Best Private Bank — Wealth Continuum

Garth Bregman head of Investment Services, Asia Pacific, BNP Paribas Wealth Management

BNP PARIBAS WEALTH MANAGEMENT

During a year in which Asian markets were shaken by bouts of volatility in both the equity and fixed income markets, BNP Paribas Wealth Management delivered resilient performance to clients while significantly improving its product shelf.

That helped drive a record year for revenue in Asia in 2021 for BNP Paribas WM across cash equity, equity structured products, funds and private equity and real estate (PERE). The bank revelled in a record year in the region in terms of AUM and new subscriptions, across fund and PERE.

BNP Paribas WM proved adept at helping clients navigate the volatility that rippled through markets in 2021. The bank downgraded long-dated bonds issued by China Evergrande to ‘reduce’ in October 2020 before extending this call to all of the crisis-stricken developer’s bonds in August 2021. The bank kept in close communication with clients during this turbulent period and offered alternative recommendations and tailor-made solutions. BNP Paribas was equally early to downgrade Chinese technology names in February 2021 — ahead of a regulatory crackdown — and provided clients with solutions to help recover losses.

Penetration of managed assets into client portfolios maintained their upward trajectory, bolstered by strategic calls on areas such as energy transition and global reflation that yielded strong returns for clients.

The bank demonstrated innovation in new products it could bring to clients. Its 2025 floating-rate fixedmaturity plan, launched in August, proved a hit with the region’s U/HNWIs and provided clients with a source of stable returns, a hedge against interest rate risk and diversification away from China high-yield bonds.

In addition, BNP Paribas WM greatly expanded the scope of its PERE offerings, including the first openended REIT with monthly liquidity; a global growth buyout fund targeting innovative and disruptive companies;

“Winning this award two years in a row and for the fourth time since 2017 reflects not just our deep, broad and innovative advisory offering, but also an intense focus on ensuring excellent advice to clients at all times.

This is a highly appreciated win; a testament to our diligence and approach in ensuring best-of-class advisory for clients, especially in volatile market conditions. We remain committed to continuing with this trend and will make every effort to support clients in their investment journey. ”

- Garth Bregman, head of Investment Services, Asia Pacific, BNP Paribas Wealth Management

and an Asia growth buy-out strategy focusing on domestic consumption and exporters in the region. That commitment to broadening the product shelf was rewarded with a robust rise in client inflows and subscribers to PERE strategies compared to both 2020 and the pre-COVID-19 era in 2019.

BNP Paribas WM has long been recognised as a leader in ESG, and the bank’s investment advisory function burnished its credentials here during the period under review. More than 90% of the universe of equities, ETFs and bonds offered under investment advisory now come with an SRI rating courtesy of BNP Paribas WM’s proprietary Clover system. For funds, this proportion is more than 70%, while the bank’s ESG-themed DPM mandates benefited from strong inflows during the year.

Finally, BNP Paribas WM made strides in digital innovation — such as through the introduction of platforms like Symphony — to increase the efficiency of communication between relationship managers and product specialists.

For these reasons, BNP Paribas WM is Asian Private Banker’s Best Private Bank – Investment Advisory for 2021.

LIGHTHOUSE CANTON

If there has ever been an ultimate stress test to Lighthouse Canton’s approach to investment advisory, it has certainly been over the last couple of years.

The Singapore-based independent wealth manager designs portfolios able to withstand downside risk and protect client wealth based on the back of the view that traditional asset classes such as equities and bonds have become highly correlated and no longer provide sufficient diversification, particularly during periods of market stress.

That philosophy has naturally led to a skew in portfolio construction towards alternative assets in private markets, and Lighthouse Canton has excelled in sourcing and presenting such opportunities to clients. Drawing on the strength of its strong industry relationships, the independent wealth advisor was able to deliver to clients exclusive private market opportunities in 2021.

Among these were a strategy in partnership with Ivanhoe Cambridge that invests in life sciences-focused real estate in India, while another provides a platform for investing in early-stage companies in the South Asian country.

Lighthouse Canton’s approach has proven effective at defending clients’ capital amid volatile markets. During the indiscriminate market meltdown of early 2020 and in the subsequent months, a growth-oriented Lighthouse Canton portfolio suffered significantly lower drawdowns than the MSCI All Country World Index (ACWI).

Asian Private Banker’s judging panel was impressed by the real-life case studies that Lighthouse Canton shared as proof of the capabilities of its investment advisory business. In one such case, the independent wealth manager re-organised the underperforming investment portfolio of an existing Asian family business client that was heavily tilted towards risky equities and illiquid holdings, as well as being subject to large drawdowns. After replacing some of the high-risk stock positions with higher quality equities and bonds, and using statistical

Antoine Bracq executive director, global head of Investment Advisory, Lighthouse Canton

“Our investment advisory process is the culmination of hard work and regular client feedback. Over the years, the team has worked closely with clients to understand their needs and various advisory models available globally. Our investment consulting team has pushed the boundaries to integrate our investment philosophy and technological tools to optimise the advisory model.

The Asian Private Banker 2021 Awards for Distinction recognise the innovative approach and the efficacy of our advisory model. The advisory model has served clients well through different market conditions and has helped them achieve their respective investment goals. I am delighted with the effort and support from all the stakeholders at Lighthouse Canton.

One of our core values is excellence, and to us, it means getting better every day. We commit to holding true to this value and working towards improving and innovating our advisory model.”

- Antoine Bracq, executive director, global head of Investment Advisory, Lighthouse Canton

methods to determine an optimum degree of asset class diversification, Lighthouse Canton was able to boost the portfolio’s risk-adjusted return potential. In its first year, the new-look portfolio was able to deliver a 7% return with significantly less volatility and a lower maximum drawdown.

On the product side, Lighthouse Canton made significant enhancements to its private markets proposition during 2021. In the second quarter, it launched a business offering management of private market investment portfolios intended to address issues related to changing regulations, performance analysis and monitoring of less liquid holdings, while being able to source and recommend potential opportunities.

Lighthouse Canton is the winner of Asian Private Banker’s Best Independent Wealth Manager – Investment Advisory at the 2021 Awards for Distinction.