Published by Key Positioning Limited 13B Greatmany Centre 111 Queen’s Road East Wanchai, Hong Kong Tel: +852 2529 1777 Fax: +852 3013 9984 Email: info@asianprivatebanker.com ISSN NO. 2076-5320
LETTER FROM THE EDITOR
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ASIAN PRIVATE BANKER
RM:ARM RATIO IN 2016
YOY CHANGE (%)
Asia-based private banks
1.8:1
+15%
Bulge bracket private banks Pure plays European private banks
1.7:1 1.2:1 1.0:1
+8% +12% +5%
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DISCRETIONARY PORTFOLIO MANAGEMENT LEADERS CONVERSATION Win more discretionary mandates from Asia-based clients
May 30, 2017 | Singapore June 1, 2017 | Hong Kong
www.apb.news/dpmlc2017
This event qualifies for CPT/CPD accreditation. RSVP to Koye Sun koye.s@asianprivatebanker.com / +852 2529 0617 ASIAN PRIVATE BANKER Conversation Partners
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INDUSTRY
2016 YoY change in overall investment inflows Hong Kong
Singapore
40% 30% 30%
20% 20%
10%
10%
↓40+%
↓20-40%
↓0-20%
No change
↑0-20%
↑20-40%
↓40+%
↑40+%
↓20-40%
↓0-20%
No change
↑0-20%
↑20-40%
↑40+%
Expected YoY change in overall investment inflows for 2017 Hong Kong
Singapore
40%
30%
30% 20% 20%
10% 10%
↓40+%
↓20-40%
↓0-20%
No change
↑0-20%
↑20-40%
↑40+%
↓40+%
↓20-40%
Expected most popular asset class for 2017 by net new inflows Hong Kong 1. Equities 2. Fixed income 3. Alternatives 4. Others
Singapore 1. Equities 2. Fixed income 3. Others 4. Alternatives
↓0-20%
No change
↑0-20%
↑20-40%
↑40+%
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Average cash allocation amongst wealth managers’ Asia clients Hong Kong
Singapore
majority of respondents say 20-40%
majority of respondents say 0-20%
Average fixed income allocation amongst wealth managers’ Asia clients Hong Kong
Singapore
majority of respondents say 20-40%
majority of respondents say 20-40%
Most challenging issue with regards to Asia client portfolios Hong Kong 1. Lack of diversification 2. High cash allocations 3. Lack of assets delegated to active managers 4. Others
Singapore 1. High cash allocations 2. Lack of assets delegated to active managers 3. Lack of diversification 4.Others ASIAN PRIVATE BANKER
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A P B M A N DAT E
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APB MANDATE
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TECHNOLOGY
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ASIAN PRIVATE BANKER
TECHNOLOGY
Financial tech firm
Launch date in Asia & HQ
Business model
Min. threshold
Fee structure (US$)
Main features
PB clients
Bambu
Feb 2016 SG
B2B
No minimum
$50,000 setup + $100 per user per month
- Aims to improve efficiency of RMs - Unified display of market and house views - Recommends relevant investment ideas for client portfolios - Powered by Thomson Reuters
None
Bento
Oct 2016 SG
B2B & B2C
US$1 million
30bps
Human-led robo that aims to help advisors build customised core portfolios for clients; portfolio construction “with fundamentally-led forward looking assumptions” with strategic asset allocation and dynamic overlays; client engagement model and IP is built internally “to suit the specific needs of the target segment”
Tie-up with Willis Towers Watson
Privé Managers
2011 HK
B2B
N/A
AUM or annual fee
Virtual funds (patented), that can be auto-allocated and rebalanced (patent pending)
2 banks, 6 robo advisors via IAMs and FOs
BondIT
March 2016 Herzliya, Israel
B2B
N/A
User subscription or enterprise licence
Fixed income portfolio construction, optimisation, monitoring, and rebalancing
Bank of Singapore
additiv
Jan 2015 SG
B2B
Minimum investment “can be very low”, using fractions (ex: 200 USD per investor)
Licensing model, with DFS solution installed on-premises or SaaS
All market segments: micro-savings/investments, robo for millennials, online portfolio management tool for family offices and professional investors
Swiss private bank and a Malaysian private bank (unable to reveal names)
Quantifeed
June 2013 HK
B2B
SaaS
AUM-based
- Goal, risk, and theme-based investing - Advisor & sales tool suite - L ibrary of thematic and strategic portfolios built by in-house quantitative experts - Hosts funds, ETFs, shares - Global market multi-currency - Available in 7 Asian languages - Integration with core banking systems - Operates in multiple configurations
A private bank in Hong Kong, a private bank in Taiwan. MFOs in Singapore (unable to reveal names)
CONNECT By Crossbridge
Nov 2016 SG
B2C
$50,000
Management fee from 0.20% to 1.25%, no other fees
- Actively-managed portfolios - e-onboarding - Backed by Julius Baer
Accredited HNW investors in Singapore
8Securities
April 2015 HK
B2C & B2B
US$100
Free under $1,000 and 0.88% on balance above. Free buying & selling. Free rebalancing.
- iOS and Android enabled - Goal-based - USD, HKD and JPY portfolios
None
Smartly
2016 HK
B2C
US$50
- Management fee of 0.5% to 1% - ETFs have an expense ratio (ranging from 0.05% - 0.17% depending on allocation)
- A digital platform mainly for retail investors - An educational platform to help clients gain a better understanding of investing
None
Infinity Partners
2015 SG
B2C
American accredited investors with minimum of US$2 million
Clients are charged about 1% of assets
American expats can buy ETFs
None
Eigencat
2017 SG
B2B
N/A
-licence fee/ maintenance fee type of structure
- Modular digital investment platform for the wealth space - Partnerships with IBM, Thomson Reuters - Uses AI and machine learning and has chatbot facilities - Sponsored by NUS
None
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A P B M A N DAT E
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APB MANDATE
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