Best Private Bank — Discretionary Portfolio Management

Emmanuel Triomphe head of ATS (Asia Pacific trading solutions) Sales and Advisory, Credit Suisse

CREDIT SUISSE

With stock markets in Hong Kong and mainland China yielding negative returns in 2021, U/HNW clients were more reliant than usual on private bank’s equity advisory specialists to guide them through the stormy waters.

In that regard, one bank stood head and shoulders above the competition in terms of producing tactical ideas in cash equity and structured products that consistently generated profits for clients.

Those ideas translated into strong returns for clients and a robust business performance for Credit Suisse’s equities business in Asia. The bank’s tactical cash equities ideas comfortably outperformed those of the benchmark during the period under consideration, while the ratio of equity structured product ideas that generated positive returns for clients was industryleading, despite volatile markets in Greater China. Both of those facts helped contribute to a generous revenue boost for Credit Suisse’s cash equity and equity structured products business in Asia, that was above and beyond that recorded by other WM players in the region.

The bank grew and saw robust inflows into its suite of SparkTrackers equity structured product offerings. The SparkTrackers products — which are linked to a variety of so-called supertrends themes from Asia Online Gaming to Future Foods — were coupled with timely client advice during times of market stress. One profitable idea generated during the period under consideration included advising investors to switch into the Sustainable China theme in order to capitalise on policy tailwinds when Beijing cracked down on the technology sector. Another trade was switching into SparkTrackers’ Post-Pandemic Recovery product in

“Receiving this award is a testament to the strength of our best-in-class equity advisory business and our ability to offer innovation solutions, quick execution and regular client updates.

Providing clients with personalised and data-driven products and well-timed market updates — even in challenging conditions — has allowed us to build even closer relationships with key clients, giving us an edge in the market.”

- Emmanuel Triomphe, head of ATS (Asia Pacific trading solutions) Sales and Advisory, Credit Suisse

the second quarter to take advantage of an economic bounce in Europe.

In addition, Credit Suisse made strides in terms of deepening collaboration between its wealth management business and investment banking units as means of boosting the equity advisory function in the region. Examples of this include the introduction of fortnightly deep dives between the equities desk and investment bank analysts covering a range of sectors and regions. Such communication proved significant during the market sell-off in China in 2021, when the wealth management’s equity advisory desk was frequently briefed by the investment bank’s China technology analyst. Another differentiator for the bank during the year was the depth of access offered to external clients, who were able to directly contact Credit Suisse’s regional team of equity advisory specialists for trade ideas and execution.

For all these reasons, Credit Suisse is Asian Private Banker’s Best Private Bank – Equity Advisory for 2021. The previous 12 months have proved that private banks can draw in significant amounts of net new assets and client accounts as the industry has adapted to widespread travel restriction due to COVID-19. With the potential easing of these restrictions in 2022, new variants aside, to what extent will private banks return to their pre-pandemic methods of sourcing clients and gathering assets?

Tan Siew Meng, regional head, Asia Pacific, HSBC Global Private Banking The COVID-19 pandemic has prompted private banks to adapt and innovate across all aspects of their business and operations and I do not expect the industry to simply revert to how it was doing things once that disruption recedes. Quite the opposite. This experience has, in fact, accelerated our progress along a path that we were already travelling and to which we are deeply committed.

Throughout, we have been laser-focused on ensuring that we remain as close to our clients as possible, that we have a clear and holistic understanding of their needs and objectives, and that we are providing them with the most optimal advice, insights and solutions. And, as a result, we have continued to see strong net new money inflows driven by new and deepening client relationships.

Where we’ve been unable to meet clients in person, we’ve ensured that we have the digital tools to empower our bankers and clients to engage virtually, and in a convenient and secure manner. That includes enabling new-tobank clients to sign and exchange documents electronically during the onboarding process, and providing a suite of digital solutions that allow our clients to manage their wealth, anytime, anywhere.

As a truly universal bank, we benefit from a strong internal referral pipeline, particularly from Commercial Banking where our relationships with entrepreneurs and families in the region are deep and enduring. We have been increasing our investments in ASEAN markets and onshore in Greater China where wealth creation is so pronounced and where much of our growth will come from. And, as part of a global Group, we are uniquely equipped to connect our clients with international opportunities and help them with their diversification needs.

Tee Fong Seng, CEO AsiaPacific, Pictet Wealth Management The private banking industry in the region, including Pictet Wealth Management Asia, has grown in the past year in spite of the disruptions by COVID-19. No doubt this was partly on the back of market performance, as well as banks riding on existing client relationships and new bankers onboarding clients they already know without as much a need for face-to-face meetings. In addition, regulators in Singapore and Hong Kong have been facilitating the implementation of virtual or remote client onboarding, through clear articulation of regulatory expectations and guidelines (for Hong Kong, only for virtual/ remote onboarding of HKID card holder clients).

Singapore has increased the use of non-faceto-face measures with additional controls (e.g. performed liveness checks to detect impersonation) and technologies (such as integrating the use of Myinfo, biometrics technologies, liveness detection technologies, document authenticity verification tools, etc.) as part of customer due diligence.

The reality is the shutdown of cross-border travel did hinder business development at private banks. The biggest takeaway from the pandemic is that while we can still do business without travelling, travelling remains a critical component in the industry’s business development and client acquisition efforts.

Raymond Ang, global head, Affluent Clients, Standard Chartered Bank Indeed, despite the disruption brought about by COVID-19, we have seen strong asset growth in 2021 and proven that the nimble adaptation of processes has allowed clients to be onboarded remotely.

As vaccinations are still being rolled out in some parts of the world, a complete return to ‘normal’ remains uncertain for many countries. Even with the potential easing of restrictions for some countries, cross-border business travel will remain limited for now. This would mean that the traditional method of in-person networking will not fully resume, and we will have to rely on a range of complementary approaches, including client referrals, tapping on the bank’s network of clients, new hires and professional social media platforms. Our hiring strategy, which focuses on senior and more experienced RMs, has worked in our favour as new hires bring clients with whom they already have relationships.

The pandemic has heightened the impetus for us to challenge traditional assumptions about the effectiveness of digital engagement with UHNW/HNW individuals. From our experience last year, we found that clients adapted well to doing some banking activities online or via our SC Private Banking app. They were receptive to alternate ways of engaging with us – via virtual meetings instead of meeting in person and we believe that this hybrid model of client engagement and acquisition will be the way forward. As an example, in January 2022, we had over 7,700 clients register for our Global Market Outlook event which was held virtually. This is a strong testimony to how UHNW/HNW individuals are moving towards the new norms. The success of this hybrid model is however dependent on further innovation and our ability to deliver solutions, such as online trading capabilities, across all product ranges to clients.

Benjamin Cavalli, head of Wealth Management Asia Pacific, Credit Suisse Being a digital-ready bank, we have been well-prepared for all kinds of scenarios, and have continued to serve clients and pursue prospects. In the past two years, our omni-channel approach has helped us deliver consistent client experiences by addressing client needs through the channels of their choice. The adoption rate for our digital private banking (DPB) platform is over 80% and we have seen a surge in the use of high-touch interactions over chat platforms such as WhatsApp and WeChat, and video conferencing solutions like Zoom.

We saw an exceptionally high volume of trades executed digitally, with more than half the equity trades from our private banking clients placed via DPB. We kept the traditional RM channels available, but also invested even more in a hybrid wealth management service model with Direct to Client delivery of content and advice, and digital trading and self-service capabilities.

We believe certain trends will continue. We need to be able to understand and respond to clients’ needs so that we can continue serving them anytime and anywhere. It is imperative that we are able to deliver actionable, timely, personalised content and advice: differentiating thematic investment solutions as well as proactive and predictive trade advice. We must remain compliant and transparent, and yet be able to move fast and adapt in order to cultivate long lasting trust.