Issue 93 November 2015 Lite

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Independent, Authoritative, Indispensable

ASIAN PRIVATE BANKER NOVEMBER 2015 • ISSUE 93

NOVEMBER IN NUMBERS US$1 trillion Difference in size of global AUMs 44% US$1 million US$16-33k

between the top two banks with a private banking core, pg 4 Average proportion of building Asian family office assets in alternatives, pg 10

Cost of Asian EAM portal that connects to private banks, pg 14 Monthly salary range for senior private banking compliance officers, pg 18

FAMILYOWNED

CONSERVATION LAND IN ROMANIA’S CARPATHIAN MOUNTAINS, PARTS OF WHICH BELONG TO A HK-BASED SINGLE FAMILY OFFICE. WE EXPLORE IN THIS ISSUE THE INNER WORKINGS OF ASIA’S FAMILY OFFICE SECTOR.

STRAIGHT TALK

BEA PRIVATE BANKING’S GLORIA SUN AIMS TO GROW PORTION OF MAINLAND CLIENT AUM TO 50% BY 2017, pg 16

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NOVEMBER 2015

CONTENTS 3

Letter from the Editor Will Santa come to town?

4

Editorial The Scoop: Buy or die

6

Editorial Crow’s Nest: Asian gatekeepers doing well, but face resource issues

8

Family Office Family office boom a private banking boon

10

Family Office Keeping it in the family

14

Family Office All roads lead to technology

16

People Straight Talk: Gloria Sun, head of private banking, The Bank of East Asia

18

People Hiring: The rise of compliance

20

Technology Standard Structures – the journey to standardisation and innovation

23

People Moves Movers & Shakers

PUBLISHER Andrew Shale EDITOR Shruti Advani ASSOCIATE EDITOR Vince Chong EDITORIAL Richard Otsuki, Priyanka Boghani, Tom Wan, Ralph Jennings (contributor)

MANAGING DIRECTOR Paris Shepherd OPERATIONS

DIGITAL DIRECTOR Tristan Watkins

BUSINESS DEVELOPMENT Madhuri Chatterjee, Sonia Lam, Michael Chan

PRODUCTION DG3

Benjamin Yang, Sam Chan

DESIGN Simon Kay

ISSN NO. 2076-5320

PUBLISHED BY KEY POSITIONING LIMITED 1205 The Dominion Centre, 43-49 Queen’s Road East, Wanchai, Hong Kong Tel: +852 2529 5577 Fax: +852 3013 9984 Email: info@asianprivatebanker.com

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LETTER FROM THE EDITOR

Will Santa come to town?

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elcome to the November issue of Asian Private Banker. In a year cleaved so starkly into pre-China disenchantment and post, the last eight weeks of 2016 assume a particular significance. WIll December strike a high note or will it scramble to meet budgets and quotas, or worse, hold onto the year’s gains?

I don’t have a crystal ball to provide a peek into the next couple of months, but I can facilitate a conversation with those who may have better insight than others.

For example, in this issue we reverse-engineer the genius behind asset allocation strategies at successful family offices. Taking data from some ten Asian family offices, we compiled a table of what the average asset mix for the industry looks like. We then narrow in on a case study at one Hong Kong-based single family office, which as its name suggests, invests exclusively on what it wants, or more importantly, what it believes in.

Moving from buy to sell side (never a pleasant transition) we talk to private banks on how recent macro events are coming together to promote family office set ups to house long-term wealth and formalise governance models.

Of the budgets I refer to earlier, hiring quotas are perhaps the most worrisome for private banking CEOs. The most obvious reason is because they are incredibly hard to fill. But hiring trends are a terrific dipstick indicator of sentiment in the industry. Turn to page 18 for our study on the most-wanted candidates in private banking - the results are reflective of an industry focused not just on the front end, but the back as well.

Thank you for all the feedback on the last issue. For those of you I have met before, it should come as little surprise that every time you make a suggestion, it is keenly debated at our weekly editorial meetings.

For the uninitiated, join the debate by mailing your comments to editor@asianprivatebanker.com. I look forward to hearing from you.

Until we meet again,

Shruti Advani Editor Asian Private Banker

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EDITORIAL

Buy or die

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hich are the largest investment banks in the world? investment banks hovers around US$50-100 million depending Simple question and one that consistently begets on the year, there is an unfathomable US$1 trillion difference a simple answer – there is a clear winner, one that in assets managed by the top two private banks in a ranking of demonstrates the largest share of revenues or deals banks where wealth management is a core business.

How relevant is this? Let me put it another way. The world’s on the league table – followed by one close contender. Typically the answer is Goldman Sachs followed by fellow American blue-blood largest private bank by core business manages close to 10% of total client assets available to the industry. This singular statistic J.P. Morgan.

Which are the largest private banks in the world? Simple dominates every strategic plan I have either seen or heard of this question and one that has become increasingly complicated year. And it should.

While private banking has proven to be remarkably resilient to answer; there is one institution with the biggest number of assets under management, followed by myriad possibilities. So it’s to market cycles with client volumes growing at a steady clip, always UBS – the world’s largest private bank by AUMs – most industry watchers agree the rate of growth (>5%) is paltry followed by either Morgan Stanley or Bank of America in terms compared to the double-digit percentage growth (albeit of a of assets, or by Credit Suisse if the ranking tilts toward banks lower base) in the years following the 2008/09 global financial crisis. whose primary business is wealth management.

Thus, while a ranking of full service banks would read UBS, Morgan Stanley, Bank of America, Credit Suisse, Royal Bank of SCALE IS KEY Canada (based on 2014 AUMs), a ranking of institutions whose Growing wallet share has thus been the buzzword of the last raison d’etre is private banking would read UBS, Credit Suisse, couple of years. At some banks, this has indeed translated into Pictet, Julius Baer and Lombard Odier, based on the same num- growing AUMs. Largely due to good market performance, which bers. has incentivised clients to double down on bets. But if a bank Notice the overlap? Save for the biggest – UBS – there isn’t any. relies on this as its primary means to grow, it will have to be satIs it more than a little incredulous that Credit Suisse – which isfied with a trickle rather than a river. considers itself the closest contender for the top core private A plethora of other factors – paucity of quality talent and banking business spot – does not even feature in the top three increasingly stringent regulation being the most significant – banks by assets (it comes in at number four)? restrict the pace at which private banks can grow. Given the cost My point is this – there is a glaring anomaly in the ranking of private banks that simply does not exist for other financial institutions. Most private banking CEOs I speak with turn up their nose at any list that includes “outsiders” – banks where wealth Morgan Bank of Credit Royal Bank management is not a core business.

UBS Stanley America Suisse of Canada Their elitism is easier to understand when you consider just how many places their banks jump up by 2,035 2,025 1,984 in ranking tables when you remove the Morgan Stanleys, J.P. Morgans, 883 704 HSBCs, etc, of the world.

Indulge them and focus on Table Wealth Management Assets Under Management (in US$ billions) 2 and an even more glaring anomaly becomes apparent: size. While the Source: Scorpio Partnership difference in revenue between the world’s second-largest and largest

2014 GLOBAL AUM LEAGUE TABLE - BY ASSETS

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EDITORIAL

pressures on the current model of private banking, growth is no longer a sign of a bank’s ambition, rather an indicator of whether or not it will survive.

So, clichéd or not, size matters.The Julius Lombard Credit Pictet UBS Baer Odier Suisse & Cie silver bullet – and there almost always is one – is to “buy to grow.” Inspired perhaps by Julius Baer’s daring acquisition of Merrill Lynch’s international 2,035 private bank (read Asian Private 883 438 295 162 Banker Issue 65’s Who dares, wins?), that is the mantra driving five-year Wealth Management Assets Under Management (in US$ billions) plans at private banks today.

There are no guarantees, and if ever there was a reason to evoke caveat Source: Asian Private Banker, Scorpio Partnership emptor, this is it. But any private bank within spitting distance of the top five those too conservative or too capital-starved – is disheartening. positions on the league tables will be forced to “buy to grow.”

One in six of the private banks surveyed by McKinsey in 2014 Many have already, with encouraging success. But this is the said they were unprofitable. beginning rather than the crest of the wave. The alternative – for

2014 GLOBAL AUM LEAGUE TABLE - BY CORE WEALTH MANAGEMENT STRATEGY

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EDITORIAL

Asian gatekeepers doing well, but face resource issues Stars are aligned and tailwinds present, with fund asset growth at Asia’s private banks expected to spike by as high as 30% this year. A comprehensive poll of leading gatekeepers showed that this was achieved with stretched resources, and little is expected to change next year. Here is where asset managers can step up and add value to their services.

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uring Asian Private Banker’s recent Fund Selection Nexus (FSN) 2015 in Hong Kong and Singapore, an in-house study revealed that 77% of private banking operations in the region achieved growth of more than 10%, with nearly 20% posting a 20-30% upside.

More funds were added on 72% of Asia private banking platforms and of the lot, 12% registered 20% more growth in the number of products.

Further, a high proportion of 83% of respondents claimed to have signed at least one new distribution agreement this year, while 17% signed at least five.

All in all, it was quite a productive year.

More impressively, these were achieved

with pretty much the same resources and pay, which are expected to stay constant in 2016. Of the gatekeepers who polled, 61% indicated that regional headcount for fund selection should remain unchanged going forward, with 41% predicting no change in compensation.

ASSET MANAGERS CAN DO MORE

“We are quite stretched when it comes to capacity and it seems like most resources will continue to be allocated to the front office,” said a Hong Kong-based gatekeeper.

“Perhaps more than ever before, we will need the help of asset managers to offer timely updates and training for relationship managers.”

In a region famed for growing private wealth, this offers asset managers yet more opportunity to get into the action. A robust pipeline with innovative products is de rigueur, particularly with recent market volatility nudging clients toward less risky funds.

After all, private banking gatekeepers assess and evaluate fund managers and going forward, communication skills will be even more crucial in addition to a fund’s investment performance and governance.

The benefits go two ways: many relationship managers in Asia-based private banks are said to lack technical knowledge, preferring instead to refer clients to colleagues on the product desk when necessary. By learning directly from asset managers,

MOST TIME-CONSUMING ACTIVITIES AS A FUND SELECTOR IN ASIA

Participants at FSN 2015

Source: Asian Private Banker Funds Selection Nexus 2015 Poll Results

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EDITORIAL

PRIORITY LOCATION FOR EXPANSION OF FUND TEAMS IN ASIA No expansion plans

16.67%

22.22%

Hong Kong

16.67% Singapore Both Hong Kong & Singapore

44.44%

Source: Asian Private Banker Funds Selection Nexus 2015 Poll Results

front end staff will be better placed to field questions from clients, who like everyone else in this day of the smartphone prefer to get answers quickly from one source.

GREATER FUND AUTONOMY

And very encouragingly, foreign headquarters are now more willing to delegate in Asia, thanks in no small part to the region’s platform developments. Unlike prior sentiments of Asian gatekeepers who had had to achieve growth with un-Asian platforms and head selectors at home asking them to take it or leave it, experts polled said a greater amount of attention and weight is being given to the region.

Some 17% of respondents now felt that the likelihood for headquarters to successfully execute an Asia-based request to onboard new products was either “high” or “very high.” Another 39% felt the probability for success was “fair.”

“Headquarters used to just pay lip service to supporting private banking businesses in Asia,” one gatekeeper told us during the FSN in Singapore.

“But as the Asia growth story in mutual funds is taking hold, head selectors in Zurich, Geneva, London and other centres are taking the region much more seriously.”

In the upcoming year, Asian gatekeepers are expected to further build upon several

key drivers that have resulted in inflows for the region’s private wealth industry. Firstly, ETFs, which make up 10-30% of 59% of respondents’ platforms, will continue to play an increasingly central role in portfolios whether it is for broad-based market access or cheap trading in discretionary mandates.

Secondly, UCITS III funds or liquid alternatives will be key in helping investors better manage downside risks and generate returns in both volatile and range-bound markets.

This year, 39% of private banks onboarded three or four new hedge funds and half of respondents described sales as “somewhat successful” or “successful.”

FUND TEAMS HEADCOUNT PLAN FOR 2016

27.78%

No change 61.11% to headcount

Add 1-2 personnel

11.11% Add 3 or more personnel

Source: Asian Private Banker Funds Selection Nexus 2015 Poll Results

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FAMILY OFFICE

Family office boom a private banking boon The recent explosion of new wealth, a Chinese economic slowdown and changing dynamics with families with aging patriarchs means Asia’s UHNWIs are shifting toward building structures to house long-term wealth and formalise governance within family offices (FOs).

ASIAN TECH GIANTS BOOST FO GROWTH

In just the first two quarters this year, tech companies in China raised US$2.3 billion through public issuances. Led by pioneers like Alibaba, Baidu and Tencent, a raft of new entrepreneurs in the sector are entering the UHNW domain in just a fraction of the amount of time it took traditional industrialists to do the same elsewhere in Asia, be it property development, manufacturing or commodities.

Consequently, many of these newly rich – more investment savvy and forward looking compared to the average traditional tycoon - are approaching private banks for help to manage relatively sudden family wealth.

Such clients “will explore what the minimum is that they should do in-house, and outsource the other investment capabilities”, says Bernard Fung, head of family office services and philanthropy, APAC, at Credit Suisse.

“Such clients will typically be willing to deploy more than 50% of investible assets.”

They also show greater willingness to delegate.

By comparison, experts say, “old wealth” principles tend to be hands on and typically delegate just about 25% of investible wealth. Case in point, private bankers were particularly caught by surprise top Alibaba executive Joseph Tsai’s plans to build not just any family office, but one modelled after David Swensen’s Yale Model – an application of modern portfolio theory.

Such clients with highly structured FO plans are highly sought after by private banks, which struggle still to build servicing platforms for ultra-rich but amateur investors.

CHINA’S ECONOMIC HEADWIND, FO TAILWIND

With China’s economy shifting to focus more on domestic consumption than all-out investment growth, HNW families there

and in the region are arguably facing their first challenge to wealth. After all, the yuan is being devalued to link up more close to international market models, and GDP is slowing down to a more sustainable pace.

Prior to the current, some-would-say-orchestrated Chinese slowdown, the region’s rich typically enjoyed unparalleled multi-digit gains from private equity investments, stocks, bonds and structured products. Not to mention robust growth from operating businesses.

With China’s economy shifting to focus more on domestic consumption than allout investment growth, HNW families there and in the region are arguably facing their first challenge to wealth

What this means is that before now, private banks had difficulty selling FO strategies based on diversification and structured wealth planning.

“We get an increasing number of inquiries from such clients asking us to help them take a look at why their family office assets are performing similarly to their operating business,” says Fung.

“We will then leverage from our asset management arm’s CIO to help create uncorrelated portfolios invested with a different risk profile than the underlying family business.”

One family officer adds that in the past, he would typically select performing investments within the patriarch’s preferred

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FAMILY OFFICE

realm rather than agnostically selecting performing investments, because if he didn’t, he would “never actually be able to buy anything for the portfolio.”

The “mood” is different now, he tells Asian Private Banker.

Certainly, this is reflected elsewhere: both BNP Paribas Wealth Management and Deutsche Bank have seen decent demand from their Asian FO clients in more diversified products, such as European infrastructure and real estate, especially for yield.

SUCCESSION PLANNING

Another plus point for private banking FO businesses is that successors are increasingly branching out from the original business that set up the family wealth. This then forces affected families to look for consensus within a FO set-up.

Many, experts note, especially those who have spent decent time in the financial sector, have shown interest in managing that family’s investible wealth, as well as other “sexier” businesses like hospitality.

“Without generalising, the trend of the next generation’s [lesser] involvement in the operating business and greater engagement in managing assets is a motivator to formalising family offices,” says Eric Landolt, head of family advisory, Asia Pacific UBS Wealth Management, adding that the bank has seen significant uptick in dialogue on legacy planning, family governance issues, securing ownership and control in the business, the formation of family councils or the writing of family constitutions.

“To adapt to this growing demand and stay at the forefront in family advisory, our plan is to expand our team in Asia in the next 12 months.”

Certainly, the potential is immense: in a survey by the National University of Singapore and DBS Private Bank, of some 60% of family-owned listed businesses in Singapore, just 6% has initiated succession planning.

“The number one driver for building a family office in the region is succession planning,” notes Mark Smallwood, head of franchise development and strategic initiatives, APAC, at Deutsche Bank’s wealth arm, who clarifies the definition of “next gen” being those in their 40s and 50s rather than the oft-conceived conception of it being those in their 20s.

The core issues involve not just the intergenerational transfer of assets, he adds, but also the longer term management of those assets.

“The UHNWIs who are now in their 60s to 80s are becoming aware of the problems that may arise from not having addressed these issues,” Smallwood says.

This planning spans beyond just the transferal of wealth and power to the next generation, to including issues such as legacy planning, which is increasingly being manifested through charity.

“Family offices are increasingly developing philanthropic initiatives not only as a means to give back but also to build a legacy for the future,” says Peter Triggs, managing director, head of wealth planning, DBS Private Bank. DBS is currently directly funding the DBS Foundation which is currently supporting 200 social entrepreneurs with grants.

“Our clients have shown interest on the issues of disability employment, foreign refugees, water sanitation and more.”

The most pressing need for UHNW clients moving forward is not advice, he adds, calling this “an increasingly commoditised item which you can get from innumerable talking heads.”

Rather, it is wealth planning around not who the patriarch wants to have succeeding him, but what to do with the remaining children “who aren’t going to or don’t want to.”

“SHIRTSLEEVES TO SHIRTSLEEVES IN THREE GENERATIONS”

That traditionally describes the failure of wealth succession in the west. There is a similar saying in Chinese culture that is almost a literal translation: fu bu guo san dai, or “wealth does not pass three generations.”

While many understand this in theory, subscribing to it is easier said than done. Cue high profile news such as the potential breakup of Stanley Ho’s SJM holdings among the tycoon’s family, and the ongoing feud within the Shin family, which controls South Korea’s biggest retail chain Lotte.

Without generalising, the trend of the next generation’s [lesser] involvement in the operating business and greater engagement in managing assets is a motivator to formalising family offices

To Bernard Rennell, regional head of global private banking, Asia, HSBC Private Bank, such news touch on “just the tip of the iceberg.” HSBC, he says, regularly sits with 20-25 UHNW families to discuss best FO practices.

“We have worked with many families on succession planning and intergenerational wealth transfer over decades and it’s that unique perspective that allows us to see what works and what doesn’t,” he continues.

“Some get it right but sadly, most don’t. I think there’s a growing realisation of this.”

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FAMILY OFFICE

Keeping it in the family While the first goal of traditional family offices is to preserve wealth, rather than chase returns, this equation remains more balanced in Asia. This is understandable given that the bulk of family wealth here comes still from first generation principles very much in control of business decisions that contribute to this wealth. But as Asian Private Banker learns from both single and multi family offices (SFOs/MFOs) in the region, this is slowly but surely changing.

F

or many SFOs in APAC, investments in operating businesses remain key. This is contrary to more traditional family office arenas in North America or Europe, where FOs invest mostly in safer instruments such as hedge funds and have made, for generations, preservation of family wealth a focal point.

Matthew Egerton-Warburton, a corporate partner at law firm Withers Hong Kong, believes that it takes “five, ten, fifteen” years after the core business has made money, for families to think about wealth management like “setting up property structures and thinking of moving wealth into offshore trusts.”

“In Asia, you’re still dealing with the first and second generation, who still has the instinct to run a business,” says the solicitor whose firm focuses on family planning and wealth management.

“So even if they put their money in a family office to manage, they still have contacts out there that they want to keep working at… for example to do direct deals or investments with business partners or friends that are parents of their children’s friends.”

This is different from traditional offices in the US and Europe where management lies often in the “third, fourth, fifth generation… people not responsible for creating the wealth.”

Another private wealth lawyer glimpses signs of maturity. “(There has been) a drop in the number of aggressively tax-driven enquiries and perhaps an increase in demand for trusts to achieve long term succession planning and asset preservation,” notes Kevin Lee, a senior partner at Zhong Lun.

ASSET ALLOCATIONS

Single offices in Asia typically hold around 45% in illiquid assets such as private equity and real estate, our research shows. Some,

bespoke to their needs, hold more, and in more unique fashion. (see page 12).

These are not surprising observations, with property featuring highly on traditional Asian investment mindsets. Peter Churchouse, managing director of MFO Portwood Capital, notes further that many regional UHNW families here invest in overseas properties for diversification.

The FO space in Asia is at a point where UHNW FOs are increasingly acting more like institutional investors, he adds, while those managing smaller amounts of US$50-100 million in assets number “in the thousands… and growing fast.”

“A great many UHNW family offices in Hong Kong control or have large holdings in listed real estate companies and many more control private real estate vehicles,” he says.

“The big HK families that control all the large listed companies in HK will have north of 50% of their total wealth in real estate related assets. HNW families who are more focused on other businesses for their core operations, such as manufacturing, infrastructure, technology, retail, trading etc, normally still have a lot of real estate but not as much as the real estate focused listed company families.”

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FAMILY OFFICE

Churchouse sees too an emergence of mainland Chinese FOs but these, “at this point lack depth of offshore investment experience and track record.”

Portwood Capital itself puts “roughly 60-70% of our portfolio in real estate (spanning jurisdictions like the UK, US, Hong Kong and New Zealand), as it is our specialty.”

“The rest is spread between our equities and fixed-income portfolio, property funds, and a few operating businesses, such as self-storage and a financial newsletter business,” Churchouse adds.

Another MFO director, who manages more than US$500 million in assets, adds that real estate is used to hedge risks as much as “commodities such as gold.”

“On average globally, FOs with AUMs (assets under management) below US$250 million – which is most FOs in APAC – have around 25% in direct real estate investments,” he notes, declining to be named.

Meanwhile, following the market slump in the third quarter, Veco Invest Asia trimmed down a 60% equities portfolio by converting 10% of it into cash.

“Afterward we see that Chinese equities are being oversold, so we bought in H-shares,” says the MFO’s managing director Peter Lee. “Currently we allocate our asset as thus: 55% equities, 27% bonds, 4% cash, 4% commodities and 10% alternative investments: a more neutral stance.”

The office also uses structured products to hedge against volatility, he adds, but “we cap it at 10% in our discretionary portfolio.”

European bonds have been another major risk management theme for Veco, with Lee forecasting that “with low inflation and lower oil price down the road, also a better credit environment overall, (there) will (be) better upside.”

with the growth in “smallish” family offices that manage US$50100 million in AUMs. As Campden Wealth CEO Dominic Samuelson noted at a recent briefing, higher operating costs in Asia usually stem from “four causes: increased staff, new branches, new locations and increased regulatory concerns.”

Withers’ Egerton-Warburton says that regional clients anchored in the family office or business typically manage over US$400 million in assets.

Single offices in Asia typically hold around 45% in illiquid assets such as private equity and real estate

“There are studies that have shown that if you manage less than that, you might as well not set up (a family) office,” he notes.

In one aspect at least, the industry appears to be evolving toward a more stable regime.

As Zhong Lun’s Lee says, FOs are “quite interested in discussing fiscal reporting and compliance matters with us these days.”

“We always stress that trusts must be tax compliant, and we find that these days more clients are receptive to our recommendations to obtain tax advice from jurisdictions relevant to settlors, beneficiaries, protectors or underlying trust assets and income,” he notes.

MATURING, DESPITE COST PRESSURES

On the flip side, APAC family offices pay the most in operating costs, due partly to the growth of smaller sized family offices that typically seek high returns, as well as increasingly strict regulatory pressure.

FOs in the region take as average operating costs 93 basis points of AUM - higher than those in either Europe (82 bp) or Emerging Markets (58 bp), notes a recent joint UBS and Campden Wealth poll. This more aggressive stance, FO executives say, coincides

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FAMILY OFFICE

A UNIQUE SFO PROPOSITION A SFO can achieve a lot, because it does not account to multiple shareholders and views. Markus Jebsen, group chairman of the multimillion-dollar holdings and venture capital company MF Jebsen International Ltd, chose to position his toward conservation of global biodiversity, wildlife and nature, with his Eco-Land Bank projects focusing on long-term truly Sustainable Investments (“an often abused term”) and Eco-Tourism.

Jebsen’s business interests span travel and airline services such as representations, corporate, wholesale and leisure travel, as well as insurance and automotive services. For instance, MF Jebsen Motors are agents for Aston Martin and Dainese, while another is a joint venture with BCD Travel, the Dutch-American travel conglomerate and third-largest corporate travel solutions provider worldwide.

Meanwhile PAM (Pacific Aviation Marketing) represents 16 airlines as exclusive HK and China general sales agents, plus many other airlines as consolidator agents such as Cathay Pacific, Lufthansa and United Airlines.

Together with some commercial and residential properties, this makes up around a third of Jebsen’s wealth.

Those aside, a good third of assets are also invested in a private portfolio of funds and stocks.

Then there are the Eco-Land Banks – essentially investments in rewilding projects and for conservation of wildlife in natural landscapes. These account for more than 30% of Jebsen’s personal wealth.

Growing up partially in HK and in his forefathers’ native Denmark, Jebsen grew fond of the oceans and wilderness areas and as he developed his businesses in Hong Kong, this affection was never far from his mind. His business is also one of just seven Double Diamond members of the World Wide Fund for Nature in Hong Kong – the topmost corporate membership tier.

Talking to Asian Private Banker, Jebsen pours over a large colourful book – a documentary called Over-development, Over-population and Over-shoot, which depicts “humankind’s delusions of supposed everlasting global industrial and economic growth at the on-going expense of our natural environments.” After an eru-

dite discussion from attacked landscapes to wildlands philanthropy, he reveals his EcoLand Bank initiatives, which he started a decade ago.

These stretch far and wide from forests in upstate New York and ranches in California, USA, rewilding areas in his native southern Denmark, the Carpathian Mountains in Romania, and down all the way south to the Zingela Game Reserves on the South African border with Botswana.

ECO-TOURISM REWARDING

Speaking with a mix of excitement and regret, Jebsen says “there used to be some 30 Black and White Rhinos roaming Zingela Game Reserves until just recently.”

“But due to rampant syndicate crime poaching, only 16 survived… We are gifting them over to the Okavango Delta in Botswana,” he continues, adding that Botswana president Ian Khama and his government are “200% behind wildlife and nature conservation.”

South Africa has “a somewhat strange and largely unethical game market”, he adds.

“The value of live rhinos has dropped significantly from a million rand (roughly US$75,000) to 200-300,000 rand because “no Boer (South African farmer) wants them any longer as they have become a conservation liability, rather than an asset or the Iconic Beast worth protecting for posterity,” Jebsen laments.

“So currently we have our rhinos in quarantine, then in transit to Botswana – they are guarded day and night by top security squads with semiautomatic weapons; it’s pathetic,” Over in Romania’s Carpathian Mountains where aggressive Austrian logging companies and over-hunting by Romanian

“mini-oligarchs” are wreaking man-made havoc, Jebsen co-founded the privately initiated Wild Carpathia Reserves. He is in the process of donating 2,000 hectares of forest and land to the Reserve, which has already acquired some 20,000 hectares. It is aiming to eventually hold 100,000 hectares and manage another 200,000 hectares for protection.

“We are also holding several large hunting concessions in the region and are bidding for several more to stop hunting altogether and give seriously depleted wildlife numbers of bears, wolves, lynx, deer and wild boar a chance to recover,” Jebsen adds, calling it “one of the most rewarding things one can do.”

Any investment in a potentially beautiful piece of land is a great investment, he says, including potential for eco-tourism.

He then adds with a grin: “Is losing a big chunk of your assets in the stock market a more palatable option to you?”

MF JEBSEN ASSET BREAKDOWN 35%

30%

35%

Eco-Land Banks Operating Businesses (incl. commercial & residential properties) Private funds and stocks

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There are, however, a few key differences between the two instruments. The first is that loans have uncertain settlement times and in the US, the median settlement time is nearly 2 weeks according to the Loan Syndications & Trading Association (LSTA). This means there is a possible liquidity mismatch between the fund vehicle and underlying asset. High yield FRNs can be traded on a daily basis like any other bond and settle in two days.

It is the combination of these three features that enables investors to receive an attractive, growing income stream without associated loss to capital when rates rise.

Secondly, the majority of US loans now have LIBOR floors while high yield FRNs do not. This means that coupons from loans will not adjust upward until LIBOR is higher than the floor. For example, if 3-month USD LIBOR moves from the current 0.30% to 0.55% and a loan has a floor of 1%, then the coupon will not adjust. Only when LIBOR breaches 1% will the coupons start to adjust. This means that loans with floors extend duration by a small amount until the floor is breached and will experience a small amount of capital loss if underlying government bond yields rise. This is relevant as the market waits for the US Fed to hike its Federal Funds Rates, which is highly correlated with LIBOR. FRNs, in contrast, currently have nearly zero duration as they do not have LIBOR floors.

High yield floating rate notes vs leveraged loans

A new tool for a rising rate environment

Given the characteristics outlined above, it is no surprise that high yield FRNs share many of the same investment characteristics as leveraged loans (floating rate coupons, senior position in the capital structure, non-investment grade issuers) and a comparison between the two instruments is illustrated below in Table 1.

High yield floating rate bonds offer a unique combination of characteristics for fixed income investors, namely exposure to high yield credit spreads alongside materially lower interest rate risk. We have highlighted some key differences between high yield FRNs and leveraged loans, illustrating how FRNs not only provide investors with a new tool to mitigate the potential headwinds of higher interest rates, but also provides an investment that actually benefits from the next phase of the monetary policy cycle.

• floating

rate coupon automatically adjusted in line with changes in interest rates;

• relatively

high credit spread that reflects the additional credit risk of a non-investment grade issuer;

• an interest rate duration close to zero.

Table 1: Difference between high yield FRNs and leveraged loans Coupon Credit rating

High yield FRNs

Leveraged loans

Libor + fixed margin

Libor + fixed margin

Non-investment grade

Non-investment grade

Security

Typically first lien/ senior secured

Typically first lien/ senior secured

Liquidity

Daily trading T+2 settlement

Less liquid, uncertain settlement

Public information only

Public and private information

Yes – can be included in open-ended funds sold to non-institutional investors

No – limited to institutional investors only. Non-institutional investors can only gain exposure through closed-ended funds

None

Yes – typically 1%

Public/Private UCITS eligible

LIBOR floors

The above materials and/or information is for general guidance only and should not be relied upon as, or treated as a substitute for, specific advice. Neither M&G Securities Limited nor its affiliates accept any responsibility for any reliance on any of the information contained in these materials or any direct or indirect loss which may arise therefrom. If you are in any doubt about the contents above, you should seek independent professional financial advice.

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FAMILY OFFICE

All roads lead to technology In an industry valued at US$15.5 billion and pegged to double in the next five years, external asset managers (EAMs) are beginning to gain critical mass in Asia. Unsurprisingly, clients are increasingly demanding efficient execution, privacy reassurances and portfolio predictions. As over 80% of EAMs surveyed by this publication indicate, the answer lies in technology.

T

echnology strategies at EAMs are beginning to mirror those of private banks, albeit on a smaller scale. Consequently, technology expenditure at EAMs have also increased, with the majority of those surveyed seeing a 10-20% rise in their technology budgets year-on-year.

Further, many are also seeing such allocations take a larger slice of the budget pie – 60% of those surveyed set out that an unprecedented 10-20% of its income is now allocated to technology.

The trend is unrelentless. Francois Monnet, Credit Suisse Private Banking’s COO for Asia, has indicated that tech spend will rise by 100% over the next three years; Deutsche Asset & Wealth Management’s COO for Asia, Venkatesh Narasiah, forecasts a more moderate increase of 5-10%; while DBS’s group head digital bank, Olivier Crespin, affirms that the Singaporean bank will add S$200 million (US$143 million) over the next three years on top of its annual S$600 million budget.

“EAMs with over US$1 billion in AUMs (assets under management) have budgets ranging from US$100,000 to US$200,000 per annum,” says Charles Wong, CEO of Privé Financial, the Hong Kongbased software solution provider for EAMs and family offices.

In today’s data-rich environment, technology has become integral across all aspects of the firm, adds Melvyn Yeo, executive partner at Singapore-based EAM Thirdrock. This ranges from client acquisition-related activities like risk management to trade execution and ongoing portfolio monitoring.

Earlier this year, Thirdrock decided to license Privé Financial’s solution – a front-to-end platform with onboarding and reporting tools, scenario analysis, an integrated CRM portal that connects with private banks.

While EAMs operate from a much smaller base, the expand in wallet spend for technology echoes that of private banks where budgets are north of US$60 million.

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FAMILY OFFICE

of sensitive information passing through vendors that partner private banks.

Perhaps the most pressing concern for EAMs, and private banks, is how technology can positively affect bottomlines.

Lee is sceptical given the early stage of the industry: “We need to consider the cost benefit of technology investments. At the moment, if we sign on a vendor for US$5 million but only use 5% of its platform, it does not serve its purpose.”

EAMs, he adds, still look at private banks to provide IT support, leveraging its investments first.

Yeo is more optimistic, viewing the investment in IT as a long-term productivity gain: “The enhanced efficiency and productivity throughout the entire wealth management value chain, along with benefits of economies of scale, will ultimately improve the business bottom line.”

BACK OR FRONT OFFICE?

But where do you allocate such budgets? And should they build or buy solutions?

“EAMs are experiencing a trial and error phase – similar to private banks – where they are still debating whether to build or buy technology,” says Julian Schillinger, product head at Privé Financial.

The main difference in the decision-making process between EAMs and private banks is that it costs more for EAMs to build their own systems relative to revenues. It would cost at least US$1 million for an EAM or a family office to build its own portal that connects to private banks, maintain it and ensure all the right connectivity points are in place. To outsource the solution would “charge a fraction of that”, says Wong.

According to the Asian Private Banker Tech Survey 2015, 20% of polled EAMs are looking at building mobile apps, 40% are looking at portfolio management tools and 60% are focusing on onboarding tools.

The reasons for investing in onboarding tools are two fold.

“At this early stage in the EAM industry, technology solutions focus on client facing or client onboarding processes that help us be more productive. Here we can see the ROI,” says Peter Lee, CEO of Hong Kong-based EAM Veco Asia.

Secondly, Schillinger notes, client demands are changing as they grow digitally savvy, and consequently require more real-time access to portfolio management analysis.

STUMBLING BLOCKS

But even if money is available, Asia’s shallow technology vendor pool means that solution choices are limited.

Lee says: “There are not many localised vendors in the region. This is the biggest problem for us. The vendors that originate outside of Asia do not understand the Asian EAM model and clientele.”

As is the case with the entire financial industry, Thirdrock’s Yeo adds, EAMs are also victims to changing regulations and as a result, need to adopt technology that supports compliance frameworks and processes with an audit trail that runs across the entire investment cycle.

“This will better prevent issues that might otherwise not be captured, if we did not have the information at hand to analyse,” he says.

Further, as Privé’s Wong notes, many vendors, surprisingly, do not offer a two-step data encryption security verification process, in spite

TRENDS AND TRAJECTORIES

EAMs have been using technology more and more in their distribution of structured products – a direct consequence of recent market volatility that is creating more need for products that offer diversification.

This past summer, EAMs Caidao Wealth and Veco Invest Asia individually partnered Citigroup and structured products technology platform Leonteq to roll out an actively managed, multi-manager FX strategy – one that is usually available to institutional clients. What this meant is that Leonteq wrapped the exposure into an actively managed certificate format that allows for smaller ticket sizes.

More EAMs are expecting similar unions with multi-dealer technology platforms such as the likes of Contineo, AG Delta, FinIQ and IPDS. Another trend on the horizon is a syncing of technology that more effectively links EAM desks at private banks with the EAMs itself, to improve and speed up execution of client strategies.

“At the moment, the European EAM model is more developed (in this regard) but we are seeing more private banks in Asia adopting this approach,” says Wong.

EXTERNAL ASSET MANAGER FACTBOX

HONG KONG AUM: US$15.5 billion AUM by 2020: US$32 billion Number of EAMs: 30 EAM asset base of private banking: 3% Industry Association: launched in October 2015

SINGAPORE AUM: US$16.9 billion AUM by 2020: US$34 billion Number of EAMs: 80 EAM asset base of private banking: 4% Industry Association: launched in March 2011 Source: Asian Private Banker, Julius Baer

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Straight Talk:

Gloria Sun, head of private banking, The Bank of East Asia Clients are returning to dividend and conservative plays following recent market volatility, Sun notes. She also tells Asian Private Banker that her business targeting to grow to 50%, by 2017, its portion of assets under management (AUM) for mainland clients.

“

It’s really a return to basics for many core clients... some are holding on to high yield bonds that mature in three to five years or bonds with China state-owned background,” says Sun, referring to recent less-than-optimistic economic and market data.

BEA is Hong Kong’s largest independent local bank, and the first to be owned by an ethnic Chinese when it was established in 1918. Its private banking arm however, has only just turned ten.

“There is a concern in the market about the slowdown of China’s economy. Against this backdrop, we see clients have regained an interest in USD- and HKD-based investments, as some clients have reduced their holdings in RMB assets,” says Sun. Some 35% of BEA’s private banking’s assets originate from mainland and Taiwanese customers, with the rest from customers in Hong Kong, she says. The aim though, is to evolve to a 50-50 split “within the next two years.”

Sun also hopes to grow the relationship manager (RM) headcount to 50 in this period, from about 41 now, based on current levels of back office support.

second spot behind North America. The latter is expected to remain the wealthiest region with US$122 trillion by 2020, at an annual growth of 5.6%, while European household wealth is forecast to hit US$102 trillion, or 6.3% growth per year.

In line with such bullish forecasts, BEA’s private banking has seen annual double digit AUM growth since it was set up in 2005, except last year when this rose by 9% due to “challenging market conditions.”

CHINA PROSPECTS

Household wealth in Asia Pacific is forecast to rise by nearly 50%, or 8.1% per year, to reach US$107 trillion by 2020, notes a recent report from the Credit Suisse Research Institute.

This will see it leapfrog Europe into

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The bank’s China subsidiary currently has 128 mainly-retail branches on the mainland, making it one of the largest foreign banks in China in terms of network reach. BEA’s strengths become more apparent after it crossed the border to mainland China, where it was the first foreign bank in the country’s reform era to establish operations.

“Capitalising on our extensive branch network in China, we are able to reach out to targeted clients, providing them with offshore services,” says Sun, who joined BEA two years ago.

By comparison, UBS – Asia’s biggest private wealth manager by AUMs with 1,186 regional RMs last year, based on Asian Private Banker 2014 League Tables – appears to have just two wealth management branches in mainland China, under UBS (China), in Beijing and Guangzhou. UBS, which has no retail operations in Asia, also has some UBS Securities offices in Shanghai and Shenzhen, in addition to those in the previous two cities.

The number two bank on our list, Citi, has 52 mainly-retail consumer branches. Number three Credit Suisse has three private banking branches in Beijing, Guangzhou and Shanghai.

This means that while Gloria’s offshore operations has no formal business on the mainland, it has over the past ten years maximised corporate and retail referrals across the border, particularly as more Chinese seek overseas investments or businesses.

This cross-pollination policy is something that many global banks are now turning to to revive sluggish worldwide operations.

RISING REGULATORY COSTS

On the other hand, Sun also sees increasing regulatory requirements exerting more pressure on costs. BEA’s private banking arm has expanded its compliance team to cope with increasing regulation, she adds, without revealing details.

This is in line with Asia’s general banking industry where regulators recently requested CVs of HNW clients, even when the client is retired.

“Clients, especially the older ones, are often reluctant to go through the due diligence process for every trade that they make but that’s how it is these days. One solution is to provide a digital platform that enables clients to fulfil due diligence requirements more easily. We are looking into that right now.”

Going forward, Sun still sees the majority of the Bank’s clients preferring to make their own investment decisions with research and advice provided by private bankers.

She also notes demand for wealth and succession planning, especially from clients who originally were not receptive to such advice. Further, Sun adds, many second generation members of mainland clients are migrating overseas and as a result, their parents are keen to set up trusts to hold offshore assets for their children. The bank has seen “significant increase in interest in trustee services among our clients in mainland.”

“Clients now realise that there is a need for an overseas wallet and for more stable investments,” she continues.

“Even if a yield of 5-6% is not ideal to some these days, they will be happy if the package comes with a succession plan like a trust plan and some protection.”

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Hiring: The rise of compliance Private banks in the region are always on the lookout for relationship managers (RMs) as they seek to grow their assets under management (AUMs). But as recruiters and private bankers tell us, this has been rivalled over the past two-to-three years by a search for compliance personnel.

A

s international banking regulations in Asia begin to morph more rapidly in the past few years, the demand in advisory compliance has boomed alongside.

For the first time, private bankers tell us, more compliance hires are being given “managing director” titles, where “executive director” would have been the previous designation ceiling. Their salaries also jump an average of 25% now whenever they move, a hiring source tells Asian Private Banker.

“This has stabilised recently,” the source said, declining to be named because his headhunting firm services several private banks in the region.

“Three years ago when demand for compliance exploded following a rise in regulatory standards, such increments ranged from 30% to 80%.”

Industry watchers add that while compliance duties at private banks paid 25-30% less than legal work as recently as five years ago, it is generally on par now.

Further, demand for such specialists is so strong at the moment that banks are widening the search to staff with the requisite experience, rather than just looking for qualified professionals like accountants and lawyers.

As Winnie Leung, compliance director at recruitment firm Pure Search, notes, candidates with “strong products, AML or local regulatory experience in the private banking space, in particular”, are in high demand.

“I would say it’s comparable to RMs who can bring in AUM as compliance officers nowadays are seen as business partners; without their approvals, there will be no business at all,” she adds.

Following a spate of financial crises in the last 20 years, culminating in the 2008/09/Lehman fiascos, Asian regulatory regimes are demanding more and more of banking operations to ensure that everything from AML to KYC is as much as possible built on solid footing. Reflecting such risks is the landmark fine £28 million (US$43.2 million) issued by Swiss authorities on HSBC earlier this year.

COMPLIANCE SALARIES

According to Hudson, another executive search firm, four of the top five jobs most sought after by the general banking sector lie in compliance. “‘Compliance officer’ is the most sought-after job in private banking,” says Siddharth Suhas, director at Hudson Hong Kong.

“Analyst grade compliance officer wages start at HK$35,000 (US$4,500) per month and those with 10-15 years of experience at vice president grade go for around HK$1.3-1.5 million per year; at managing director level, salary starts at HK$2.8 million per annum on base salary alone.

This demand for compliance officers is mirrored in Singapore as well.

“Compliance experts continue to be one of the most sought after group of banking employees… [it] has been the case for several years”, says Stella Tang, managing director of Robert Half in Singapore.

Although demand has “reduced slightly from previous years” due to the vacuum being filled by “employees in other areas of specialisation”, she adds, compliance professionals can still expect to earn annually “S$75,000 (US$54,000) for a compliance analyst through to more than S$230,000 for a senior

TOP BANKING JOBS IN ASIA FOR 2015

Source: Hudson Hong Kong

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vice president/managing director.” That translates roughly to HK$420,000 and HK$1.3 million respectively.

And the merry-go-round looks set to continue. As Tang notes, most financial institutions have “already increased the number of professionals in their compliance team during the last three years” and those who joined a few years back are “now interested in more senior roles at other banks if an opportunity does arise.”

This is a trend that may persist for another two years to 2017, reckon sources that include the head of private bank operations for a global institution in Asia.

After all, as the Hong Kong Monetary Authority deputy CEO noted as recently as June, some banks in the territory face multimillion-dollar fines for having failed to meet anti-money laundering requirements.

“The authority is investigating some banks over their deficiencies in adhering to the high standards set out in the anti-money laundering law introduced in 2012,” Authur Yuen told media then.

Banks, he added, “do not have sufficient systems in place for background checks of clients”, which “may be related to some banks having not yet invested sufficient technology and manpower into the new requirements.”

RMS STILL IN DEMAND

While compliance roles are in the spotlight, industry watchers maintain RM hiring remains a key priority in the next few years.

For instance, PwC’s inaugural Asia-Pacific Private Banking Pulse Survey shows that private banks across Asia continue to

PRIVATE BANKING COMPLIANCE OFFICER PAY SCALE No. years experience

Monthly Salary (HK$)

Bonus (in months)

3-7

40K to 75K

2 to 4

8-12

75K to 120K

3 to 5

13-17

120K to 180K

3 to 6

18+

180K to 250K

5 to 8 Source: Pure Search

evaluate their business market focus, particularly with regards to service priorities, with a high proportion of growth to come from personnel grabs.

Some 25% of respondents polled say they would recruit more RMs to bring in AUM. This is second in proportion to the 31% who said growth would come from deepening existing client segments and wallet share.

“Over the next two years, discretionary portfolio management, family office services as well as financial planning are expected to grow in importance relative to advice-led portfolio management,” PwC notes.

“There is also a trends towards building more capabilities in-house and providing an overlay to third party managed products… Nevertheless, the consensus is that recruiting the right talent is critical to deliver on their growth strategy.”

AREAS OF GROWTH AND REVENUE Deepening existing client segments and wallet share

31%

Recruitment of more relationship managers/teams bringing in AUM

25% 15%

New products and services Collaboration with new product providers and suppliers

11%

Better rates/margin on products and services

9%

New geographical markets

9% 0%

10%

20%

30%

40%

Frequency of Responses

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TECHNOLOGY

GUEST COLUMN

Standard Structures – the journey to standardisation and innovation Structured products have languished decades behind other asset classes, still largely traded by voice, phone and email. But the pressure to bring this asset class into the present has finally reached tipping point. Mark Munoz, managing director of Contineo, looks at the structured product market in Asia to see what the future holds.

I

n the years leading up to 2007, structured products were booming in Asia. Investors were clamouring for so-called “black box” products, and products of every flavour were selling like hot cakes. Then, when the financial world collapsed, this market did too. For years it lay almost dormant, until Asian investors redeveloped an appetite for the specific kinds of diversification structured products can offer.

These newly formed appetites were different from those that had gone before. Investors wanted simpler products, with structures they could understand and underlyings they were familiar with. They wanted to buy smaller lots of a wider range of products, and to be able to customise these to fit their wants and needs. They were much more sophisticated in knowing which products to use in various market conditions, and wanted to be able to constantly tweak their portfolios to chase returns.

These new consumption patterns posed some problems for issuers and private banks.

Volumes had returned to pre-2007 levels, but this new trend of spreading investments much more widely meant that the volume was generated by a far greater array of products than in the past.

Not only that, but investors’ constant tinkering with their portfolios meant a four-fold increase in the number of transactions for the same notional value. The number of structured product staff on the sellside, having crashed in the crisis, was still far below the levels it had been last time volumes were this high.

Naturally, as the market picked up, more and more providers piled in to service it. Private banks, whose clients were pressing to have as wide a product selection as possible, needed to gather information from a long and growing list of issuers. The issuers in turn needed to connect to all their potential customers, so the communication

A LOOK AT THE INVESTMENT PRODUCT MARKET EVOLUTION IN HONG KONG 213 510

468

329 187 172

2012

2014

Structured investment product volume vs aggregate transaction amounts (HKD billion)

2012

2014

Licensed corporations having sold investment products to individual investors

Source: SFC, Survey on the Sale of Non-exchange Traded Investment Products 2012 and 2014, Contineo

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20628-AD- Rebrand one-page MAP ad_FINAL_PRESSREADY_CROPM.pdf

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network propping up the market became ever more complicated.

Managing this booming market over email and phone wasn’t going to work for long.

ENTER AUTOMATION

As equities, futures and FX had done long before, the structured product market needed automation. Autoquote had provided the first step, but still relied on 1970s technology – email. While structured products weren’t suited to an exchange-like environment, an automated platform where buyers and sellers could communicate was clearly needed. There were also the risk issues associated with manual processes, with which regulators were becoming increasingly uncomfortable.

Some issuers solved for this by building their own multi-issuer platforms. Larger banks with big internal resources were able to find the financial and human resources needed to create and maintain this new infrastructure. At first, this offered a competitive advantage to the two or three issuers who could offer the efficiencies of automation to their customers. But others quickly caught on. Those without the resources to build their own platforms used vendors or outsourced to others. And this created a brand new set of problems.

Private banks suddenly found themselves having to build connections to multiple platforms, each with their own protocols and unique requirements. The industry had no standard “language”, and connections were expensive to create and then needed ongoing maintenance.

In an environment where reducing cost was still a core concern, spending lots of money on multiple connections was untenable.

When the equities market looked at these issues in the early 1990s, the FIX Protocol was born. Created to give the equities world a common language, it has been successfully used ever since. Structured products now needed something similar – a standard protocol created by the industry, for the industry, that anyone could use.

OPEN ACCESS

Multi-issuer platforms have ceased to be a differentiator and are now viewed more as expensive utilities. Getting the cost of this utility function down to the minimum possible level for everyone involved will free up resources to focus on true areas of differentiation.

Open access is the key to getting this right. When all players in the structured product world can come together to communicate in a common language, a truly efficient market will be possible. Exclusive networks that shut out competitors just maintain the market’s fragmentation and increase cost and complexity for everyone.

An open network for all participants presents huge opportunities in terms of data. Structured products’ days as the “black hole of trading” are numbered. Regulators will not put up such a lack of transparency and information about what is going on in the market forever. Data will give issuers the ability to benchmark themselves more efficiently, and perhaps even start to create indices and other innovations that simply are not possible today.

The future is bright for the structured products world. By moving forward as a community, we can create a rising tide to lift all boats together, creating a market that is better, faster and easier for everyone.

160,000

160

150,000

150

140,000

140

130,000

130

120,000

120

110,000

100

100,000

b Fe

Ja n

1 M 4 ar 1 Ap 4 r1 M 4 ay 1 Ju 4 n 14 Ju l1 4 Au g 1 Se 4 p 1 O 4 ct 1 N 4 ov 1 D 4 ec 14 Ja n 15 Fe b 1 M 5 ar 1 Ap 5 r1 M 5 ay 1 Ju 5 n 15 Ju l1 5 Au g 15

110

Sales Volume (HKD millions)

170

14

Product Issuance

DEVELOPMENT OF STRUCTURED PRODUCTS IN HONG KONG AND SINGAPORE SINCE 2014

Source: Structured Retail Products, Contineo analysis

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PE O PL E MO V ES

MOVERS & SHAKERS

Movers & Shakers is a monthly compilation of the private banking industry’s key talent moves.

For the full version of Movers & Shakers, login or register at:

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