on Asian Private Banker.

This article is contributed by Todd James, Asian Investment Institute. James has more than a decade’s experience in private banking in Asia. Some of this was at Lombard Odier as Asia head of investment services and advisory, and BSI as head of wealth management services and HSBC Private Bank as head of investment advisory group, both of which he oversaw […]

The post Trading Edges: Weighting in on profits, go ahead risk it appeared first on Asian Private Banker.

Despite recent market volatility, Coutts sees “reasons to be cheerful” due to a divergence between economic indicators, which remain positive, and investor sentiment; this has led the British wealth manager to make overweight calls on equities and high yield bonds. “Markets are seeing the glass as half empty,” says a Coutts report which highlights the latest drop in oil prices due […]

The post Coutts overweight on equities and high yield bonds appeared first on Asian Private Banker.

This article is contributed by Todd James, Asian Investment Institute. James has more than a decade’s experience in private banking in Asia. Some of this was at Lombard Odier as Asia head of investment services and advisory, and BSI as head of wealth management services and HSBC Private Bank as head of investment advisory group, both of which he oversaw […]

The post Trading Edges: Can 88 really make a fortune? appeared first on Asian Private Banker.

Amid a second half of volatility in global markets, Asian HNWIs this year began to try their hand in discretionary mandates as 44% of private banks in the region experienced up to 20% in the growth of penetration rates. This was according to a survey conducted at the DPM Peer-to-Peer Connect Series, a recent event held by Asian Private Banker. […]

The post DPM penetration rates in Asia grew by up to 20% YoY in 2015 appeared first on Asian Private Banker.

Credit Suisse tripled its Asia Pacific growth in advisory and discretionary mandates sales on a year-on-year basis for the first half of 2015. In a report, the Swiss lender announced that mandates penetration – both advisory and discretionary – rose to 20% from 17% as at end-2014. It also noted that “strong sales momentum is expected to continue.” In Asia Pacific, […]

The post Credit Suisse triples APAC mandates sales appeared first on Asian Private Banker.

Sensing a widening sweet spot between discretionary and client-directed investing, particularly against traditional hands-on tendencies of Asian HNWIs, Swiss pure play EFG tells Asian Private Banker that it is aiming to push out a new advisory mandate in the region. “One of the ways to make up for lost revenue should trailer fees be abolished is to grow flat-fee business, keeping in […]

The post EFG eyes launch of new active advisory offering in Asia appeared first on Asian Private Banker.

While the recent global markets volatility, yuan depreciation and US Federal Reserve rate hike conundrum continue to cast deep shadows over private banking portfolios, top private bankers say clients are now shrugging off initial fears and turning to alternative investments. “It’s been a summer sale for clients as this is a buying opportunity in the markets despite the huge focus on the Fed […]

The post HNWIs eyeing “summer sale” buying in alternatives appeared first on Asian Private Banker.

Malaysian lender Maybank is expected to bolster its private banking business in Singapore with the launch of a new discretionary portfolio service. The private bank with a 35-strong relationship management team aims to make a soft launch of the new offering, headed by Ang Kui Moon, senior director of discretionary services, with a focus on profile mandates. The private banking […]

The post Maybank set to launch DPM by year-end appeared first on Asian Private Banker.

Contrary to popular opinion, a recent study reveals that more than 60% of Asian HNWIs are in fact willing to pay for advice, with a key factor being advisers’ real understanding of financial goals. This was agreed by 40% of HNW respondents in the region as the most influential motivation to drive willingness to pay for advice, ranking second only […]

The post Asian HNWIs ready to pay for goal-oriented advice appeared first on Asian Private Banker.

The wealth management universe has worked long and hard in recent years to convince clients on the benefits of diversification and delegation. Unsurprisingly, results vary widely. A study into the region’s private banking portfolios reveals three common types of HNW investors: the Credit Addict, the Fence Sitter and the Fortified. (This article first appeared in Issue 91 of Asian Private […]

The post A pre-hike diagnosis of Asian HNW idiosyncracies appeared first on Asian Private Banker.

Private banks continue to approach discretionary portfolio management (DPM) from a product-pushing perspective, says the head of Greater China at BNY Mellon Wealth Management (WM), which is different from “true discretionary.” “When you are a client walking into [a private bank] asking for a discretionary mandate, they will show you a high growth mandate or a stable income mandate, depending […]

The post Product-pushers are not delivering real DPM, says head of BNY Mellon WM Greater China appeared first on Asian Private Banker.

Metrics measuring environmental, social and governance (ESG) risks within investments are playing an increasingly prominent role in global portfolios but are Asian HNWIs ready for this less-than-sexy topic? Morningstar’s Steve Smit, who heads the global research firm’s ESG programme, believes so. Although assets from Asia invested into ESG principles is still relatively low, Smit is already observing interest from private […]

The post Asian HNWIs buying into sustainable investing, says global research firm appeared first on Asian Private Banker.

UBS is making an all-out push for Asia’s UHNWIs with the launch of its Ultra Investment Solution (UIS), a discretionary portfolio mandate (DPM) at the highest asset threshold of US$50 million. Asian Private Banker understands that the Swiss major contemplated long and hard about the value proposition for a discretionary mandate at such a price point, the aim of which is to offer “truly customised, […]

The post UBS raises DPM profile in Asia with US$50 million-ticket offering appeared first on Asian Private Banker.

Wealthy Indians are making significant shifts to their allocations as equities are expected to receive significant inflows from real estate and fixed income outflows. Based on a survey by Kotak Wealth Management, HNW respondents expect equity to make 20% returns in the next five years. This is specifically due to the improved outlook of the Indian market, coupled with a stagnating […]

The post India HNWIs to make significant allocation shifts to equities appeared first on Asian Private Banker.

UBS wants its automated advisory platform UBS Advice to set the benchmark on customising scalable advice, so that clients get a more fluid and tailor-made service. “Everyone can claim that they are capable of customising portfolios but how many really can?” asks Chang Linyun, head of strategic investment Taiwan, UBS Wealth Management. “Many of our competitors can probably build a bespoke […]

The post Digitally scalable customisation “not easily replicable”, says UBS appeared first on Asian Private Banker.

Crédit Agricole Private Banking has upped its discretionary assets in Asia by 20% in the last ten months, Asian Private Banker has learnt. This proves that contrary to general thinking, more HNW clients are now willing to delegate if conditions are right, says the bank’s Asia head of discretionary portfolio management (DPM). The French lender’s DPM penetration rate now sits at […]

The post Crédit Agricole discretionary assets in Asia grows 20% appeared first on Asian Private Banker.

UBS rolled out its new flat-fee portfolio screening system in Taiwan yesterday on the back of expectations that it could help grow AUMs managed by the digital advisory solution by 14%. “UBS sees huge potential in the wealth management industry in Asia Pacific and Taiwan, and is well positioned to benefit from the growth,” said Edmund Koh, group managing director […]

The post UBS Advice raised US$22 billion in two years, Taiwan launch could add 14% in assets appeared first on Asian Private Banker.

“20 stocks can reduce risks by up to 70%,” comments Andrew Wong, citing Princeton economist and critically acclaimed author, Burton Malkiel. “How much risk could a gathering of [industry leaders] reduce?” Despite the market headwinds investors will face from interest rate risks and possible capital flow reversal, Wong is confident in the prospects of Hong Kong as an asset management […]

The post Hong Kong’s permanent secretary of financial services bullish on asset management hub potential appeared first on Asian Private Banker.

“When a product is headlined with an 8% payout, it is quite an easy sell to clients in the current environment,” says Chandrima Das, head of fund solutions at the Bank of Singapore. “If we were to on-board such a fund, we could easily write US$50-100 million in business, but when we consider the positions in three to five years’ […]

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UBS Wealth Management lays out the argument for greater penetration into the Chinese markets. In a press briefing entitled “Untapped investment opportunities in China”, David Rabinowitz, head of direct execution, Asian equities, at UBS Wealth Management told the audience that after the success of measures such as the Shanghai-Hong Kong Stock Connect, “now it is about stage two of the […]

The post UBS bullish on China mid-caps appeared first on Asian Private Banker.

Over the last two years, high net worth individuals (HNWIs) in Asia are growing more sophisticated in their knowledge of structured products, opting for notes with varied payoffs – non-flow products – in addition to plain vanilla structures, Calvin Yeap, head of equity derivatives trading, Singapore at DBS Bank says. “We have definitely seen investors become more comfortable dealing in […]

The post Investors look for equity-linked structured notes with varied payoffs appeared first on Asian Private Banker.

Asian Private Banker asks gatekeepers at some of the region’s top private banks how prepared Asian HNWIs are for a rate hike by the US Federal Reserve, predicted to be announced in the last quarter of this year. Many private banks are preparing clients for a quarter percent rise in interest rates in the last quarter of this year and […]

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Struggling with a global environment where quality yields are difficult to source, Asian HNWIs continue to favour multi-asset funds – some industry observers have called the spike in demand “overwhelming”. Varying between dividend stocks, selective bonds and a growing range of more innovative sources of income, this breed of solutions has allowed asset managers greater flexibility than ever before in […]

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Playing it safer than most, Deutsche Asset & Wealth Management (AWM) is contemplating a roll-out of an additional risk overlay in its discretionary mandates to even better manage risks. “During a recent offsite with Deutsche Asset & Wealth Management’s multi-asset group, we spoke about introducing a risk overlay feature to help manage the risk budgets of our UHNW clients,” said […]

The post Deutsche Asset & Wealth Management: Considers risk overlay for discretionary mandates appeared first on Asian Private Banker.

Clients at BNP Paribas Wealth Management’s Asia unit participated heavily in Hong Kong and China equities, making up 50% of net new investments year-to-date at the French private bank. Since November 2014, the Shanghai Composite Index and the H-Share Index surged 100% and 40%, respectively, as investors were fuelled by optimistic prospects of loosening monetary policy and financial reform. “For […]

The post BNP Paribas Wealth Management: 50% of net new investments made in Hong Kong and China appeared first on Asian Private Banker.

Bond markets have been grabbing headlines recently due to unprecedented negative yields, followed by sell-offs in Europe at the beginning of May. Despite the sell-off and the resulting return to positive yield territory, private bankers do not see the current climate as being an anomaly, but rather a sign of things to come. “The current situation of low to negative […]

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Despite a slowing economy, there is room for growth in Chinese equities, although the recent stock market run should be treated with caution, asset manager Standard Life Investments told a media briefing today. Speaking at the briefing, Magdalene Miller, portfolio manager, China equities, said “China has a lot of levers to push, and a lot of room to grow,” referring […]

The post Standard Life Investments positive on long-term China growth appeared first on Asian Private Banker.

European equity, Mid-and small cap funds: Clients are still adding to European equity positions since the European Central Bank finally adopted all-out Quantitative Easing. This is often in the form of a rotation away from US equity, where the current earnings season adds to valuation concerns. Higher risk-tolerance clients are looking at specific markets such as Spain and Italy, which both […]

The post What's selling at private banks appeared first on Asian Private Banker.

Global investors may be bracing for the consequences of the US Federal Reserve’s imminent decision to increase interest rates, but Asian HNWIs are less concerned, believing the consequences of a Fed hike remain minor. They may have moderated their appetite for fixed-income investing but not reined it in completely. “The pending decision for the Federal Reserve to increase rates hasn’t […]

The post Fed hike? What Fed hike? appeared first on Asian Private Banker.

High net worth investors are opting to allocate more than half their alternative investment portfolio to private equity despite its illiquid nature, according to those overseeing alternative investments within private banks in the region. “We advise those clients with a suitable risk appetite to allocate up to 20% of their portfolios to alternative investments, out of which private equity accounts […]

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XIE Shares, the ETF arm of Enhanced Investment Products (EIP) launches a fund tracking US-listed Chinese stocks in the FTSE China N-Share index. The physically-backed ETF, launched today, is the first to enable Hong Kong investors to trade in N-Share stocks during Hong Kong trading hours. The ETF is made up of 25 constituents, 83% of which are internet companies, including […]

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XIE Shares, the ETF arm of Enhanced Investment Products (EIP) launches a fund tracking US-listed Chinese stocks in the FTSE China N-Share index. The physically-backed ETF, launched today, is the first to enable Hong Kong investors to trade in N-Share stocks during Hong Kong trading hours. The ETF is made up of 25 constituents, 83% of which are internet companies, including […]

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High net worth and ultra-high net worth investors at a Credit Suisse conference expressed optimism surrounding the pending US Fed rate hike decision and indicated a sense of stability surrounding recent global economic trends. According to a poll of 370 attendees taken at Credit Suisse Private Banking and Wealth Management’s annual global “megatrends” conference in Singapore, 72% believe that the […]

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The People’s Bank of China’s move to cut 100 basis points from banks’ reserve requirement ratio (RRR) is the largest since 2008, and reflects deep and growing concern from the Chinese central bank about structural problems in the economy, according to one private bank head of advisory. The PBOC announced yesterday (19 April) that banks’ RRR was being cut, following […]

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Asian HNWIs characteristically focus on the headline yield as asset managers push for dividend stock strategies, but M&G Investments warns against neglecting the prospects of dividend growth. “[Our strategy’s] focus is on dividend growth rather than dividend yield,” says Kotaro Miyata, investment specialist with M&G. “There is  a problem for those strategies screening for yield, as high yield tends to be indicative […]

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Changing cost structures, greater client education and new attitudes towards ETFs are spurring growth in the region, according to James Martielli, head of portfolio review at fund manager Vanguard. ETFs in Hong Kong are highly popular retail instruments, but they should be utilised more as part of a broader, longer-term investment outlook, says Martielli. “ETFs should be treated as long-term investments. […]

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Deutsche Asset & Wealth Management (Deutsche AWM) is cutting commission fees as it celebrates being granted a new RQFII quota worth RMB6billion (US$ 960 million). The German lender will cut fees from 1.1% to 0.65%, and expand its db x-trackers Harvest CSI300 index UCITS ETF, currently with US$700 million in AUM, in the wake of the RQFII quota increase granted […]

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The market for commodity trading advisors (CTA) funds is gaining interest from high net worth investors in Asia because of the ability of the hedge fund to deliver above-average returns. This follows increased hedge fund allocation for private banking clients, which has led to a surge in CTAs, a hedge fund strategy that includes investment in the buying and selling […]

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Asian high net worth individuals (HNWIs) are increasing their exposure to hedge funds by allocating up to 20% of their overall portfolio to the asset class – double from last year. The surge in demand is a result of a spillover from last year’s rebound, and the asset class is set to continue at full steam this year, those overseeing […]

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BNY Mellon Wealth Management estimates that discretionary portfolio management (DPM) is less than 12% in Asia, while industry insiders peg DPM penetration at 4%. “Currently we estimate that discretionary management is less than 12% of the total Asia Pacific market but the demand is increasing at a quick pace,” says Chuck Long, head of Greater China, BNY Mellon Wealth Management. […]

The post DPM demand at 12%, but climbing appeared first on Asian Private Banker.

Stanley Gibbons, the UK stamps, rare coins and collectives trader, has opened its US$70 million rare stamp fund to private banks to take advantage of the growing interest in stamps as a lucrative alternative investment, especially for those with a penchant for philately. “While stamp investors only account for 1% of the universe of stamps – the rest being collectors […]

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Morgan Stanley’s private wealth clients are taking advantage of bubbling demand by investing in US student housing. “The demand for enrolling in US universities, especially among foreign students, is growing significantly every year,” says Ernest Chan, head of Asia investment management services, Morgan Stanley Private Wealth Management. “As such, demand for student housing is high and rentals are steady.” Chan […]

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A collective push by regulators and practitioners, coupled with uncertain markets, has led penetration into  discretionary portfolio management (DPM) in Asia to gain traction as the industry persists in its quest to obtain more predictable and stable recurring income. According to a straw poll of several private banks, the average DPM penetration rate in Asia is currently at 7%, which also […]

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