Wealth Management-r1:AMM grid in qxp 12/24/09 9:45 AM Page 68
WEALTHMANAGEMENTFOCUS
Asia’swealthmanagement
leadersdebatehottopics
AtthePrivateWealthManagementForumAsiarunbyEuromoneySeminars,industryfigures
discussedthechallengestheyfaced,includingtransparency,regulation,payandrewards.Andina
paneldiscussion,businessleadersdiscussedopportunitiesinChina’sprivatebankingmarketplace.
LeighPowellreports.
A
Asia’sprivatewealthmanagementleadersconvenedataHongKong happeningwithinourorganisation[intermsofcapitalratiosandper-
forumlateinNovembertodiscusskeychallengesfacingtheindustry, formance],sotheycanmakesuretheirclientsareproperlyinformed.”
includinghottopicssuchastransparency,regulation,riskmanagement Henotedthatclientswerealsoconcernedaboutriskmanagement
andremuneration. andwhetherthebankwascarryingoutduediligence,aswellasliquidi-
Whatbecameevidentwasthattheuncertaintywhichhasunder- tyissues.
minedtheconfidenceoftheregion’shigh-net-worthindividualsinthe “Wehavetomakesureweareontopofthesituationintermsofdue
financialcrisisstretchestotheheadsofprivatebankingthemselvesas diligence.WehavehugeteamsinNewYorkmonitoringwhatishap-
theystruggletofindaformulaforhowtowinbackclienttrust. peningintermsofthefundswedistribute.Wearecontinuallylooking
LokYim,DeutscheBank’s atitfromanassetallocation
NorthAsiaheadforprivate standpoint.”
wealthmanagement,suggested Intermsofriskappetite,Von
thetimehadcomeforprivate Cannonunderlinedtheimpor-
bankstoworktogethertofind tanceofdiversifiedportfolios.
commongroundonthemost “Thereisanacceptanceofrisk
pressingissues.
“Itwouldbeveryusefulfrom
PRIVATE
anddiversificationacrossrisk
lines[amongclients].
acostperspectiveiftherewasa “Clearlytherehasbeenamove
levelplayingfield,”hesaid.
“Nowisagoodtimeforusto
BANKING
intocommodities,andalsohedge
fundsisaninterestingarea.While
cometogetheroncertain
issues.”
ROUNDTABLE
therewasadramaticdropin
hedgefundperformanceanda
Toopenproceedingsinthe numberofhedgefundsclosed,I
PrivateBankersPanel,Bruce thinkapplicationsforfundof
VonCannon,thechiefrepresen- hedgefundsareupsomethinglike
tativeofBanquePrivéeEdmond 15%.”
DeRothschild,unveiledastar-
tlingstatistic. FOCUSINGONFEES
“WhatIhavenoticedinmy Oneofthekeyquestionsonthe
preparationsfortodayisthat audience’slipswasputforwardby
somethinglike25%ofclients panelmediatorJosephField,sen-
[intheindustry]havechangedadvisersinthelastyear,whichIthinkis iorregionalpartnerforWithersinAsia,whenheaskedwhatimplica-
astunningfigure,”henoted. tionsthefinancialcrisiswouldhaveonprivatebankingfees.
Acknowledgingtheindustry’sneedtorepairclientrelationships, Chureplied:“Customershavetendedtoturnbacktomoresimple
JoannaChu,headofNorthAsiaforBarclaysWealth,stated:“Itisonly productswheretransactionalfeesarecharged.However,Ithinkgoing
bykeepingclosetoclientsandknowinghowtorebuildtheirportfolios forwardwhenwetalkaboutamoreholisticapproachtorelationship
thatwecangaintheirtrustagain.” development–includingwealthstructuring,successionplanningand
Sheputforwardtheteam-basedapproachthatBarclaysWealthhas retirementplanningandthesesortsofservices–itwilldefinitelybe
adoptedasapossiblesolution.“Weencouragerelationshipmanagers morefee-basedratherthantransactional-based.”
tobringateamofinvestmentadvisersaswellasteamleaderstosee Askedwhetherhesawaconflictbetweenearningprofitsforshare-
clientstogether,sothatwhencustomersfeeluncertainaboutthe holdersandnurturinglong-termclientrelationships,LokYimreplied:“I
advicetheyhavebeengiven,thereisasourceforthemtoseekanother thinkforallofusthereisconflictthere.
opinion.” “Butclientswanttoworkwithaprofitableorganisation.Acompany
EngHuatKong,whorunsMerrillLynch’swealthmanagementbusi- thatconsistentlylosesmoneyisnotsomewheretheywillwanttobe.I
nessforsouth-eastAsia,AustraliaandIndia,stressedtheneedfor thinkthequestioniswhetheraninstitutionthatmakesaprofitalso
bankstokeeptheirbestrelationshipmanagers. helpsinvestorstoperformintheirportfolio.
“Oneofthechiefconcerns[amongclients]especiallylastyearwas “WhereitstartstogowrongisifyousayIwouldlikemybankerto
whethertheirassetsweresafe,”headded.“Ithinkwehaveresponded earn‘xamountofrevenue’irrespectiveoftheassetmanagementthey
byensuringthatourwealthmanagersarekeptupdatedwithwhatis have,soyouareboostingreturnonassets.
68 DEC2009/JAN2010 ASIAMONEY
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