Issue 105 November 2016 Lite

CONTENTS ISSUE 105

November 2016

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Echo Chamber The month’s most notable quotes

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Industry Straight Talk: Vincent Magnenat, head of private banking Asia, Lombard Odier

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Technology Platform pains: structured products slump ups pressure on multi dealer platforms

12 Technology

Exclusive data from APB’s COO survey CEO Andrew Shale Editor-in-Chief Shruti Advani Editor Sebastian Enberg Editorial Richard Otsuki Priyanka Boghani Charlene Cong Managing Director Paris Shepherd Design Simon Kay Production DG3

Operations Benjamin Yang Koye Sun Jessie Cheng Jacqueline Lau Dennis Luk Business Development Madhuri Chatterjee Sonia Lam Sam Chan Stacey Wong Olaide Ogungbesan Joanne Tse Eldar Gainutdinov Digital Tristan Watkins Yiyang Zhou Cécile de Buor

14 Technology

10 banks, 10 tech plays 17

APB Mandate Inefficient RFP process crying out for standardisation

19 Industry

Secrets of a smooth acquisition 21 Industry

3Q16 Results Snapshot 22 Events

Independent Asset Managers & Family

Offices Leaders Conversation, 2016 23

People Moves Movers & Shakers

ISSN NO. 2076-5320

Published by Key Positoning Limited 13B Greatmany Centre 111 Queen’s Road East Wanchai, Hong Kong +852 2529 5577 Tel: Fax: +852 3013 9984 Email: info@asianprivatebanker.com

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ECH O CH A M BER

“We are well aware that our clients multi-bank and can therefore join a rival bank at a faster pace. However, we have not been able to prove that a digital client onboarding process can win new clients.”

IT head at Hong Kongbased private bank, speaking at an onboarding roundtable hosted by Asian Private Banker and Appway

“Recently, UnionPay has observed a significant increase in overseas insurance transactions by cards issued from mainland China.”

Statement issued by UnionPay International, announcing that customers may no longer purchase insurance solutions with “investment-related contents” using a UnionPay card

“[Relationship managers] feel hamstrung because they are having to balance servicing clients … and following protocols set by compliance teams.”

Hong Kongbased lawyer

“The reason why we left the banks was because they no longer suited clients’ needs and we felt that we could do a better job. What is the point of re-merging with a large bank? If I take that route, why didn’t I just stay?”

Founder of HK-based independent asset manager at Asian Private Banker’s IAM and Family Office Leaders Conversation, 2016

“This acquisition will further cement our leadership position [in Asia].”

“In Retail and Wealth, although we have grown a profitable business in Asia, without greater scale ANZ’s competitive position is not as compelling”

“We saw a significant uptick in private banks approaching us to start a conversation surrounding ways to improve their knowyour-client (KYC) requirements days after the Panama Papers database went live. The fall of BSI Bank and Falcon Private Bank in Singapore were merely the icing on the cake.”

Shayne Elliott, CEO, ANZ on the rationale behind the sale

Sean Norris, managing director APAC, Accuity

Tan Su Shan, DBS’ head of consumer banking and wealth management on the bank’s purchase of ANZ’s retail and wealth management businesses in five Asian markets

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IND U ST RY

Straight Talk:

Vincent Magnenat, head of private banking Asia, Lombard Odier 2016 has been a difficult year for the industry.

How has Lombard Odier fared in Asia?

The growth is here and we have seen growth for the past five years.

At the end of 2014, Lombard Odier was managing around CHF8 billion in client assets in the region – at the time around 4% of the bank’s global assets. You have been quoted as saying that you expect to see double digit growth. Have you achieved this?

As you know, we don’t disclose any breakdown of our assets. But what I can say today as a group, we manage around US$229 billion of total client assets (per end-June 2016). Asia represents a bit less than 10% of that total, having grown in recent years.

What percentage of your client assets in Asia sit in discretionary mandates?

Over 60%. We know the average in Asia is between 5% and 10%, but that this is also growing.

The way we approach discretionary management is very different from most of our other competitors because we apply a risk-based approach. This is effectively an allocation of risk. So whereas a traditional portfolio may hold say 40% in equity, 60% fixed income, the reality is that the 40% equity could represent 80% of the risk. So within our portfolio we adjust allocations on a weekly basis to maintain a certain level of risk. If we look at our balanced portfolio, say early February, we had 15% exposure to equities. Today we are over 35%. Our performance YTD is close to 8% net of fees.

Over the past few years, Lombard Odier has inked a number of strategic partnerships with

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IN D U ST RY

onshore banks in Asia. Is onshore where the future lies?

Industrial Bank in China and JBWere in Australia]

No. We are one house – or ‘maison’ – in Asia and so we have no internal competition.

We know that the top 20 private banks in Asia manage less than 20% of HNW financial assets. So where is the 80%? It’s with the local [onshore] banks. And in this negative interest rate environment, most of these banks invest mainly in local markets. The idea [with our strategic partnerships] is to replicate our discretionary model locally so that private clients in key Asia markets who want to manage their wealth onshore can tap our global platform and expertise to do so.

As part of our partnership approach, we also provide our partner institutions with training and support in terms of private banking advisory and family services.

Do you typically seek out onshore banks for partnership, or is it the other way around?

Asia’s I/EAM industry expects to substantially increase its share of client assets in the medium term. Do these independent wealth managers pose a direct challenge to your business?

But let’s go back to look at Lombard Odier in 2000 when we started to open offices across Europe. The idea was to grow our business onshore in Europe. We could have done the same in Asia, say open in Manila, Jakarta, Bangkok. But obviously it doesn’t make sense for a bank like ours which is mid-sized, so that’s why we decided to go for partnerships [in Asia]. We signed with Kasikornbank at the end of 2014.

How does your Kasikornbank partnership work?

We set up a local domiciled registered fund in Thailand with Kasikornbank, managed by them. We are the sub-managers and they offer the fund to their clients.

It’s a white labelling arrangement?

Yes. In this case we can talk about Kasikornbank because our partnership is public but we have other partnerships that are private. Of course we have a partnership with UnionBank in the Philippines. [Lombard Odier also has strategic tie-ups with Kookmin Bank in Korea,

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You need to find the right partners. It is important to see if we share the same vision in terms of private banking. We believe onshore will grow. That doesn’t mean that offshore will decrease, but I expect less assets will go [offshore] as soon as the capabilities of the local banks serve clients in the same way as they may be served offshore.

So when it comes to the choice of partners, we meet a lot of candidates, and based on the understanding, vision and values of the banks, we make a decision.

Do you ever worry that an onshore partner will learn all it can from you and then sever ties once it feels it can go it alone?

I don’t know if you have seen our new brand campaign “Rethink Everything”?

This is exactly the answer I would give to that question, in the sense that a bank of over 220 years that has survived and grown through 40 financial crises is today stronger than ever because we have the ability to adapt and to keep innovating.

To date, have these partnerships had any material effect on your top line in Asia?

They have certainly accelerated the growth that we already have but it’s gradual because they are relatively new. I do expect these partnerships to be a substantial part of our core business in the coming years.

Does Lombard Odier’s asset management business wield more power in Asia than the private clients arm?

At the end of the day, my view is that you cannot do everything for clients when you have a small structure. External asset managers in the past were focused on many different areas but as an EAM today, in the current environment, this is no longer possible: you can’t be everything to everyone.

EAMs are increasingly recognising the need for more professionalism and will be using professionals such as asset managers, especially when they have compelling service offerings or niche capabilities.

Currently, we see two major dynamics at work in the region’s wealth management market: there are those players that are ramping up their businesses and those that are gearing up for an exit. Where does Lombard Odier fit in here?

You know, I remember reading on your website that some people are saying that to be successful or to be profitable in Asia you need at least US$30 billion in AUM. Then maybe I will read an article that says US$50 billion. This is only applicable to universal banks. Then you have the pure players. The only thing that we do is manage our clients’ money. To be profitable, you don’t need to have 30, 50, 100 or 200 billion. You need to be focused and disciplined. So the ones that will succeed in Asia are the ones that have a clear value proposition, clients understand why they are with that bank and what kind of product they can expect.

Asia is a crucial growth market for Lombard Odier and we remain committed to growing our client base and portion of overall revenues and profits derived from our Asia business.

TE CH N O LOGY

Platform pains: structured products slump ups pressure on multi dealer platforms

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drop in the demand for structured products at Asia’s private banks has left multi-dealer platforms scratching for business, just two years after sales reached record highs.

According to Asian Private Banker data, structured product sales have fallen by 14% year-to-date, on the back of weak client appetite following last year’s Shanghai Composite collapse and a wobbly start to 2016 for global equities.

The drop-off comes at a time when digitalisation is all the rage, catching vendors that provide automated solutions for equity-linked or flow structured product distribution off-guard.

Low volumes Volumes this year have dropped off by as much as 30% across the industry, according to Mark Munoz, managing director of Contineo, a connectivity hub between private banks and structured product issuers.

Munoz says that private banks continue to access Contineo for price quotes, but that there has been a distinct downturn in the trades placed.

“As a result of this dampened appetite, we continue to see a steady number of RFQs but the industry has seen a drop in the number of overall executed trades,” he says.

To date, a consortium of eleven banks including Barclays, BNP Paribas, Goldman Sachs, HSBC, J.P. Morgan and Societe Generale Corporate and Investment Banking sit on Contineo. Four private banks – Julius Baer, BSI, LGT and J.P. Morgan Private Bank – are on the platform’s buy-side.

Frank Troise, head of distribution at Leonteq, echoes Munoz’s observations. He says that 2016 has not been a “banner year” and this has led to a “decline in legacy revenue streams” for all structured product distribution providers – including Leonteq.

Earlier this year, Leonteq pulled the plug on a technology consortium dubbed ‘LAND’, which involved two other external vendors, Avaloq and Numeric, as well as Singaporean lender DBS. The platform aimed to leverage Leonteq’s multi-dealer platform for equity-linked notes and fixed coupon notes, Numerix for its web-based structuring and pricing capability and Avaloq’s

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core operating system. DBS was to provide access to structured products and its private bank had agreed to pilot the platform on its buy-side. The partnership was formed in March 2015 and was pegged to go live in 2016. Leonteq attributed LAND’s failure to “diverging interests on some business model and exclusivity discussions”.

Private banks on the fence With volumes waning, private banks are finding it difficult to justify the cost of plugging into a multi-dealer platform, shares another Singapore-based structured products provider, on the condition of anonymity.

“Building a platform for pure pricing and RFQ is not enough in today’s market environment,” he says.

Accordingly, private banks are questioning the rationale behind paying for multi-dealer platforms that only handle “plain vanilla structured products” instead of “employing new staff ” who are able to source up to 20 different structured products with varied complexities.

What’s more, as private banks undergo wider restructuring and cost-cutting as a result of squeezed spreads and poor profits, many are rethinking IT investments.

This “uncertainty of not knowing whether the structured product business is still relevant to the private bank” is undoubtedly weighing heavily on capital allocation towards technology, says Troise.

Private banks have starting to assess specific tech investments on a quarterly basis rather than a 3-5 year horizon, he says.

“Consequently, organisations are being much more deliberate about the decisions they are making when it comes to technology surrounding structured products,” Troise adds.

Not all technology providers believe that the drop in demand for structured products is having a direct impact on their business.

Simon Wong, general manager, North Asia at AGDelta, says that his firm has seen “just as many clients engaging us this year as we had a year ago, so private banks’ adoption of multi-dealer platforms has certainly not stalled”.

TECH NOLOGY

Mark Munoz Contineo

Wong adds that volumes were never the “principal driver for existing multi-dealer platforms”.

Rather, tougher regulations on best execution and the need to standardise on processes have had more influence on business, according to Wong.

Email pricers to make a comeback?

As a result of this dampened appetite, we continue to see a steady number of RFQs but the industry has seen a drop in the number of overall executed trades.

Still, it is difficult to ignore changes in the types of requests from private banks when it comes to structured product distribution platforms.

Private banks are looking to switch to an email pricer (a largely manual method used by execution desks to source and aggregate prices from different issuers), with the Singapore-based structured products head predicting a comeback for the ‘manual way’ in the near-term.

“The simplicity of email pricers means that private banks are able to handle 20-plus different structured product orders while

multi-dealer platforms can only handle 4-5,” he says.

Munoz agrees. He points out that the number of conversations Contineo is having with private banks requesting for connectivity via internal email pricers has gone up.

“At Contineo, we’re able to accommodate email pricers into our network for private banks for a seamless experience,” he says.

“This helps our private bank clients to extend access to their RMs much easier, eases the burden on the trading desks and improves regulatory reporting,” The email pricer may be an effective method, but it involves time lags and consumes resources – particularly when regulatory requirements change. So any talk about bringing back a system that has been labeled ‘archaic’ and ‘outdated’ is a telling sign that, when it comes to trading platforms for structured products,

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IN D U ST RY

there is little room for discovery-only engines.

Single dealer platforms win bespoke deals Perhaps what is even more worrying for multi-dealer platforms is the prospect of a return to single dealer platforms.

Single dealer platforms, used for structuring nonflow and bespoke products with interesting payouts and structures, come in handy due to their ability to “cater to exotic structured products” Munoz says.

Despite the 14% downturn in structured product flows, gatekeepers tell Asian Private Banker that the year has seen a few notable exceptions Frank Troise that have achieved positive Leonteq growth via innovative nonflow products.

“Winning one trade at a cutthroat level can drastically improve your odds of winning future trades,” says one source, alluding to the goodwill a private bank can earn by executing big-ticket trades for ultra high net worth clients.

Two years ago, Mahesh Bulchandani, CEO and managing director of FinIQ, Asia, said that building a single dealer platform from scratch could cost almost five times more than outsourcing to an external vendor’s multi-dealer platform. He went as far as to say that the days of single dealer platforms were numbered.

and the ultimate end-users.

Vendors have started focusing on the buy-side, rolling out various tools for RMs to help drive volume and to monitor trade cycles, says AGDelta’s Wong. The firm has chosen to step into the realm of ‘regtech’ by focusing on the compliance side of product distribution.

“This [offering] has covered regulatory requirements across all major asset classes including new alternative investments such as fund of hedge funds,” he says.

In December 2015, Vontobel’s structured product platform, Deritrade, added a new decision-making tool for buying structured products using smart and crowd data. The SmartGuide renders user activity and market data accessible to Deritrade users and provides RMs with insights and intel on the structured product market.

Similarly, Munoz says that Contineo is rolling out data analytics and robo advice offerings to its private banking clients.

Troise believes that Leonteq’s focus on the independent asset management (IAM) industry will keep it in good stead. “While Leonteq has a private banking P&L, it is clear from the significant pickup in the IAM space that the demand from IAMs for automated distribution of structured products will require a shift in focus,” he says.

Vendors will need to tweak and fine-tune their offerings to keep pace with the private banking community. And their survival will very much depend on their ability to offer more than pricing and execution.

Building a platform for pure pricing and RFQ is not enough in today’s market environment.

Bridging the buy-side gap What is clear is that automated platforms will need to go one step further by catering to the needs of relationship managers (RMs)

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TE CH N O LOGY

Exclusive data from APB’s COO survey Every year, Asian Private Banker’s Chief Operating Officers Leaders Conversation brings together COOs and IT heads from the region’s private banks to discuss opportunities and challenges stemming from rapid advances in the tech space. During this month’s Singapore leg, attendees were anonymously polled on how their respective institutions are faring.

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TECH NOLOGY

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TECH NOLOGY

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TE CH N O LOGY

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A P B MA NDAT E

Inefficient RFP process crying out for standardisation In lieu of an industry standard to regulate requests for proposals (RFPs) for funds distribution, private banks and assets managers alike are bearing the brunt of a largely inefficient process.

Cost of non-standardisation The laborious process of collecting information from asset managers can have serious cost implications, industry sources tell Asian Private Banker. Currently, asset managers take in the region of two to six weeks to respond to a bank’s due diligence questionnaire, or RFP, which may contain upwards of 100 questions.

And unlike the alternative investment market, where a RFP standard has been set by AIMA (Alternatives Investment Management Association), the mutual funds space has no benchmark.

This may strike some as odd, especially given the extent of overlap among queries (a recent survey found that, apart from slight variations in the phrasing and ordering of questions, 90% of requested information is inconsistent).

Without an enforced standard that requires product providers to follow a standardised set of metrics, both asset managers and gatekeepers face a higher cost of doing business.

“These [RFP] questions are often formulated as open-ended text and differ from one distributor to the next” explains Matthias Weber, a partner at ifund services, sister company of global funds platform, FundInfo.

“As a result, it can be very time-consuming to understand the questions, find the people capable to answer them and, finally, provide the answers. The need to interpret such variations, a process that is harder to automate, further adds to costs such as RFP teams at fund houses.”

Weber says that he expects a RFP standard to be enforced in the near future.

At larger asset management firms, region-specific RFP teams can comprise of three or more individuals; and even then, they often struggle to complete distributor RFPs. For Asia, where asset managers’ private banking distribution businesses rely heavily on advisory and client-directed activities that place a premium on market timing, the cost implications can be even more pronounced. Without stable discretionary assets to anchor the regional distribution business, asset managers that do not capitalise on these limited windows of opportunity may see little or no new inflows.

Fund analysts at private banks are also struggling with this lack of standardisation, which is having an impact on their pursuit of best-in-class funds.

“Analysts are unable to read through dozens or even hundreds or more RFPs - assuming they are available,” Weber says.

Insiders say that some fund analysts are shortcutting the process by creating shortlists based on past performance before sending out RFPs. But a shortlist of funds based solely on past performance disregards other important metrics, including whether returns were driven by skill or luck. For example, a fund that has initially been shortlisted may fail due diligence, thereby wasting time and resource.

Furthermore, flawed screening could mean that competent managers and strategies are filtered out, perhaps due to a marginal gap in performance.

To address this, ifund services recently launched “Digital-Advisors”, a solution that actively collects and aggregates responses to common RFP inquiries. Qualitative due diligence data is generated by ifund services’ fund analysts, who cover thousands of funds in a structured manner to produce systematic evaluations.

“For all these funds, Digital-Advisor can automatically generate quality scores, which, in addition to track record, contain a wide range of quality-related information about the management company, team resources and continuity, investment style and process, fund structure and terms,” Weber explains.

“The criteria we consider are based on scientific evidence for successful fund and manager selection published in renowned academic journals.”

Little to make of existing arguments Not everyone agrees that standardisation is a positive step forward given the dearth of hard-boiled evidence that a single data set can provide evidence of future performance. Indeed, the industry has consistently maintained that the purpose of standardisation is to democratise information for professional investors

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AP B MA N DAT E

and not to create a ‘scientific’ benchmark. Others point to herding risks of a regulator-set standard.

For one, the availability of certain metrics may not, as a rule, ensure that an outperformer is selected, but does facilitate other investment decisions. Take the active share of a portfolio, for instance. While it may be dangerous to claim such a metric can be used to source future outperformance (which explains the longstanding debate between active and passive advocates), such information is certainly useful when deciding whether to replace a newly spotted closet index fund with an ETF for better ROIs or fee revenue retention in a discretionary mandate.

Information democratisation will enhance investment management capabilities If such data were more readily accessible - whether via solutions providers such as ifund services or regulatory enforcement - the benefits of improved efficiency, for asset managers and distributors, across functions in due diligence and compliance, are apparent. Less apparent, however, is how a democratisation of information would enhance wealth managers’ investment capabilities.

Matthias Weber ifund services

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With access to a wider range of funds data, wealth managers could implement their house views at a more granular level. For example, advisors could, with greater precision and confidence, seek a concentrated stock picker fund in a market they feel has greater potential for alpha, or a manager who is a duration timer with no FX exposure, if the view anticipates shifts in the yield curve but is negative on foreign currencies.

In addition, Asia’s budding pool of independent asset managers would be able scale their fund operations to have access to a wider range of funds to fit their views.

The wealth management industry as a whole continues to grapple with operational inefficiencies that negatively affect bottom lines. In addition to funds due diligence, private banks are actively seeking solutions for their operations in product distribution, including multi-dealer platforms for structured products, and compliance, such as the collection of documentation for KYC and client suitability processes.

While external vendors, such as ifund services, can assist wealth managers to bridge the gap on select matters, regulators or industry bodies also have an active role to play. A bolstering of RFP standards would not only benefit industry practitioners but also investors, who require access to best-in-class products.

IND U ST RY

Secrets of a smooth acquisition

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rivate banking M&A activity in Asia has reached record levels in 2016. But not all acquisitions are smooth sailing.

So what factors determine the outcome of a deal?

A new report by consulting firm Synpulse analyses eight transactions to identify key variables that affect the asset retention rate during a private banking acquisition.

The report – titled “Next Generation Private Banking, Riding the Consolidation Wave” – examines deals involving OCBC and ING Private Bank in Yves Roesti 2009; Julius Baer and Macquarie Synpulse Group in 2011; Julius Baer and Merrill Lynch’s International Wealth Management business in 2012; DBS and Societe Generale Private Banking in 2014; Coutts and Union Bancaire Priveé (UPB) in 2015; and, in 2016, BTG Pactual and EFG International; Bank of Singapore and Barclays wealth and investment management business in Singapore and Hong Kong; and Bank of China (Thai) and Bank of China (Hong Kong).

Salomon Wettstein Synpulse Hong Kong

Time is of the essence No two acquisitions take the same integration approach, according to Yves Roesti, managing director and partner, Singapore of consulting firm, Synpulse and co-author of the report.

He points out that differing approaches affect the completion time.

For example, UBP chose a standardised BPO (business process outsourcing) model for the Asian business, whereas EFG International and BSI chose to leverage the highly bespoke platform of EFG International instead of the BPO solution of BSI. “UBP’s choice was cost effective and they managed to achieve integration within 10 months,” he says.

Conversely, EFG International, which had to contend with complications stemming from BSI’s involvement with Malaysia sovereign fund, 1MDB, went well beyond the average integration time of 12 months EFG International announced the completion of its integration of BSI Singapore mid-November.

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IN D U ST RY process will in most cases expedite the integration process,” he explains.

The more “conservative approach” has been to repaper the process whereby tranches of clients migrate only when the buying bank signs the deal.The process typically takes a lot of time. An example of a bank that went the court-order route is DBS during its integration of Societe Generale’s private banking division.

Keeping RMs happy

MAS’ agreement to facilitate an “accelerated asset deal”, however, outlined that the legal steps will be completed in the second quarter of 2017 and the data migration onto EFG’s IT platform is expected to be done by 2017-end.

All acquisitions are bound to lead to RM attrition; and Bank of Singapore’s acquisition of Barclays exemplifies this.

To minimize attrition, successful integrations have involved lucrative incentives for RMs, particularly the high performers with big books. “[Since] RMs are unaware of an acquisition until the closing day… it is for this reason that a substantial amount of the transformation and integration budget goes into RM retention bonuses, ” says Wettstein.

In addition to appropriately incentivising RMs to stay post-integration, a failure to handle RMs from a culture-sensitive perspective can also lead to attrition.

“We had one instance where the acquiring bank did not offer corner offices and just had a big floor plan for their RMs including the regional heads. This shows that anticipating cultural integration is a key element for a successful project,” Wettstein says.

Regulatory hand The effectiveness of an integration also depends on whether regulators have granted a court order, Salomon Wettstein, managing director of Synpulse Hong Kong says. “[Court orders require the buying bank] to work closely with the regulators to agree on the process and client communication. This

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Post-merger planning Synpulse’s survey also points to the lack of importance attached to the post-merger integration.

Clearly defining the target operating model after an integration, including changes in the product offering, the organizational transition under the new merged entity and the IT migration, are all key to a successful transaction, the study suggests.

With more acquisitions in play or on the horizon – in October DBS agreed to buy ANZ’s retail and wealth management business in five locations while ABN AMRO’s Asia private bank is understood to be up for sale – private banks would do well to consider what is the most effective approach to integration to maximise asset retention.

IND U ST RY

3Q16 Results Snapshot ABN AMRO Private Banking

EFG International

A Underlying profit €54 million (+92% YoY, +3% YoY)

F Global AUM CHF79.8 billion (-1% QoQ)

A C/I ratio 75.9% (-9.7 pp YoY)

F NNA “flat”

A Global client assets €198.9 billion (+€5.2 billion QoQ).

F Global FTEs 2,016 (-2% QoQ)

F ‘Rest of world’ segment – incl. Asia - accounts for 9% of total (+1 pp)

Bank of Singapore A AUM US$62 billion (+20% YoY), not inclusive of assets onboarded as a result of Barclays acquisition A OCBC WM (incl. BoS PB) income contributed 28% to group total (+6 pp YoY)

BNP Paribas Wealth Management F International AUM €341 billion A “Strong asset inflows” in Asia K International Wealth & Asset Management PTI €161 million (-16% YoY, -11% QoQ)

HSBC Private Bank F Global AUM US$315 billion (-0.6% QoQ) A Asia AUM US$112 billion A Asia pre-tax profit US$114 million (+115% YoY)

Julius Baer A Global AUM CHF327 billion – a bank record A Annualised NNM inflow +4% YTD A Global RM headcount 1,376 (+159 YTD) A C/I ratio just under 68%

Morgan Stanley Wealth Management A Fee-based assets US$855 billion (+4% QoQ, +11% YoY) – a bank record

Credit Suisse Private Banking

A Total client assets US$2.1 trillion (+3% QoQ, +9% YoY)

A Asia AUM CHF169 billion (+28.5% YoY, +6.75% QoQ) –

F PTI US$901 million (+5% QoQ, +9% YoY)

a bank record A Asia NNM +CHF4.6 billion F Asia PTI CHF66 million (+4% YoY, -27% QoQ)

F WM contributed 43.5% of group net revenues and 38% of PTI

A Asia RM headcount 650 (+18% YoY, +0% QoQ)

Noah Holdings

A Asia C/I ratio 69.9%

A WM operating income RMB143.1 million (+22.8% YoY)

DBS A WM AUM (incl. Treasures, Treasures Private Client & Private Bank) S$159 billion (+11% YoY, 5% QoQ) A WM income S$453 million (+34% YoY, +7% QoQ) – a bank record A ANZ acquisition expected to add S$23 billion in wealth AUM incl. S$6 billion in HNW assets, bringing HNW AUM total to S$115 billion

Deutsche Bank Wealth Management A APAC AUM €50 billion (+2% QoQ)

A Registered clients 130,491 (+47.2% YoY) K Aggregate value of WM products distributed RMB23.9 billion (-8.3% YoY)

UBS Wealth Management A APAC AUM CHF286 billion (+5.5% QoQ) A APAC NNM CHF5.1 billion (+7% QoQ) vs Europe (CHF3.9 billion) F APAC RM headcount 1,043 (-9) QoQ K WM PTP CHF504 million (-21% YoY); adjusted PTP CHF643 million (-8% YoY)

F Global AUM €312 billion (-14% QoQ) F Global revenues €497 million (+1% QoQ, -1% YoY) K PTP for private, wealth & commercial clients division (PW&CC) -37% QoQ

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EV E NTS

Independent Asset Managers & Family Offices Leaders Conversation, 2016 The IAM & Family Offices Leaders Conversation, held this year in Hong Kong and Singapore, brought together CEOs and Managing Partners from Asia’s leading independent asset managers and family offices for a morning of open discussion. Thanks to our event partners, M&G Investments and BNY Mellon.

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PE O PL E MO V ES

MOVERS & SHAKERS

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