Anthonia Hui, AL Wealth Partners

Issue 2, 2016

Hubbis Award for ‘Excellence in Asian Wealth Management’

NEW STRATEGIES TALENT FIX FUND PENETRATION EVENT HIGHLIGHTS PROPER ADVICE Finding a new formula How to fill the Can we finally remove A round-up of our UBS approaching for private banking shortage in Asia the blockage? recent forums clients in a new way Enjoy your moment in the Sun

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Life’s brighter under the sun Foreword

This is the latest edition of our Quarterly publication covering Asian wealth management.

This is being produced at a time which The blurring of the lines between the is probably the most difficult ever for various types of organisations operating the wealth management and private in this space also brings with it areas of banking industry in Asia. overlap and commonality.

The last 12 months have been particu- To cater to this, the publication covers larly tough, and the challenges that firms Private Banking, Retail Banking, Indepen- face are mounting. dent Wealth Management, Family Offices, Insurance, Asset Management, Technol- From the economic environment, tax ogy, and also Professional Services. amnesty and regulatory scrutiny, to the debate over onshore versus offshore, Asian Wealth Management is created and the continued hunt for both talent in conjunction with – and for – senior and growth – chief executives are re- management, product gatekeepers, considering their business models, along business heads across compliance, op- with the strategic choices they need to erations, technology, advisory and sales, make, in order to remain relevant. and other key stakeholders from the top international, regional and domes- The content in this issue should be rel- tic organisations across the community evant to anyone who is serious about with which Hubbis has worked hard building a sustainable and profitable over the past six years to build relation- wealth management business in Asia. ships and enhance connectivity.

ANDREW CROOKE EDITORIAL AND CONTENT DIRECTOR HUBBIS Contents

Cover Story

18 DOING THE RIGHT THING FOR A BRUISED INDUSTRY Anthonia Hui is no stranger to taking on big challenges and sticking to her beliefs about what is best for her clients. Her tenacity, professional success and commitment to the next generation of bankers are key traits which have earned her the Hubbis Award for ‘Excellence in Asian Wealth Management’.

Feature Articles

02 STUCK BETWEEN A ROCK AND A HARD PLACE The Asian private banking industry needs a new formula via digitalisation and an unrelenting focus on customers’ needs and experiences, as it strives to adapt and evolve in how it interacts with clients.

32 HOW TO SUCCEED IN A NEW WORLD OF WEALTH MANAGEMENT Finding the right model for tomorrow will depend on a proper segmentation of clients which is based on a deeper understanding of their needs, and then servicing those in a way that is efficient, relevant and aligned with their best interests.

42 ONSHORE VERSUS OFFSHORE - WHAT’S THE RIGHT MODEL? The onshore wealth management opportunity is only likely to continue to grow, and at a time when many traditional offshore private banking models are struggling to be profitable. The key is to find the right approach – either compete or collaborate.

60 DELIVERING INVESTMENT PERFORMANCE FOR YOUR CLIENTS TODAY Needs-based conversations with clients are a basic but essential way for wealth managers to stand out in such a challenging investment climate. They must offer the right advice at the right time to deliver solutions which clients actually need.

68 CAN WE FIX THE TALENT PROBLEM? Getting more competent professionals into the industry – and keeping them – requires institutions to take a close look at business models, digitisation, retention strategies and compensation models. It is also essential to bring the fun back to private banking.

i ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

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Private Banking | Asset Management | Treasury & Trading | www.ubp.com Past performance is not a guide to current or future results. The value of investment interests can fall as well as rise. Any capital invested may be at risk and you may not get back some or all of your original capital. UBP is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority and is authorised in the United Kingdom by the Prudential Regulation Authority. UBP is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority; it is a licensed bank regulated by the Hong Kong Monetary Authority (HKMA) and a registered institution regulated by the Securities and Futures Commission (SFC) in Hong Kong for Type 1, 4 & 9 regulated activities; and is regulated as a merchant bank by the Monetary Authority of Singapore, is an exempt financial adviser under the Financial Advisers Act (Cap. 110 of Singapore) to carry on certain financial advisory services, and is exempt under section 99(1)(b) of the Securities and Futures Act (Cap. 289 of Singapore) to carry on certain regulated activities. Insights

14 ADAPT OR DIE-OUT IN A NEW WORLD OF PRIVATE BANKING Michael Benz

30 DEVELOPING THE NOAH OFFERING IN CHINA Kenny Lam of Noah Holdings

56 DRIVING A TRANSITION TOWARDS PROPER ADVICE LG Lim of UBS Wealth Management

66 BNP PARIBAS FINDS OPPORTUNITIES AMID NEGATIVITY Stephane Honig of BNP Paribas

82 TIME TO DO THINGS PROPERLY Howard Bilton of Sovereign Group

87 EDELWEISS’ TARGETED APPROACH TO TAPPING INDIA’S WEALTHY Anshu Kapoor of Edelweiss Global Wealth Management

Thought Leadership

52 HOW TO REMOVE THE FUNDS BLOCKAGE IN ASIAN PRIVATE BANKING Despite efforts by most private banks in Asia to increase funds penetration to boost recurring fee income, a new White Paper finds average penetration across 23 firms in Hong Kong and Singapore – with a total Asia-based AUM of USD1.5 trillion – was 9%.

78 NEW REALITIES, NEW PROPOSITION FOR HONG KONG IFAS The changing nature of clients and shifts in the competitive landscape are re-shaping the playing field for financial advisers. IFAs need to respond with a new approach to service customers as well as a strategy for how they recruit and train the right people to succeed in this environment.

Practice Management

55 TODD JAMES – PORTFOLIO MANAGEMENT ADVICE Yield tourists are searching for dividends

91 KEES STOUTE – SKILLS IN WEALTH MANAGEMENT Helping your clients be less biased

ii ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Vision means looking to the future without losing sight of the present. VP Bank looks ahead – with both feet firmly in the here and now. We guide you on your journey through the investment and finance universe. Because we don’t want to limit your potential. Safely ahead.

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ad_GuidetoWealthManag_Asia_A4_EN.indd 1 26.07.16 14:23 Profiles

22 HOW THOMSON REUTERS IS DRIVING DIGITAL WEALTH IN ASIA Peter McMillan, Ranjit Tinaikar, Gautam Verma, Julia Walker, Stuart Brown, Peter Thal Larsen and Kimberley Cole of Thomson Reuters

38 TAKING SINGAPORE’S INDEPENDENT COMMUNITY TO THE NEXT LEVEL Steve Knabl of Swiss Asia

74 SETTING HIGH STANDARDS FOR PRIVATE BANKERS OF TOMORROW Richard Piliero of Finaport

80 WHY SIZE MATTERS FOR IFA SUCCESS IN SINGAPORE Christopher Teo of PIAS

92 READY TO TAP A GOLDEN OPPORTUNITY Vincent Malherbe & Nicolas Mathier of Global Precious Metals

Event Highlights

10 WEALTH THINK 2016 - SINGAPORE Striving for sustainability

48 INVESTMENT SOLUTIONS FORUM 2016 - HONG KONG Finding investment solutions for challenging markets

84 INDIAN WEALTH MANAGEMENT FORUM 2016 Tapping the wealth management potential in India

88 VIETNAM WEALTH MANAGEMENT FORUM 2016 One of the last frontiers for wealth management

Published by Hubbis. Printed in October 2016 in Hong Kong. © Hubbis (HK) Limited 2016

All rights reserved. No portion of this book may be repro- Michael Stanhope duced, duplicated or copied by any means without the prior Chief Executive Officer written consent of the publisher. No legal responsibility Hubbis can be accepted by the author or publisher for the content T (852) 2563 8766 which appears in this publication. E [email protected] W www.hubbis.com

iii ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

10 years 1,000 RMs 75% to 80%

The DBS mantra is that Noah Holdings’ wealth offering 75% to 80% of IIFL’s clients 15 being fully digital is the covers 67 cities across years ago could hardly afford a only way the bank will mainland China priority bank account, let alone a survive the next 10 years. via 1,000 RMs. private bank account. Page 4 Page 30 Page 44

9% 2017/2018 USD175m

Average funds penetration CRS will only be a problem for Edelweiss Global Wealth across 23 firms in Hong Kong and those who have not correctly Management is growing at about Singapore – with a total reported on their tax forms INR1,000 crores (USD175 million) Asia-based AUM of by including income in an offshore a month in AUM. USD1.5 trillion – was 9%. structure which is Page 87 Page 52 attributable to them. Page 82

Content colour coding - for Hubbis articles

REGULATION & COMPLIANCE SKILLS

INVESTMENTS STRATEGY & BUSINESS

FAMILY WEALTH TECHNOLOGY

iv ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 omgi_ad_hubbis_210x297_2016_FinalOP.pdf 1 28/7/16 11:41 am

CMY

K FEATURE ARTICLE

Stuck between a rock and a hard place

The Asian private banking industry needs a new formula via digitalisation and an unrelenting focus on customers’ needs and experiences, as it strives to adapt and evolve in how it interacts with clients.

To build a profitable and sustainable platform and proposition in the years to come will only be possible if private “The pitfall for most banks is banks are able to navigate the regula- the fact that they don’t have tory challenges and still add value to a unique value proposition.” clients. But the reality suggests that many players won’t be able to make this happen.

In particular, the industry is clearly BASSAM SALEM facing one of the toughest times in its Citi Private Bank history. This stems from the combination of ultra-low interest rates, high regulation, technology innovation and changing customer behaviour.

And it is coupled with already-high cost- income ratios, given the inflation of job “2016 is likely to be the year of reckoning titles and salaries. for private banking.”

Yet the number of banks which seem capable of addressing the issues are few and far between. now stark to everyone that chasing net the bills. This is based on the assump- As a result, 2016 is likely to be the year new money (NNM) for the sake of just tion (of many industry insiders) that of reckoning for private banking. It is increasing the asset base doesn’t pay private banks, on average, will see per-

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acerbated by the fact that it requires long-term thinking within a fairly short “The winning formula for term-focused industry. private banks as it was in the past decade won’t “The pitfall for most banks is the fact work going forward.” that they don’t have a unique value proposition,” explains Bassam Salem, region head, Asia Pacific, Citi Private Bank. This forces them to continue to look to sell products to meet revenue targets, in turn leading to them pushing MICHAEL BENZ salaries up yet further in the hope it will bring in more clients and AUM.

centage drops in revenue in the region of the high teens to 20s over the course of this year. “For private banks to face up to their biggest challenges and understand what their clients want, organisations Against this backdrop, it is fair to predict that the winning formula that existed must then take a leaf out of the book of the world’s best for private banks in the past decade customer experience designers – the fintechs.” won’t work going forward, says Michael Benz, former group head of private banking, Standard Chartered Bank.

STRATEGIC RE-POSITIONING segment have failed to adapt the back- According to Urs Brutsch, managing As an industry, the focus needs to be end to the front-end, largely as man- partner and founder, HP Wealth Man- on making a significant effort to agement can reply on the front-end to agement, the industry must shift to a improve the productivity of platforms. drive revenue without the back-end purely fee-based model. “This is the only To date, most businesses in this being up to speed. This has been ex- honest way to advise a client,” he adds.

For private banks to face up to their biggest challenges and understand what their clients want, organisations must “The DBS mantra is that then take a leaf out of the book of the being fully digital is the world’s best customer experience de- only way the bank will signers – the fintechs. survive the next 10 years.” How do these disruptors create a customer relationship without the face-to- face connection?

TAN SU SHAN While relationship managers (RMs) will DBS Bank still be involved in the interaction, for example to offer a handshake to the client or be at the other end of their

4 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 WealthBriefing Ad 210x297 APAC - 2016.indd 4 20/05/16 16:13 FEATURE ARTICLE

phone call, it will increasingly be a relationship which involves only the customer and their app. “The industry must shift to a purely fee-based model. As a result, the ‘winners’ of tomorrow This is the only honest way to – the trusted and safe banks – will be advise a client.” those firms and individuals which understand digital intimately.

This means how to connect all the dots, URS BRUTSCH for both clients and partners, in terms HP Wealth Management of all aspects of the service and offering.

The requiresStuck a commitment between to become a rock relentless in the pursuit of the customer journey and knowing what the customerand wants. This a is key,hard given the place hype over fintech. Banks must be careful not to Newtake its eye Formulas off the ball and and forget Solutions “Greater for digitalisation Asian Private can Banking also help Industrybanks to better about the client. navigate between the realities of doing business today

“The DBS mantra is that being fully and the regulatory environment.” To build a profitable and sustainable platform and proposition in digital is the only way the bank willthe years to come will only be possible if private banks are able to survive the next 10 years.,” says Tan navigateSu the regulatory challenges and still add value to clients. Shan, group head, consumer banking and wealth management, DBS Bank. And if the private wealth industry as a GETTING DIGITAL RIGHT ULTRA-LOW HIGH COST-INCOME Those organisations which don’t makeThe industrywhole doesn’t is get this right, thenINTEREST the banks RATES There is certainlyRATIOS a need to digitalise the move to strategically re-positionclearly which facing will onebe around in five years’ time more of the private banking business, themselves now, will struggle to survive.of thewon’t toughest be the banks which exist today. especially in terms of reducing process- times in its history. HIGH INFLATION OF JOB TITLES REGULATION AND SALARIES New Formulas and Solutions

DIGITALISATION FOCUS ON CUSTOMERS’ NEEDS

NAVIGATE THE ADD VALUE REGULATORY TO CLIENTS CHALLENGES

6 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

Everyone that chasing net new money (NNM) for the sake of just increasing the asset base doesn’t pay the bills. Private banks, on average, will see percentage drops in revenue in the region of the high teens to 20s over the course of this year. Solid and stable in a changing world

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ing times and getting the messaging to the client faster. “So many private clients want Greater digitalisation can also help alternative investments, banks to better navigate between the but most industry players realities of doing business today and only offer standard publicly- the regulatory environment. accessible investment products which clients can For example, it can support and improve execute on their own.” processes. So if a system doesn’t allow a client to do a trade, this is what the JULIAN KWAN adviser follows. Combined, where re- InvestaCrowd quired, with good human judgement, this can lead to lower costs and fewer repu- tational or risk management problems.

On this point, the industry needs to learn collectively. After all, it just takes one bank to do something inappropri- “Ultimately, if private banks can’t do or offer something ate to tar everyone with the same brush. digitally, then they shouldn’t be doing it.” And this often happens when profitability falls.

Many private banks have been quick to bemoan burdensome regulatory processes, a sharp spotlight and excessive structured products craze pre-2008. what clients wanted to achieve with their enforcement. Yet this has only become The same can be said for the AML crack- financial assets. This would lead to a a reality because many players don’t downs, based on lax controls and stan- better idea of what types of products learn from their mistakes. dards in years gone by. and services better fit the clients’ needs.

Indeed, the increased scrutiny from the It would seem some of the problems Coming back to the role of digital, the regulators on investment suitability is would be more easily solved were advis- focus for all banks should be to use the entirely self-inflicted, driven by the ers to have a clearer understanding of new tools available to drive change in terms of the culture of their people. And this goes way beyond coming up with funky app; it is about complete immer- “All energies should be sion in the digital world on a daily basis. on risk management Ultimately, if private banks can’t do or offer something digitally, then they on the client side, and shouldn’t be doing it. operational excellence for banking platforms.” As a result, says Mark Smallwood, North Asia coverage team head - Singapore, Deutsche Bank Wealth Management, MARK SMALLWOOD all energies should be on risk manage- Deutsche Bank Wealth Management ment on the client side, to prepare for challenging times, and on operational excellence for banking platforms.

8 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

EVENT HIGHLIGHTS - WEALTH THINK 2016 - SINGAPORE

Striving for sustainability

At Wealth THINK 2016 in Singapore, leading practitioners within wealth management explored some of the key themes shaping the look-and-feel for the industry going forward – as organisations rethink business models and re-define their value propositions.

On the one hand there continues to be two forms: on the one hand with online growth in wealth in Asia. However – this investment platforms, delivering a low- Thank you to our exclusive is probably the most difficult time ever cost, easy-access solution to mass- sponsor for the wealth management industry. market client; and secondly, via niche, The last 12 months have been particu- specialist players that provide more Thomson Reuters larly tough – especially for private banks. flexible and customised solutions that offer a valued-add and are focused on In line with this, we hosted our Singapore- specific groups of clients. based summit, in mid-September, for by being too focused on hiring each industry leaders from Asia and globally. Global players who try to do every- other’s staff. This has done nothing to thing in-house potentially stand to resolve the fundamental talent shortage Discussions revealed that, to build a lose the most. nor attract young, engaging and com- profitable and sustainable platform and petent individuals to the industry. proposition in the years to come will Meanwhile, the opportunity for growth only be possible if private banks are over the next decade seems to be local Further, given that delivering perfor- able to navigate the regulatory chal- banks operating onshore, whether in mance for clients is fundamental within lenges and still add value to clients. But China, the Philippines Thailand or wealth management, especially during the reality suggests that many players other markets. such difficult and uncertain market won’t be able to make this happen. conditions, the starting point needs to Another issue is the fact that Asian be figuring out what the client needs As a result, the new world of wealth private banking has largely taken a and wants. management might potentially come in short-sighted road to growth to date, Although the industry as a whole has proven itself to be effective at delivering to clients what they find interesting, the real focus needs to be on the correct management and construction of the portfolio to begin with.

In line with this, rather than continuing to try to sell product, now is good time for bankers to sell a ‘story’ as part of a solution that they can continue to implement over time with their client.

10 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Adam Cowperthwaite Aki Ranin Amit Shah Andrew Hendry Bassam Salem Citi Private Bank Tigerspike IIFL Asset Management Westoun Advisors Citi Private Bank

David Koay Gebhard Giselbrecht Herwig Van Hove John Cappetta Julian Kwan Standard Chartered Bank Credit Suisse Vahoca Julius Baer InvestaCrowd

Marie Ramlie Mark Smallwood Michael Benz Michael Thompson Murli Adury TMB Bank Deutsche Bank Wealth Management PIMCO Citi

Philipp Piaz Rolf Haudenschild Tan Su Shan Tanmai Sharma Urs Brutsch Finaport BRP DBS Bank Mesitis HP Wealth Management

Urs Palmieri Vikram Nimkar Vincent Magnenat Vineet K Vohra Thusitha de Silva EY Westpac Lombard Odier Arete Financial Partners Cerulli Associates

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 11 Matthew Blume Julia Walker Lee Kai Yang Martin Frick Nick Pollard Thomson Reuters Thomson Reuters RHB OSK Asset Management Temenos CFA Institute

“A superbly conducted event to provide thought leadership to an industry that is going through unprecedented change. The comprehensive range of topics, the depth of the content discussed, and the questions and insights in a variety of formats, make it a very engaging and incisive event.” Stefan Kuhn Patrick Donaldson Murli Adury, Head Citigold Private Client, APAC & EMEA, Citi Singapore Credit Suisse Thomson Reuters

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Adapt or die-out in a new world of private banking

Private banking business models are set for a wake-up call sooner rather than later, says Michael Benz, threatening an overhaul for the industry as a whole.

Private banking is facing one of its UNDER THE SPOTLIGHT – IT IS ALL toughest times ever as an industry. ABOUT COSTS It is now stark to all players that chasing This is due to the combination of four net new money (NNM) for the sake of key challenges, which render the past just increasing the asset base doesn’t growth strategies ineffective: ultra-low pay the bills. interest rates, high regulation, technology innovation and changing client This is based on the assumption (of many expectations towards more tailored industry insiders) that private banks, on product and service offerings, based on average, will see percentage drops in past investment activities. revenue in the region of the high teens to 20s over the course of this year. And “The winning formula for private banks Benz concurs with these estimates. as it was in the past decade won’t work going forward,” says Michael Benz, More than ever, therefore, the challenge former group head of private banking for the industry is centred on the man- at Standard Chartered Bank. agement of the cost base. MICHAEL BENZ

Yet the number of institutions in Asia And this will remain the case for at least which seem capable of adapting and as long as ultra-low rates persist and make evolving their business model to it unavoidable for banks to adjust their tackle mounting challenges are few fee levels downwards, predicts Benz. and far between. ship manager (RM) roles in general, will As part of this cost crackdown, he become under intense scrutiny. Where As a result, 2016 is likely to be the year lieves that any non-client facing role, possible, explains Benz, they will be of reckoning for private banking. and potentially even any non-relation- streamlined, automated and outsourced.

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This is one of the big opportunities which very important role: use of technology But this seems a distant dream for many technology innovation and digitisation to create more exciting and tailored institutions. Not only the low interest offer to the private banking businesses client experiences. rate environment, which Benz sees as – ie. the fundamental reassessment and the single biggest challenge for the redesign of front-to-back processes. Over the medium term, and with in- industry overall, makes the prospect of creasingly younger people getting their charging clients an advisory fee less of Benz says this will lead to the redun- hands around the wealth of their a reality than before. dancy of more and more product, parents, it is essential for private banks middle- and back-office functions, to deliver experiences which are more Further, he adds, it would seem that if either because of automation or out- similar to what anybody today can get advisers had a clearer understanding of sourcing to specialist service providers. when shopping online. “Many clients what their clients wanted to achieve “The focus, more than ever, will now be will enjoy the new empowerment with their financial assets, then it would on the RMs, especially their (lack of) offered by digital channels, and the help satisfy some of the regulatory high investment skills. Entrepreneurial more relevant investment ideas sug- scrutiny in Hong Kong, in particular, behaviour and networking skills are just pre-conditions for RMs today.”

GET THE PROPOSITION RIGHT – PERFORMANCE MATTERS MOST Ultimately, Benz believes, only those “Only those private banks which eventually get private banks which eventually get the the client proposition right, will manage to attract client proposition right, will manage to additional funds from clients.” attract additional funds from clients.

This means, that management needs to keep a sharper eye on achieving the financial goals of its clients, at the heart of which lies investment performance. gested to them through digital chan- over the suitability of products and ap- “High-quality NNM is not easy to get nels,” says Benz. “In turn, this will lead propriateness of fee levels. any longer,” explains Benz. “Banks have to more activities for the bank and will to earn it by delivering the proof of free-up capacity of the RMs.” At the same time, one of the areas helping clients to achieve their financial where the private banking industry has goals,” he adds. FEES CAN ONLY GO IN ONE indeed made progress since 2008, he DIRECTION believes, is in relation to the fairness However, such proof, which in essence Despite all those challenges, he sees and transparency of fees. means achieving investment targets, some scope for optimism. Increasingly, can only be delivered if there is an ex- he says clients are realising – driven by SELECTIVE SUCCESS plicit agreement between RMs and the very challenging investment environ- Ultimately, he believes, only those clients on the latter’s financial goals. ment – that longer-term portfolio invest- private banks which eventually get the ment approaches and fee-based com- client proposition right, will manage to “This is essentially a back-to-basics ap- pensation of banks are more successful attract additional funds from clients. This proach in today’s technology-driven than short-term transactional ones. requires any bank to fully leverage the world,” says Benz. But technology is the power of digitisation to rethink of their great facilitator. Indeed, an obvious and much talked about core processes and the creation of more way for private banks to create a more exciting and relevant client experiences. Digitisation is not only helping to sustainable and predictable revenue This needs to happen while every bit of reduce costs and make the cost base stream would be to make fee-for-advice management attention is given to achiev- of banks more flexible, it plays another more prominent as part of their offering. ing a client’s financial goals.

16 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 ¥ Lower cost ¥ Operational efficiency ¥ Low complexity ¥ Market penetration ¥ Increased revenue ¥ Minimised risk

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Doing the right thing for a bruised industry

Anthonia Hui is no stranger to taking on big challenges and sticking to her beliefs about what is best for her clients. Her tenacity, professional success and commitment to the next generation of bankers are key traits which have earned her the Hubbis Award for ‘Excellence in Asian Wealth Management’.

“In over 35 years in the financial ser- a surprise to hear such conviction and vices industry, the current environment passion from her. These are some of is the worst I have ever seen in all areas her defining characteristics, which have of banking, including private banking.” led to an impressive career to date.

This is according to Anthonia Hui, chief Yet like many experienced industry executive officer of external asset man- practitioners at the moment, Hui agement (EAM) firm, AL Wealth Partners, strongly believes things can no longer

“Institutions need to re-think their business model, pricing and cost structure.”

ANTHONIA HUI AL Wealth Partners

and also the immediate past president continue the way they are. “Institutions of the Association of Independent Asset need to re-think their business model, Managers (AIAM), Singapore. pricing and cost structure,” she explains. need time to rectify things in a logical “The industry needs to come together manner which also doesn’t destroy This is clearly a strong statement. But to acknowledge to regulators that they client confidence, either in them or the for those people who know Hui, it isn’t are prepared to change, but that they wider banking system.”

18 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 WALKING THE TALK understand and meet regulatory issues For Hui, this must always start with related to the EAM business model,” Career highlights clients, and putting them first – even says Hui. if this approach scuppers an individu- Over three decades of al trade. While she stepped down from the pres- experience in private idency in September 2016, Hui continues banking, wealth management and family She is adamant that nothing is worth to drive the professional standards and offices in London, Paris, damaging the relationship, or the indi- compliance issues for the Association. Zurich, Hong Kong vidual adviser’s own integrity. and Singapore PUTTING THINGS RIGHT A former high-achieving Such a philosophy led Hui to eventu- Indeed, the intensely-tough environ- private banker at ally leave private banking. After more ment for financial services generally international institutions including Coutts, Credit than 25 years working in London, Paris, stems largely from banks being subject Suisse, BNP Paribas and Citigroup Co-founded AL Wealth Partners with Leonardo Drago in 2007 Co-founded the Association “A lot of senior executives who are currently in of Independent Asset managerial positions are unprepared. They were Managers (AIAM) in Singapore in early 2011 brought up in the heyday of private banking, so have Conferred by the Institute now become fire-fighters.” of Banking and Finance (IBF) in Singapore the title of ‘IBF Fellow’ – which is to recognise key practitioners and thought-leaders in the financial industry Helped set up and implement Zurich, Hong Kong and Singapore, at to all kinds of regulatory obligations, the Financial Industry institutions such as Coutts, BNP Paribas, coupled with the challenges that con- Competency Standards Citigroup and, ultimately, Credit Suisse, front them from clients as well as their (FICS) in Singapore her next move was to pursue the more own staff. A frequent speaker at universities and investment holistic, client-centric advisory style she bodies around the world always championed internally – despite One of the most worrying consequenc- it not always being embraced by many es Hui sees is that fact that it seems as revenue-driven bosses she worked under. if nobody knows how to bring the situation back from the edge of what feels This drove her to co-found AL Wealth like a cliff. Responsibility can no longer be passed Partners, a specialty firm providing in- to someone else, nor the blame solely dependent wealth advisory, fund man- She believes that a lot of senior execu- be put on market conditions. agement and multi-family office -ser tives who are currently in managerial vices, along with Leonardo Drago. positions are unprepared. Many issues now are due to the operating environment and business outlook. To take this model – new at the time in “They were brought up in the heyday of Asia – to the next level, she then co- private banking, so have now become And collectively, the industry has been founded the AIAM in early 2011 with fire-fighters. Yet most of them are not unable to come up with a suitable re- other like-minded individuals. “The aim good at it,” she says. “They appear to be sponse or find common ground for has been to assist members in promot- disoriented and are simply trying to tackling the issues that they all face. ing industry best practices as well as dodge as many bullets as possible.” Even when it comes to hiring front-line

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 19 HUBBIS AWARD - EXCELLENCE IN ASIAN WEALTH MANAGEMENT

staff, many banks continue to pay exces- ments, she adds. “Profitability should sively, despite these individuals not be secondary, so as long as the insti- Career take-aways bringing in the right types of clients for tutions isn’t losing money or compro- the bank to generate sustainable – and mising its morality.” What’s your career highlight profitable – business. “Blindly pursuing to date? “Every move I AUM just to survive is not the answer.” Perhaps most importantly as part of this made has been important, but if I have to pick one, it broader cultural change and shift in would be the decision to And if banks cannot recuperate their mind-set is the fact that bankers should go independent and leave costs, she says adding value to clients be incentivised to do the right thing for banking.” or the wider industry isn’t possible. their clients. What do you enjoy most POSITIVE STEPS NEEDED A CLEAR DIFFERENCE about your role? “Being free from the politics of large In short, rectifying the current situation Hui’s own experiences have been that institutions, enabling me to and restarting the trust engine requires clients can see the difference, and truly make a difference in the industry to be honest about the respond favourably – including their managing clients’ wealth.” reality of where things are today and willingness to pay for the advice. what needs to change. What do you know now that For example, she explains, clients are you wish you knew when you first started your career? “This needs to start from the top,” says often confronted with a situation where “How divorce can destroy Hui. “Banks need to redefine how the they get presented with multiple prod- and create wealth, along CEO and senior management should ucts by their various private bankers. with how children can be a act and behave. It cannot just be about When they discuss and show this to a blessing as much as curse – making profit. They need to adapt the trusted adviser, Hui says the most im- and why this all matters to wealth managers like us.”

What ambitions do you still have for your career? “To stay relevant to the industry, especially nurturing the “Banks need to redefine how the CEO and senior next generation to have management should act and behave. It cannot the mind-set and qualities most clients are looking for just be about making profit.” to handle their wealth. I also want to cultivate client understanding about how they should look for their wealth to be managed.”

What skills and attributes business model so it is no longer de- portant thing is to resist any temptation does anyone entering the structive to the industry and to clients.” to offer a similar product but just at industry today need to be better terms. successful? “To have lived a This includes fixing the fundamental life that hasn’t been plan- problem of the way business gets con- “It shouldn’t be about earning commis- sailing or too protected; to ducted and how people get paid. “At sion from that client in the short term be driven and determined to stay resilient when things this point, it then becomes viable to and being scared to lose out on AUM,” get tough; to always be nurture client relationships from illness she adds. humble and grounded; and back to health,” adds Hui. to be able to empathise with Instead, Hui’s approach, for instance, is your clients and stand by That should also be a benchmark by to advise the client in the context of them in good and bad times.” which CEOs measure their achieve- their existing portfolio, their outlook on

20 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 investments and their longer-term goals Hui hasn’t looked back since. And the agement. “Without her, it would have and objectives. concept resonated so deeply that she been difficult to achieve as much as the got together with a few Swiss bankers Association has to date,” adds Knabl. “Many times when my clients have with knowledge of the EAM model in come to me to show me the choices of Switzerland to launch the AIAM. GROOMING THE NEXT investments their bankers have offered GENERATION to them, I have told them this isn’t what Until Steve Knabl of Swiss Asia was Recognising the challenge of maintaining they should be doing with their portfo- named as her successor, Hui used her the appeal for young people of working lio,” she explains. presidency of the Association to drive within private banks or other types of wealth management organisations, Hui is also committed to grooming talent in the industry.

“Millennials are all brought up wanting “Many times when my clients have come to me to do something different and change to show me the choices of investments their bankers peoples’ lives,” she says. have offered to them, I have told them this isn’t what they should be doing with their portfolio.” “So if they perceive that the values of the banks are in conflict with this, then the industry won’t be able to attract the next generation of the workforce,” she explains.

Using data to prove the case and exit for five years since its inception in Her part in trying to change the culture plaining this to the client is often an March 2011. and atmosphere of the working environ- effective technique. ment in this industry comes via lectur- This is clear evidence of the vast ing in workshops, seminars and courses Even if her clients insist and seemingly amount of energy and devotion she to mentor students and professionals ignore this type of advice, she says that dedicated to the cause of the indepen- in wealth management. more-often-than-not they return to her, having at least acknowledged she was trying to do the right thing for them.

“I want to be able to sleep well at night knowing that I have my clients’ best “If [Millennials] perceive that the values interests at heart,” adds Hui. of banks are in conflict with this, then the industry won’t be able to attract the INDEPENDENCE next generation of the workforce.” She eventually left the private banking environment in pursuit of exactly this.

Luckily, she also worked at a private bank with a very established platform of EAMs, so saw the appeal of this dent community. “She always went the “I think it is important to focus not only model. “I sat next to this team every extra mile to promote the EAM indus- on sales techniques and knowledge, but day and could see the potential of this try,” says Knabl. She was also able to also on the spirit and virtue of what wealth as a viable option which hadn’t yet achieve this during a phase of significant management means in terms of its service been tested in Asia.” regulatory change across wealth man- to the community,” she adds.

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How Thomson Reuters is driving digital wealth in Asia

The march towards digitalisation is gaining momentum within wealth management in the region. As private banks, in particular, face up to changes in regulation, advisory models and demographics, an open-platform strategy that can connect multiple information sources and deliver data-driven solutions is Thomson Reuters’ way to add value.

The priority for private banks in Asia “Many private banks still have a lot of today is to become more efficient and manual processes in place,” says Peter productive against the backdrop of the McMillan, head of wealth management various regulatory, margin and perfor- for Thomson Reuters in Asia. mance pressures they face. “This is the main focus for us in terms At the same time, the changing indus- of how we can help,” he adds. try landscape has made it more important than ever before to be relevant As part of this, the firm’s master plan to clients. for the region puts the concept of partnership with its target financial institu- To stand any real chance of achieving tions as a key component. this, they need to develop or enhance their digital capabilities to reach more As a starting point, this involves clients with better advice as part of an working far more closely with custom- improved user experience. ers as they flesh out what digital actually means to their business, and as PETER MCMILLAN To date, however, too many private they decide where and how they want Thomson Reuters banks have done relatively little of any to adopt a digital approach. real substance in order to move them in this direction. “We know we have the solutions across the breadth of our own enterprise and As a result, Thomson Reuters is focus- the partner network we engage, to help STRATEGIC PRIORITY ing on filling this ever-widening gap our clients,” explains Stuart Brown, head The firm has pinpointed Asian wealth between where these institutions are of financial design for Thomson Reuters management as one of its top-four growth today and where they want to be. in Asia. bets over the next three to five years.

22 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 In three areas, in particular, the platform For example, for a typical client, there it has created is well-positioned to fulfil are a number of stages that advisers the evolving needs of customers in the have to go through when transacting: region, says Ranjit Tinaikar, the firm’s lead generation and prospecting, along managing director, advisory and invest- with the use of CRM solutions; financial ment management. planning and risk profiling; fund and security selection, including determin- First, he explains, it can increasingly ing suitable investment strategies; order help large banks and brokers improve management and execution; and then the productivity of the adviser force, portfolio monitoring and rebalancing. in line with clients now demanding “Advisers have to do all of these, yet more value. the systems and solutions are often

RANJIT TINAIKAR “Customers are embracing the digital wave as they Thomson Reuters realise the efficiencies they can achieve by adopting more of a digital approach to their own businesses.”

used by banks, online brokers or even nonfinancial institutions, to build an online solution for self-directed inves- For self-directed investors, meanwhile, fragmented across different providers,” tors, including mobile apps.” the firm can help online brokers build says Tinaikar. and expand both the scope, as well as This is all part of the ambition to rede- the depth and breadth of their services Here, the firm’s open-platform strategy fine the user experience by collaborat- to meet customer needs. can be part of the required integrated ing with a wider range of partners, adviser workflow, across multiple part- which could range from robo-advisers Finally, as the spotlight shines more ners and other third parties. “We don’t to web development firms globally. brightly on AML, Know Your Client need to own the individual pieces of and other checks and balances, Tinai- software, but we can act as an integra- Also underpinning the firm’s initiatives kar is confident about the data, learn- tor to allow different systems to come is the desire to provide wealth managers ing and other insights to support together,” he adds. with scalability and cost-efficient deliv- efforts by private banks to meet their ery of data and related content. This is regulatory requirements. For self-directed investors, Thomson essential, urges Gautam Verma, head of Reuters is responding to the fact that market development for Thomson NEW APPROACH FOR A NEW the needs of Asia’s wealthy individuals Reuters’ Enterprise business in Asia, LANDSCAPE now go beyond just providing data on given that open platforms, fintech, digital The trends shaping the industry present securities or funds, or giving them banking technology, robo-advisory and challenges that Thomson Reuters is well- other analytics. managed services are top of the agenda placed to address. “Customers are em- for technology decision-makers at finan- bracing the digital wave as they realise “We are planning to create an ecosystem cial institutions. the efficiencies they can achieve by of partners to use our data and research,” adopting more of a digital approach to says Tinaikar, “along with Reuters news, He points to the fact that some of the their own businesses,” explains Brown. to build apps and widgets that can be greatest business success stories of the

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 23 PROFILE

time, for instance, relationship manag- ality that gives wealth managers informa- ers (RMs) will be able to call more clients tion on multiple asset classes, in conjunc- if they are accessing and able to inter- tion with news and other data points, to pret data quicker, and with more rele- help an RM scan a client portfolio for vance to each client. Plus, each RM can relevant insights and action items. increase their client book overall if they don’t need to spend as much time ana- Previously, this existed in isolation of lysing each portfolio. the bank’s internal CRM system.

Further, if an RM can be faster at react- Now, rather than relying on an RM ing to market events and give a client proactively searching several systems relevant and timely insights, this will for relevant information, the RM can count in their favour when the client connect to all relevant data-sets and measures the value each of their mul- capabilities via a single platform. tiple bankers really provides. An institution can then more effec- GAUTAM VERMA SOLUTIONS tively communicate the ideas of the day, Thomson Reuters In a nutshell, Thomson Reuters’ digital or their house views on market events, solutions comprise a suite of platform- quickly to every RM, who in turn can orientated services. These include APIs then build out their own sales pitch to for web/browser-based application their clients. builds, along with feed services for in- 21st century to date have been platform tegration into more system-driven ap- “This creates an ecosystem where ev- companies, connecting communities plications, for example, quant models eryone can get access to the same in- where relationships form and transac- and algorithms. formation at the same time, and they tions take place directly. can get their alerts immediately,” ex- In response to the various challenges plains McMillan. “Open platforms provide access to tools for private banks, the firm has been and services to enable participants to developing its wealth management “It cuts out a lot of steps as part of the meet, communicate and transact on proposition accordingly. effort to increase efficiencies,” he adds. their own terms in marketplaces which they can design, develop and operate in the way they choose,” explains Verma.

MAKING THE DIFFERENCE While many private banks in Asia are “Greater productivity is one of the biggest benefits involved with accelerators, innovation for those private banks which take a serious labs and other “fintech” initiatives, the approach to going digital.” focus on leveraging existing platforms to improve workflows needs to become sharper.

Greater productivity is one of the biggest benefits that McMillan high- The first enhancement has been an Taking this further, a lot of private banks lights for those private banks which take upgrade to its traditional desktop of- have been looking to build their own a serious approach to going digital. By fering in the wealth management space, applications within this Thomson getting access to the right market and moving to a platform-based concept. Reuters platform to connect market investment information at the right The firm has built on existing function- information with the wider data suite.

24 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 They want to then leverage these apps nication channels with their RMs and internally, in conjunction with their own clients, McMillan says the firm has been information, such as investment re- talking to clients about building widgets search or client investments in the and other capabilities into their existing context of the client’s risk profile. infrastructure and platforms.

“It isn’t unfeasible to suggest that they “This is to help them take advantage of can create an app which streams in their streaming market data within the CRM information, so that an RM can context of their own systems.” see all the data combined with everything the wealth manager is working on The key difference, he explains, is that from a market data perspective,” ex- rather than a bank taking a sub-set of plains McMillan. “This means less need its information to the Thomson Reuters for verification or moving constantly environment, the firm is able to plug between different internal systems.” the exact information the bank needs into the institution’s ecosystem. This stems from Thomson Reuters’ JULIA WALKER focus on using open technology that “This requires a big shift in how the Thomson Reuters forms an integral part of the new en- banks and their RMs operates,” he says. hanced platform. “We are looking at evolution rather Verma also points to the quality pricing than revolution,” explains McMillan, and reference data the firm can offer. “by gradually introducing this type of CRACKING COMPLIANCE This allows institutions to comply with technology to them, and then Another critical component of the foreign regulations for multinational showing them how it can enhance Thomson Reuters offering for the corporations, he says. the bank’s capabilities.” wealth management sector is helping it meet the multiple regulatory chal- “The tagging and PermID initiatives, In line with many of its initiatives, Verma lenges of client on-boarding, screening, along with the visualisation tools, rep- explains that Thomson Reuters has been suitability and education which keep resent key components of our solution growing its platform partners and de- senior executives awake at night. to the challenge our clients face of grap- veloper community. “Since this summer, pling with Big Data,” adds Verma. our developer portal has been opened Many private banks, however, continue to lack sufficient processes, systems and resources to be confident about being able to avoid the pitfalls that now exist.

“This creates an ecosystem where everyone can This highlights the fact that the biggest get access to the same information at the same time, need for risk and compliance solutions and they can get their alerts immediately.” in Asia remains education, says Julia Walker, head of market development in Thomson Reuters’ risk division in Asia. “People still need to better understand why risk management is so important.”

Meanwhile, for those institutions which to allow anyone to register to obtain Just keeping up with the significant want to move completely away from full access documentation for the entire number of regulatory alerts is a tall order the desktop and revamp their commu- family of our APIs.” – given that they seem to be increasing

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 25 PROFILE

year over year, and show no sign of This highlights the constant require- slowing down. ment to look deeper, explains Walker. “Institutions need to know more about Thomson Reuters estimates that there all their clients, so the starting point is were 167 daily alerts in 2015 – which to identify the gap between what they means a new one every 9 minutes. actually know and what regulators require them to know.” To bridge this gap, the firm believes its ‘Regulatory Intelligence’ solution can Staying informed shouldn’t be a one- helps risk and compliance professionals dimensional objective; it is not just keep pace with change with global cov- about avoiding risk. Thomson Reuters erage of over 600 regulatory bodies and believes those companies who most over 1,000 rulebooks. effectively navigate risk and regulation will be at a competitive advantage. The aim is to empower market practitioners to make well-informed decisions “Firms which figure out how to find to manage regulatory risk with confi- regulatory and tax compliance-related STUART BROWN dence, explains Walker. It does this via opportunities for their clients will be Thomson Reuters proactive alerts and an early warning those who survive and thrive in today’s system to ensure vigilance. world,” predicts Walker.

products and solutions within the regulatory environment. “They need to adopt a culture of learning,” says Walker. “Institutions need to know more about all their clients, so “There must be a desire on the part of the starting point is to identify the gap between what they a relationship manager to want to learn actually know and what regulators require them to know.” and behave in the right way.”

Automating the value of regulatory intelligence is a good place to start. From here, it is easier to determine what feeds and other information are relevant At the same time, privacy laws, espe- This also highlights the need to tailor for advisers to digest and uitlise. Au- cially for client on-boarding, are high solutions to local regulatory demands. tomation is also increasingly essential on the worry list for most organisations. This is where solutions must be com- when it comes to logging activities such prehensive and practical, and also in as the cross-border travel of wealth An inability to share data across borders local language. “A lot of what we provide managers, along with their client enter- creates duplication, for example, where is information about regulations and tainment and any personal dealing. people want to hold more than one tools needed to comply,” she says. account with the same organisation but “Doing this in the local language is also RELEVANT AND TARGETED in different locations. important to give users an extra layer To help drive the relevance of any so- of due diligence.” lution it offers, the five-year plan that And the rise of self-directed investors Thomson Reuters has in place for its has exacerbated the problem. Even Yet understanding how to manage risks digital business is for it to be the confirming that the person at the other is just the starting point. Firms need to trusted source for all the content and end of the tablet is a customer is a cum- then be able to educate their front-line decision-support capabilities that its bersome exercise filled with risk. staff about the application of their own customers need.

26 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Asia editor, is to provide something perspective is something that many which grabs attention – and gets read. customers enjoy,” she says.

“Our views are highly-valued by the But to take advantage of Asia’s poten- people who read it,” he explains. “Having tial, the firm knows it needs to also a consistency of standards is important. continue to work hard to adapt the

“Our views are highly-valued by the people who read it. Having a consistency of standards is important. The idea is for anyone to be able to read a Breakingviews piece, on any topic, and take away from it a certain level of clarity and rigour.” PETER THAL LARSEN Thomson Reuters

The idea is for anyone to be able to read offering in local markets. “Wealth is a More specifically, this means helping a Breakingviews piece, on any topic, local business,” adds Brown. “Local has its clients’ advisers and their end-clients and take away from it a certain level of implications in terms of language, depth make more informed and better invest- clarity and rigour.” and granularity of market data required, ment decisions. “Our ambition is for us regulation, market practices, service to become the platform that glues the LOCAL MATTERS and support models.” ‘manufacturers’ together with the in- In developing and implementing various vestment strategists or product special- solutions, Thomson Reuters’ global As a result, the firm’s approach is always ist, and in turn together with the port- reach shouldn’t be under-estimated. to invest into localisation in markets folio manager and adviser and, where size and scale exists, such as North ultimately, the end-client,” says Brown. “No market is an island, and it’s our America and Japan, and partner in other global coverage, connectivity, presence markets it deems attractive but where From a content perspective, while the and trust that makes us stand out, even the return on investment on a fully-local- mission of most news services is to be in very domestic markets,” says Brown. ised approach does not add up. first. Reuters Breakingviews has a slightly different slant – it prefers to The firm has a unique vantage across DELIVERING REAL SOLUTIONS provide financial insights that can set customers and the industry, adds Kim- Underlying anything that Thomson the agenda for the markets and people berley Cole, head of specialist sales in Reuters brings to market, however, is which count. Asia for the financial and risk division an ability to deliver it effectively to its at Thomson Reuters. In turn, this target market. And in Asia’s rapidly- This is especially true in a world where ensures it offers education on trends changing financial services landscape, people’s inboxes get inundated by a and how customers can differentiate selling needs to be about providing mass of alerts, news, data and other themselves – and often reframe their solutions not just products. information all vying for attention. own thinking. This requires industry and technical The goal of the Reuters Breakingviews “We have experience in many emerging experts to be involved with customers content, according to Peter Thal Larsen, and mature markets, and the global at a very early stage in the buying

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 27 PROFILE

journey, explains Cole. “We have a team of 2016. And the firm hopes to be in of pre-sales people across the region varying stages of implementation with who work with our customers to un- several institutions. derstand how they are looking to focus or re-focus their business, the chal- Looking a bit further ahead, McMillan lenges they face and where they see sees increasing scope to use digital opportunities,” she explains. advisory platforms to augment an RM’s day-to-day job. In short, it is about identifying and then delivering the right solutions for This will be the next step, he explains, each customer. as part of integrating a combination of

“The platform is set up to be an environment akin to a KIMBERLEY COLE sandbox to allow developers to access it fully and leverage Thomson Reuters off our global expertise across all aspects of the business.”

relevant to a particular asset class that a client might own, to make this available To do this, and in response to their technology and data to help these to the fingertips of RM at the right time.” needs, the sales teams are increasingly wealth managers develop even deeper able to show customers a prototyped client relationships. At the same time, as more and more idea to deepen discussions even further people get comfortable with online and work together to create a solution. For example, this can create suggestions trading, creating full digital pathways is “The team is really focused on solving for an individual client based on their another important objective. Ultimate- not selling,” adds Cole. risk profile and investment objectives. ly, the platform is set up to be an envi-

She is also quick to acknowledge that improvements to processes can always be made to further enhance the offering. For example, she says, Thomson Reuters has made significant invest- “We are looking at evolution rather than revolution, by ments into its pre-sales function. This gradually introducing this type of technology to them, and can help the sales team craft solutions then showing how it can enhance the bank’s capabilities.” to customers’ problems – and rapidly prototype some of those ideas.

BUILDING ON THE VISION As an initial step, the Thomson Reuters management team has plans to have “Where we believe we will be by 2017,” ronment akin to a sandbox to allow set in motion discussions with all the predicts McMillan, “is that by tagging developers to access it fully and lever- leading private banks in Asia about our information we can then highlight age off our global expertise across all platform-based solutions by the end those key pieces of analytics which are aspects of the business.

28 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 sl

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Source: Citywire, Morningstar, Lipper, Asia Asset Management. Morningstar Awards 2016 © Morningstar, Inc, All Rights Reserved. Thomson Reuters Lipper Awards © 2016 Thomson Reuters. All Rights Reserved. This publication is for information only. All applications must be made on the application form accompanying the prospectus, which can be obtained from Fullerton Fund Management Company Ltd (“Fullerton”) [UEN: 200312672W] or its approved distributors. Investors should read the prospectus for details before investing. The value of units or shares in the Fund and the income accruing to the units or shares, if any may fall or rise. Past performance is not necessarily indicative of future performance. This publication was, prepared without regard to the specific investment objectives, financial situation or needs of any investor. Investors may wish to seek advice from a financial adviser before making a commitment to invest in any Fund. In the event that investors choose not to seek advice from a financial adviser, investors should consider whether the Fund is suitable for them. EXPERT INSIGHTS

Developing the Noah offering in China

Kenny Lam of Noah Holdings explains the focus and approach of his firm’s business in servicing China’s wealthy, and discusses the priorities over the coming years.

As the largest independent wealth have between roughly USD100,000 to manager in China, Noah Holdings sees USD1 million in investable assets. a new flow of business per year of around USD16 billion to USD20 billion. DIGITAL DEVELOPMENTS This offering covers 67 cities across The key to developing the digital mainland China via 1,000 relationship aspect of Noah’s offering is under- managers (RMs). standing which technology will be able to add value to clients, says Lam. He The other main part of the business is believes that some form of investment asset management, focusing on alterna- support is useful but this needs to go tive products such as fund of funds, further, such as enhancing asset alloca- with private equity and real estate as tion decisions. Another key focus for the core asset classes, but also diversi- Lam is using data to understand clients fying into hedge funds and credit. better, as well as to facilitate deeper interactions between front-line advis- SEGMENTED OFFERING ers and clients. According to Kenny Lam, group presi- KENNY LAM Noah Holdings dent of Noah Holdings, the firm mainly PRIORITIES focuses on two client segments: first, Over the next two to three years, Lam its core HNW – which is divided into wants to ensure the firm continues to individuals with around USD30 million innovate in the range of services it pro- in investable assets, and into its ‘Super vides. This goes beyond investment, to Diamond’ clients which targets indi- include insurance and education. He asset allocation and being able to move viduals with USD100 million and above; also wants to ensure the front-line along advisers up in terms of client segment, and secondly, its affluent client base, with the client interface all improves towards family office services and dis- which it mostly services online, who further. This includes building skills in cretionary management.

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S026784_A.indd 1 14/01/2016 14:04 FEATURE ARTICLE Integrating your business objective with ours We believe that your business success is our success. We workWe believe with you that through your business every phase success of isyour our business success. andWe carework for with your you results through as everya trusted phase partner of your and business adviser andas thoughcare for we your are results a part as of ayour trusted business. partner and adviser as How to succeed in a new though we are a part of your business. International & Domestic Tax world of wealth management TrustsInternational & Foundations & Domestic Tax FamilyTrusts &Office Foundations Structuring and Support Services Finding the right model for tomorrow will depend on a proper segmentation of clients RegulatoryFamily Office & StructuringCompliance and Support Services which is based on a deeper understanding of their needs, and then servicing those in ImmigrationRegulatory & & Compliance HR a way that is efficient, relevant and aligned with their best interests. CompanyImmigration Formation & HR & Administration AccountingCompany Formation & Financial & AdministrationReporting Accounting & Financial Reporting Creating a successful business model for the current environment relies on wealth management organisations “With digital, it is a matter being able to properly understand the of how use it to ensure a needs of clients and then aligning them- competitive advantage.” selves accordingly to service these.

One of the first aspects of this is realising that performance is lacking and being aware of the trust deficit which exists. AKI RANIN Tigerspike Those firms and individuals which can deliver on the need for value, advice and trust will be well-placed going forward, says Vineet Vohra, director and practice leader - wealth management, Arete Financial Partners. This translates enabler in emerging markets, espe- two forms: on the one hand with online to: value in their dealings, implying a cially, where clients are looking for investment platforms, delivering a low- level of fairness and transparency; an access to asset classes and forms of cost, easy-access solution to mass- advisory overlay to the engagement, in advice that they haven’t had before. At market client; and secondly, via niche, line with client needs; and trust, which the same, it is an increasingly important specialist players that provide more is a scarce commodity in banking today. way to support client advisers in deliv- flexible and customised solutions that ering their service. offer a valued-add and are focused on THE ROLE OF DIGITAL specific groups of clients. In line with Digital is inevitably a key component of As a result, the new world of wealth this, either organisations will need to a successful offering, acting as an management might potentially come in invest heavily in technology to achieve

20 YEARS IN PRACTICE 32 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 20SINGAPORE YEARS IN |PRACTICE HONGKONG | iyerpractice.com SINGAPORE | HONGKONG | iyerpractice.com IntegratingIntegrating your your businessbusiness objective objective withwith ours ours WeWe believe believe that that your your business business success success is ouris our success. success. We We workWework believe with with you that you through your through business every every phase success phase of ofisyour ouryour business success. business andWe and careworkcare for with for your youyour results through results as aseverya trusted a trusted phase partner partnerof your and andbusiness adviser adviser andas as thoughcarethough for we your we are resultsare a part a part as of aofyour trusted your business. business. partner and adviser as though we are a part of your business. International International & Domestic& Domestic Tax Tax TrustsInternational Trusts & Foundations& Foundations & Domestic Tax FamilyTrusts Family &Office Foundations Office Structuring Structuring and and Support Support Services Services RegulatoryFamily Regulatory Office & StructuringCompliance& Compliance and Support Services ImmigrationRegulatory Immigration & & Compliance HR& HR CompanyImmigration Company Formation Formation& HR & Administration& Administration AccountingCompany Accounting Formation & Financial& Financial & AdministrationReporting Reporting Accounting & Financial Reporting

formulas are more prescriptive – driven more by client wants than needs. “The real competitors of

tomorrow will be those firms This can be seen in terms of so much which can leverage using the wealth in Asia remaining under-invested. online platform or those that are flexible and niche/specialised in Yet the potential is there for change. the services they provide.” This is in the form of a greater adoption of goals-based thinking rather than LEE KAI YANG only servicing client appetite for risk. RHB OSK Asset Management

Further, clients are increasingly looking at more on-the-ground expertise, for

the first type, or they need to focus on their value propositions. “Global players who try to do everything in-house Global players who try to do everything potentially stand to lose the most.” in-house potentially stand to lose the most. The real competitors of tomorrow, explains Lee Kai Yang, chief investment officer, RHB OSK Asset Management, will be those organisations which are best positioned to capture the opportunity. Such a situation is a consequence of instance Asian managers from locally- the fact that most institutions never based players. Consumer brands such as tech compa- felt the need to take this. Although the nies will vie for the retail segment. most successful relationship managers REVISITING COMPENSATION (RMs) might understand their clients’ Regardless of efforts to adapt and So more traditional financial institutions requirements, at an organisational level, evolve the current business model, and wealth manager can better leverage their strengths, including brand, in the higher segments.

DRIVING BETTER CLIENT “Firms which stick to their UNDERSTANDING values and ideas of what is a The industry also needs to do a lot more quality service will do well.” to understand the real needs of clients.

While there are some banks which are early adopters of technologies to focus on human processes and drivers, nowhere near enough has been done PHILIPP PIAZ to make create offerings which are more Finaport pleasurable and more relevant or accessible for clients.

34 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 NumerixAd_2016.indd 1 10/3/16 11:01 AM FEATURE ARTICLE

Other much-needed changes include oversight, business metrics and the “There is huge potential client journey. for banks to rethink compensation and realign All of these elements will help wealth it with client needs.” management firms start to better understand what clients need – in terms of the styles of engagement they seek, their risk ability rather than risk appetite, and the required analytics to MARTIN FRICK track performance. Temenos

This recognises the need for a DIY slice of a legacy solution to be managed dif-

perhaps the most significant influence will come via wealth managers getting better aligned with the interests and “Clients will diversify, so needs of their clients. This needs to start banks have zero chance of with a rethink of compensation systems, custodising more than 15% to with changes needed in many cases to 20% of a client’s assets.” the way advisers are incentivised, says Martin Frick, regional director, Asia Pacific, Temenos.

TANMAI SHARMA There is a mis-perception that Asian Mesitis clients are unwilling to pay for advice. However, they will do so if they receive quality, independent advice for their money.

ferently from a discretionary portfolio for the same need. “Clients seek value, advice and trust. Those As part of this evolution, inevitably organisations who can robo-advice will play a greater role in deliver all of them will win.” the future of wealth management, co- existing with human input, emotions and empathy.

The proof of the extent and potential of VINEET VOHRA the influence of digital advice platforms Arete Financial Partners will come over the next 12 to 24 months in the wake of the push to market of various offerings and solutions.

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Taking Singapore’s independent community to the next level

Under the new stewardship of Swiss Asia’s Steve Knabl, the Association of Independent Asset Managers (AIAM) in Singapore has a refreshed vision – become more inclusive and relevant in a bid to further raise awareness and credibility of this ever-more influential industry segment.

Steve Knabl, managing partner of 10-second take-away Swiss Asia, has a new personal and professional goal: spearhead an evo- Steve Knabl will drive version lution and streamlining of the AIAM 2.0 of the AIAM in Singapore in Singapore by building on its five- as its new president year-old foundations. “We need to go This will build on the a step further,” he says. dedicated and highly-praised work of Anthonia Hui, president since the AIAM was In particular, he is focused on promot- founded in March 2011 ing the Association with the end-goal It will be a more inclusive of increasing – potentially doubling Association going forward – – the number of members, but without to broaden the membership compromising the quality of firms. “By base while also maintaining quality growing the member base, we can Knabl hopes to nearly double ensure we gain more credibility as an membership by encouraging Association,” he adds. over half of the current STEVE KNABL 100-or so IAMs in Singapore For example, out of a potential uni- Swiss Asia to join verse of around 100 IAMs in Singa- The AIAM will look to increasingly provide resources pore, only about 30 are currently around best practices members of the AIAM. “We need to for members in terms of be more representative,” says Knabl. regulatory, digital, risk more meaningful and prominent role management and other key POISED FOR GROWTH – both for Asian HNW and UHNW industry changes There is little doubt that the timing is clients as advisers, and for private right for independent firms to play a bankers as a career stepping stone.

38 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 With the private banking model in- bankers who want to ensure they are creasingly challenged, yet wealthy able to really care for a client and take New AIAM committee roles individuals and families in need of care of all their needs. “They are and responsibilities advice and an experienced profes- looking beyond the confines and silos sional to help guide them, IAMs seem of their financial institution,” he adds. Steve Knabl, President – Representing the Association a logical option. This is fuelled by the & Public Relations demographic changes underway For example, he explains, a banker Etienne Billaud, Vice president among private bankers and their might want to help a client’s son or – Communication & Events clients alike. “This shift is key for the daughter – regardless of their level of Management growth of the IAM business in general AUM. According to Knabl, it isn’t a Lucie Hulme, Secretary – in Asia,” says Knabl. surprise to see a private bank dis- Membership Applications and Maintenance. Due Diligence criminate the extent of the service and Ethics He explains this in terms of the dra- depending on the size of the client’s Philipp Piaz, Treasurer – matic move from the first-generation, asset base with the bank. Accounting, Finance and Tax who earned the money, to the next filings generation, who are more exposed “At an IAM, however, a USD2 million Yash Mishra, Training – and open to new approaches the client gets the same level of service Professional Training and Practice Development world now has to offer. as a USD200 million client,” he adds. Anthonia Hui, Compliance – Compliance and Professional Standards

“Some private bankers do not want to move upwards in their own organisation, as they might need to relinquish STEP BY STEP their client contacts.” An important way for Knabl to therefore fulfil his AIAM ambition will be a PR push. This is essential in order to communicate its initiatives with the independent community as well as the Private bankers are maturing too. A Further, the entrepreneurial mind-set wider wealth management industry. larger proportion are in the age group of an IAM is much more aligned with This will also involve a greater use of of 40 to 50 years old, and know they the required out-of-the-box thinking social networks. need to develop their relationships needed to devise different solutions with current and potential clients. and solve a real problem for a client. Focused events throughout the year The pitfall (for the majority of them) is another element of the new vision. Internally, however, they might feel of approaching many financial institu- “We want to open up to other types quite constrained. tions is often a lack of appetite to do of organisations, rather than closed- anything more than give a stan- door gatherings,” adds Knabl. “Some private bankers do not want dardised offering. to move upwards in their own organ- This includes the intention of seeing isation,” explains Knabl, “as they might At the same time, clients increasingly what partners can bring to the table then need to relinquish their client seem to embrace the concept of not to support the IAM industry. contacts, which can then make them being hitched to a single platform. more expendable.” Instead, they welcome the opportu- For instance, the schedule for the next nity to be able to access a variety of 12 months maps out a series of discus- This plays to the advantage of an IAM platforms with the objective of getting sions relating to a variety of industry model – at least for those private their needs met. trends and challenges pertinent to the

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 39 PROFILE

needs of members. These include: “Regulatory change is constant, and TAKING THE REIGNS understanding Indonesia’s tax the work we do in terms of reviewing Driving Knabl’s interest in taking on amnesty programme; making use of and digesting a lot of this is an added this new role is his desire to bring a portfolio risk management tools; value for member firms,” says Knabl. new way of doing things and a first- finding a CRS solution; assessing the hand approach to promoting the role of digital advice platforms; and More broadly, given that IAMs co- AIAM, as well as the wider industry. facilitating portfolio construction. exist with the private banks, it is important for the industry to pull in the He has big shoes to fill. Anthonia “We plan to further engage firms and same direction during a time of the Hui of AL Wealth Partners has driven potential partners much more ac- gradual disintermediation of banks. the Association for its five years tively with these and other initiatives,” Plus, with growing transparency and since inception. says Knabl. sharing of client data across borders, And she has put in a tremendous amount of dedicated energy through her devotion to the cause of the independent community.

“Regulatory change is constant, and the work we do in “She always went the extra mile to promote the IAM industry,” says Knabl. terms of reviewing and digesting a lot of this is an added

value for member firms.” She was also able to achieve this during a phase of significant regulatory change across wealth management. “Without her, it would have been difficult to achieve as much as the Association has to date,” he adds. The AIAM is also working on a new Knabl says Singapore must ensure it website to reflect a first impression is one of the pioneers in this period Now, though, he wants to use the of a fresh, dynamic, modern image of of far-reaching change. experience gained in building up rec- this segment of the community.

ALL-INCLUSIVE Knabl sees the rational for an IAM to want to join the Association in a “We plan to further engage firms and potential partners similar way as he explains why any much more actively.” private banking client would want to look around for an independent adviser. “It is about the added value that can be brought to the table.”

Fundamentally, members benefit from “It has the opportunity to become a ognition for Swiss-Asia’s own EAM the cost saving of the collective global financial centre to bring to the business to the benefit of the ‘buying power’ in terms of compliance forefront the quality of its banking segment. “We have managed to do counsel and other documentation – system,” he explains. “This is espe- it at Swiss Asia, and I believe I can including the many processes which cially the case as clients increasingly help do it to benefit the Association, have already been created for ask questions about the safety of their which will also help the industry as members to date. money in Singapore.” a whole,” he explains.

40 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 0202 AM_Award-Hubbis-AisanWealthManagement.pdf 1 7/13/16 9:08 AM

CMY

K FEATURE ARTICLE

Onshore versus offshore - what’s the right model?

The onshore wealth management opportunity is only likely to continue to grow, and at a time when many traditional offshore private banking models are struggling to be profitable. The key is to find the right approach – either compete or collaborate.

The opportunity for growth over the next decade seems to be local banks operating onshore, whether in China, “The opportunity for growth the Philippines, Thailand, or other over the next decade seems markets. This is according to Vincent to be local banks operating Magnenat, chief executive officer, Sin- onshore, whether in China, gapore and head of private banking, the Philippines Thailand or Asia Pacific, Lombard Odier. other markets.”

In Thailand, for instance, the tradition- VINCENT MAGNENAT al ‘red carpet’, privilege-style offering Lombard Odier to denote wealth management is evolving quickly. This is being driven by a strong willingness to move towards sophistication, based on an acceptance of foreign expertise – in terms of products, services and processes. need to have access to a wider array of Yet they lack certain aspects of a products and services. broader offering which is increasingly In India, meanwhile, the vast amount of important to these types of clients. new wealth being created is fertile FORGING PARTNERSHIPS ground for the right offering. For many international players, their This might include, for example, the chances of competing with onshore ability to help them find new ways to In line with these and other regional institutions in their home markets are invest and diversify their portfolios trends, the definition and scope of slim, at best. These local banks have internationally, while at the same time private banking is changing in many of serviced and developed deep relation- safeguarding some of their assets from these local markets – along with it the ships with entrepreneurs for many years. their home markets.

42 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

FEATURE ARTICLE

An insufficient product range is part of the challenge for local banks. Beyond this, onshore clients are also starting to “75% to 80% of our clients 15 need guidance when it comes to suc- years ago could hardly afford cession planning, inheritance tax and a priority bank account, let inter-generational wealth issues. alone a private bank account.”

In this way, international private banks – and especially those with a European heritage – can potentially offer their AMIT SHAH many decades (sometimes centuries) of IIFL Asset Management experience to local players.

Such partnership can therefore seem be a better and more viable option than the foreign bank taking the decision to go onshore – assuming the offshore land at the end of 2014 – leading to help set up and manage locally-domi- player can define their added value. the local institution to launch a new ciled funds that adopt a global risk- private banking division with a family based approach to asset management. WIN-WIN? wealth focus, around 12 months later. The key is to find partners which share “We need to encourage a move towards the same views and objectives. In the More generally, firms like the Geneva- more long-term portfolio management. case of Lombard Odier, for example, it based institution provides, among other This requires more understanding and partnered with Kasikornbank in Thai- things, its investment knowledge to education of customers,” says Marie Ramlie, head of retail products, TMB Bank.

Connected with this, as a next step, is the focus on training the local in- “The definition and scope of private banking is stitutions, both in terms of segment- changing in many local markets.” ing their clients as well as educating their bankers.

The local players also welcome the expertise they can get access to with a foreign partner in terms of advisory processes and developing the client “We need to encourage relationship skills and capabilities. a move towards more If they are realistic, onshore banks long-term portfolio realise this is the fastest way to get up management. This requires the learning curve. They know it will more understanding and take time to get their staff and service education of customers.” offering to the point where customers can get everything they are looking for. MARIE RAMLIE TMB Bank This should also lead to them being able to monetise the relationship too. With greater in-house knowledge, customers

44 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Financial Data. Made Smarter.

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Explore FactSet’s solutions and download our recent research, developed with Scorpio Partnership. www.factset.com/smartwealthebook FEATURE ARTICLE

are likely to feel more supported. In turn, the goal is to grad a bigger share of their wallet.

However, foreign players need to take note of some of the challenges their WHAT’S THE counterparts have faced in certain markets, for example India. RIGHT MODEL?

The majority of international institutions which have set up a business in India have tried to follow the same model and ONSHORE VS OFFSHORE style as in their home country. Newer wealth TradiǗonal private management model banking model Yet the demographics are incomparable. More growth Struggling to opportuniǗes become proﬁtable Most of the wealth in India – as with most Asian markets – has come from the newly-rich, who are often in their 40s, on average. “75% to 80% of our clients 15 A winning combination, therefore, is warns Rolf Haudenschild, country head, years ago could hardly afford a priority often a mix of a strong local player with Singapore, BRP. bank account, let alone a private bank customer insight and physical presence, one,” says Amit Shah, chief executive coupled with an offshore player to offer DEVELOPING LOCAL officer, co-founder and member of the the processes and systems to guide this. OFFERINGS board, IIFL Asset Management. In developing their offerings onshore, Yet some caution is necessary for off- local institutions need to start talking Further, the technical product expertise shore private banks. and thinking beyond the products and of a foreign bank tends to be redundant services. Instead, the focus should be in India, along with other local markets, They will tend to have a much greater on the business model. given the differences in regulation. This exposure to so-called tax-haven risk, all points to onshore expertise as a given the number of tax jurisdictions This means tackling tough questions, critical success factor. and rules the need to comply with, such as how staff are rewarded; the investment growth strategies; how – and how much – customers are charged; and whether the market generally, and the financial institutions and customers, “Offshore institutions are ready to change the way they work. will tend to have a much greater exposure to Inevitably, education will be key to con- tax-haven risk.” vincing investors of the benefit of long- term investing versus trading.

For the time being, at least, international private banks and wealth hubs ROLF HAUDENSCHILD such as Singapore and Hong Kong, BRP remain aspirational change agents as trend leaders which set the regional wealth management standards.

46 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 • From Prospecting to Onboarding and Servicing

• Ensured & automated Risk and Compliance (KYC, Suitability, FATCA, CRS, MiFID, etc.)

• Getting your Digital Bank ready

rz_imtf_inserat a4_Icos.indd 1 03.06.2016 15:36:27 EVENT HIGHLIGHTS - INVESTMENT SOLUTIONS FORUM 2016 - HONG KONG

Finding investment solutions for challenging markets

Amid highly-challenging markets, product manufacturers and distributors urgently need to get clients to use a broader range of portfolio and investment solutions. In particular, diversification and risk management are critical.

In today’s uncertain and volatile invest- Banks, Multi-Family Offices and IFAs, ment environment, listening to clients as well as relationship managers and Thank you to our sponsors to understand their needs and present investment advisers from the industry. diversified portfolio solutions to them BlackRock will differentiate the winners and losers. There are clearly many uncertainties in Eastspring Investments fundinfo today’s investment markets – ranging Intellect Design Arena Indeed, against the backdrop of what from individual economies to geo-po- Leonteq Securities seems to be the toughest year for a long litical issues to interest rates, and more. Societe Generale time for wealth managers to make As a result, the focus needs to be on Commerzbank revenue – product manufacturers and diversification of risk and rebalancing HSBC Global Asset distributors must guide clients to use a portfolios. At the same time, it seems Management Morningstar broader range of investments which are that whatever assumptions people have RBC Capital Markets simpler, more suitable and relevant. about the past might not be relevant for the future. Advisers therefore need In line with this, we designed and hosted to question their assumptions before our new-format, investment-focused building portfolios for their clients. event in Hong Kong in September 2016. clients to the investment specialists An important consideration when – whether via a discretionary portfo- This brought together 260 senior indi- managing portfolios today is also to lio management (DPM) model or viduals – including leading product & continue to move in the direction of another format. fund gatekeepers from the top interna- removing the responsibility for making tional and local Private Banks, Retail investment decisions from the end- Advisers also need to re-align client expectations in terms of returns and performance with what the market is actually offering.

It seems that outcome-oriented investments is the new name of the game. Increased certainty and visibility has the most appeal today. Further, clients don’t like prepared product pitches. They want someone that asks the right questions, understands their needs and provides relevant solutions.

48 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Adam Cowperthwaite Andreas Vogelsanger Andrew Hendry Andrew Scott Anthony J. Harper Citi Private Bank AFC Vietnam Fund Westoun Advisors Societe Generale Managed Account Partners

Anthony Siau Belle Liang Boon Peng Ooi Chetan Pandya Frank Troise Kairos Capital Partners Hang Seng Bank Eastspring Investments Intellect Design Arena Leonteq Securities

Harold Y. Kim, Ph.D. Ian MacDonald Jackie Choy Jaye Chiu Jean-Louis Nakamura Neo Risk Investment Advisors EY Morningstar EFG Bank Lombard Odier

Jessica Cutrera Ken Peng Kevin Liem Lavanya Chari Lemuel Lee EXS Capital Asia Citi Private Bank TTG Wealth Management Deutsche Bank Wealth Management J.P Morgan Private Bank

Marco Kermaidic Matthias Weber Steve Knabl Ni Yan Philippe Banon BNP Paribas Wealth Management ifund Swiss Asia Indosuez Wealth Management RBC Capital Markets

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 49 Richard Mak Robert Reid Rohit Jaisingh Sean Cochran Stephen Kam Pictet Wealth Management BlackRock DBS Bank UBS Wealth Management HSBC Global Asset Management

Michael Levin Steven Moeller Stewart Aldcroft Sally Kwok Joel Gasche Credit Suisse BlackRock Citi Markets & Securities Services BlackRock Leonteq Securities

“Today was outstanding for providing candid and genuine insights into markets, as well as thinking about how private banking is transforming and how to add value to our clients. The discussion about a needs-based, solution-oriented way to enhance client portfolios was also really important.” Michael Levin, Head of Asset Management, Asia Pacific, Credit Suisse Christian Obrist BlackRock

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How to remove the funds blockage in Asian private banking

Despite efforts by most private banks in Asia to increase funds penetration to boost recurring fee income, a new White Paper finds average penetration across 23 firms in Hong Kong and Singapore – with a total Asia-based AUM of USD1.5 trillion – was 9%.

As far back as the early 2000s, one of Hendry of Westoun Advisors did in the key challenges for the private July and August 2016. Six steps for recurring banking industry in Asia was how to revenue success increase funds penetration to ensure The objective was to discover suc- a greater proportion of recurring fee cesses and problems in the increasing- 1. Firm-wide tactical asset income. Nearly 15 years on, and the ly-urgent goal of reducing the domi- allocation conversation is still the same. nance of transactional revenue. 2. Ease of access to funds 3. Recommended lists 4. Fund-only events 5. RM / CA coverage 6. After-sales support “One of the key challenges for the private banking And four obstacles industry in Asia is how to increase funds penetration to ensure a greater proportion of recurring fee income.” 1. Product economics and RM / CA KPIs 2. Budget constraints and outsourcing aversion 3. Triple-hatting 4. Changing staff and In the vast majority of cases, these It ultimately resulted in interviews with organisational structure institutions have been struggling to 38 individuals representing 23 private move the needle in selling funds, banks in Hong Kong and Singapore – managed solutions and discretionary with a total Asia-based AUM of USD1.5 mandates as part of longer-term port- trillion. Average penetration was 9%. folio construction. The output, both from the interviews fund AUM, given inconsistencies in This was the backdrop for proprietary and further validation research, identi- discretionary portfolio management research which Hubbis and Andrew fied six steps for success – in terms of (DPM) offerings – and four obstacles.

52 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 SIX STEPS FOR RECURRING Step 6: After-sales support - to retain as there is no longer the sweetener of REVENUE SUCCESS assets in funds, as distinct from new the front-end load. sales, after-sales support is needed Step 1: Firm-wide tactical asset alloca- from fund managers in addition to the 2. Budget constraints and outsourcing tion (TAA) - respected and reiterated effort internally. aversion - to effectively execute on across all product silos as well as func- the six steps to success as above, tional layers down from the chief invest- Across all banks interviewed, few were what’s needed is either investment ment officer (CIO) through product consistently able to undertake these internally or outsourcing all but the gatekeepers, advisory teams, investment steps. The steps that were most chal- valuable tasks. counsellors (ICs) and to relationship lenging – even absent in some cases managers (RMs) / client advisers (CAs). – were ‘Ease of access to funds’ and Budgets at all banks (bar two of the ‘After-sales support’. largest), did not allow for appropriate Step 2: Ease of access to funds - to internal resources. Interestingly, re- implement the TAA, access to funds OBSTACLES source-constrained banks were unable on three levels is needed in a total of to outsource functions. six weeks: 1. Product economics and RM / CA key performance indicators (KPIs) - to In a few cases, this was because the Fund information – in particular achieve revenue targets most effec- bank was not aware of outsourcing the qualitative inputs of requests tively, RMs / CAs focus on the highest solutions, but for the majority there for proposals (RFPs), manager revenue-generating products – which was a corporate aversion. interviews, operational due dili- are insurance and structured products. gence Funds, relative to these, are compli- The outcome was that little resourc- Operational connection cated to sell and generate much lower es are being spent on tasks which do Commercial agreement immediate revenues. not contribute to fund sales or retention. Compliance and regulatory Step 3: Recommended lists – a focused For the work of retaining existing issues (in steps 2 and 3) take up in- Asian recommendation list created funds, the economics are even poorer; creasing bandwidth. with 25 to 40 funds, including alternatives. These are the best-in-class in terms of investment and sale support.

FOUR KEY OBSTACLES TO GREATER FUNDS PENETRATION IN Step 4: Fund-only event - a half-day ASIAN PRIVATE BANKING offsite with three to five fund managers with excellent presenters who are in line with the TAA view.

Mandatory RM / CA attendance, held (at a minimum) semi-annually in line with the selling seasons. For optimum fund penetration, repeat the same Product economics and RM / CA KPIs Budget constraints and outsourcing aversion format with clients.

Step 5: RM / CA coverage - to maintain momentum after the events, promote funds in person at various internal meetings. For this to be possible, an appropriate ratio of fund specialists to ICs and RMs / CAs is necessary. Triple-hatting Changing sta and organisational structure

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 53 THOUGHT-LEADERSHIP

Further, a related challenge when it WHO TO CONVINCE comes to the ability of RMs / CAs to The principle impediments to the goal Participating engage clients with needs-based con- of increasing recurring revenue were, organisations versations about investing via managed and still are, ascribed to the end-clients solutions, is the lack of sales training. in the region. Their investment behav- This was all on a strictly iour, characterised by short-termism, anonymous basis: This, too, partly stems from the short- propensity for speculation and reluc- ABN AMRO Private fall in time and resources dedicated to tance to delegate decisions are oft-cited. Banking such education or to continuing profes- Bank Julius Baer sional education in this area. It seems Yet this seems a convenient excuse, Bank of Singapore a surprise that few, if any, institutions reinforced by regional stereotypes and BMO Private Bank ensure their front-line staff have formal media, and it has served many banks BNP Paribas Wealth Management sales and presentation skills, to ensure well in being able to focus on end- BOC International they fully understand and then can clients – not the industry itself – as the Bordier & Cie implement required sales processes. root cause of low recurring revenues. CA Indosuez Wealth Management 3. Triple-hatting - as a consequence of As a simple way to test the validity of CIMB Private Banking budget constraints, fund specialists the above – to determine whether it Citi Private Bank Credit Suisse Private have to wear several hats. From the is a mere excuse or explanation – one Banking perspective of ICs and RMs / CAs, the may ask whether, from a high-level, CTBC Bank consequence is that they are either what AUM would a private bank have DBS Bank perceived as, or in reality are, a ‘jack in the extreme if it captured all and Deutsche Bank Wealth of all trades’ and ‘expert of none’. only the assets currently invested in Management funds through private banks. Goldman Sachs Private Wealth Management This undermines their credibility and Maybank thereby their ability to increase funds To arrive at this, we apply a 9% pen- Morgan Stanley Private as a share of RM / CA sales versus etration rate on a conservative value Wealth Management competing products. of USD2 trillion AUM of Asian private OCBC Bank banking assets – giving us USD180 Pictet 4. Changing staff and organisational billion. This would be the third-largest Standard Chartered Bank UBS Wealth Management structure - the average time that fund private bank by AUM in the region. Union Bancaire Privée selectors or regional gatekeepers are in VP Bank their respective role was found to be In extremis, this shows there is enough less than two-and-a-half years. Internal demand for managed assets from Asian structures for reporting and responsi- clients to allow any bank to achieve high bilities were changed approximately recurring revenue. Indeed, this number every three years – seemingly in-line shows the industry is somewhat suc- with senior management changes. cessful at placing assets in funds. However, structural and human capital issues are at the root of this feature of Add to this M&A and HQ shifts of Asia As another sense-check, one may look the Asian private banking industry. private banking strategy (enter, expand, at the pure-play asset managers in the shrink, exit, etc) and it is no surprise region. The assets from individual in- As a result of current models, incentive to see that all firms have endured un- vestors in Asia support a large and structures, processes and policies, ending substantial modifications to growing cohort of firms whose reve- therefore, a combined with the under- their Asian businesses. nues are entirely recurring. If there lying issues of stretched resources and were a true cultural aversion to consistency of people, the best efforts In this context, executing the six simple managed assets, these firms would only by firms to maintain and grow penetra- steps is understandably difficult. have pension and sovereigns as clients. tion of funds is undermined.

54 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 PRACTICE MANAGEMENT - PORTFOLIO CONSTRUCTION

Yield tourists are searching for dividends

In the current environment of ultra-low interest rates, investors continue to search for dividend-paying stocks as a pseudo-replacement for bonds. By Todd James

In the hunt for yield, investors have caution to heed. The first is tax. For to 3% in dividend yield, 40 to 70 basis been piling into dividend-paying stocks example, companies in the US may points in fees makes a big difference. and funds. provide decent yields and a strong track Saying that, not all dividend ETFs are record for paying and growing dividends, created equal; some dividends ETFs This has been to such an extent that last but as a foreign investor, the US govern- have a high concentration of financials week Vanguard announced it had to ment kindly takes away 30% of the and energy stocks (the UK dividend close its flagship Dividend Growth Fund dividend payment, so a dividend of 2% ETFs are a prime example). to new investors, which has grown by is actually 1.40% after the tax deduction. over USD3 billion in the last six months While I may want to avoid energy and and holds AUM of over USD31 billion. Also, stocks denominated in foreign financials, at the very least you should currencies may look attractive, but the keep a diversified portfolio even at the Will this search for yield continue? currency risk alone may destroy any expense of higher yields. In other words, There is no reason it won’t. Even a US dividend benefits from the underlying don’t just try to maximise yields. interest rate hike around the corner stock. While it may be prudent to invest shouldn’t deter investors. In fact, it may in some non-US dollar-denominated For those who do invest in individual carry the momentum forward, as inves- assets (for a US dollar-based investor), stocks, buy companies with strong cash tors try to avoid the decreasing price as always it comes down to risk. A little flows, and stable (and, preferably, low) of bonds and stock up on appreciating is good, a lot is bad (to put it simply). dividend payout ratios. A high dividend assets, which also provides relatively payout ratio may be a signal that the decent income. Many investors look to dividend-paying dividends may be cut at some point, stocks as a replacement for bonds, but which will have a big impact on the share While the demand for dividend-paying for those that invest in single stocks, price wiping out any dividend payments. stocks has pushed prices higher, they the additional risk of holding a concen- may be seen as expensive, but with such trated portfolio in fact increases the risk When buying dividend-paying stocks, low interest rate, the trend can – and of your portfolio rather than diversifies boring is best. It is very difficult for most should – continue. or decreases risk, which is one of the investors to buy stocks that are less benefits of investing in bonds. exciting; stocks with low volatility and Dividend yield on the Hang Seng Index limited capital-gains potential, but those (2800 HK ETF) is over 3.30%, while the Thus, it would be more prudent to buy are the stocks you should be buying. yield on the S&P 500 (SPY ETF) is over 2%. a diversified dividend-focused ETF over single stocks. In this case, ETFs are Don’t assume you can have the best of CAUTION NEEDED more superior to actively-managed both worlds (dividends and capital While many investors are looking for funds for the one primary reason: lower gains); greed and risk could damage dividend yield, there are a few words of cost. When you are trying to earn 2% your portfolio in the long run.

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 55 EXPERT INSIGHTS

Driving a transition towards proper advice

Leong Guan (LG) Lim of UBS Wealth Management has a clear vision for how the industry should approach clients in a different way, to help them better meet their long-term financial goals. But mind-sets and fee models need to change too, he tells Hubbis.

The whole business of Asian private drives the majority of conversations about highly diversified and to be willing to banking is undergoing a transition, led short-term investment. In reality, talking pay fees on their assets rather than their by the desire of regulators to move the to clients about investment opportunities transactions – assuming that they really industry forward in what they see as in Asian private banking today often just want the quality of advice to meet their the right direction. translates to short-term trading. real needs over the longer term.

While this has cost-related implications for institutions individually, the upshot should be higher-quality advice that is in the best interests of clients as well as “My concern is that private banks in general are not banks’ profitability over the longer term. meeting the most important needs of clients – their longer term financial goals.” “My concern is that private banks in general are not meeting the most important needs of clients – their longer term financial goals,” says Leong Guan Lim, Asia Pacific head of capital It is rare for a client to come to a bank LONG-TERM WIN-WIN markets and banking products at UBS and ask for the best chances of maximis- Aspirationally, and as a leading industry Wealth Management, and head of ing their returns over a five-year invest- player, UBS Wealth Management wants investment products and services for ment horizon. to move as many clients as possible the bank in Singapore. towards a proper contractual arrange- As a result, Lim says the industry needs ment where the bank is required to give This is mainly due to the transaction fee- to offer more of a holistic, total wealth them advice. “With this obligation, we based remuneration model at most insti- advisory approach over the longer term. would look to clients to pay us a fee for tutions, he adds, explaining that this This will then require clients to be more the assets on which we are providing

56 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

EXPERT INSIGHTS

advice, rather than for the transactions providing them with advice that matters. we do for them,” explains Lim. And banks need to play their part in Adapting to changing that, he explains, by not creating the times “This truly puts us on the same side as illusion that they work for free. our clients,” he adds. Until the transition towards “With more transparency, I hope that fee-for-advice and long-term investing is complete, Lim and The bank also wants to be more and clients will see that they should be pre- his colleagues still need to help more transparent with its clients in pared to pay a fair fee for advice – as- their clients tackle a challenging terms of how it approaches them to do suming they can get back a better un- market environment. business and make money from them derstanding of the value they get for in this way, he adds. the fees they pay,” says Lim. Today’s low interest rates, for example, requires investors to raise their allocations to To be able to put all this into prac- In turn, they should then become more alternatives such as private External tice, Lim wants to develop a more focused on meeting their longer-term equity, hedge funds and holistic shelf of products and solu- needs rather than short-term trading. real estate. tions which are longer-term focused Wealth Management and highly-diversified. PROVIDING PROOF “The normal return environment Being able to prove the value and is challenged, and therefore having a higher allocation to Platform At the same time, they must also have quality of advice will be the key over alternatives can raise returns a variety of styles to suit clients’ views time for banks like UBS Wealth Man- over a longer-term timeframe or risk profiles, for instance. agement to achieve the longer-term, without raising risks too much,” fee-for advice model that Lim knows is explains Lim. YOUR KEY TO INDEPENDENCE For example, they could potentially the right way to go. mandate the bank to do asset alloca- In line with this, UBS Wealth Management has been tion based on a risk-weighted perspec- One would think that having such a increasingly looking to give tive, rather than the traditional asset conversation would result in an its clients greater access to all class weightings. obvious outcome. kinds of alternative investments, including bringing on board More specifically, in this way it could Yet Lim explains that a surprisingly more expertise to highlight the then adjust portfolio allocations to fixed large number of clients still veer importance of the bank’s global Are you a Private Banker? scale and reach. income or equity, for example, based towards – and often insist upon – Do you want a lifestyle change? on the market outlook and riskiness of short-term transactions. In particular, this includes a these assets. sharp focus on manager due Have you considered being independent? This is despite the fact that the bank diligence and selection. UNITED FRONT can show how its different strategy Yet for UBS Wealth Management to be funds – or broader solutions – have “This is how we can really bring value to our clients,” adds Lim. able to make this approach to advice performed versus any client’s individu- really work, the bank also relies on some al portfolio. This is especially important external forces. for UHNW individuals, who “Many clients believe that maximising need more than just traditional “A mind-set change is needed among short-term returns equals maximising banking services. all stakeholders in the industry, in terms long-term returns. But that is a fallacy,” This makes it key to provide of what is really in clients’ best inter- explains Lim. them with a mix of investment ests,” says Lim. banking, asset management and LOOK NO FURTHER, CONTACT This further highlights the pressing need wealth management. SWISS-ASIA FINANCIAL SERVICES PTE LTD: This also includes clients being made to change investor and broader indus- aware that banks need to be paid for try mind-sets within Asia, he adds. [email protected]

OR VISIT US AT WWW.SWISSASIA-GROUP.COM 58 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 External Wealth Management Platform

YOUR KEY TO INDEPENDENCE

Are you a Private Banker? Do you want a lifestyle change? Have you considered being independent?

LOOK NO FURTHER, CONTACT SWISS-ASIA FINANCIAL SERVICES PTE LTD:

[email protected]

OR VISIT US AT WWW.SWISSASIA-GROUP.COM FEATURE ARTICLE

Delivering investment performance for your clients today

Needs-based conversations with clients are a basic but essential way for wealth managers to stand out in such a challenging investment climate. They must offer the right advice at the right time to deliver solutions which clients actually need.

Given that delivering performance for clients is fundamental within wealth management, especially during difficult “With the correct and uncertain market conditions, the management and starting point needs to be figuring out construction of a portfolio what the client needs and wants. to begin with, we will deliver returns for clients, and across Yet these might not be the same thing, a realistic time frame.” so relationship managers (RMs) and client advisers need to be able to assist ADAM COWPERTHWAITE clients in this discovery process. Citi Private Bank

Although the industry as a whole has proven itself to be effective at delivering to clients what they find interesting, the real focus needs to be on the correct management and construction of the portfolio to begin with. This needs to “Today’s era of instant gratification when seeking be based on a premise of delivering information applies to investments too. As a result, the returns for clients across a realistic time frame that is agreed upon – not just advice game has changed.” what can make money for them in the next few months.

With this in place, it then becomes pos- about what they expect their bankers explains Adam Cowperthwaite, head of sible to manage client expectations to help them achieve in terms of results, equities - Asia Pacific, Citi Private Bank.

60 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Hubbis Advert V4.pdf 2 30/04/2015 20:58

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FEATURE ARTICLE

Offering the right advice at the right time Making Needs-based conversations with clients

Deliver solutions which clients actually need Stand out in this challenging investment climate.

FOCUSED ON SOLUTIONS portfolios. For the next 12 months, this for to sell a ‘story’ as part of a solution Today’s era of instant gratification when probably means a bias towards capital that they can continue to implement seeking information applies to invest- preservation, even if this isn’t popular. over time with their clien, adds John ments too. As a result, the advice game Cappetta, head, managed solutions has changed. In line with this, rather than continuing advisory for Singapore, Bank Julius Baer. to try to sell product, now is good time By reinforcing this with clients, the RM As a result, speedy responses and relevant information, delivered as efficiently as possible, is now part and parcel of the expected client service. “We need to have Yet a mid-2016, Hubbis-commissioned conversations with clients survey of the gatekeepers and fund with a bias towards capital selectors at 23 private banks (represent- preservation.” ing 77% of AUM in Asia at more than USD1.5 trillion) show the reality of their challenges in evolving the advisory proposition in Asia. MICHAEL THOMPSON Part of this is moving conversations PIMCO with clients beyond short-term performance towards what is good for their

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64 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

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Hubbis-Quarterly-Jan16-A3-Ad.indd 1 20/01/2016 12:30 EXPERT INSIGHTS

BNP Paribas finds opportunities amid negativity

Far from taking a step back in the current environment of negative interest rates, Stephane Honig has embarked on a redesign of BNP Paribas’ value proposition to reach out to new clients who are unimpressed by today’s investment prospects.

The term “crisis” is not on Stephane growing,” he explains. “But if we want Honig’s mind. to grow faster, we have to increase the penetration of capital market products As head of sales for wealth management from 10% today to between 20% and and family offices, global markets, Asia 30%, or even more.” Pacific, within BNP Paribas’ corporate and institutional banking business, he To succeed in this way, however, the argues that with only a small fraction bank must be able to create value for of private banking clients in Asia still its customers by providing them what investing in capital markets, the op- they want. portunities even in a challenging year for those serious about expanding their This means it should be able to cater to business are immense. the idiosyncrasies of Asian investors.

STEPHANE HONIG “If we want to grow faster, we have to increase the BNP Paribas penetration of capital market products from 10% today to between 20% and 30%, or even more.”

senger; just as they no longer care only about getting to their destination, but “We have been growing so far just Honig sees the needs of an investor also about punctuality, in-flight service because the wealth in Asia has been today as akin to those of an airline pas- and cleanliness, investors too want more

66 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 than a good product with a great yield. investment case, we need to over-com- In addition, it is keen to provide its He says they also want ownership of municate to engage clients,” he says. clients a fresh way to invest in the new their portfolio, investment decisions China economy. and the ability to earn more and more. In line with this, technology is being infused into the bank’s services to help For example, it recently introduced the THE SHAPE OF THINGS TO COME private bankers engage their clients S&P New China Sectors Index for clients BNP Paribas is currently implementing more effectively. “Digital should be who are willing to look past the current several changes to achieve this goal. there to help the private banker perform turmoil in the country and stay invest- most of the milestones of the advisory ed for the long-term. This year, it has shifted its business focus process,” says Honig. from one driven by reverse inquiry to “It will provide an interesting window one led by solutions, and being proactive These changes are aimed not only at to any investor who wants to keep ex- by reaching out to new customers. keeping its current customers loyal, posure in the new China economy, but also at attracting new clients who which is likely to benefit from the tran- “We are now presenting to clients in- currently are not investing in the sition that is currently under way,” ex- vestments that they are not used to capital markets. plains Honig. buying, or have never shown any interest in,” explains Honig. “That is what we It has already enjoyed some success Ultimately, his goal is to generate top- have been engaging in quite heavily with its new strategy. Even while the of-mind awareness about the BNP over the past year.” markets have been going through tough Paribas brand by continuously engaging potential clients through email updates on major global events, along with comments from central banks, regulators and market movements to “People are receptive to change and they are keen to keep them up-to-date and also more explore.... The challenge, though, is to change the likely to reach out to the bank for their way we present and promote them.” investment needs.

Further, while Honig sees opportunities everywhere in Asia, one area he is particularly excited about is in catering The bank’s value proposition has also times, structured products have con- to the latent onshore demand for evolved from simply offering products tinued to do well over the past year. wealth management. to engaging clients on a deeper level – and beyond marketing platitudes. “People are receptive to change and “Not only is there a lot of wealth that they are keen to explore,” adds Honig. is locked onshore, but also the younger For example, it has replaced standard “They are definitely open to all types of investors and newer generation is more emails exalting the features of products investments; the challenge, though, is likely to capture the opportunities in and their pricing by screening potential to change the way we present and their own country rather than offshore,” clients to first learn about their invest- promote them.” he explains. ment philosophy and determine whether their idea of investment is in GAINING VISIBILITY “These young people have the network, sync with the bank’s own one, before Going forward, BNP Paribas’ goal will the contacts and the ability to get things introducing them to a possible product. also be to introduce products with ma- done,” he adds. “For these reasons, turity periods longer than five years, compared with the previous genera- “We now need to have investment ra- plus add more options to its fixed tion, their desire to invest money tionale, we need to over-articulate the income offering. overseas is going to be lower.”

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 67 FEATURE ARTICLE

Can we fix the talent problem?

Getting more competent professionals into the industry – and keeping them – requires institutions to take a close look at business models, digitisation, retention strategies and compensation models. It is also essential to bring the fun back to private banking.

Asian private banking has largely taken a short-sighted road to growth to date by being too focused on hiring each “We need more other’s staff. patience, time and energy at looking at This has done nothing to resolve the other talent options.” fundamental talent shortage nor attract young, engaging and competent individuals to the industry.

DAVID KOAY And amid an environment where the Standard Chartered Private Bank role of a private banker or wealth manager is changing, including the greater administrative burden, the need to tackle these challenges and plug the gap is pressing. whether they have hired talent from private bankers have been dropping. Self-reflection is an important element the right places, whether they have Are fewer people entering the industry, of this, to ensure that the industry has given the sufficient support through the or more people leaving it? If the growing given private bankers enough time and right infrastructure, and whether they regulatory tasks, lower margins and resources to service clients in the way have used technology enough and in stiffer targets are among the causes, they are supposed to. the right ways. then this will take time to resolved.

Some of the questions along these lines FILLING THE SHORTFALL Over the longer term, therefore, re- that all banks are grappling with, include The industry first needs to address the placement should be thought through whether growth has been too fast, root causes of why the numbers of in terms of innovation in a combination

68 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2

FEATURE ARTICLE

of factors: business models, digitisation, relationship manager (RM) retention and compensation models. “As an organisation, we need to pay attention when we Looking at the business model, there hire people to whether we should be a focus on segmenting and have the capability to give optimising RM loading, assessing in them a career path over next reality how much onshore wealth is truly 5 years.” being managed. When it comes to digitisation, more time needs to be spent VIKRAM NIMKAR determining how some RM and client Westpac self-serve activities can be offloaded through various tools.

The strategic priority for firms should be RM retention. While talk is of ‘client centricity’, more thought needs to be paid to the concept of ‘RM centricity’, says Murli Adury, head Citigold Private “Rather than [compensation models] being overly-skewed, Client, APAC & EMEA, Citi Singapore. they need to be based on the non-financial factors that should matter to the bank other and then incentivise To help address this, training must be RMs to drive those activities.” adapted to ensure it is focused on ‘learning’, by tying together processes and knowledge to make it educational. This also means offering a more obvious path of career progression. ship, company values, behavioural based on the non-financial factors that As one example, Citi has tied up with finance and asset allocation. should matter to the bank other and then the Wharton School of the University incentivise RMs to drive those activities. of Pennsylvania, with a goal to deepen Compensation models are also an impor- the understanding of wealth manage- tant element of this. Rather than them At the same time, however, this is an ment among RMs, across skills, leader- being overly-skewed, they need to be opportunity for organisations to be clear about whether they actually need to replace private bankers.

“While talk is of ‘client In some cases, given the fact that operating costs will continue to increase, centricity’, more thought some service providers will implement needs to be paid to the ways to increase efficiency. This might concept of ‘RM centricity’.” come via investments in robotics and automation. Although this will have the most impact in the middle- and back- office, the front office can gain if the MURLI ADURY manual workload can be reduced. Citi Further, technology can also help to ‘free up’ time and create more capacity

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for bankers, says says Urs Palmieri, , financial services advisory, performance improvement strategy, EY. Communica- “I believe technology will tion channels are obvious catalysts to also help to ‘free up’ time balance the lack of individuals. and create more capacity for bankers.” PIPELINE To attract the next-generation bankers, meanwhile, organisations must be more open to non-traditional but adjacent pipe- URS PALMIERI lines. This means individuals from other EY segments of financial services, such as corporate banking, asset management, insurance, fintech and financial consulting.

Management associate programmes can also be an effective route, especially in “We need to be careful [when hiring]. In short, more time, patience, time and creating a career-progression stream and Someone who has been in banking a energy needs to be at looking at exist- making the route to leadership transpar- long time might have some bad habits,” ing and alternative talent options, adds ent, if people want to take it. says Herwig Van Hove, chief executive David Koay, managing director, head of officer and founder, Vahoca. relationship management, ASEAN, Other approaches might include rota- private bank, Standard Chartered Bank. tions to fresh recruits, and apprentice- Management also needs to keep ship models, including calling on more bankers engaged by ensuring they are ADAPTING THE ROLE senior bankers to help nurture younger culturally aligned with the goals of the As part of fixing the talent problem, the and newer staff. organisation. “As an organisation, we private banking industry also needs to need to pay attention when we hire re-think the role it plays in terms of advice. While not all great bankers turn into people to whether we have the capabil- good managers, organisations need to ity to give them a career path over next The starting point should be to be in- find and motivate individuals who can 5 years,” says Vikram Nimkar, head of trospective in terms of how well it does be effective mentors, if the industry as premium & private wealth, interna- in fulfilling its implied promises through a whole is to increase overall quality. tional, Westpac. the value proposition offered to clients. Bankers should be financial educators first, not sales people.

Individual bankers must also embrace “We need to be careful technology and innovation, becoming [when hiring]. Someone stronger advocates of change within. who has been in banking a More broadly, there is still a glamour long time might have some to being a ‘private banker’, in terms of bad habits.” a degree of fulfillment by being truly client facing and working with successful people. HERWIG VAN HOVE Vahoca It also enables individuals to develop in mentors to others, to give something back to an industry that has nurtured them.

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ACT_AD_A4_MOTHER&DAUGHTER_SG_2015.indd 1 10/28/2015 2:32:18 PM PROFILE

Setting high standards for private bankers of tomorrow

In recalling five decades of experience in global wealth management, Richard Piliero offers some well-honed insights and ideas on how up-and-coming advisers can rise to excellence in an ever-demanding and fast-changing industry.

Looking back and reflecting on 75 years change,” says Piliero, who is today an of his life and career, Richard Piliero can executive of Finaport, a Swiss-based see where and how he learned from his independent asset manager with an mistakes – as well as enjoyed the office in Singapore. choices that have turned out well. ADAPTING AND GROWING Career-wise, fundamentally he believes Not being afraid to make choices and that if someone is not happy in their changes, particularly in this rapidly- work over a period of time, then they changing environment, is a philosophy should conclude that they are most which becomes evident when mapping likely in the wrong profession or job. Or his career to date. they might be in the wrong company for their skill-set and personality. Born in New York, Piliero went to law school there before starting his career Either way, they need to consider this in the same industry on Wall Street. carefully and make necessary changes. Around 15 years later, and driven by RICHARD PILIERO While his career progression wasn’t due a can-do, entrepreneurial attitude Finaport to changing roles to find happiness which has come to characterise his necessarily, it highlights the importance persona, he was chosen to be the of being willing and open to new chal- first non-broker to manage a branch lenges and opportunities. office for Merrill Lynch, based in Geneva, Switzerland. them in the way you want to, you can “Be opportunistic, even if it means always look at it in another way,” ex- leaving your comfort zone, in terms of “When I face problems, I would say that plains Piliero. “I think this convinced location, new ventures and career although you might not be able to solve them to choose me.”

74 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 SWISSLIFE_AD_210x297_FA.pdf 1 22/7/14 5:36 PM

Setting high standards for private bankers of tomorrow

CMY

K PROFILE

He moved to Switzerland in July 1973, SELECTIVE “Don’t hesitate to surround yourself after marrying an English lady and Piliero says he has chosen his career to with people who are smarter than you.” working in London for eight months. At hire bankers based on several factors. that point, he became the interna- BANKERS OF TOMORROW tional general counsel at Merrill Lynch. Discipline is an important one. “We were As someone who likes to be held to high disciplined about what we wanted,” he standards, Piliero says there is no quick PURSUING PASSION says. “We wanted relationship-oriented way to success in private banking; it is Over the years, Piliero formed a passion bankers who could use the strengths step-by-step up the career ladder. for wealth management and advising which have now become popular among clients directly. investment and fiduciary specialists. All The driver must be the fact that wealth the things that are important in private management is, like in many other It got a kick-start in 1986, when he banking and insurance.” industries, a way to bring satisfaction became a deputy head of private and happiness to a client’s life. “Careers banking of the Trade Development Bank Education is also key. Piliero says the in wealth management are similar to in Geneva. Then, in 1990, he joined the firms he has worked with have invested others we see in our daily lives - American Express Bank. a lot in continuing education, which lawyers, teachers and doctors,” he says. really is the glue to keeping the relation- “Wealth management is about improv- Back in those days, Swiss banks were ship between customers and bankers. ing someone’s financial health, and it managing wealth for people from all is a worthy profession.” over the world, but mainly for Euro- This is in contrast to what he sees hap- pean countries. “Wealth management pening a lot in Asia – where senior As a result, good leadership should en- was about managing others’ money.” management often doesn’t consider courage bankers to continually develop clients, and instead focus on revenue. their skills and knowledge to focus on While Piliero had thought he wanted the needs of their clients – often needs to live in Switzerland forever, he later In addition, integrity is critical too. they have but are unaware of. changed his mind because he wanted “Always maintain a high ethical standard,” to be where the real action was. “The he adds. “Of course, decisions often- For Piliero, probably most satisfying in timing was absolutely superb because times have to be made when the choices his career has been helping mentor and if you couldn’t grow there you couldn’t are not clear. One benchmark I have develop young professionals, in turn grow anywhere,” he says. found helpful, is never do anything you breeding more experienced bankers. would not like to read about in the news- “Take care of the careers of others, par- However, he was always careful, when- paper (or online) the next day.” ticularly your subordinates, and be a ever possible, to seek the advice of good mentor,” he says. “Your own career trusted friends, yet be decisive in Yet Piliero believes wealth management will likely benefit from that behaviour.” making his own decisions, and being in Asia is more regarded as a business accountable and responsible. rather than a profession. But there is no short-cut. A good private banker really has to start right at the begin- In terms of career potential, meanwhile, To change this perception, he says the ning, at the bottom, he adds. “They have he realised in Asia that there was a lot focus needs to be on clients’ needs as to know the cores of the business, which of competition among bankers. a higher priority that just creating profit. is much more than selling products.” “Asia needs time to accumulate AUM, He then met Adam Green, a promi- and they’d better do that by working At the same time, professional respect nent headhunter, thus enabling Piliero hard to bring ideas to clients based on is a critical success factor. “Remember,” to approach more aspiring bankers to their needs, not competing on price.” says Piliero, “the people you meet on attract customers. “I said to him ‘I the way up in your career and life, treat want you to know that I want to Regardless, he is adamant about the everyone with dignity and respect, par- create the best private bank in all of need to maintain a policy of hiring and ticularly remembering that you may see South-east Asia’.” promoting the best people one can find. them again, on the way down.”

76 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Trusted Globally Focused Locally

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TSNG Hubbis Ad_v1.indd 1 10/5/16 1:50 AM THOUGHT-LEADERSHIP

New realities, new proposition for Hong Kong IFAs

The changing nature of clients and shifts in the competitive landscape are re-shaping the playing field for financial advisers. IFAs need to respond with a new approach to service customers as well as a strategy for how they recruit and train the right people to succeed in this environment.

IFAs in Hong Kong need to review their everyone knows they need to respond advisers offer; and on the other hand, value propositions to ensure they stay with a more professional approach to educating the advisers to clearly define relevant and keep up with the demands the selling and advisory processes. They their value propositions and the impor- of customers. can then build further trust with their tance of holistic wealth planning. clients, gain greater visibility and pen- According to the views of local and etration as an industry as a result. There appears to be a desire within the expat IFAs at discussions held by Hubbis community to enhance levels of profes- in collaboration with Old Mutual Inter- The short answer, it seems, to countering sionalism, which in turn will attract more national – they can no longer stick to the lack of transparency and need for qualified and competent professionals current models and approaches to higher standards, is education – both for to the industry. building their businesses.

In evolving in line with market requirements, some firms might need to completely abandon their full-service offer- “IFAs have an opportunity to incorporate trust and ing – and instead carve out a more basic transparency into their client value proposition, value proposition for customers. and make it the foundation of their advice.” But in the face of this new reality, IFAs also have an opportunity to take advantage of the need for trust and transparency in their advice. customers and advisers. This is two-fold: TALENT PIPELINE Although regulatory reforms in the on the one hand, educating clients about IFAs across the board need to find, hire Hong Kong landscape will impact local the importance of independent advice and train more educated individuals and expat IFAs to different degrees, and understanding the value propositions who can learn the market and help grow

78 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 the business. Yet finding enough skilled A stronger focus on educating staff also and experienced financial advisers to leads to a more sustainable future for A new type of customer live up to customer expectations con- IFAs. This also applies to organic growth tinues to be a challenge. by up-skilling existing advisers, as well According to a recent report as hiring new ones. by Old Mutual International, In fact, strictly speaking, challenges to entitled ‘Adapting For The New World of Advice’, customer growing the business in Hong Kong come ENHANCING PROFESSIONALISM expectations are forcing less from regulatory reforms – since These efforts mark an important step advisers to move beyond these are non-negotiable – and more towards improving the credibility of the meeting prescribed standards from the capacity of the local market. local industry. set by local regulators.

Many firms bemoan the fact that re- As financial advisers are increasingly The report says that greater availability of information is cruitment poses a big cost hurdle – and expected to assume a more profes- aiding customer awareness. therefore overall impediment – to the sional approach to the management of development of the industry. their customers’ wealth, IFAs also rec- Increased means of sharing ognise the value in achieving profes- information are improving The more limited and restrictive com- sional recognition. customers’ understanding. mission structure, coupled (for expat As a result, remuneration IFAs in particular) with a high cost of To achieve this, they must be focused models that thrived in the past living in Hong Kong, drive qualified on representing the best interests of on a lack of clarity of costs are people to look to other markets. the client. This demands that they becoming less sustainable as adhere to higher ethical standards and clients have more information Other issues advisers highlight are less improve their knowledge and skills. They available to assess the value of well-defined value proposition, the dif- must also understand the demands and the service. ferent skill-sets required in Hong Kong, changing appetite of customers. Customers are also becoming onerous pre-sales and post-sales require- increasingly mobile, moving to ments, and agency dominance. Further, Rising professionalism and credibility and from different markets. industry leaders only want to bring on across the whole industry would also board advisers with high ethical and help attract more talent to it. This is leading to the professional standards. globalisation of the standards they expect, especially with Unfortunately, in some cases, the fierce regards to disclosure and Target recruits also need to be able to levels of competition and lack of visibil- transparency. generate new leads and understand ity or representation as part of the how to meet client needs in a consistent regulatory reform process, make it less way – also requiring strong technical likely that the needs of IFAs get recog- knowledge and market experience. nised and taken into account. gain more awareness for their needs Given these barriers to growth, IFAs in A LOUDER VOICE as an industry. Hong Kong are moving toward alterna- Many industry players believe in greater tive solutions. One of these involves collaboration. Cooperation and unity At the moment, the largest firms stand hiring more junior advisers. are required to create a more powerful more chance of influencing the direction voice in the market – especially for local of reforms. This is also a way to try to engender firms. And this is important as they more loyalty, as management can look strive for a level playing field. As a result, more players should take to train staff to perform the role re- the opportunity of turbulent times to quired. From a quality-cost benefit With a single, independent insurance engage in dialogue to drive discussion analysis, this can also potentially be a regulator on the horizon in Hong about changes needed and adapt their more efficient approach. Kong, IFAs have the opportunity to propositions accordingly.

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 79 PROFILE

Why size matters for IFA success in Singapore

There is a clear shift in the influence of IFAs on the distribution of life insurance products in the city-state. This gives Christopher Teo of Professional Investment Advisory Services (PIAS) even more impetus to further scale-up his business.

When Aviva, the UK insurer, launched more options to implement products Aviva Financial Advisers in Singapore and services, says Christopher Teo, chief in July 2016, it became the third product executive officer of PIAS. manufacturer to enter this space, fol- lowing Great Eastern and Manulife. “The next 18 to 24 months will see a big change in the way FA business is This highlighted a notable trend in the conducted,” he adds. local insurance landscape: the growing influence on distribution of the financial DUCKS IN A ROW advisor (FA) channel. In preparing for such a shift, Teo is focusing on how he repositions PIAS so Its market share in terms of contribution it can maintain value-add for customers. of insurance sales to the life industry certainly reflects this. According to the This will be in three key areas, he ex- Life Insurance Association Singapore plains. First, it is about offering the right (LIA Singapore), FA representatives as product research, advice and distribu- a distribution channel now account for tion. Secondly, he needs to ensure the CHRISTOPHER TEO around 20% by weighted premium. By firm can better leverage on its technol- PIAS contrast, the tied-agency channel has ogy platform to make the business more declined steadily from 68% in 2006 to efficient for its current crop of advisers. just over one-third of the market today, by weighted premium. And thirdly, he needs to reinforce the brand recognition, which he believes This also points to the importance of Such statistics will also be good news will be increasingly important – both to size and scale. “Companies owned by for end-investors, given that they can attract and retain advisers as well as to bigger institutions are a naturally good now expect to get better advice and give clients comfort. fit for advisers as they look to be part

80 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 of platforms which can offer them the Another benefit from scale is the ability ly protected and remain protected as a right type of brand franchise, as well as to offer clients a more diversified range priority in managing their finances. the financial backing and the range of of products, services and advice. products and services,” explains Teo. Teo agrees. “Despite the economy, the Inevitably, he explains, those distribu- demographics don’t change. Singapore With over 400 advisers, managing tors which contribute more sales to a has an ageing population, but GDP per close to SGD800 million (USD595 product provider tend to garner more capita income is growing year-on-year. million) of assets under advice from resources from that firm to further around 70,000 clients, he is confident support the efforts of the advisers at Yet his priority isn’t just life insurance. the firm is well-positioned in this way the front-end. This also creates the as the industry evolves. necessary economies of scale to ensure Already, around two-thirds of PIAS’ greater profitability. “We have so far business revenue comes from life in- BIG IS BEAUTIFUL been in the privileged position to surance protection, with the remainder There are several factors behind Teo’s benefit from these dynamics, which can derived from a mix of investment funds view that size and scale are key to also give us more power to negotiate (mainly) plus general insurance and success and profitability in Singapore’s on fees,” adds Teo. other auxiliary services such as wills FA space today. and trusts. PROMISING PROSPECTS One of the most important – and in line Given such dynamics of the FA land- “I would like more of a balance, so in- with the new regulatory regime in Sin- scape in Singapore, Teo predicts the vestment revenue is an area we will gapore – is to have adequate standards market to get increasingly concentrated focus on over the next one to two of corporate governance and infrastruc- among bigger players. years,” he says. ture in place, to ensure clients’ interests are well-protected.

Being institutionally-owned by Aviva, therefore, offers PIAS some tangible benefits. “We have a big financial institu- “Investment revenue is an area we will focus on tion supporting us financially, so we have over the next one to two years.” been able to set up a better operational infrastructure, for example by way of IT enhancement and also the human capital resources, to meet the greater requirements in terms of risk management and compliance,” explains Teo. For those firms which survive, there This will require the firm to work with should be plenty of business to focus on. certain providers to design and white- In this way, he says the regulatory label more niche products. changes in Singapore actually help firms The outlook of LIA Singapore, for like PIAS differentiate itself from the example, based on its review of the This will be similar to what PIAS has done smaller players. industry in the first half of 2016, is that with Fullerton Fund Management, where the life insurance sector is expected to the asset manager looks after a portfolio At the same time, he adds that by having be resilient amidst continuing eco- of balanced and aggressive funds. And bigger pools of competent advisers, this nomic challenges and uncertainties in the first 18 months of the business, stimulates a competitive spirit within a faced by major economies and a slug- Teo says the fund size grew to around firm that can act as a catalyst in making gish domestic market. SGD60 million, generating an average FAs strive to be more productive. “The return of between 8% and 12%. “Hope- average income per adviser at PIAS is It said it believes that individuals should fully clients can see this as one form of higher than the industry average.” seek to ensure that they are adequate- a value-add,” he explains.

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 81 EXPERT INSIGHTS

Time to do things properly

With nowhere to hide from the glare of regulators and tax authorities around the world, Howard Bilton of Sovereign Group is adamant about the need for a pragmatic approach.

Never a day goes by without another This has important implications for the story about tax. Tax reporting, trans- wealth management industry; some parency, avoidance, evasion and, most players may be rushing to catch up but recently, aggressive avoidance. for others there are great opportunities.

Tax is, in fact, a very simple subject The impact of FATCA on financial in- according to C. Northcote Parkinson, stitutions is already well underway. then Raffles Professor of History at the new University of Malaya in Singapore, It has proven to be such a headache and a writer for The Economist. for that many firms have decided they will no longer accept US persons – His famous Parkinson’s Law was fol- although the definition is very widely lowed in 1960 by a study of taxation in drawn – as clients; some banks have all its forms – trade, property, capital, even told existing clients to take their inheritance – and the frequent words business elsewhere. are ‘blackmail’, ‘complex’ and ‘excessive’. Going beyond this, the new CRS sets HOWARD BILTON The only way not to pay tax, he con- out rules and procedures for the auto- Sovereign Group cluded, is to go where there is no tax. matic exchange of information on financial accounts beneficially owned But modern taxation is more compli- by residents of foreign countries. cated. The arrival of the US Foreign Account Tax Compliance Act (FATCA) While it took effect from January 2016, “CRS will only be a problem for those and the OECD-sponsored Common the reporting itself will begin in 2017 who have not correctly reported on Reporting Standard (CRS) means there or 2018, depending on which country their tax forms by including income in is nowhere to go. one is referring to. an offshore structure which is attribut-

82 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 able to them,” says Howard Bilton, clients – companies, entrepreneurs, primarily because the banks in Singa- chairman of Sovereign Group. private investors and HNW individuals. pore are much more receptive to in- Its assets under administration amount ternational business. In fact, the challenge for most people to more than USD5 billion. as a result of CRS, is that it will – like “Indeed,” says Bilton, “banking in Hong FATCA – be just another layer of com- HEEDING THE WAKE-UP Kong has become more difficult than plexity and, inevitably, cost in terms of CALL in every other international finance time and money. Yet there is another ramification of the centre in the world, and this is bound new regime which follows the law of to have a serious impact on the Hong “It’s going to be lot of filling out forms unintended consequences. Kong economy down the road.” which many people won’t really understand,” says Bilton. Just as with FATCA, the arrival of CRS He adds: “The businesses that are being has put a focus on the role of banks as turned away and refused banking fa- Given that the business model at Sov- gatekeepers between customers and cilities may not be large, but there are ereign has been built on transparency, governments, primarily in terms of tax. lots of them and the cumulative effect he can look to the current and future is bound to be felt at some stage.” international regulatory regime with As a result, reluctance has turned into some confidence. rejection in many cases. COMPETING AS A HUB OF THE FUTURE He praises the work being done by InvestHK – the department of the Hong Kong SAR Government responsible for foreign direct investment, to “The main difference now, is only if you haven’t support overseas, mainland and Taiwan really been doing things properly and being businesses to set up and expand in fully compliant. There is now a certainty of Hong Kong. getting caught with the arrival of CRS.” “They have got 13 offices around the world whose sole job is to round up business from people who want to do business through Hong Kong,” explains Bilton. The firm’s core business is setting up In Hong Kong, for instance, Bilton says and managing companies, trusts, pen- that banks are noticeably hesitant to The problem remains, though, that they sions, insurance and other structures deal with anything which has a hint of too are being frustrated and thwarted to meet specific personal and busi- being ‘offshore’. by the fact that businesses which want ness needs. to come to Hong Kong are unable to This applies to big, medium and small bank there. These include foreign market entry, tax businesses alike, he explains, and planning, wealth protection, property even to long-standing customers This should therefore be a time for ownership and cross-border business. who want to invest outside their enthusiastic and intelligent lobbying, home jurisdictions. believes Bilton. Since opening its first office in Gibral- tar in 1987, Sovereign is now one of “A mainstay of the Hong Kong economy “We need to get this debate going at the largest independent trust firms in has been its position as the service the front of mind,” he adds. “More the world. It manages more than centre for the Far East, and Hong Kong talking, more writing and the more 12,000 structures for a wide variety of is now losing business to Singapore the merrier.”

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 83 EVENT HIGHLIGHTS - INDIAN WEALTH MANAGEMENT FORUM 2016

Tapping the wealth management potential in India

Our 6th annual event in Mumbai emphasised the fact that the industry continues to offer vast opportunities for all players. But creating an effective value proposition in a competitive environment is challenging, in turn leading to an increasingly-polarised industry.

Wealth management firms of all types Until they can change the mind-set in India face a huge upside. of advisers and get them thinking Thank you to our sponsors longer term – and in turn, alter client However, at the same time, these or- behaviour – encouraging clients to Edelweiss Global Wealth ganisations continue to struggle with pay for the advice they get is an un- Management FinIQ how to manage costs that are con- likely concept. IIFL Private Wealth stantly rising across all aspects of the Management business, including to acquire clients. Yet the more time that traditional Jersey Finance market players take in order to resolve Miles Software Private banks, in particular, are finding these and other challenges they face, Motilal Oswal Asset growth to be difficult to come by, high- then the more realistic that the threat Management DSP BlackRock Investment lighted by exits over the past 12 to 24 becomes from robo-advisers and other Managers months of several foreign players. digital disruptors – at least among the Numerix emerging affluent. Iyer Practice Advisers Senior management, in general, are KG Financial Software striving to find something akin to a The combination of these trends Thomson Reuters future-proof business model. places even more emphasis than ever before on the importance of finding The uncertainty, still, around how the right staff – and then providing a to adapt and evolve the advisory career path and compensation struc- offering is holding back progress for ture to both make them stick and build This also relies on firms overcoming the many organisations. a talent pipeline. hurdles they face in relation to higher levels of adviser competency.

But the regulator should also play a role, but creating more barriers of entry for anyone who wants to be an adviser.

These were among the views of senior management, product gatekeepers and business heads from local and universal Private Banks and Retail Banks, along with NBFCs, national distributors, IFAs and Registered Investment Advisers.

84 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Ashish Malaviya Kanwar Vivek Anshu Kapoor Atul Singh Soumya Rajan IndusInd Bank YES Bank Management Julius Baer Waterfield Advisors

Atinkumar Saha Erdem Ozgul Abhijit Bhave Feroze Azeez Sandeep Lalwani Deutsche Bank Numerix Karvy Private Wealth Anand Rathi Miles Software Solutions

Rajesh Saluja Himanshu Bhagat Himanshu Kohli Jayant Vidwans Kaushik Deva ASK Wealth Advisors & Family Office IIFL Wealth Management Client Associates Chaitanya Financial Consultancy Kredere Wealth Partner

Vishal Dhawan Nishith Desai Aashish Somaiyaa Jaideep Hansraj Sunil Iyer Plan Ahead Wealth Advisors Nishith Desai Associates Motilal Oswal Asset Management Kotak Mahindra Bank Iyer Practice Advisers

Milind Kulkarni Nidhi Chawla Bhavesh Sanghvi Pranav Joshi Caroline Kulkarni FinIQ Avendus Wealth Management Aditya Birla Wealth Management Altamount Capital Sanctum Wealth Management

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 85 Nick Pollard Richard Nunn Andrew Hendry Gaurav Awasthi Prateek Pant CFA Institute Jersey Finance Westoun Advisors ICICI Securities Sanctum Wealth Management

Vinay Bajpai Nishant Agarwal Manoj Shenoy Ashish Shanker Anupam Guha Deutsche Bank ASK Wealth Advisors L&T Capital Markets Motilal Oswal ICICI Securities

Arindam Madhuryya Nipun Mehta Neeraj Choksi Satheesh Krishnamurthy Tarun Birani Carey Olsen, Jersey BlueOcean Capital Advisors NJ Invest Axis Bank TBNG Capital Advisors

“The event gives you an opportunity to pause and reflect on your own strategies and the way forward. There is a lot of food for thought and a lot of take-ways.” Ashish Shanker, Head - Investment Advisory, Motilal Oswal Nitin Agrawal Sanjay Sachdev ORO Wealth ZyFin Holdings

86 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 EXPERT INSIGHTS

Edelweiss’ targeted approach to tapping India’s wealthy

Anshu Kapoor of Edelweiss Global Wealth Management explains how the firm is focusing on three specific client segments to ensure that what it provides are relevant to the needs of its clients.

Indian wealth manager Edelweiss Global individuals have come together to build Wealth Management has grown to a the capability to offer holistic solutions 100-person business over the last few to clients,” explains Kapoor. years, including nearly 50 advisers, on the back of a strategy of segmenting its When it comes to the institutions, he clients to properly understand and cater says the opportunity is huge, given that to their needs. this segment is largely untapped.

According Anshu Kapoor, head of PRIORITIES private wealth management, the firm On the back of the firm’s strategy, focuses on three categories of clients: Kapoor says the results have been quite entrepreneurs plus the next generation; encouraging. “We are growing at about family offices; and institutions. INR1,000 crores (USD175 million) a month in AUM.” To service the needs of each group, Kapoor has built teams of specialists for At the same time, he says the firm is these segments. For example, there is an building a digital core. The aim is to ANSHU KAPOOR UHNW advisory team which looks at the remove a lot of the friction which exists Edelweiss needs of the new generation as well as when clients interact with any wealth the next generation of entrepreneurs. manager – from onboarding to getting their various requests serviced. “We are For family offices, Edelweiss has a mix trying to create a digital pipe, so we are of specialists, including ex-investment investing a lot at the front end, to drive This also ties in to how the firm is trying bankers, ex-currency traders, ex-com- client engagement,” explains Kapoor. to deliver content to clients, as part of modity guys and ex-real estate experts, “And at the back end, we have an as- efforts to improve the overall quality as well as wealth structurers. “These sociation with IBM.” of advice.

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 87 EVENT HIGHLIGHTS - VIETNAM WEALTH MANAGEMENT FORUM 2016

One of the last frontiers for wealth management

Vietnam is not quite ready for wealth management yet, but there is great potential. The signs point to an emerging market which, in a decade or so, might outstrip most others in terms of a pipeline for wealth management and insurance products.

To say there is a limited understanding For the time being, however, in the in Vietnam of the business models and absence of wealth management prod- Thank you to our sponsors product offerings associated with wealth ucts and services that are common in management, is an under-statement. other markets, transaction banking Pafilia Practitioners across banking, securities, dominates. In fact, only around 30% or Henley & Partners IRESS insurance and asset management point so of the population even has a bank Numerix to a notable immaturity within this account. Trust remains an issue, creating SSI Asset Management segment of financial services. a barrier to how institutions can access Sun Life Vietnam’s growing wealth. BVI House Asia This is to be expected. Overall sophis- Thomson Reuters tication is low, talent pools are shallow, Further, banks, are not allowed to sell regulation is lacking and without suf- mutual funds unless they have a secu- ficient clarity in many instances, under- rities licence. And they cannot offer standing is basic, and market depth and dual-currency investments. At the same – around the basic concepts of wealth liquidity is minimal. All of this is a natural time, with mutual funds only really avail- management. This will also depend on consequence of the fact the market is able to retail investors for the last few the hope that regulation will change, to so new and experience is limited. years, banks yet haven’t developed the enable a wider variety of products. processes and expertise to sell them. Yet the country’s dynamics suggest that So while Vietnam might be barely a blip it’s ready for explosive growth. The To overcome these and other hurdles, on the wealth management landscape population, for example, is approaching a key component is education for ev- today, but arguably it should be higher 100 million – half of which is under 30. eryone – from institutions to customers on the agenda for many local and foreign banks and other service providers. This is especially the case for life insurance companies, which have seen their businesses grow by a factor of two or even three over the past 12 months.

Against this backdrop, we held our in- augural event in Ho Chi Minh in early September – focused on understanding the longer term potential for wealth management in this fast-growing economy, and how to prepare for it.

88 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Afonso Vieira Amit Malhotra Andreas Vogelsanger Avinash Satwalekar Bao Nguyen Total Wealth Management Standard Chartered Bank AFC Vietnam Fund Vietcombank Fund Management BIDV Metlife

Barry Mitchell Barry Winter David MacDonald Dominic Volek Duong Duc Hung AMS Financial Group Pafilia Hubbis Henley & Partners ANZ

Eddie Thai Erdem Ozgul Eric Solberg Fabien Jeudy James Murphy 500 Startups Numerix EXS Capital Sun Life Financial RMIT International University

K R Raju Kevin Snowball Khanh V. Nguyen Le Cong Thien Le Thi Le Hang Blueprint Group of Companies PXP Vietnam Asset Management Rameses Consulting HSC SSI Asset Management

Luong Thi My Hanh Michael Gerber Nguyen Thuan Thai Sancho Chan Sandeep Deobhakta VietFund Management Synpulse VinaWealth Fund Management Sun Life Financial Asia VP Bank

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 89 Stephan Repkow Sumeet Bhambri Sylvie Ma Tim Searle Tran Thi Kim Cuong Wealth Management Alliance Standard Chartered Bank Henley & Partners Globaleye Manulife Asset Management

“Hubbis has managed to make the first Vietnam forum as inquisitive and informative as its well- established regional peers. A new great platform to learn, meet and explore business opportunities.” Stephan Repkow, Founder & CEO, Wealth Management Allianc Trinh Duc Cuong Victor Lye MB Bank FWD

90 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 PRACTICE MANAGEMENT - SKILLS

Helping your clients be less biased

Some market practitioners argue that behavioural coaching is probably the area where the added value of a professional wealth manager is most pronounced. By Kees Stoute

Daniel Kahneman and Amos Tversky which tend to be the result of irrational Further, if you are the kind of sales- are considered to be the founding investor behaviour. person who pretends to adopt a fidu- fathers of behavioural finance. ciary standard, whilst in reality are in ENCOURAGING THE RIGHT the relationship to benefit personally Already in the 1970s they convinc- BEHAVIOUR from your clients, you are in unethical ingly made the point that it’s only Based on knowledge and understanding territory. And you are simply fooling human mental confusion that attributes of human behaviour, we can help our your clients by trying to make them random movements in the market to clients to stick to simple and basic in- believe that you have their best inter- some kind of underlying purpose. To vestment principles, and to base their ests at heart. put it simply, they showed us that investment decisions consistently on people don’t act rationally. underlying fundamentals. True fiduciaries, meanwhile – ie. professionals instead of plain salespeople – Their contributions to the field of eco- Yet this only applies to those individu- apply their superior knowledge about nomics led Kahneman to become the als who want to aspire to be a wealth investing, psychology, structuring and first-ever psychologist to win a Nobel management professional. insurance to educate their clients. Prize in Economics. That is both unusual and remarkable. The product-oriented salesperson can They help their clients be explicit about also benefit from behavioural finance their goals and dreams, and to have a Since then, many cognitive biases have insights as they provide a rich source of plan in place to achieve these goals. been researched, such as anchoring, ideas how best to capitalise on the proven mental accounting, gambler’s fallacy, concept of instilling greed and fear. They furthermore help their clients prospect theory, familiarity bias, etc. benefit from the many scientific insights So if you consider your clients as sources related to professional and responsible All these concepts refer to different of revenue, then there is no issue what- wealth management. biases, but all share one element: they soever in warning them about an im- confirm the point that people don’t take pending collapse of the market, which These are the professionals who ensure decisions the way they think they take requires them to buy some high-com- that wealthy individuals benefit from decisions. Or, the put it differently: mission products. Kahneman’s legacy. people are irrational. To put it another way, if the main And in doing so, they deserve to earn For the professional wealth manager, purpose of having clients is to help you a good living in this highly value-adding the insights derived from behavioural meet your KPIs, you will inevitably en- wealth management profession. finance are essential in helping clients courage them to be irrational so that to limit the damage of their actions, you can financially benefit from it. Contact Kees - [email protected]

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 91 PROFILE

Ready to tap a golden opportunity

As more of Asia’s wealthy realise the value of holding physical gold within their portfolio, Global Precious Metals has what it believes is a reliable and robust network to help clients make the most of this type of wealth insurance.

Having grown out of a family office, After all, explains Malherbe, most of the Global Precious Metals knows well the world is over-leveraged, whether talking decision-making process and consider- about governments, banks or other ations around HNW and UHNW clients providers. “People realise that the allocating part of their portfolio to saying is true, gold is money and every- physical precious metals. thing else is credit,” he says.

“People realise that the saying is true, gold is money and everything else is credit.”

VINCENT MALHERBE Today, as a niche player in this space, A MORE TANGIBLE Global Precious Metals the right approach, according to manag- OFFERING ing partners Nicolas Mathier and Malherbe and Mathier believe that Vincent Malherbe, is to view physical demand from wealthy individuals for gold as a kind of ‘wealth insurance’. gold in a physical form will continue to grow as they start to better understand tors own unallocated gold within their In line with this, interest and appetite the importance of holding this type of banks, which is essentially an account- are starting to grow and gain momentum. physical asset. For example, many inves- ing entry in the institution’s ledger.

92 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 therefore changed to physical gold. This On the flipside, the more clarity and might happen when investors realise transparency, the higher the price. that their unallocated accounts don’t give them anything of any substance.” Yet what comes with this, emphasises Mathier, is the benefit of an existing As a result, with gold being what Mal- network of refineries, transport com- herbe calls “the enemy of leverage”, the panies and storage options. financial sector is increasingly looking to get out of this business. He adds that the firm ensures that it does its due diligence to get comfort NETWORK around the fact that the client’s funds The ability to remove the physical gold come from a trustworthy source. from storage, and transport it to wher- ever an investor wants it, is a key dif- GETTING ALLOCATED ferentiator in the Global Precious An important trend that Malherbe and Metals offering. Mathier have seen more recently has NICOLAS MATHIER been the impact of the growth in wealth Global Precious Metals Indeed, an entire chain of integrity in Asia on the number of individuals exists in the industry, made up of ap- becoming more interested in buying proved vaults and accredited refineries. gold in physical form.

The bank therefore effectively owes the client an unsecured amount of money that is tied to the price of gold, explains Malherbe. “Banks don’t want to be left with a situation where clients might request large chunks of gold be “This is just credit, as there is no under- allocated and therefore changed to physical gold.” lying,” he adds.

If investors ask their bank for physical gold, the bank would need to convert the unallocated account into an allocated account backed by physical bullion – which can be difficult in times Gold from such sources is deemed to be They must be, given that clients have of financial panic. what Malherbe calls “good delivery”, to spend at least USD500,000 with meaning it maintains high integrity and Global Precious Metals. This is based Clients might also then want to move is therefore the most liquid form of the on the idea that the client would look the physical gold to a private storage physical metal, which can easily enter the to hold anything from between 2% and outside of the bank. financial system and be sold or exchanged. 10% of their portfolio into gold.

“This leads to an outflow of liquidity for “Investors should only buy gold in this This is encouraging the firm to look the bank,” explains Mathier. way,” he adds. beyond Singapore.

“Banks don’t want to be left with a The danger for any client is that they It is starting to market itself across South- situation where clients might request walk into a shop that doesn’t have a east Asia, including Hong Kong, Thailand, large chunks of gold be allocated and good reputation. Indonesia and the Philippines.

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 93 DIRECTORY

People and firms who supported this publication

We appreciate the participation and contribution of key individuals and organisations across the wealth management community to the content in this publication.

PEOPLE QUOTED Aashish Somaiyaa, Motilal Oswal Asset Management Frank Troise, Leonteq Securities Abhijit Bhave, Karvy Private Wealth Gaurav Awasthi, ICICI Securities Adam Cowperthwaite, Citi Private Bank Gautam Verma, Thomson Reuters Afonso Vieira, Total Wealth Management Gebhard Giselbrecht, Credit Suisse Aki Ranin, Tigerspike Harold Y. Kim, Ph.D, Neo Risk Investment Advisors Amit Malhotra, Standard Chartered Bank Herwig Van Hove, Vahoca Amit Shah, IIFL Asset Management Himanshu Bhagat, IIFL Wealth Management Andreas Vogelsanger, AFC Vietnam Fund Himanshu Kohli, Client Associates Andrew Hendry, Westoun Advisors Howard Bilton, Sovereign Group Andrew Scott, Societe Generale Ian MacDonald, EY Anshu Kapoor, Edelweiss Jackie Choy, Morningstar Anthonia Hui, AL Wealth Partners Jaideep Hansraj, Kotak Mahindra Bank Anthony J. Harper, Managed Account Partners James Murphy, RMIT International University Anthony Siau, Kairos Capital Partners Jayant Vidwans, Chaitanya Financial Consultancy Anupam Guha, ICICI Securities Jaye Chiu, EFG Bank Arindam Madhuryya, Carey Olsen, Jersey Jean-Louis Nakamura, Lombard Odier Ashish Malaviya, IndusInd Bank Jessica Cutrera, EXS Capital Asia

Ashish Shanker, Motilal Oswal Joel Gasche, Leonteq Securities Atinkumar Saha, Deutsche Bank John Cappetta, Bank Julius Baer Atul Singh, Julius Baer Julia Walker, Thomson Reuters Avinash Satwalekar, Vietcombank Fund Management Julia Walker, Thomson Reuters Bao Nguyen, BIDV Metlife Julian Kwan, InvestaCrowd Barry Mitchell, AMS Financial Group K R Raju, Blueprint Group of Companies Barry Winter, Pafilia Kanwar Vivek, YES Bank Bassam Salem, Citi Private Bank Kaushik Deva, Kredere Wealth Partner Belle Liang, Hang Seng Bank Kees Stoute, Hubbis Bhavesh Sanghvi, Aditya Birla Wealth Management Ken Peng, Citi Private Bank Boon Peng Ooi, Eastspring Investments Kenny Lam, Noah Holdings

Caroline Kulkarni, Sanctum Wealth Management Kevin Liem, TTG Wealth Management Chetan Pandya, Intellect Design Arena Kevin Snowball, PXP Vietnam Asset Management Christian Obrist, BlackRock Khanh V. Nguyen, Rameses Consulting Christopher Teo, PIAS Kimberley Cole, Thomson Reuters David Koay, Standard Chartered Private Bank Lavanya Chari, Deutsche Bank Wealth Management David MacDonald, Hubbis Le Cong Thien, HSC Dominic Volek, Henley & Partners Le Thi Le Hang, SSI Asset Management Duong Duc Hung, ANZ Lee Kai Yang, RHB OSK Asset Management Eddie Thai, 500 Startups Lee Kai Yang, RHB OSK Asset Management Erdem Ozgul, Numerix Lemuel Lee, J.P Morgan Private Bank Eric Solberg, EXS Capital LG Lim, UBS Wealth Management Fabien Jeudy, Sun Life Financial Luong Thi My Hanh, VietFund Management Feroze Azeez, Anand Rathi Manoj Shenoy, L&T Capital Markets

94 ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 Marco Kermaidic, BNP Paribas Wealth Management Sunil Iyer, Iyer Practice Advisers Marie Ramlie, TMB Bank Sylvie Ma, Henley & Partners Mark Smallwood, Deutsche Bank Wealth Management Tan Su Shan, DBS Bank Martin Frick, Temenos Tanmai Sharma, Mesitis Martin Frick, Temenos Tarun Birani, TBNG Capital Advisors Matthew Blume, Thomson Reuters Thusitha de Silva, Cerulli Associates Matthias Weber, ifund Tim Searle, Globaleye Michael Benz Todd James Michael Gerber, Synpulse Tran Thi Kim Cuong, Manulife Asset Management Michael Levin, Credit Suisse Trinh Duc Cuong, MB Bank Michael Thompson, PIMCO Urs Brutsch, HP Wealth Management Milind Kulkarni, FinIQ Urs Palmieri, EY Murli Adury, Citi Victor Lye, FWD Neeraj Choksi, NJ Invest Vikram Nimkar, Westpac Nguyen Thuan Thai, VinaWealth Fund Management Vinay Bajpai, Deutsche Bank Ni Yan, Indosuez Wealth Management Vincent Magnenat, Lombard Odier Nick Pollard, CFA Institute Vincent Malherbe, Global Precious Metals Nicolas Mathier, Global Precious Metals Vineet Vohra, Arete Financial Partners Nidhi Chawla, Avendus Wealth Management Vishal Dhawan, Plan Ahead Wealth Advisors Nipun Mehta, BlueOcean Capital Advisors Nishant Agarwal, ASK Wealth Advisors Nishith Desai, Nishith Desai Associates ADVERTISERS Nitin Agrawal, ORO Wealth Appway Patrick Donaldson, Thomson Reuters Asiaciti Trust Peter McMillan, Thomson Reuters Aviva Investors Peter Thal Larsen, Thomson Reuters BVI House Asia Philipp Piaz, Finaport EFA Group Philippe Banon, RBC Capital Markets FactSet Pranav Joshi, Altamount Capital Franklin Templeton Investments Prateek Pant, Sanctum Wealth Management Fullerton Fund Management Rajesh Saluja, ASK Wealth Advisors & Family Office Hansard Ranjit Tinaikar, Thomson Reuters Henley & Partners Richard Mak, Pictet Wealth Management Heritage Richard Nunn, Jersey Finance IMTF Richard Piliero, Finaport IRESS Robert Reid, BlackRock Iyer Practice Advisers Rohit Jaisingh, DBS Bank J O Hambro Capital Management Rolf Haudenschild, BRP JPMorgan Sally Kwok, BlackRock Numerix Sancho Chan, Sun Life Financial Asia Old Mutual Global Investors Sandeep Deobhakta, VP Bank Pershing Sandeep Lalwani, Miles Software Solutions Principal Global Investors Sanjay Sachdev, ZyFin Holdings RHB Asset Management Satheesh Krishnamurthy, Axis Bank Sun Life Financial Sean Cochran, UBS Wealth Management Swiss Asia Soumya Rajan, Waterfield Advisors Swiss Life Stefan Kuhn, Credit Suisse Temenos Stephan Repkow, Wealth Management Alliance Thomson Reuters Stephane Honig, BNP Paribas Trident Trust Stephen Kam, HSBC Global Asset Management UBP Steve Knabl, Swiss Asia Vermilion Software Steve Knabl, Swiss Asia Vistra Steven Moeller, BlackRock VP Bank Stewart Aldcroft, Citi Markets & Securities Services Stuart Brown, Thomson Reuters Sumeet Bhambri, Standard Chartered Bank

ASIAN WEALTH MANAGEMENT - QUARTERLY - ISSUE 2 95 Hubbis digital learning solution Our learning platform

We help practitioners at Private Banks, Retail Banks, Insurance Companies, IFAs, Multi-Family Offices and Independent Asset Managers meet their professional education obligations via various digital learning content, event presentations, videos and more. HR & compliance Administrators The user Live learning LEARNING PLAN 100+ assessed courses Why we are different Digital learning modules ASIA-SPECIFIC CONTENT - Hubbis is the only Hubbis offers 100+ proprietary training courses covering provider of online learning that is solely dedicated to core topics relevant to compliance obligations, investment the Asian wealth management industry Tracking and product knowledge, advising families on long-term wealth Online Simple access through an internet We give HR & compliance managers structuring, and generally building and improving effective VALUE FOR MONEY - We want to ensure learning is Online courses & appropriate advisory skills in an Asian industry context. affordable and accessible to everyone in the wealth portal that is available 24 hours a day, the ability to build learning plans, and management industry. We never charge any fees for 365 days a year. You will have access apply those plans to defined groups, on-boarding or end-user training to 100+ engaging e-learning courses and track and record each individual’s Analyse results that enable users to conveniently earn learning progress. Reporting GOVERNANCE - We constantly review & upgrade CPT / CPD / OPT points. the relevance and timeliness of the platform – this The Hubbis system allows the recording and reporting of all includes adding new courses every week, adapting online and offline internal and third-party training in order to Tracking functionality to the needs of different markets and provide a complete training record for each individual. The types of institutions, and improving the technology. Hubbis digital learning platform also offers a dedicated report- We also regularly bring together - via our events ing feature enabling HR and / or compliance managers to gen- and private thought-leadership discussions - market erate customised data sets to match both internal and regula- experts on all topics. This enables us to check our Reporting Records tory training reporting requirements. existing content and plan new courses Not all e-learners are at the same stage The e-learning reporting function in their professional development or also allows all offline and 3rd-party COLLABORATION - We collaborate with more Reporting training lifecycle. The integrated training to be uploaded to give a single, 200+ hours of ‘live’ content than 100 existing partners on the learning platform reporting system allows HR & consolidated history for each user. It Presentations, video Q&As – getting feedback and incorporating new ideas for compliance managers to monitor also enables organisations to report Hubbis augments formal digital courses with over 200 hours content, functionality and technology. Plus, we work, employee progress - highlighting areas this training to the regulator in a fast, of live-learning content that ranges from videos to engaging across the overall Hubbis business, with more than 375 partners – continually discussing with them their of weakness / strength. accurate and consistent format. presentations from Hubbis’ highly-acclaimed Wealth Man- problems to understand the reality of the market agement events. Each training course and many of the additional materials are in modules of 30 and 60 minutes for Consolidated record EDUCATION - The material we produce is USEFUL CPT/CPD/OPT. And all Hubbis modules are assessed prior and USEABLE. It helps wealth managers and other to completion to assist in demonstrating user’s learning practitioners meet their continuing professional success for regulatory reporting. development needs in a practical and robust way

CONTENT DEVELOPMENT - We source content and Meeting your critical Hubbis events insights from the most respected and experienced Access to our Forums practitioners at the leading firms in the market and compliance requirements Attendance at any of the Hubbis events throughout the package it for our learning platform year at no additional cost - including forums in 10 markets Contact us: [email protected] across Asia, plus in Switzerland and Dubai. REPORTING – We enable users to generate individual, team and annual training records on demand. We offer built-in, customised reporting tools to quickly meet regulatory requirements Our learning platform

HR & compliance Administrators The user Live learning LEARNING PLAN

Online Tracking Simple access through an internet We give HR & compliance managers Online courses portal that is available 24 hours a day, the ability to build learning plans, and 365 days a year. You will have access apply those plans to defined groups, to 100+ engaging e-learning courses and track and record each individual’s that enable users to conveniently earn learning progress. CPT / CPD / OPT points.

Tracking

Reporting Records Not all e-learners are at the same stage The e-learning reporting function in their professional development or also allows all offline and 3rd-party Reporting training lifecycle. The integrated training to be uploaded to give a single, reporting system allows HR & consolidated history for each user. It compliance managers to monitor also enables organisations to report employee progress - highlighting areas this training to the regulator in a fast, of weakness / strength. accurate and consistent format.

Consolidated record

Meeting your critical compliance requirements

O Hubbis is the leading provider of independent Michael Stanhope content, and training for companies providing wealth management-related T 2 23 products and services in Asia. Our is to E michael.stanhopehubbis.com help you become more competent and capable - so that you can provide suitable and trusted advice for your clients.

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