Issue 126 August 2019 Lite

www.asianprivatebanker.com

Issue 126

WORK IN PROGR E S S : T HE DIGITALISAT I O N J OURNEY SO FA R F O R ASI A’S PRIVATE BA NKS 2019 Mid-Year Private Banking Technology Snapshot

P13

INSIDE Straight Talk Boris Collardi, managing partner, Pictet

Investments FMP debate: Flavour of the day or future mainstay?

Industry 2018 China AUM & Client Count League Tables

Awards China Wealth Awards 2018

P8

P10

P17

P21

ISSUE 126

CONTENTS 5

Letter from the Editor

7

Echo Chamber Investments DBS PB’s Audra Seah cautions against directional structured products

CEO Andrew Shale Editor Sebastian Enberg Editorial Benjamin Yang Charlene Cong Alice So Rebecca Isjwara Tiffany Hopkins Managing Director Paris Shepherd Research Lisa Cheng Shunta Kamba Shivani Hemnani Business Development Sonia Lam Sam Chan Charis Tse Ina Lee

Design Jacqueline Kwok Jordan Yim

10

Investments FMP debate: Flavour of the day or future mainstay?

13

Technology 2019 Mid-year PB Tech survey

17

China 2018 AUM and Client Count League Tables

21

Awards China Wealth Awards 2018

Marketing Patricia Jover Finance & Operations Karman Wu Martina Ngai Yuki Chan Xenia So Taurus Mok Director Europe Madhuri Chatterjee (Actaea Consultants) Production DG3

+852 2529 1777 +852 3013 9984 info@asianprivatebanker.com

ISSN NO. 2076-5320

Industry Boris Collardi: Talent, services, product will anchor Pictet WM’s Asia growth drive

Digital Alice Wong Sanya Amin

Published by Key Positioning Limited 13/F Greatmany Centre 111 Queen’s Road East Wanchai, Hong Kong Tel: Fax: Email:

8

33 34 35

Technology Banks in Asia look to outsourcing to facilitate EM expansion: Avaloq BNP Paribas, Bank of Singapore build secondary market equity derivatives bot UBS “adapts” to clients with third-party instant messaging platform: Wiwi Gutmannsbauer

36

Investments PB fund selectors expect bond, multi-asset strategies to dominate Q3 inflows

37

People Moves Movers & Shakers

ADS

4

LETTER FROM THE EDITOR

P

rivate banks know full well that their future prospects depend to a large extent on how they harness the ‘digital wave’. Digitalisation is changing how clients expect to interact with their banking providers and prompting a wholesale change in how banks deliver customised investment advice and content. It opens the door for greater operational automation and rigour in risk management, compliance, and security. But digitalisation also engenders uncertainty insofar as tech agendas are often costly at the outset but speculative in terms of expected outcomes. It challenges deep-seated bureaucratic interests, and, more broadly, paves the way for digitally sophisticated non-traditional competitors to enter the market on a strong footing.

The private banking industry’s response to the ‘digital wave’ has been widely criticised for being slow, uncertain, or piecemeal in nature. That’s unfair. In Asia, we have seen real progress over the past few years.

We have observed the emergence of more nuanced discussions around digital priorities to the extent that most private banks are now in a position to clearly articulate what they are doing, why, and where they want to be in five years. We have also witnessed the relationship between banks and tech vendors evolve from one that was exploratory and sometimes antagonistic to symbiotic.

In this issue — our 126th, no less — we present our findings from a detailed survey of COOs, CTOs, and CDOs representing private banks that together account for the lion’s share of AUM in Hong Kong and Singapore. The survey focuses on current priorities as at 2Q19.

We are also proud to present our latest data set: China’s Top 10 Private Banks by AUM and Client Count.

As always, a warm ‘thank you’ to you all for your support and, as always, I extend to you an invitation to reach out to me directly at editor@asianprivatebanker should you have any questions, feedback, or ideas.

Sebastian Enberg Editor Asian Private Banker

5

ADS

rd

3 DISCRETIONARY DIALOGUE 2019 A closed-door morning for those who sit at the apex of discretionary mandates and strategies at Asia’s private banks.

15 October Singapore

17 October Hong Kong

For more information, please visit

www.apb.events/registerdd

RSVP to Alice Chan alice.c@asianprivatebanker.com +852 2529 1737 This event qualifies for CPT/CPD accreditation.

Conversation Partners

6

Networking Partner

INVESTMENTS

e ch o cham be r “I’ve had many people approach me and say, ‘Pictet doesn’t do any lending’, but the reality is we offer interesting solutions, particularly for Lombard credits. And you cannot be one of the most solid and safest banks in the world and at the same time go out there with an aggressive credit strategy.”

Boris Collardi, managing partner, Pictet “While the common perception is that UHNW clients are able to access trailerfree share classes of funds given their size, they often do not invest significantly into only a few funds or consolidate their holdings with one bank to take advantage of critical mass. So as a consequence, they often buy into retail trailer-loaded share classes of funds.”

Tan Wei Mei, head of advisory and investment solutions emerging markets, Deutsche Bank Wealth Management “I think that there is going to be a big shift into [the IAM] pool and … we expect 30% of ultra high net worth clients’ wealth to be managed by IAMs in the next five to 10 years.”

Derrick Tan, chief executive Hong Kong branch and global market head for Greater China and North Asia, Bank of Singapore “The discussion for major banker moves, which are usually team moves, can take from six months to a year and a half to confirm, which is much longer than before. From my observation, there are still some moves in the finalising period now, but then it will be quieter towards the end of the year.”

Maple Yip, partner, Sapiens Partners “We have started seeing a trend of convergence where banks are becoming more fintech-like, while fintechs are becoming more bank-like. We do expect a heightened level of talent war between the two in the future.”

Chia Hock Lai, president, Singapore Fintech Association

DBS PB’s Audra Seah cautions against directional structured products

T

he encouraging year-to-date financial market rebound has motivated HNWIs to look to riskier structured products but DBS Bank is urging investors to shift exposure from pure beta plays as market uncertainties persist.

Audra Seah, head of investment advisory and capital markets at DBS Private Bank, told Asian Private Banker that the bank has seen trading volumes of equity structures increase significantly since the end of 2018, with short volatility structures — such as ELNs and the selling of equity put option structures — returning to favour.

“In a more positive market environment, clients were more willing to take downside risks,” Seah explained, adding that an improvement in overall market sentiment — as well as more accommodative central banks — has “once again” triggered demand for relatively risky equity structured products.

However, she cautioned that a question mark remains over the sustainability of the recovery and that one-way directional trades could be risky in this rising volatility investment environment.

“We try to complement our clients’ portfolios by steering them towards more market-neutral equity structures, instead of a pure beta play,” she said, offering an example of outperformance

structured products which are baskets of stocks the bank believes will outperform other baskets of equities or indices.

“We have done a number of trades around the ESG theme. Take for example our ESG MSCI Asia outperformance structured products, which were designed such that relative outperformance of the MSCI ESG Index compared to the MSCI Asia Index would determine the payout of the warrant or note.

The larger the outperformance, the higher the payoff,” she explained.

Seah added that the Singaporean lender is also positive on the overall healthcare sector but favours health-tech and biotech while adopting a “bearish” stance on traditional pharmaceuticals.

Dispersion notes are another “prime” option for investors during volatile periods, she said.

“Dispersion notes are structured to allow buying of the volatilities and selling the correlations of the select stocks. We took a basket of ten stocks and based the performance of the note on the return dispersion of these stocks,” she said, adding that a larger divergence in stock performance would provide better returns.

“We believe volatility is still priced quite cheaply and is likely to rise from here,” she concluded.

7

I NEDGUUSL TART YI O N S R

Boris Collardi: Talent, services, product will anchor Pictet WM’s Asia growth drive

A

sia is front and centre of Pictet’s new five-year growth agenda for its global wealth management business that is jointly overseen by Boris Collardi and Rémy Best, both partners of the Swiss bank.

The wide-reaching plan, unveiled to Asian Private Banker by Collardi, covers market strategies, product and services, and operations, and is the outcome of a year of “observation, learning, and understanding” for the high-profile banker who formally joined Pictet last year after an eight-year spell as CEO of rival Julius Baer.

It distinguishes between Pictet’s ‘foothold’ European wealth management business, which currently accounts for the majority of client assets and where the emphasis will be on consolidating and expanding its onshore footprint, and the international ‘growth markets’ of Asia, Latin America, Eastern Europe, and the Middle East — regions where Collardi said Pictet’s business “still offers lots of development potential” but where there is “not a single market without a clear upside” — with Asia to receive the lion’s share of resources.

Collardi said resources would be allocated according to “the potential of markets”, with the bank retaining its focus on Asia’s UHNW segment given that “there are a lot more [ultras in the region] who don’t have a relationship with Pictet than those who do”.

“If I look at our book of business here [in Asia], North Asia I would say is good in terms of Hong Kong and Taiwan, but we still have very low exposure to Chinese residents,” he told Asian Private Banker.

“Similarly, in Southeast Asia, our book is concentrated on Singapore, NRI and international business. So our priorities are Greater China and, in Southeast Asia, Indonesia, Thailand and the Philippines — not to forget Singapore,” Collardi said, adding that in Asia, the bank already has in place the requisite platform, processes, and offering from which to springboard.

8

[We] have only scratched the surface in terms of our potential

Accordingly, Pictet aims to add about 200 senior bankers to its global wealth management business over the next five years, with 30-40% going to Asia.

“The good news is that Pictet has a great brand name, a fantastic platform and infrastructure, a multi-billion dollar book, and a roster of very senior bankers in the region,” said Collardi.

“So this is by no means a startup. We are not here in a day-one situation where you need to bring your own chair to the office, and yet we have only scratched the surface in terms of our potential.”

However, Collardi emphasised that the bank is under no pressure to meet its target and would proceed selectively in a market where it can “afford to choose” who it works with.

That extends to potential strategic tie-ups in the region. Pictet is currently conducting a market analysis of partnerships but has yet to reach a conclusion on which, if any, model is suitable.

“It is difficult for me to offer a verdict because, quite frankly, everyone tells me their [partnership] is ‘great’ and ‘working fantastically’. Some models look interesting but I am not aware so far of partnerships with truly measurable success,” Collardi said.

“But before we can run, we need to walk. Yes, we could be more vocal, but our business model allows us to take a long-term view and we will, therefore, make announcements in due time.”

INDUSTRY

Enhanced advisory Rather, Collardi said Pictet would complement its hiring activities with upgrades to its platform and services that include an expanded advisory offering that will be rolled out in Asia by Q1 2020, after going live in Switzerland earlier in July.

Partly a response to the regulatory environment and also a means for Pictet to increase its wallet share of clients, the service will launch with four mandates and a set of digital tools, according to Collardi, who said Pictet has traditionally been viewed as a money manager and less so as an advisor.

“On this front, we will catch up with others in the market,” he said.

Family office focus The bank has also placed a priority on Asia’s growing family office segment and recently launched a dedicated family office unit that is overseen by intermediaries veteran Pamela Phua, who joined the bank from Julius Baer in May. The family office team serves two purposes and draws on the Swiss bank’s experience in multi-generational wealth management, explained Collardi.

One is to function as a ‘competence centre’ for sharing best practices and exchanging ideas among family offices, and as a resource for bankers with clients who are looking to set up a family office by advising them through the process. The other is to focus exclusively on family offices and select multi-family offices in the region in terms of deploying Pictet’s suite of products to quasi-institutional investors.

[You] cannot be one of the most solid and safest banks in the world and at the same time go out there with an aggressive credit strategy “I’ve had many people approach me and say, ‘Pictet doesn’t do any lending’, but the reality is we offer interesting solutions, particularly for Lombard credits. And you cannot be one of the most solid and safest banks in the world and at the same time go out there with an aggressive credit strategy,” Collardi explained.

He said the bank would not follow others in the region by using credit as a door-opener for relationships but, instead, would deploy its balance sheet “wisely” and “selectively” as a value-add.

Operationally, Pictet will continue making enhancements to its independent IT platform — what Collardi said is a core strength of the group — and is currently onboarding new tools for its advisory offering and improving control and support functions.

“We have a clear roadmap for these upgrades and it is correlated to our market and product strategies,” he added.

Differentiated alternatives Pictet is also looking to emphasise its alternative investments capabilities amid robust — and growing — interest in Asia for the asset class and an industry-wide clamour to sate demand, especially for private equity.

The bank recently ventured into the direct space with a European real estate opportunity and its private equity fund of funds offering is on Vintage Five, “with remarkable performance”, according to Collardi, who believes the sweet spot for Pictet lies in offering smaller, more niche strategies.

“There are those big funds that have raised a huge amount of money and are very well-run firms, but which are a bit undifferentiated,” he said, adding that a good research team will find the “smaller, lesser-known funds that cannot be accessed so easily — be they China or Singapore or São Paulo-based private equity firms”.

“So if you put those together, you can also deliver outstanding performance with diversification. I think typically for Asia, this is one of those areas we would like to build on,” he continued.

Smart credit Meanwhile, Collardi acknowledged that Pictet could do more to communicate to the market its credit capabilities but rejected assertions that the bank does not deploy its balance sheet sufficiently to woo Asia’s ultra segment.

I am a firm believer that we have to create our own success here in Asia

Collardi said the five-year plan, as extensive as it may seem, essentially aims to “bring the existing and already-solid foundations of [the wealth manager] in Asia to new levels” — and not to fix something that doesn’t work.

“I am a firm believer that we have to create our own success here in Asia,” he continued.

“And many people will say that you cannot successfully develop a strategy without an investment banking arm, but I strongly disagree.

You just need to be smart and connect with the industry — with investment banks that don’t have a private bank, with private equity businesses because they now do lending — and in Pictet’s case, use our unique advantage of being a Swiss private partnership business with a disciplined risk management culture.”

“And then there is the fact that our brand is not yet well known in the region. That brings with it an attraction,” Collardi concluded.

9

INVESTMENTS

FMP debate: Flavour of the day or future mainstay?

D

espite intense debate over the viability and sustainability of fixed maturity products (FMPs), these closed-ended debt funds have raked in billions from Asia’s private banking investors over the past few years, offering no indication that momentum might fade.

Banks and asset managers alike are eyeing these developments attentively, with some cashing in on strong demand while others hover on the sidelines, assessing whether or not the instrument is indeed a viable strategy for tapping into the fixed income market while asking themselves what the future holds for the FMP space.

“Evergreen” business for banks No matter the general sentiment — risk-on or risk-off — FMPs have remained in favour amongst Asia’s investors, translating into significant fundraisings for the region’s private banks.

A veteran fund selector at a major Swiss private bank told Asian Private Banker on the condition of anonymity that FMPs have remained the instrument of choice over the last two years, during which time the investment environment has changed considerably — positive in 2017, challenging in 2018, and recovering year-to-date.

However, some insiders believe the demand is not entirely buyerdriven and that FMP investing is not always in the best interest of end-investors. Rather, in firms which adopt a top-down evaluation approach, bankers could be tempted to use FMPs to lock in AUM at the beginning of the year.

“Bringing in AUM and revenue are two major KPIs of a banker. If they can lock in the assets at the beginning of a year, what they only need to do for the rest of the year is to get the revenue part done,” said another anonymous source, indicating that the margin of FMPs is significantly lower than that of most other fixed income products for both banks and asset managers.

“For a bank, the product margin of FMPs is, of course, not the main revenue source, but if you see the bigger picture, banks make millions of dollars by financing those products,” another unnamed source added.

10

Indeed, FMPs are often accompanied by high leverage, with some LTV ratios reaching as high as 90%.

Yet, some believe the FMP market is buyer-driven, as the instrument serves as a cash management tool and Asian investors have historically preferred holding high levels of cash.

“Investors are interested in achieving bond yields that are higher than fixed deposits by taking credit risk while reducing manager, duration and currency risk,” Paul Stefansson, global head of investment funds at UBS Global Wealth Management, told Asian Private Banker.

“The key advantage of those products versus open-ended funds is the ability to largely immunise against interest-rate risk if held to maturity.”

Credit Suisse Asset Management, which has raised US$8.2 billion for FMPs in Asia since 2016, shares similar sentiments.

“Our premise from the outset of helping to establish this market in Asia was to serve the interests of our clients seeking to put cash to work wisely by generating more predictable sources of yield,” said Alexandre Bouchardy, head of fixed income and equities Asia and head of asset management Singapore at Credit Suisse Asset Management.

“We believe the demand for these strategies is driven by an attractive yield pick-up and a regular income stream with the shorter maturity profile limiting interest rate and credit spread risks.”

FMPs for asset managers: fairly meagre profit or frightfully major potential?

Given the significant inflows and high financing revenues, FMPs are good business for banks, but whether or not asset managers stand to profit from the instrument remains to be seen.

Markus Egloff, head of wholesale client coverage, Asia Pacific and head of UBS Asset Management, Hong Kong, told Asian Private Banker that lenders have multiple methods for generating revenue — including upfront fees, retrocession fees, financing charges — while for asset managers, given that FMPs are a buy-and-hold product, pricing and margins are “not attractive at all”.

INVESTMENTS

Contributors

Alexandre Bouchardy head of fixed income & equities Asia and head of asset management Singapore CSAM

Christian Bucaro CEO Singapore and co-head of sales APAC BNP Paribas AM

Hou Wey Fook CIO, consumer banking and wealth management DBS Bank

Markus Egloff head of wholesale client coverage APAC and head of Hong Kong UBS AM

Paul Stefansson global head of investment funds UBS GWM

Vincent Ng joint-CIO, Asia ex-Japan Nomura WM

“You really need to make sure that the efforts are worthwhile, and if you do it, it is important to do it as efficiently as possible,” he explained.

“I think here in Asia, about one-third of the asset managers haven’t fully recognised [the FMP] opportunity, and there are probably another 20% of the asset managers who don’t want to do it or feel it’s not their strength, and then the other half are doing it, although there’s still some debate among them.”

According to Ng, the quality of FMPs has also been deteriorating as fund managers add lower-rated bonds to products to generate relatively attractive yields in the current low-interest rate environment.

“Today, fixed maturity strategies need to include a lot of high yield bonds, and as a result, the average credit quality of those funds is not as good as it was last year. This is also something I’m worried about,” he cautioned.

‘Pull to par’ — a good strategy?

Hurdles facing FMPs

FMPs provide investors with a payout structure similar to that of single bonds but with less unsystematic risk, owing to diversification.

However, compared to open-ended actively managed bond solutions, a question mark hangs over the viability of FMPs.

As interest rate volatility surges and monetary policies remain unpredictable, speed is of the essence in capturing windows of opportunity in yield pick-up.

“‘Pull to par’ is the beauty of these fixed maturity products,” said Hou Wey Fook, DBS Bank’s CIO, adding that the lender prefers FMPs over a portfolio of single bonds as the former provides more diversification.

“However, as bond holdings in such FMPs are constrained by the maturity period, it can be rather challenging to source for such bonds from the market. As a result, FMPs are normally less diversified compared to traditional mutual funds,” he explained.

Echoing Hou’s view, Nomura Wealth Management’s Asia co-CIO, Vincent Ng, added that behind the growing demand for FMPs, the market is doing “exactly the same thing”, with fixed maturity fund managers still buying similar bonds as they were in 2018.

“If you limit the bond maturity to three years, the investable universe becomes very small,” he said. “Right now, it is more a buyers’ market where there are a lot of similar strategies.”

Acting as a time-sensitive wrapper, actively managed certificates (AMCs) have gained traction amongst clients as they are potentially quicker to develop and typically have lower minimum asset requirements than mutual funds.

Julius Baer has proved particularly successful in the AMC space. In March, the Swiss pure play’s DPM and structured products teams launched an AMC fixed maturity bond mandate which raised over US$450 million. According to sources, a number of other private banks are looking to partner with investment banks to capitalise on AMC-related opportunities.

“The surge of AMCs concerns me,” one asset manager told Asian Private Banker on the condition of anonymity, revealing one fund house was working with a private bank to develop an FMP when the latter chose to use an AMC wrapper.

11

INVESTMENTS

“Previously, we were only competing with fund houses, but now we have new competitors,” the source said.

Meanwhile, other asset managers are less concerned about increased competition, choosing to regard AMCs as a complementary tool with which banks and fund houses can gain better access to the fixed maturity bond market.

“Compared to an AMC, a fund is more actively managed even though it is a buy-and-hold product. Portfolio managers look at the market every day and they can still [make] some changes if they see some really bad news which would potentially trigger a default,” UBS’s Egloff said.

“For AMC investors, as you have an investment bank as your counterparty, you are likely to pay another layer of fees and have additional counterparty risk. As a result, the lending rate a bank could offer is likely to be lower as well.”

Other industry veterans have also voiced concerns over the liquidity or trading constraints of AMC structures.

We believe it’s essential for managers of fixed maturity bond funds to be flexible in adapting solutions to capitalise on the prevailing market environment and to meet the changing needs of clients over time FMP 2.0 Since being introduced to the market as plain vanilla closed-ended, hold-to-maturity bond funds, FMPs have evolved to include more features and customisable characteristics.

“We believe it’s essential for managers of fixed maturity bond funds to be flexible in adapting solutions to capitalise on the prevailing market environment and to meet the changing needs of clients over time,” said Credit Suisse’s Bouchardy.

“Our recent fixed maturity bond fund took advantage of the partial inversion of the yield curve by getting paid to swap our mediumduration fixed coupon exposure into floating-rate returns.”

UBS’s Egloff agreed, adding that the Swiss asset manager is working on ‘FMP 2.0’ — a phase which includes minimising the fund development period as well as providing more tailored solutions for distributors.

12

I don’t think we should go too far away from the fact that they should be a plain vanilla product — a basket of cash bonds.

If you start adding bonds or managing the duration through derivatives, you also add extra risks “It’s been a tricky story over the last few years for asset managers to time it right. For example, if the yields decrease below 5%, the client interest would drop immediately. Or if there are some other hot ideas going on in the market on the equity side, everybody would jump into structured products and nobody would look at fixed maturities,” he said.

Egloff added that the firm has managed to shorten the development time of mutual funds to one month — down from the typical threeto-six months — in order to “time it right”.

However, despite there being numerous variations of FMPs — with more in the pipeline — not all asset managers are convinced the instrument should stray too far from its roots.

“I don’t think we should go too far away from the fact that they should be a plain vanilla product — a basket of cash bonds. If you start adding bonds or managing the duration through derivatives, you also add extra risks,” said Christian Bucaro, CEO of BNP Paribas Asset Management Singapore and co-head of sales APAC. “When people are scared, they move money to deposits and as a fund manager, we should work with private banks to create something conservative that would convince clients to move away from deposits.

But now we are starting to see an evolution of these products which makes them move away from the nature of being a plain vanilla strategy. That’s why I am a little bit concerned about it.”

As previously reported by Asian Private Banker, UBS Asset Management raised US$1.1 billion for two recently launched FMPs, with three similar strategies in the pipeline for which it aims to rake in an additional US$1.3 billion this year. In March, Julius Baer raised US$450 million for its fixed maturity bond mandate, followed shortly

by Credit Suisse’s US$1 billion FMP fundraising and HSBC Private Banking’s inflow of US$700 million for a floating rate fixed maturity bond fund.

And in early July, Eastspring Investments announced it had raised US$417 million for its new FMP through Standard Chartered Private Bank in Singapore, Hong Kong, the UK, and the Middle East.

TECHNOLOGY

2019 MID-YEAR PB TECH SURVEY

I

n a bid to improve RM efficiency, offer more convenience to clients, and stay ahead of technological disruption, Asia’s private banks have increasingly relied on and invested in their digital capabilities and solutions.

In July, Asian Private Banker distributed its 2019 Mid-Year Private Banking Technology Snapshot Survey in the region to gain a clearer, aggregated understanding of where firms stand in respect to their digital transformations and what their priorities are going forward.

Our COO/CTO survey respondents represent private banks with a combined Asia AUM of almost US$950 billion — a decent chunk of the market.

To see the results online, please visit: https://asianprivatebanker.com/2019-mid-year-pb-tech-survey/

Q1: What emerging technology is your private bank currently investing in?

Investing

Q2: How is your private bank prioritising its tech investments for the upcoming 12 months?

Not investing

1: High relative priority Voice-enabled assistants

AI-driven portfolio analytics

Cloud computing

14%

19%

19%

Automated personalised communication and advice

Portfolio tracking

Speech analytics

24%

24%

Average rank

1.9 KYC or account opening 2.1 Client communication channels

3.0 Portfolio management services

3.8 Product distribution 4.0 Regulatory reporting

5% 5: Low relative priority

To stay ahead of technological disruption and new fintech-based market entrants, private banks have begun to look towards emerging technologies commonly used by bigtechs, such as voice-enabled assistants, AI, and cloud computing.

According to respondents, the two most popular types of emerging technology are portfolio tracking capabilities (25%) and automated, personalised communications and advice (25%), followed closely by cloud computing (19%) and AI-driven portfolio analytics (19%).

Examples of industry heavyweights’ foray into emerging tech include UBS working with Amazon to introduce its services on the Echo device and the Alexa voice-enabled assistant, and HSBC utilising the services of tech vendors such as Google, Amazon Web Services (AWS), and Microsoft to upload data to the cloud.

In a survey conducted in May, three-quarters of private banks in Asia said that their tech budgets have increased year-on-year, so Asian Private Banker asked banks what these funds have been earmarked for.

Private banks continue to prioritise KYC and client onboarding technology to assuage the pain points of stringent and costly account opening-related regulations. Appway alone has already consulted the private banking arms of numerous institutions, including Credit Suisse, Deutsche Bank, HSBC, BOCI, and LGT to streamline and shorten onboarding times.

Client communication also emerged as a priority amongst banks who understand that convenience, particularly in the Asia region, is important to clients (see Q5). According to Asian Private Banker’s records, two-thirds of private banks in the region currently support instant messaging either through their respective mobile apps or via third-party messaging platforms.

13

4%

personalised on and advice

4%

19%

19%

Portfolio tracking

Speech analytics

TECHNOLOGY

1.9 KYC or account opening 2.1 Client communication channels

3.0 Portfolio management services

Q3: Approximately what percentage of processes 24% 5% in your bank are automated?

Approximately what percentage of processes in your bank are automated? % of respondents

3.8 Product distribution 4.0 Regulatory reporting

As it stands, only a few features have full personalisation baked in while To what content, extent are the functions or s a large majority (86%) of informational such asfollowing news/research 5: Low relative priorityto the individual client, if they are offered throu and investment ideas, are only “somewhat personalised”.

67%

86%

50%

Firms like UBS GWM have explained to Asian Private Banker that increasing levels of personalisation through its digital platform was 57% among its top priorities and that it is engaged with its Hong Kong and Singapore clients through ‘co-creation and client insight sessions’ to improve the potency of its tailored insights and services.

50%

33%

86%

33% 25% 25%

29%

17%

Meanwhile, fintech accelerators — 14% such as DBS’s Startup — 14% Xchange 14% are tapping into the region’s fintech ecosystem to create holistic views of clients and improve upon personalised solutions.

Front office

Middle office

41-60% automated

20% adoption 21-40% adoption 41-60% adoption 61-80% adoption 81-100% adoption

News/ research

Back office

adoption rate of your mobile app(s) over the years?

No automation 1-20% automated

Asset/sector/ geography tracking

Investment ideas

14

Account st and an

Q5: What are your clients’ most preferred channel Not at all personalised Somewhat personalised How is your private bank prioritising its tech investments for communication?

21-40% automated

61-80% automated

43%

81-100% automated

for the upcoming 12 months?

Automation does not only improve accuracy across the board and 81-100% 33% of respondents 33% of respondents benefit the bottom line but also frees up time for front-office 61-80% staff to focus on more client-centred responsibilities.

41-60% 25% of respondents 25% of respondents 50% of respondents

% of respondents

21-40% Unsurprisingly, owing to the nature of the tasks, three-quarters of the 20% of 40% of respondents 40% of respondents respondents respondents said back-office processes at their respective 0-20%institutions are at least 41-60% automated. Comparatively, only two-thirds of 20% of 40% of respondents of respondents respondents middle-office processes40% and one-third of front-office processes enjoy a similar degree of60automation.

20 40 80 100 Automation is improved predominantly through robotic process automation (RPA) or bots, are which of Singapore What features you Bank developing this yearhas used to mobile apps? automate 30 processes so far,for with 56 more in the pipeline. The lender did state, however, that its automation journey will end in 2020. Meanwhile, Planning to develop in the future No plans for development Deutsche Bank has deployed trade processing and is currently Not developing this year bots for Developing this year Rolled out developing nine automated processes for its APAC WM division. BNP Paribas’s global markets division, with Bank of Singapore, 14.3% 28.6%in partnership 28.6% 28.6% Advisory has also recently developed a bot to overcome market inefficiencies relating to secondary25% market equity derivatives trading. 50% 12.5% 12.5% Chat

Text

Mobile

29%

29%

Face to face

Phone calls

14%

29%

Private banks in the region have beenWhat working balance digitalhard toolstoare you developing regulatory and data safety requirements with client demand for convenient communication channels.

Planning to develop in the future No plans f Not developing this year

Developing this year

According to respondents, clients prefer using text messages, mobile messaging services, and phone calls equally (each 29%), compared to Analysis tool 83% portfolios that clients indeed favour face-to-face meetings at 14%for —clients' highlighting more convenient forms of communication.

CRM

17%

33%

However, text messaging has raised regulatory concerns — a higher Q4: To what extent are the following functions or frequency ofismessages as well as broadcast frominvestments RMs require more How your private bank prioritisingtexts its tech for the upcoming 12 months? services personalised to the individual client, documentation and supervision — while phone 17% calls often classify as 50% Market forecast Transaction 42.9% 57.1% if what they are offered through a digital platform? execution To extent are the following functions or services personalised compliant so long as they’re recorded and archived but speech-to-text Fully ready: 100 to the individual client, if they% are offered through a digital platform? technology is yet to be perfected. of respondents % of respondents Portfolio management tools

42.9%

28.6%

86%

14.3%

14.3%

90

% of respondents

86%

80

Accordingly, banks have preferred to launch RM-client communication 70 services via third-party instant messaging platforms. Credit Suisse chose 60 3rd quartile: 48.0% Apple Business Chat as its first compliant RM-client Median:communication 40.0% % readiness 50 platform, while UBS 40and DBS opted for WhatsAppMean: and37.4% WeChat.

1st quartile: 19.5%

57% 43%

43%

43%

30

29%

29%

14%

14%

14%

29%

20

Q6: What features are you developing this year for mobile apps?

10

14%

Not ready at all:

News/ research

Asset/sector/ geography tracking

Not at all personalised

Investment ideas

Account statements and analysis

Somewhat personalised

Portfolio analysis

Completely personalised

To what extent are you performing analytics for client-related data?

Using

Not using

As more private banks in the region offer digital advisory services, Asian Descriptive Diagnostic Predictive Prescriptive are Private Banker sought to understand to what extent these offerings personalised.

Transactional data

14

88%

50%

13%

0%

Descriptive

Diagnostic

Predictive

Prescriptive

0

Private banks have also prioritised convenience through client-facing apps, and Asian Private Banker asked respondents for their app-related development plans across four key areas.

While private banks are split in terms of the development phase and prioritisation of advisory, chat, and portfolio management tools, all have either rolled out or are developing mobile transaction execution.

Front office

5: Low relative priority

Middle office

Back office

No automation

1-20% automated

21-40% automated

41-60% automated

61-80% automated

81-100% automated

TECHNOLOGY To what extent are the following functions or services personalised

Intoterms of what is most widely available, trade execution is currently the individual client, if they are offered through a digital platform? a feature of 57% of respondents’ mobile offerings, followed closely by % of respondents 86% 86% chat at 50%. What features are you developing this year for mobile apps?

57% Planning to develop in the future

Not developing this year

How is your private bankfirm’s prioritising its tech investments Q8: How ready is your technology in gathering for the upcoming 12 months? behavioural data from clients?

90

No plans for development

Developing this year 43%

Rolled out

43%

What digital tools are you developing for RMs?

Fully ready: 100

Planning to develop in the future Not developing this year

80

43%

No plans for developmen

Developing this year

Rolled

70

Advisory

14.3%

29%

28.6%

14%

14%

29% 28.6% 29%

28.6%

14%

14%

our private bank prioritising its25% tech investments 12.5% 12.5% Chat for the upcoming 12 months?

News/ research Portfolio

management tools

Asset/sector/ geography tracking 42.9%

Not at all personalised

Transaction execution

Investment ideas

50%

14.3%

14.3%

Not ready at all:

Q7: What digital tools are you developing for RMs? What digital tools are you developing for RMs?

To what extentPlanning are you performing analytics for client-related to develop in the future No plans for development data?

Descriptive

Transactional data

Predictive

17%

50%

13%

33%

Descriptive 17%

adiness

y at all:

90 80 70 60 50 40 30 20 10 0

Diagnostic

Behavioural data

63%

25%

Predictive

% of respondents

50%

Rolled out

28.6% Market forecast

17%

12.5%

12.5%

0 25%

50%

28.6%

28.6%

% of respondents 50%

Banks have reams of transactional data at their disposal but are 14.3% 14.3% 42.9% 28.6% stillmanagement a longPortfolio way toolsoff from being able to sufficiently harvest and utilise behavioural data.

Transaction execution

42.9%

57.1%

Overall, respondents said technology at their respective banks is 40% ready % of respondents to carry out meaningful and efficient gathering of behavioural client data.

The readiness spread indicates that the region’s lenders are at very different stages regarding the collection of such data, but the trend towards harnessing such information for decision-making purposes is strengthening. Both DBS and Bank of China Private Bank, for example, have articulated the growing role behavioural data is playing in enhancing front office productivity and, ultimately, the client experience.

Prescriptive

0% 50%

50%

Market forecast

Developing this year

17%

your private bank prioritising its tech investments for the upcoming 12 months? ready: 100

Rolled out

83%

88% CRM

Diagnostic

1014.3%

Chat

Developing this year Not using

1st quartile: 19.5%

17% No plans for development 33%

20

Advisory

57.1%

Regarding digital advisory, launches can be expected in the near future Phone calls as 29% of respondents are currently developing the function. Of the 29% digital advisory platforms already on offer in Asia — such as UBS Advice or CS Invest — Deutsche Bank’s dbXpert is the newest, having launched in May.

Analysis tool for clients' portfolios

30 Not developing this year

Completely personalised

Mobile

Not developing this year Using

83% 3rd quartile: 48.0%

Planning to develop in the future CRM

Portfolio analysis

29% % of respondents

ace

Analysis tool for clients' portfolios

40

Account statements and analysis 28.6%

Somewhat personalised

42.9%

60

What features are you developing this year Median: 40.0% % readiness 50 Mean: 37.4% for mobile apps?

13%

Q9: To what extent are you performing analytics on client-related data?

To what extent are you performing analytics for client-related data?

Using

Prescriptive 33%

0%

An expensive talent war3rdand challenging market conditions saw quartile: 48.0% Median: 40.0% many private banks having to tighten their purse strings to maintain Mean: 37.4% ballooning cost-income ratios.

With ongoing ambitions to extend their 1st quartile: 19.5% reach across the region amid the talent and margin squeeze, lenders continue to bolster their frontlines, but many only do so alongside the development of ways to increase RM efficiency.

While only 17% of respondents said that their RMs have access to client portfolio analysis tools, the remaining 83% indicated that they are currently developing the feature. Meanwhile, customer relationship management (CRM) is the most available function for RMs and has already been rolled out at half of surveyed banks. Market forecasting tools were the lowest item on banks’ priority lists, with 50% saying that they had no plans to develop the function.

Existing digital RM tools include DBS’s RM Mobility, Bank of Singapore’s RM Navigator, and Bank of East Asia’s iPortfolio Analyzer. This March, HSBC also inked a deal with BlackRock Solutions to offer the latter’s portfolio risk assessment platform, Aladdin, to the bank’s clients.

Transactional data

Behavioural data

Not using

Descriptive

Diagnostic

Predictive

Prescriptive

88%

50%

13%

0%

Descriptive

Diagnostic

Predictive

Prescriptive

63%

25%

13%

0%

With many banks increasingly offering more personalised services, Asian Private Banker asked to what extent and how transactional and behavioural client data was being utilised.

The survey highlighted that a majority of banks use descriptive transactional (88%) and behavioural (63%) data, but have some ways to go when it comes to diagnostic, predictive, and prescriptive analysis.

Of note is the fact that neither transactional nor behavioural data is yet used for prescriptive means. In order to better provide personalised advice, banks will need to improve their prescriptive — what clients should do — analytics capabilities.

15

ADS

We look forward to hosting you at one of our functions this year • only private banking and wealth management • only senior industry speakers • only for qualified participants

17 Sep Hong Kong

8th FUNDS SELECTION NEXUS

19 Sep Singapore

The premier product gatekeeper function in Asia.

15 Oct Singapore

3rd DISCRETIONARY DIALOGUE The most important thought-leadership conversation between key discretionary leaders and gatekeepers at private banks.

17 Oct Hong Kong

24 Oct Shanghai

2nd CHINA GLOBAL WEALTH LEADERS SUMMIT New era in sustainable & responsible wealth creation & management.

12 Nov Singapore

3rd HIGH CONVICTION: 2020 INVESTMENT IDEAS AND THEMES The most senior gathering of Asia-based gatekeepers from global and regional private banks in Asia, alongside established IAMs and family offices, examining 2020 investment ideas and product strategies.

14 Nov Hong Kong

16

13 Nov Singapore

6th CHIEF OPERATING OFFICERS LEADERS CONVERSATION Peer networking and experience sharing between COOs, CTOs and CDOs around their respective private banks’ technology and innovation agendas.

17 Mar Hong Kong 2020

2nd CHINA INTERNATIONAL PRIVATE BANKING & WEALTH MANAGEMENT LEADERS PRIVATE DIALOGUE The C-suite leadership of China-linked wealth managers and private banks convene to examine and debate the future of offshore wealth management for Chinese clients.

RSVP to Alice Chan alice.c@asianprivatebanker.com +852 2529 1737

For more information, please visit www.asianprivatebanker.com/events

CHINA 2018 AUM AND CLIENT COUNT LEAGUE TABLES

INDUSTRY

INDUSTRY

I

n 2018, asset gathering at China’s onshore private banks remained on the uptrend, albeit at a relatively moderate tempo given uncertainty looming over US-China trade tensions, volatile equity markets, and an evolving domestic regulatory landscape. Assets under management (AUM) at China’s Top 10 private banks grew 13.1% year-on-year to hit RMB 9.6 trillion, outpacing Asia’s private banks, which witnessed a 3.6% dip over the same period in the face of dampened client activity.

While there has been some rejigging of rankings, the constituents of the Top 10 remained the same as in 2017, with China Merchants Bank (CMB) Private Banking once again emerging at the top of the table for the sixth consecutive year.

Posting over RMB 2 trillion for the first time, CMB alone accounted for over one-fifth of the Top 10’s combined AUM, growing at 7.0% YoY. Such performance places the domestic player within spitting range of that of UBS Global Wealth Management’s Asia Pacific business, which it lags

by US$60.5 billion — a gap that could quickly narrow at CMB’s current growth rate.

Top 10 total AUM

RMB

9,636.1 billion ( ) in 2018

Securing a second-place ranking for the first time in four years, Bank of China (BOC) Private Banking experienced the highest AUM growth in 2018, gaining RMB 200 billion to reach RMB 1.4 trillion and overtaking Industrial and Commercial Bank of China (ICBC) Private Banking, which came in third.

Meanwhile, Shanghai Pudong Development Bank (SPDB) Private Banking achieved an AUM growth rate of 36% — the highest amongst the Top 10 — to reach RMB 500 billion owing to a spike in client numbers.

Further, asset gathering at China’s Top 10 appears to have continued in lockstep with the rise of Chinese private wealth. According to a report by Bain & Company and CMB, though growth in Chinese private wealth has recently slowed — CAGR for 2014-16 and 2016-18 dipped from 21% to 7% — investable assets from Chinese high net worth individuals are billed to hit RMB 200 trillion by the end of 2019.

A further breakdown reveals that of the significant holdings of Chinese HNWIs, ‘capital market products’ are the biggest laggard in the most recent period, going up by only 1% CAGR between 2016-18.

Top 10 YoY AUM growth

+13.1%

2017-18

+18.4% 2016-17 +18.9% 2015-16

+21.3% 2014-18 CAGR

2018年，中国境内私人银行的资产聚集仍处于上升趋势中，但由于中美 贸易紧张局势带来的不确定性、股票市场的波动和不断完善的国内监管 格局等因素的影响，上升速度适中。中国十大私人银行的资产管理规模 （AUM）同比增长13.1%，达到9.6万亿元人民币，超过其他亚洲私人银 行。在客户活动受到抑制的情况下，其他亚洲私人银行资产管理规模在同 期下降了3.6%。 虽然排名次序有所变化，但位居前10名的私人银行与2017年相同。 其中，招商银行（CMB）私人银行连续第六年位居榜首。 凭借首次超过2万亿元人民币的资产管理规模和7.03%的同比增长率， 仅招行就占据前十大私人银行总资产管理规模的五分之一以上。这出众 的表现使招行私行近乎比肩瑞银全球财富管理（UBS Global Wealth Management）亚太地区的业务额。与瑞银的资产管理规模相比，招 行相对落后650亿美元，但以其目前的增长速度，这差距可能很快会被 缩小。 中国银行（BOC）私人银行四年来首居第二，其2018年的资产管理规模 （AUM）增长率首屈一指。凭借新增的2,000亿元，中银私行总规模达 1.4万亿元人民币，并超过位居第三的中国工商银行（ICBC）私人银行。 与此同时，得益于客户数量的大幅增长，上海浦东发展银行（SPDB）私 人银行的资产管理规模（AUM）增长率在十大私行中居首位，达36%， 其资产管理总额为5,000亿元人民币。 此外，随着中国私人财富的增长，中国前十大私行的资产聚集也在同步的 增加。贝恩公司和招行的报告显示，尽管中国私人财富的增长近期有所放 缓——2014-16年和2016-18年的复合增长率从21%下降到7%——中国高 净值个人可投资资产总体规模预计到2019年底将达到200万亿元人民币。 进一步分析显示，在中国高净值人群的所持股份中，“资本市场产品”在 最近一段时期的表现最为滞后——其在2016-18年间复合增长率仅为1%。

17

INDUSTRY

China Top 10 private banks: AUM 中国十大私人银行排行榜: 资产管理规模 Rank Bank 排名

1

银行

2018年资产管理规模 (十亿元人民币)

2017 AUM (RMB billion)

2017年资产管理规模 (十亿元人民币)

2017-18 YoY Change 2017-18年 同比增长率

2014-18年 复合增长率

2,039.3

1,905.3

+7.0%

+28.3%

1,400.0

1,200.0

+16.7%

+18.1%

1,390.0

1,331.3

+4.4%

+17.2%

1,348.5

1,159.5

+16.3%

+30.3%

1,123.4

1,028.6

+9.2%

+15.1%

521.1

475.5

+9.6%

+15.7%

500.0

367.1

+36.2%

+22.8%

486.2

386.3

+25.9%

+24.6%

450.6¹

341.2

+32.1%

+30.7%

377.0

324.0

+16.4%

+14.3%

9,636.1

8,518.9

+13.1%

+21.3%

China Merchants Bank (CMB) Private Banking

2018 AUM (RMB billion)

2014-18 CAGR

中国招商银行私人银行

2

3

Bank of China (BOC) Private Banking 中国银行私人银行

Industrial and Commercial Bank of China (ICBC) Private Banking 中国工商银行私人银行

4

China Construction Bank (CCB) Private Banking 中国建设银行私人银行

5

Agricultural Bank of China (ABC) Private Banking 中国农业银行私人银行

6

Bank of Communications (BOCOM) Private Banking 交通银行私人银行

7

Shanghai Pudong Development Bank (SPDB) Private Banking 上海浦东发展银行私人银行

8 9 10

China CITIC Bank (CITIC) Private Banking 中信银行私人银行

Ping An Bank (PAB) Private Banking 平安银行私人银行

Industrial Bank (CIB) Private Banking 兴业银行私人银行

Top 10

Type 类别

Joint-stock 股份制银行

National 国有银行

National 国有银行

National 国有银行

National 国有银行

National 国有银行

Joint-stock 股份制银行

Joint-stock 股份制银行

Joint-stock 股份制银行

Joint-stock 股份制银行

Figures are based on published bank data and bank disclosures unless otherwise stated. 除非另行说明，所有数字来源于已发布的银行数据和信息披露。 Figures may not correspond exactly to totals and calculations due to rounding. 基于四舍五入，所示数据可能与计算后的数字有差距。 Top 10 totals and their calculations are as at 31 Dec of their respective years and factor in revised data; Constituents of the Top 10 may vary from year to year. 十大私行的总数及具体数值的计算是根据截止到当年12月31日的情况，并将已修改的数据纳入在内。排名前十的私行可能每年都有所不同。 ¹ APB estimates. ¹ APB估算。

China’s Top 10 private banks amassed a combined total of 686,700 clients in 2018, registering an 11% YoY increase and a 21% CAGR since 2014.

Leading the pack with 19% of the Top 10’s total client count, China Construction Bank (CCB) Private Banking had 127,211 clients as of end2018, up 15% from the year before as it grew its private banking client base at a CAGR of nearly 50% since 2014. This is partly attributable to the downward revision of its minimum asset requirement, which is now RMB 6 million from RMB 10 million previously.

Meanwhile for AUM per client, CMB Private Banking snagged the top spot with an average of RMB 28 million per client in 2018, while SPDB Private Banking acquired clients at the headiest pace, more than doubling client count to reach 38,000.

18

2018年，中国前十大私人银行的客户总数为686,700户，同比增长11%， 自2014年以来复合年增长率为21%。 中国建设银行（CCB）私人银行客户数量占十大私行客户总数的19%，占 比排名第一。截至2018年底，客户总数达127,211，较上年增长了15%。 其私行客户数量自2014年以来的复合增长率接近50%。这在一定程度上与 其下调门槛有关，此前的最低资产要求为1,000万元人民币，而目前下调至 600万元人民币。 同时，在客户资产结余方面，招行私行在2018年以平均资产结余2,800万 元人民币的数额位居榜首，而浦发银行私行的客户数增速最快，增加了一 倍多，达38,000人。

INDUSTRY

2018 Top 10 total client count

Top 10 YoY client count growth

686,700

+10.8%

+21.4% 2014-18 CAGR

2017-18

+26.3% +19.6%

2016-17 2015-16

China Top 10 private banks: Client Count 中国十大私人银行排行榜：客户数目 Rank Bank 排名

1

2

3

银行

China Construction Bank (CCB) Private Banking¹ 中国建设银行私人银行¹ Bank of China (BOC) Private Banking 中国银行私人银行

Agricultural Bank of China (ABC) Private Banking

2018 Client Count 2018年 客户数目

2017 Client Count 2017年 客户数目

2017-18 YoY Change

2014-18 CAGR

2017-18年 同比增长率

2014-18年 复合增长率

2018 Avg. AUM per Client (RMB million)

Min. Asset Req. (RMB million)

平均客户资产结余 百万元人民币

私行门槛 百万元人民币

127,211

110,202

+15.4%

+48.5%

10.6

6

106,550²

100,000

+6.6%

+9.5%

13.1

6

106,000

106,000

0.0%

+16.8%

10.6

8

80,700

75,500

+6.9%

+19.2%

17.2

8

72,938

67,417

+8.2%

+22.0%

28.0

10

48,000

41,620

+15.3%

+34.0%

4.9

6

40,292

37,219

+8.3%

+14.6%

12.9

6

38,000

18,100

+109.9%

+33.4%

13.2

8

33,863

28,000

+20.9%

+25.5%

14.4

6

33,146²

30,490

+8.7%

+16.0%

10.0

6

686,700

619,948

+10.8%

+21.4%

中国农业银行私人银行

4

Industrial and Commercial Bank of China (ICBC) Private Banking 中国工商银行私人银行

5

China Merchants Bank (CMB) Private Banking 中国招商银行私人银行

6

7

Bank of Beijing (BOB) Private Bank 北京银行私人银行

Bank of Communications (BOCOM) Private Banking 交通银行私人银行

8

Shanghai Pudong Development Bank (SPDB) Private Banking 上海浦东发展银行私人银行

9 10

China CITIC Bank (CITIC) Private Banking 中信银行私人银行

China Everbright Bank (CEB) Private Banking 中国光大银行私人银行

Top 10 十大私人银行

Figures are based on published bank data and bank disclosures unless otherwise stated. 除非另行说明，所有数字来源于已发布的银行数据和信息披露。 Figures may not correspond exactly to totals and calculations due to rounding. 基于四舍五入，所示数据可能与计算后的数字有差距。 Top 10 totals and their calculations are as at 31 Dec of their respective years and factor in revised data; Constituents of the Top 10 may vary from year to year. 十大私行的总数及具体数值的计算是根据截止到当年12月31日的情况，并将已修改的数据纳入在内。排名前十的私行可能每年都有所不同。 ¹ CCB Private Banking adjusted its minimum asset requirement from RMB 10m to RMB 6m and the client count for 2017 and 2018 on this table reflects this adjustment. Original client count in 2017 was 67,670. 2014-18 CAGR is based off of the adjusted figures. ¹ 此表格反映了中国建设银行私人银行下调了客户账户的最低资产要求，从2017年的1,000万元人民币调至2018年的600万元人民币。2017年的原本客户数量为67,670，而2014至2018年的年复合增长率 (CAGR) 是根据调整后的客户数量计算的。 ² APB estimates. ² APB估算。

19

ADS

2nd CHINA GLOBAL WEALTH LEADERS SUMMIT 2019 中国 Join the key leaders driving the new era of China’s wealth industry at the most important private banking, wealth management and family office event in the People’s Republic of China. 诚邀您与多位的业界领导一同参与于中国举办 的私人银行 财富管理及家族办公室中最具 代表性的峰会 共同探讨中国财富新时代

24 October | Shanghai 10 24 | 上海 To register, visit

www.apb.events/registercgs RSVP to Alice Chan alice.c@asianprivatebanker.com +852 2529 1737

Lead 20 Partner

Conversation Partner

Charter Partner

AWARDS

T

he challenges currently facing China’s private banks and wealth managers are par for the course for an industry that has grown at breakneck speed over the past decade. The challenges are also positive in nature, insofar as they point towards a more responsible, value-led mandate for market participants.

The industry’s response to guidelines set down by China’s regulators has been swift and concerted. In 2018, we observed considerable soulsearching and back-to-basics messaging from private banks, which were quick to unveil plans to establish independent asset management subsidiaries, reevaluate product platforms, and further invest in their research and asset allocation capabilities.

Meanwhile, growth slowed in 2018 on account of this regulatory reset and difficult markets. But the long-term prospects for China’s private banking and wealth management market are extraordinary, to say the least. There is no need to repeat the headline figures here, except to say that the velocity of growth in terms of client assets is pronounced by global standards — from 2014 to 2018, total AUM held by China’s top 10 private banks grew at a compound annual rate of more than 21%, according to our data.

Asian Private Banker’s China Wealth Awards are designed to recognise practitioners that have led the way in terms of establishing best industry standards, covering business performance, products and services, and fiduciary responsibility.

过去十年间私人银行和财富管理行业的迅猛发展，给当前的中国私 人银行和财富管理机构带来了意料之中的挑战。这些挑战在本质 上是积极的，因为它们为市场参与者指明了一个需要更加负责且以 价值为导向的道路。 财富管理业对中国监管机构制定的指导方针发出了敏捷迅速、协调 一致的回应。2018年，我们观察到私人银行制定出一系列计划，包 括迅速宣布成立独立资产管理子公司、重新评估产品平台和进一 步投资于其研究及资产配置能力等，传递出大量反省深思和回归 根本的信号。 同时，监管重组及艰难的市场环境使得2018年的行业增长放缓。但 至少可以说，中国私人银行和财富管理市场的长期发展是前途无 量的。我们无需重复博人眼球的新闻标题数字，只需要明确以全球 标准发布的客户资产增长速度。我们的数据显示，2014年至2018年 间，中国十大私人银行所持有的总资产管理规模的复合年增长率超 过了21%。 《亚洲私人银行家》的“中国财富奖”旨在表彰在涵盖业务表现、产 品服务和信托责任等方面设立最佳行业标准的行业先驱者。 本年度，超过25家中国私人银行和财富管理机构向我们提交了70余 份申请。这代表着大量终端客户在财富积累的同时，他们的需求也 在快速发展及变化。 我衷心感谢参与首届“中国财富奖”评选的各家机构，并对从中脱颖 而出的获奖者表示祝贺。

More than 25 private banks and wealth managers submitted in excess of 70 pitches, representing an inordinate number of end-clients whose needs are evolving as fast as their wealth is accumulating.

I wholeheartedly thank those who participated in this inaugural awards programme and congratulate those who proved themselves a cut above the rest.

Sebastian Enberg Editor 私人银行家 Asian Private Banker

21

中国最佳私人银行 — 国有银行组 BEST NATIONAL PRIVATE BANK IN CHINA

中国最佳私人银行 — 城市商业银行组 BEST PRIVATE BANK IN CHINA — CITY COMMERCIAL BANK

成立日期 | Established 2007年3月27日 | 27 March 2007

成立日期 | Established 2012年4月26日 | 26 April 2012

总部地址 | Headquarters 中国北京市西城区复兴门内大街1号 No. 1 Fuxingmennei Street, Xicheng District, Beijing, China

总部地址 | Headquarters 中国上海市浦东新区银城中路168号 No. 168, Pudong District, Shanghai, China

分部总数 | Number of branches 49

分部总数 | Number of branches 14

分部地区 | Branch locations 中国境内44个大中型城市、香港、澳门、新加坡及伦敦 Across 44 major cities in Mainland China, Macau, Hong Kong, Singapore, and London

分部地区 | Branch locations 上海、北京、深圳、天津、南京、杭州、成都、宁波、苏州 Shanghai, Beijing, Shenzhen, Tianjin, Hangzhou, Chengdu, Ningbo, Suzhou

高管资料 | Senior management 刘敏 – 中国银行财富管理与私人银行部总经理 Liu Min – Chief manager of the wealth management and private banking department of Bank of China

高管资料 | Senior management 夏凌 – 副总经理 | Xia Ling – vice general manager 员工人数 | Number of employees 36

2018 资产管理额 | 2018 Total AUM 14,000亿元人民币 | RMB 1,400 billion

2018 资产管理额 | 2018 Total AUM 556.5亿元人民币 | RMB 55.65 billion

2018 私行门槛 | 2018 Minimum asset requirement per client 600万元人民币 | RMB 6 million

2018 客户数目 | 2018 Client count 3,093

公司官网 | Company website www.boc.cn

2018 私行门槛 | 2018 Minimum asset requirement per client 800万元人民币 | RMB 8 million

电话号码 | Phone +86 (0)10 95566

公司官网 | Company website www.bosc.cn

私行的价值主张及提供的投资产品或服务类型 | Services offered “为您的世界，注入世界的力量” 中国银行私人银行坚持以客户需求为导向，以中银集团的国际化网络、多元 化平台为依托，业务范围涵盖商业银行个人金融、公司金融和投资银行领 域。通过中银证券、中银保险、中银基金等众多综合经营公司，我行可为私行 客户提供包括投资银行、直接投资、保险、基金、飞机租赁、家族信托及全权 委托、手机银行等多种综合化金融服务，全方位满足高净值客户需求。 “Be with us, be with the world”

电话号码 | Phone +86 (0)21 6847 5888

BOC Private Banking focuses on the needs of its clients. Leveraging the international network and comprehensive service platform of BOC group, we can provide services across the private banking, corporate banking, and investment banking spectrum. Through BOC International, BOC Insurance, and BOC Investment Management etc., we can meet the needs of HNW clients by supplying products and services including but not limited to investment banking, direct investment, insurance, fund investment, family trust, discretionary account management, and mobile banking.

Bank of Shanghai provides tailored, comprehensive solutions that go beyond wealth. The core concept of service is to satisfy customer needs, which include customers’ families or enterprises. With the integration of resources, the bank offers its high net worth clients efficient services in a framework which contains wealth creation, wealth growth, and inheritance.

私行的背景 | Background 中资国有银行下属部门。 Bank of China Private Banking is the fully owned and integrated wealth management and private banking department of Bank of China, a state-owned bank.

22

私行的价值主张及提供的投资产品或服务类型 | Services offered 财富之上、私属定制。 围绕私人银行综合金融解决方案这一核心模式，结合高净值客户个人、家 庭、企业乃至家族的综合需求，整合跨领域资源，形成产品与服务体系，构建 以财富创造、财富增值、财富传承、财富精神为框架的业务体系。

私行的背景 | Background 私人银行部门是上海银行总行直属的一级部门，全称是财富管理与私人银 行部。该部门负责全行财富管理业务和私人银行业务，个人理财产品发售，个 人代销产品引入、销售和管理，理财客户经理队伍管理，客户服务体系建设 和品牌传播。 The wealth management and private banking department falls directly under the headquarters of Bank of Shanghai. The scope of business includes the sale of selfowned financial products and financial products from other institutions. Other primary responsibilities include sales and marketing management, team-building for the sales managers, service system construction, and branding.

中 国 最佳私人银行 — 增值服务 BEST PRIVATE BANK IN CHINA — CONCIERGE SERVICES

成立日期 | Established 2007 总部地址 | Headquarters 中国北京市东城区朝阳门北大街9号 No. 9 Chaoyangmen North Street, Dongcheng District, Beijing, China 分部总数 | Number of branches 37家境内一级分行，以及部分海外分支机构 37 domestic tier-1 branches and an overseas presence 分部地区 | Branch locations 除香港、台湾、澳门外的境内全部省区 All provinces excluding Hong Kong, Taiwan, and Macau 高管资料 | Senior management 李国峰 – 部门总经理，康静 – 部门常务副总经理 Li Guofeng – general manager, Kang Jing – executive deputy general manager 员工人数 | Number of employees 196 (财富顾问团队) | 196 (Wealth Consulting Team) 2018 资产管理额 | 2018 Total AUM 4,862.03亿元人民币 | RMB 486.203 billion 2018 客户数目 | 2018 Client count 3,093 2018 私行门槛 | 2018 Minimum asset requirement per client 600万元人民币（月日均) | RMB 6 million (daily average by month) 公司官网 | Company website bank.ecitic.com 私行的价值主张及提供的投资产品或服务类型 | Services offered 中信银行通过有效整合中信集团内外部资源，逐步构建了私人银行专属、完 整的产品线，产品种类丰富，产品线完善，满足客户多样化的理财需求。由投 资顾问、财富顾问所组成的私人银行客户服务团队，运用资产配置的理念与 方式方法，协助客户构建、动态管理产品组合。中信银行私人银行的产品体 系主要包括：现金管理类产品、固定收益类产品、权益投资类产品、另类投 资产品、家族信托、全权委托等。 中信银行为私人银行客户打造了投资者、健康养生、未来领袖、悦动人生、 旅行家五大俱乐部，从金融和非金融两个维度，通过专家咨询、增值服务和 市场活动，为私人银行客户搭建差异化服务平台。除此之外，中信银行还针 对超高端私人银行客户推出“钻石管家”专属服务，创新打造极致客户服务体 验，实现1对1专属服务，0时差及时响应，7*24小时无间断，专注提供个性化服 务，涵盖客户多样化需求，微信、电话、短信邮件随时沟通。 未来，中信银行私人银行将继续秉承“以客为尊”的客户服务理念，从产品、服 务、活动等维度提升客户体验。在产品方面，着力打造“中信财富指数”与“中 信产品精选”等品牌，为私行客户提供大类资产配置体系及动态调整策略；同 时，利用家族信托、全权委托等重点产品与业务，帮助私行客户实现家族财富 的增长。积极推进分行私人银行中心建设，打造专业的私人银行产品经理、 财富顾问、投资顾问和专家团队，为私人银行客户提供1+1+N的服务模式。不 断丰富市场和品牌活动内容，搭建“标准化+个性化”的活动体系。不断强化

中信私人银行品牌，提升私人银行业务经营能力，为私人银行客户提供“金融 +非金融”的全方位服务方案。 Through effective integration of CITIC Group’s internal and external resources, CITIC Bank has gradually built a comprehensive private banking product line with a wide range of products that meet the diversified financial needs of customers. A private banking customer service team, consisting of investment consultants and wealth consultants, taps into asset allocation methodologies to help customers build and dynamically manage portfolios. Its major offerings include cash management products, fixed income products, equity investment products, alternative investment products, family trusts, and discretionary investment management. CITIC Bank has also created five major membership clubs (Investors Club, Health Care Club, Future Leaders Club, Enjoyable Life Club, and Travellers Club) for private banking clients.

With professional consultation, value-added services and special events, CITIC Bank has built a unique platform of differentiated services for its clients. In addition, CITIC Bank also launched a ‘Diamond Concierge’ exclusive service for premium customers, aimed at providing the ultimate experience with one-on-one exclusive service which covers the diversified needs of each client and supports communication via WeChat, telephone, SMS and email, among other channels.

In the future, CITIC’s private bank will continue to adhere to a customer-centric service concept as well as enhance customer experience in products, services, and events. In terms of products, great efforts have been made to establish brands including ‘CITIC Wealth Index’ and ‘CITIC Selects’ which offer a general asset allocation system and dynamic adjustment strategies.

Meanwhile, by utilising key products and businesses such as family trusts and discretionary investment management, the bank assists in facilitating family wealth growth for its clients. And in terms of service, it has actively ramped up its private banking centres in branches and cultivated professional product managers, wealth consultants, investment consultants, and specialist teams providing services according to the 1+1+N model. Regarding events, the bank constantly enriches special activities with the support of its ‘standardised + personalised’ system. Furthermore, CITIC has continuously developed its private banking brand and upgraded its management skills as part of the comprehensive ‘financial + non-financial’ service plan on offer to private banking customers. 私行的背景 | Background 作为中国私人银行业的先行者之一，中信银行自2007年开展私人银行业务以 来，秉承“信守温度”的品牌理念，坚持“用信念守护传承的温度”。经过多年积 极探索与实践，努力实现客户资产收益与投资风险的和谐平衡。截至目前，中 信银行私人银行客户人数已突破3.68万人，近三年复合增长率28%；管理资产 规模超过5000亿元，近三年复合增长率24%。客户数量和规模增长速度位于 同业领先水平，呈现出良好的增长态势。 As one of the pioneers in China’s private banking industry, CITIC Bank has been adhering to the brand proposition of ‘protecting the warmth (信守温度)’ since its private banking business was launched in 2007 and continuing with the idea of ‘protecting the warmth with faith (用信念守护传承的温度)’. After years of exploration and practise, the bank strives to achieve a harmonious balance between customer asset return and investment risk management. As of now, the number of CITIC’s private banking customers has exceeded 36,800, with a three-year CAGR of 28%, while assets under management have exceeded RMB 500 billion with a three-year CAGR of 24%. The bank leads the industry in terms of growth numbers and the size of its client base, and exhibits great momentum going forward.

23

中 国 最 佳 财 富 管 理 机 构 — 超 高 资 产 净 值 客 户 服务 BEST WEALTH MANAGER IN CHINA — ULTRA HIGH NET WORTH SERVICES

中国最佳私人银行 — 股份制银行组 BEST PRIVATE BANK IN CHINA — JOINT-STOCK BANK

中国最佳财富管理机构 — 企业家客户服务

中国最佳私人银行 — 投资研究与咨询 BEST PRIVATE BANK IN CHINA — INVESTMENT RESEARCH & ADVISORY

BEST WEALTH MANAGER IN CHINA — ENTREPRENEUR SERVICES

中国最佳私人银行 — 全权委托及独立投资 管理 BEST PRIVATE BANK IN CHINA — DISCRETIONARY AND SEGREGATED PORTFOLIO MANAGEMENT

成立日期 | Established 1995

成立日期 | Established 2007年8月 | August 2007

总部地址 | Headquarters 中国北京建国门外大街1号国贸写字楼2座28层 28th Floor, China World Office 2, 1 Jianguomenwai Avenue, Beijing 100004, China

总部地址 | Headquarters 中国深圳市福田区深南大道7088号招商银行大厦 China Merchants Bank Tower, No. 7088 Shennan Boulevard, Shenzhen, China

分部总数 | Number of branches 超过200 | More than 200 分部地区 | Branch locations 在上海和深圳等地设有分公司，在中国大陆28个省、直辖市拥有200多个营业 网点。在香港、纽约、新加坡、伦敦、旧金山、法兰克福等设有分支机构。 CICC has company branches in major cities including Shanghai and Shenzhen, and more than 200 securities branches in 28 provinces and municipalities nationwide. It also has branches overseas in Hong Kong, New York, Singapore, London, San Francisco and, most recently, Frankfurt. 高管资料 | Senior management 吴波 – 中金公司公司管理委员会成员, 财富管理部负责人 Wu Bo – member of the management committee, head of wealth management department 员工人数 | Number of employees 3,789（财富管理相关) | 3,789 (wealth management-related) 2018 资产管理额 | 2018 Total AUM 7,096亿元人民币（财富管理相关） RMB 709.6 billion (wealth management-related) 2018 客户数目 | 2018 Client count 47,161（财富管理相关) | 47,161 (wealth management-related) 公司官网 | Company website www.cicc.com 电话号码 | Phone +86 (0)10 6505 1166

分部总数 | Number of branches 68家私人银行中心、64家财富管理中心 68 private banking centres and 64 wealth management centres 分部地区 | Branch locations 63家境内城市，7个境外城市：香港、纽约、新加坡、伦敦、悉尼、洛杉矶、卢森堡 Across 63 cities in Mainland China and seven international cities — Hong Kong, New York, Singapore, London, Sydney, Los Angeles, Luxembourg 高管资料 | Senior management 王菁 – 私人银行部总经理 | Wang Jing – general manager 员工人数 | Number of employees 超过1,900 | More than 1,900 2018 资产管理额 | 2018 Total AUM 20,392亿元人民币 | RMB 2.04 trillion 2018 客户数目 | 2018 Client count 72,938 2018 私行门槛 | 2018 Minimum asset requirement per client 1,000万元人民币 | RMB 10 million 公司官网 | Company website www.cmbchina.com 电话号码 | Phone +86 40066 95555 私行的价值主张及提供的投资产品或服务类型 | Services offered 价值主张：助您家业常青，是我们的份内事。服务：一支专属的“1+N”专家服 务团队；一套严谨的工作方法：螺旋提升四步工作法。 CMB is committed to families’ long-term prosperity. The private bank has established a ‘1+N’ expert team and a rising spiral four-step process for exploring investment opportunities and offering professional investment suggestions to its high net worth clients. 私行的背景 | Background 招商银行私人银行作为国内股份制银行第一家私人银行，已经成为该领域的 领导者。招商银行私人银行为1,000万元人民币以上资产的企业、家庭、个人客 户提供全方位综合服务。

24

CMB has been a pioneer in China’s private banking sector as the first joint-stock commercial bank to provide private banking services. CMB’s private banking solutions provide an unparalleled banking experience for businesses, families, individuals, and investors with more than RMB 10 million in assets.

中 国 最 佳 财富管理机构 — 投资研究与咨询 BEST WEALTH MANAGER IN CHINA — INVESTMENT RESEARCH & ADVISORY 中 国 最 佳 财 富管理机构 — 另类投资组合咨询 BEST WEALTH MANAGER IN CHINA — ALTERNATIVE INVESTMENT ADVISORY

成立日期 | Established 2011 总部地址 | Headquarters 中国北京市朝阳区西大望路1号温特莱中心A座6层 Floor 6, Building A, Winterless Center, No. 1 West Dawang Road, Chaoyang District, Beijing, China 分部总数 | Number of branches 93家营业网点，32个城市 92 retail outlets across 32 cities in Mainland China 分部地区 | Branch locations 北京、济南、大连、福州、广州、嘉兴、宁波、青岛、厦门、深圳、常州、成都、 东莞、哈尔滨、杭州、合肥、南京、南通、上海、沈阳、石家庄、苏州、太原、天 津、温州、无锡、武汉、西安、烟台、扬州、长春和重庆 Beijing, Jinan, Dalian, Fuzhou, Guangzhou, Jiaxing, Ningbo, Qingdao, Xiamen, Shenzhen, Changzhou, Chengdu, Dongguan, Harbin, Hangzhou, Hefei, Nanjing, Nantong, Shanghai, Shenyang, Shijiazhuang, Suzhou, Taiyuan, Tianjin, Wenzhou, Wuxi, Wuhan, Xi’an, Yantai, Yangzhou, Changchun, and Chongqing 高管资料 | Senior management 唐宁 – 董事长，尚筱 – CEO，廉明宇 – 市场副总裁，王东玲 – 业务支持副 总裁，吕辉 – 私人财富规划家族办公室副总裁，杨喜媛 – 销售管理副总裁， 阎斌 – 投资顾问副总裁，Blair Chilton Pickerell – 宜信财富高级战略顾问 Ning Tang – chairman, Xiao Shang – CEO, Mingyu Lian – vice president, marketing, Dongling Wang – vice president, business support, Edward Lu – vice president, private wealth planning & family office, Xiyuan Yang – vice president, sales management, Bin Yan – vice president, investment advisory, Blair Chilton Pickerell – senior strategy advisor 员工人数 | Number of employees 2,000 2018 资产管理额 | 2018 Total AUM 2,000亿元人民币 | RMB 200 billion 2018 客户数目 | 2018 Client count 累计为超过10万名高净值客户提供投资、传承、生活、学习、公益等服务 A cumulative number of more than 100,000 HNW clients 2018 私行门槛 | 2018 Minimum asset requirement per client 3,000万元人民币（可投资资产) | RMB 30 million (investable assets) 公司官网 | Company website caifu.yixin.com 电话号码 | Phone +86 (0)10-58664599

私行的价值主张及提供的投资产品或服务类型 | Services offered 宜信财富是中国财富管理行业中的资产配置专家和家族传承服务专家，为中 国高净值人士提供全球财富管理与投资咨询服务，涉及包含但不限于国内外 现金管理和类固定收益、私募股权、资本市场、房地产金融、保险保障等全 方位财富管理产品与服务，覆盖人民币、美元、欧元等多个币种。 凭借强大投资能力、国际化能力和科技能力，宜信财富致力于为客户提供全 方位财富管理解决方案。此外，宜信财富还同时提供家族传承、投资移民、 海外美好生活、精英学习等全球公民综合服务；以家族信托服务为例，宜信 财富是中国为数不多的拥有离岸、美国和国内家族信托服务能力的专业机 构，因为专业，所以领先。 CreditEase Wealth Management is an asset allocation and family succession expert in China’s wealth management industry, providing global wealth management and investment advisory services to high net worth individuals in China. Services include but are not limited to domestic and foreign cash management and fixed income, private equity, capital market, real estate finance, insurance, and other comprehensive wealth management products and services covering multiple currencies such as RMB, USD, EUR, etc.

With its strong investment capabilities, internationalisation capabilities, and technology capabilities, CreditEase Wealth Management is committed to providing HNW clients with a full range of wealth management solutions. It is also dedicated to becoming a long-term partner of HNW clients in terms of investment, life, succession, education, and philanthropy services. Taking family trust services as an example, CreditEase Wealth Management is one of the few professional institutions in China with offshore, US, and domestic family trust services. 私行的背景 | Background 宜信财富是宜信旗下财富管理业务品牌，在中国大陆30多个城市设有分支 机构，并在香港、新加坡、以色列、欧洲、北美等地设有办公室。宜信财富相 关公司分别拥有中国证监会、中国证券投资基金业协会，中国银保监会颁 发或登记的公募基金、私募基金、保险代理等多项牌照和经营资质，新加 坡金融管理局授予的新加坡注册基金管理公司（RFMC）牌照及资本市场 服务（CMS）牌照，和美国证监会（SEC）颁发的RIA（Registered Investment Advisor）牌照，可为财富管理客户提供多方面的专业支持与服务。 CreditEase Wealth Management, a subsidiary of the leading fintech company CreditEase, has set up branches in more than 30 cities in Mainland China.

Additionally, it also has offices in Hong Kong, Singapore, Israel, Europe, and North America.

CreditEase Wealth Management possesses various licences and operating qualifications, such as mutual funds, private equity funds, insurance agents, etc., issued or registered by the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the Asset Management Association of China. CreditEase Wealth Management also has a Singapore Registered Fund Management Company (RFMC) licence and a Capital Markets Services licence granted by the Singapore Financial Authority. In addition, it has obtained the Registered Investment Advisor (RIA) licence issued by the Securities Regulatory Commission (SEC) of the United States. With these licences and qualifications, CreditEase Wealth Management can provide a wide range of professional support and services for its HNW clients.

25

中 国 最 佳 财 富管理机构 — 家族办公室客户服务 BEST WEALTH MANAGER IN CHINA — FAMILY OFFICE SERVICES

成立日期 | Established 2015年8月19日 | 19 August 2015 总部地址 | Headquarters 中国北京市朝阳区望京西路北小河公园东门北侧3号楼 Building 3, East Gate, North Xiaohe Park, Wangjing West Road, Chaoyang District, Beijing, China 分部总数 | Number of branches 5 分部地区 | Branch locations 杭州、上海、郑州、成都、香港 Hangzhou, Shanghai, Zhengzhou, Chengdu, and Hong Kong 高管资料 | Senior management 周小明 – 博士，现任新财道财富管理股份有限公司董事长， 成福生 – 执 行总裁/资本市场专家， 王丽娟 – 家族学院院长， 周益华 – 首席财富规 划师， 韩婷 – 执行总裁/金融与投资专家， 钟向春 – 首席法律顾问， 蔡 骅 – 执行总裁/家族企业导师 Zhou Xiaoming – chairman, director of the Trust and Fund Institute of Renmin University of China, Cheng Fusheng – executive president, expert on finance and capital, Wang Lijuan – principal of Family Academy, Zhou Yihua – chief wealth planner, Han Ting – executive president, expert on finance and investment, Zhong Xiangchun – chief legal counsel, Cai Hua – executive president, family business mentor 员工人数 | Number of employees 57 2018 资产管理额 | 2018 Total AUM 37亿元人民币 | RMB 3.7 billion 2018 客户数目 | 2018 Client count 363 2018 私行门槛 | 2018 Minimum asset requirement per client 6百万元人民币（可投资资产) | RMB 6 million (investable assets) 公司官网 | Company website www.chinaforeland.com 电话号码 | Phone +86 (0)10 8740 3030

26

私行的价值主张及提供的投资产品或服务类型 | Services offered 公司的服务领域既包含资产配置、财产管理、融资服务、信托及保险筹划等 家族金融事务，也包含法律规划服务、税收筹划服务、财务运作服务、家族治 理、家族教育、家族慈善等家族非金融专业服务。 The business scope covers both family financial services — such as asset allocation, property management, financing services, trust and insurance planning — and non-financial professional family services — such as legal planning services, tax planning services, financial operations services, family governance, family education, and family charity. 私行的背景 | Background 新财道财富管理股份有限公司（以下简称“公司”）是一家为高净值家庭及超高 净值家族提供全方位财富管理服务的市场化、专业化家族办公室。公司成立 于2015年8月19日，注册地：北京，注册资本：3.88亿元人民币。公司愿景为：追 求一份有价值的事业，培育一家有使命感的公司，打造一个有情怀的生态圈。 Foreland Wealth Management Co., Ltd is a market-based and professional family office that provides a full range of wealth management services for high net worth and ultra high net worth families. Established on 19 August 2015 and registered in Beijing with registered capital of RMB 388 million, it aims to pursue a valuable undertaking, cultivate a mission-driven company, and create a social circle with great ideals and ambitions.

中 国 最 佳 财富管理机构 — 企业培训及发展 BEST WEALTH MANAGER IN CHINA - TRAINING & DEVELOPMENT 中 国 最 佳 财富管理机构 — 客户教育服务 BEST WEALTH MANAGER IN CHINA — CLIENT EDUCATION

成立日期 | Established 2011年3月12日 | 12 March 2011 总部地址 | Headquarters 中国北京市朝阳区东三环北路甲19号SOHO嘉盛中心30层 30/F, SOHO Nexus Center, No. 19 (A), North Road, East 3rd Ring Road, Chaoyang District, Beijing, China 分部总数 | Number of branches 143 分部地区 | Branch locations 68个城市: 中国香港、北京、上海、广州、深圳、天津、成都、杭州、西安、南 京、长春等 Across 68 cities including Hong Kong, Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Chengdu, Hangzhou, Xi’an, Nanjing, and Changchun 高管资料 | Senior management 周斌 – 恒天财富董事长，崔同跃 – 恒天财富总裁 Zhou Bin – Chairman, board of directors, Cui Tongyue – President 员工人数 | Number of employees 4,622

私行的价值主张及提供的投资产品或服务类型 | Services offered 恒天财富已经形成财富管理、资产管理等多业务主线，为高净值客户和企业 客户提供高端理财服务，包括股权投资、债券投资、二级市场投资、房地产投 资、全球投资、公募基金投资、保险保障等服务，帮助客户实现财富保全、保 值、增值和传承。 Hang Tang Wealth has developed multiple business lines including wealth management and asset management. The company specialises in wealth preservation, growth and inheritance needs for HNW clients and enterprise clients and offers high-end financial services, including equity investment, bond investment, secondary market investment, real estate investment, global investment, public funds investment, and insurance. 私行的背景 | Background 恒天财富2011年3月成立，公司总部设立于北京CBD，注册资本金1亿元。主要 股东包括央企中国恒天集团旗下上市子公司经纬纺机（A股代码000666）、国 际知名投行、大型第三方财富管理机构中植财富。 Hang Tang Wealth, headquartered in Beijing CBD, was founded in March 2011 with registered capital of RMB 100 million. Our major shareholders include Jingwei Textile Machinery Co., Ltd, a listed subsidiary of the central enterprise China Hi-Tech Group Corporation; a global renowned investment bank; and Zhongzhi Wealth Holdings Limited, a large domestic investment holding platform.

2018 资产配置规模 | 2018 Total scale of asset allocation 1,784亿元人民币 | RMB 178.4 billion 2018 客户数目 | 2018 Client count 高净值客户数量: 27,991; 企业客户数量: 771家 27,991 HNW clients, 771 enterprise clients 2018 高净值客户最低资产要求 | 2018 Minimum asset requirement per HNW client 600万元人民币（可投资资产) | RMB 6 million (investable assets) 公司官网 | Company website www.chtwm.com 电话号码 | Phone +86 400 8980 618

27

中 国 最佳财富管理机构 — 劵商组 BEST WEALTH MANAGER IN CHINA - SECURITIES BROKERAGE 中 国最佳财富管理科技平台 BEST DIGITAL WEALTH MANAGEMENT PLATFORM IN CHINA

成立日期 | Established 1991年4月9日 | 9 April 1991

私行的价值主张及提供的投资产品或服务类型 | Services offered 证券期货期权经纪、金融产品销售、资本中介等业务

总部地址 | Headquarters 中国江苏省南京市江东中路228号 No. 228 Middle Jiangdong Road, Nanjing, Jiangsu Province, China

Securities, futures and options brokerage, financial products sales, and capitalbased intermediary business

分部总数 | Number of branches 分公司29家，证券营业部241 家 | 29 branch offices and 241 securities branches 分部地区 | Branch locations 上海、北京、广东、江苏等29个省、市和自治区 Across 29 provinces, municipalities and autonomous regions, including Shanghai, Beijing, Guangdong and Jiangsu 高管资料 | Senior management 周易 – 董事长、总裁，马昭明 – 副总裁，孙含林 – 副总裁，吴祖芳–副总 裁，姜健 – 副总裁，舒本娥 – 财务负责人，李筠 – 合规总监、总法律顾 问，张辉–董事会秘书，王翀–首席风险官 Zhou Yi – chairman of the board of directors, president, Ma Zhaoming – vice president, Sun Hanlin – vice president, Wu Zufang – vice president, Jiang Jian – vice president, Shu Ben’e – chief financial officer, Li Yun – chief compliance officer, general legal counsel, Zhang Hui – secretary to the board of directors, Wang Chong – chief risk officer 员工人数 | Number of employees 9,432人，其中有超过2,000名专业投资顾问 9,432, including more than 2,000 professional investment consultants 2018 客户账户资产规模 | 2018 Total client account assets 2.46万亿元人民币 | RMB 2.46 trillion 2018 客户数目 | 2018 Client count 近1,300万 | Nearly 13 million 公司官网 | Company website www.htsc.com 电话号码 | Phone +86 (0)25 8338 9999

28

私行的背景 | Background 公司依托广泛的客户基础，打造线上线下一体化的财富管理服务体系及精细 化的客户运营模式。自2009年开启互联网战略以来，持续升级及创新移动金 融服务模式，线上通过“涨乐财富通”APP为客户提供智能化的综合服务；线下 依托广泛分布的证券期货营业部和专业投资顾问，为客户提供更具针对性的 资产配置服务。持续借鉴吸收海外服务投资顾问的成熟经验模式，并搭建先 进的内部理财服务平台，帮助投资顾问精准理解客户需求并提供高效服务。 Given our broad client base, we are committed to establishing an online and offline integrated wealth management service system and refined client operation model. Since the launch of the Internet strategy in 2009, we have continued to upgrade and innovate the mobile financial service model. Based on the ‘ZhangLe Fortune Path’ APP, we provide clients with intelligent integrated services online, and relying on professional investment consultants across widely distributed business outlets, we provide clients with more targeted asset allocation services offline. We continue to learn from the mature experience and service models of investment consultants abroad, and our advanced internal wealth management service platform has become an efficient tool for all investment consultants to accurately understand and efficiently serve clients.

中 国最佳第三方理财机构 BEST INDEPENDENT WEALTH MANAGER IN CHINA

中 国 最 佳 财 富 管理机构 — 全权委托及独立投资管理 BEST WEALTH MANAGER IN CHINA DISCRETIONARY AND SEGREGATED PORTFOLIO MANAGEMENT

成立日期 | Established 2003 总部地址 | Headquarters 中国上海市杨浦区长阳路1687号2号楼 Building 2, No.1687 Changyanggu Road, Yangpu District, Shanghai, China 分部总数 | Number of branches 313（中国境内分行）；7（海外分行） 313 in Mainland China and seven offshore branches 分部地区 | Branch locations 上海、北京、广州、深圳、青岛等89个中国大陆城市，以及香港、台湾、纽约、 硅谷、墨尔本、新加坡和温哥华 89 cities in Mainland China, Hong Kong, Taiwan, Silicon Valley, New York, Singapore, and Vancouver 高管资料 | Senior management 汪静波 – 诺亚控股创始人、董事局主席兼CEO，殷哲 – 诺亚控股联合创始 人、歌斐资产创始合伙人兼CEO，赵义–诺亚集团总裁，庄尚源 – 诺亚控股首 席财务官，章嘉玉–诺亚正行总经理，高扬 – 诺亚控股首席运营官 Jingbo Wang – co-founder, chairlady and CEO, Zhe Yin – co-founder, director and CEO of Gopher, Yi Zhao – group president, Shang Chuang – CFO, Chia-Yue Chang – CEO of Noah Upright, Yang Gao – COO 员工人数 | Number of employees 3,379 2018 资产管理额 | 2018 Total AUM 1,692亿元人民币 | RMB 169.2 billion 2018 客户数目 | 2018 Client count 236,906 公司官网 | Company website www.noahgroup.com

私行的价值主张及提供的投资产品或服务类型 | Services offered 企业价值观：心智成熟、正直诚信、客户为本、专业主义、拥抱变化、激 情付出。诺亚控股已经形成财富管理、资产管理、全球开放产品平台、 互联网金融的多业务主线，为高净值客户提供财富管理、海外资产配 置、高端保险、高端教育等全方位的综合金融服务，帮助客户的资产实 现稳健、安全的增长。 Noah operates according to its values of self-improvement, client-centricity, professionalism, embracing change, and passion. Not only has the wealth manager established the best investment platform in China, it also has an integrated service platform. Our services cover investments, insurance brokerage, investor education, family services, car rentals, overseas allocation, etc. We deeply understand underlying assets, conduct due diligence and risk management independently, and provide post-investment services over the full life cycle of the products to ensure our customers can obtain the best asset allocation portfolio. 私行的背景 | Background 诺亚创始于2003年，是中国独立财富管理行业的开创者和领导者，更是 矢志推动中国财富管理行业持续创新与专业成长的领军者。我们将自 身定位于中国新一代的综合金融服务提供商，是拥有资产管理能力的、 领先的独立财富管理机构。诺亚于2010年11月10日在美国纽约证券交易 所成功上市（交易代码NOAH.NYSE），是中国第一家上市美国纽约交 易所的财富管理机构，也是国内最大的独立财富管理机构。 Founded in 2003, Noah is an independent pioneer and leader in China’s wealth management industry. Moreover, Noah is a leader that pushes China’s wealth management industry forward to continuously innovate and grow professionally. We position ourselves as part of China’s new generation of comprehensive financial service suppliers. We are an independent wealth management institution that is a leading company in our sector, and we possess asset management capabilities. Noah was listed on the New York Stock Exchange (NYSE: NOAH) on 10 November 2010 as the first and largest independent China-based wealth management organisation listed on the NYSE.

电话号码 | Phone +86 (0)21 8035 8914

29

Asian Private Banker hosted its inaugural China Wealth Awards at the Four Seasons Hotel in Shanghai. We introduced the China Wealth Awards to recognise Chinabased wealth management firms which — in the face of a transforming industry — have guided their high net worth clients towards their goals while developing their businesses in a sustainable fashion.

The Awards attracted over 70 submissions from more than 25 private banks and wealth managers in China, each making a strong case for their respective strengths across business, service, and investment solution categories.

We are grateful to all those who participated and, once again, heartily congratulate this year's worthy winners!

《亚洲私人银行家》首届“中国财富奖”颁奖典礼 早前在上海四季酒店举行并圆满落幕。我们首次颁 发“中国财富奖”以此表彰中国财富管理机构即使 经历资产管理新规带来的巨变，仍然持续引领高净 值客户接近其财富管理目标，并带动行业前进。 2018年度“中国财富奖”共收到了来自超过25家中 国私人银行及财富管理机构的70余份参选申请。每 个申请案都强而有力地展示了其在业务能力、服务 水平及投资解决方案上拥有自身优势的事例。 我们在此感谢所有参与者，并再次对本年度所有实 至名归的获奖者致以衷心的祝贺！

30

AWARDS

31

ADS

3rd HIGH CONVICTION: 2020 INVESTMENT IDEAS & THEMES

Discuss 2020’s investment ideas and themes with Asia’s top fund selectors and CIOs from private banks, IAMs and family offices.

12 November Singapore

14 November Hong Kong

For more information, please visit

www.apb.events/registerhico

RSVP to Alice Chan alice.c@asianprivatebanker.com +852 2529 1737 This event qualifies for CPT/CPD accreditation.

Partners 32

TECHNOLOGY

Banks in Asia look to outsourcing to facilitate EM expansion: Avaloq

D

espite some ongoing trepidation, banks in Asia are increasingly warming to SaaS and BPaaS offerings, particularly when entering new markets given the time-tomarket and cost benefits, according to Pascal Föhn, Avaloq group COO, who spoke to Asian Private Banker on the sidelines of the Avaloq Community Conference held in Singapore.

“We have interest from both new customers who still operate on-prem[ises] and are thinking to migrate to the cloud as well as existing customers who are aiming to get fast market entry in new locations,” said Föhn.

“As banks’ appetite increases in penetrating emerging markets such as Malaysia, Pascal Föhn Indonesia, Thailand, and the Philippines, Avaloq we do let banks choose to build their infrastructure on-prem, SaaS or via BPaaS.” He added that although Asia is a predominantly on-premises market, demand for BPaaS has just reached the tipping point in a hockey-sticklike incline, heading for quick growth “due to the obvious benefits of scalability and cost”. Accordingly, Avaloq is prioritising its BPaaS offering in the mid-term.

Föhn also noted that the Swiss firm’s BPaaS solution differs from BPO services as the latter tends to shift back-office processes to cheaper labour markets, while Avaloq views the back office as a commodity that should be automated.

“Don’t we all dream of a human-free back office?” said Föhn. “Our BPaaS centre is located where our customers are in Singapore, [which is] not a low-cost location.”

Currently, Avaloq provides BPaaS solutions to some of the first wave of early adopters, including Deutsche Bank Wealth Management, which also presented at the community conference today.

Despite there being “obvious” benefits to outsourcing, private banks in Asia are still divided over third-party vendors, predominantly owing to security and control risks. Föhn acknowledged their concerns as being “the case with new technology and new processes”.

He suggested banks adopt an evolution model to technology development, rather than simply replacing legacy systems and calling it a day, as new offerings — some of which are offered by fintechs on the avaloq.one platform — will give banks the opportunity to explore innovative solutions at low-integration costs.

“Evolving towards an open platform, adding microservices and open APIs will allow banks to get more added value from their investments and fintechs,” explained Föhn.

Looking forward, Avaloq is expanding its product and service offering, as well as continuing to cement its footprint in the region.

In the first half of 2020, Avaloq will launch two new platforms: wealth management and engagement, targeting both relationship managers and end-clients.

“We’re looking forward to launching the wealth management and engagement platforms in Asia because the region is very advanced in utilising digital and social platforms for advisory and services,” said Föhn. “These platforms are actually the two solutions that our clients have requested the most.”

The group is also eyeing further inorganic growth, having already invested in cryptocurrency management solution METACO and structured products data provider Derivative Partners. Both deals were made in Switzerland, but Avaloq has not ruled out Asia as an acquisition hunting ground.

“We currently have sufficient cash at hand (year-end 2018 in excess of CHF 144 million), so don’t be surprised if you see more M&A activity in the next 12-18 months,” hinted Föhn.

Regionally, the firm has also strengthened its team with the appointment of Imad Abou Haidar as Asia head and Pradipta Satapathy as head of services. Satapathy joins with over 12 years of experience in banking-related technology, having worked for OCBC Bank and Credit Suisse in the past.

During the first half of 2019, the tech firm raked in CHF 288 million in profits according to its 1H results, representing 5% YoY growth.

33

I NEVCEHSNTOMLEONGTYS T

BNP Paribas, Bank of Singapore build secondary market equity derivatives bot

B

NP Paribas’s global markets team, in partnership with Bank of Singapore, has developed EQD Secondary Bot — a solution to overcome secondary market inefficiencies related to equity derivatives trading, according to the bank.

“There are still a lot of inefficiencies in the market especially with respect to the secondary markets,” Frederic Dussaux, managing director, head of e-commerce and digital APAC at BNP Paribas Global Markets, told Asian Private Banker, adding that it is difficult to collect data that provides relationship managers and traders “with market colours”.

“Currently, to pull out information, you would need human intervention to provide the colour and context of the data itself, which is a very expensive process that eats up a lot of resources and manhours,” he explained.

BNP Paribas’s EQD Secondary Bot — which is nested within Symphony, an internal communication platform, and accessed through an open API — is designed to extract inventory data, deliver alerts and provide users with market colour.

Specifically, the solution lists the inventory of underlying equity notes and provides related information such as price and valuations. The bank’s current process includes manually contacting several counterparties.

“Theoretically, we could make it more conversational, but we wanted to roll out this bot first to help our staff in the meantime,” Becky Ng, director and COO of e-commerce and digital APAC at BNP Paribas Global Markets, told Asian Private Banker.

34

Further, through Symphony, the bot alerts users on trades nearing maturity and shares information on top- and underperforming investments.

“By using these alerts, you can know which trades require your immediate attention,” she added. “You can also schedule alerts on the EQD Secondary Bot and configure your notifications. For example, you can schedule to see the top five performing trades and underperforming trades to greet you every morning.”

Agile teamwork The EQD Secondary Bot was built in partnership with Bank of Singapore — a global markets client and a bank that has similar development-related philosophies to BNP Paribas.

“Bank of Singapore has a very similar agile development culture as us, so it’s easier for us to work together. We also knew they would give us a lot of feedback at each step of the development,” said Dussaux. “Understanding their needs is important for us to improve our service to them.”

Indeed, the Singaporean lender’s global head of operations and technology, Eddy Tai, recently told Asian Private Banker that being agile and nimble is “very important” to the bank.

Development of the EQD bot began in Q1. The solution is currently in the testing phase and is expected to be rolled out before the close of 2019.

“I think we’re almost there with all the features for EQD Secondary Bot for external client use,” said Ng. “Right now, we’re looking to refine features for internal use, which is completely different as we handle information differently.”

TECHNOLOGY

UBS “adapts” to clients with third-party instant messaging platform: Wiwi Gutmannsbauer

U

BS Global Wealth Management (GWM) has launched UBS Advisor Messaging in APAC to better secure client-RM communications over third-party messaging platforms such as WhatsApp and WeChat, according to the bank’s APAC wealth management operating head, Wiwi Gutmannsbauer.

“We expect interacting with advisors to be easier and more frequent,” Gutmannsbauer told Asian Private Banker. “We always start with the client experience. We have these chat platforms because this is how our clients communicate today.”

In addition to using the platform to discuss Wiwi Gutmannsbauer portfolio, product and price information, UBS RMs can share event news and CIO views with clients as well as integrate investment specialists into conversations which, according to Gutmannsbauer, “opens up a whole new level as they can provide specific details on client enquiries”.

However, he emphasised, the offering is by no means a tool through which RMs can push for sales but rather a service for “clients’ convenience when interacting with their advisors”.

Global expansion UBS GWM’s Asia clients are the first — and so far the only — customers with access to the service owing to the region’s strong preference for digital messaging services. Specifically, the bank’s Hong Kong clients can access UBS Advisor Messaging via WhatsApp and WeChat while those in Singapore can access the platform through WhatsApp. However, the Swiss giant believes expanding the offering to other regions is likely as Advisor Messaging is built on the One Wealth Management Platform (One WMP) and was developed by the bank’s Swiss and Asian teams to ensure seamless integration with One WMP and across regions.

“Everything we do scales on our One WMP,” noted Gutmannsbauer.

“Communication in Switzerland is very much based on WhatsApp too, so we might expand there for WhatsApp via our platform.”

Platform integration Currently, the bank is not looking to integrate its latest solution with its mobile app’s chat function, as it “doesn’t see a reason” to do so.

“It should be easy to bank with us,” said Gutmannsbauer. “You do not adapt to us. We adapt to you.”

And for security reasons, UBS GWM has made a conscious decision not to integrate its transaction and trading functions with Advisor Messaging as such services are available on the bank’s mobile banking platform which is “widely” used by clients.

“WeChat (owned by Tencent) and WhatsApp (owned by Facebook) are third-party collaborators, so we are not alone with our clients in that platform,” said Gutmannsbauer, adding that the bank is “very aware of this and respectful about that”.

Looking forward, UBS GWM’s digital team intends to enhance e-trading capabilities and offer e-signature features for the convenience of both clients and RMs, with the general aim of shifting more transaction activities to digital platforms.

On the RM front, the bank is currently developing Client Advisor Workbench 2020, with plans to launch the solution in both Hong Kong and Singapore later this year.

“We have a balanced focus: we are looking into new client solutions but we are also focusing on solutions for our client advisors,” said Richard Chow, head of digital, WM APAC Digital Office at UBS GWM. “We’ve built a new platform and a new one-stop interface to improve their productivity.”

Gutmannsbauer added that the bank intends to make client-RM interaction easier, “especially when it comes to cross-border business”.

UBS GWM joins the growing list of lenders in the region which offer communication solutions over third-party platforms. In September last year, DBS launched Wealth Chat via WhatsApp and WeChat, shortly followed by Credit Suisse which opened a new communication channel via Apple Business Chat last October.

35

INVESTMENTS

PB fund selectors expect bond, multi-asset strategies to dominate Q3 inflows

J

ust how cash-heavy Asian investors will put their money to work in the second half of the year remains a pressing question for private banks as market flux and macro uncertainties dampen risk sentiment. Top of the worry-list: the global impact of spiralling US-China trade relations including recession risk, social unrest in Hong Kong, and a looming hard Brexit.

Little surprise, then, that fund selectors representing 11 private banks in the region and surveyed by APB Edge were in broad agreement that Hong Kong/China and emerging equity strategies will struggle to attract inflows over the next few months, underscoring the reticence of investors to take on risk at a time when investor sentiment is strained.

How is your private bank prioritising its tech investments for the upcoming 12 months?

Jun 2019

Mar 2019

This risk aversion should play into the hands of defensive strategies, according to selectors, who singled out fixed maturity and investment grade bond funds as the most likely to garner inflows through this quarter — even as investors amass cash.

And product providers have been more than willing to sate demand, particularly on the buy-and-hold side with around 20 fixed maturity products having been launched in Asia year-to-date.

How have clients' portfolio allocations changed since 1Q19 (as per weighted RM responses)?

Decrease

No change

Increase

69%

Equities

12%

19%

Jan 2019

FMPs

Fixed income

6%

28%

IG bond funds Multi-asset funds US equity funds Private market funds Thematic equity funds

66%

72%

Alternatives Cash & cash equivalent

12%

0%

28%

25%

25%

63%

50%

75%

100%

HY bond funds HK/China equity funds EM equity funds EM bond funds

In fact, the attractiveness of both fund types as indicated by selectors’ expectations has nosedived since the first quarter when they ranked among the most likely strategies to attract inflows, alongside EM equity and thematic plays.

Since then, client portfolios have skewed towards the defensive.

Almost 70% of respondents to a recent APB Edge survey of relationship managers representing ten private banks in Asia said clients had pared back equity exposure since the first quarter. Two-thirds said fixed income and cash and equivalent allocations were up, as was exposure to alternative assets, although to a lesser extent.

36

In August, Aviva Investors rolled out its first fixed maturity fund in Singapore, while Eastspring Investments trumpeted its raise of US$416 million from Standard Chartered Private Bank’s clients in Asia, the UK, and the Middle East.

Meanwhile, selectors surveyed by APB Edge also pointed to multiasset funds as more likely to find favour with diversification-needy Asian investors and, continuing a trend that speaks to investors’ relative underexposure to alternative assets, private market strategies will remain in demand after a number of healthy raises in 1H. HSBC Private Banking alone raised some US$500 million in Asia for private equity and private debt strategies over the first half of the year, and Julius Baer brought in US$150 million for a Blackstone European real estate fund, with 85% of the funds coming from its Asian clients.

6th CHIEF OPERATING OFFICERS LEADERS CONVERSATION 2019

Join COOs, CTOs and CDOs across Asia as they come together to discuss their respective private banks’ technology and innovative agendas.

13 November Singapore For more information, please visit

www.apb.events/ registercoolc RSVP to Alice Chan alice.c@asianprivatebanker.com +852 2529 1737 This event qualifies for CPD accreditation.

Conversation Partner