Issue 111 May 2017 Lite

Published by Key Positioning Limited 13B Greatmany Centre 111 Queen’s Road East Wanchai, Hong Kong Tel: +852 2529 1777 Fax: +852 3013 9984 Email: info@asianprivatebanker.com ISSN NO. 2076-5320

LETTER FROM THE EDITOR

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ASIAN PRIVATE BANKER

RM:ARM RATIO IN 2016

YOY CHANGE (%)

Asia-based private banks

1.8:1

+15%

Bulge bracket private banks Pure plays European private banks

1.7:1 1.2:1 1.0:1

+8% +12% +5%

INDUSTRY

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ASIAN PRIVATE BANKER

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INDUSTRY

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ASIAN PRIVATE BANKER

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DISCRETIONARY PORTFOLIO MANAGEMENT LEADERS CONVERSATION Win more discretionary mandates from Asia-based clients

May 30, 2017 | Singapore June 1, 2017 | Hong Kong

www.apb.news/dpmlc2017

This event qualifies for CPT/CPD accreditation.

RSVP to Koye Sun koye.s@asianprivatebanker.com / +852 2529 0617 ASIAN PRIVATE BANKER Conversation Partners

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INDUSTRY

2016 YoY change in overall investment inflows Hong Kong

Singapore

40% 30% 30%

20% 20%

10%

10%

↓40+%

↓20-40%

↓0-20%

No change

↑0-20%

↑20-40%

↓40+%

↑40+%

↓20-40%

↓0-20%

No change

↑0-20%

↑20-40%

↑40+%

Expected YoY change in overall investment inflows for 2017 Hong Kong

Singapore

40%

30%

30% 20% 20%

10% 10%

↓40+%

↓20-40%

↓0-20%

No change

↑0-20%

↑20-40%

↑40+%

↓40+%

↓20-40%

Expected most popular asset class for 2017 by net new inflows Hong Kong 1. Equities 2. Fixed income 3. Alternatives 4. Others

Singapore 1. Equities 2. Fixed income 3. Others 4. Alternatives

↓0-20%

No change

↑0-20%

↑20-40%

↑40+%

INDUSTRY

Average cash allocation amongst wealth managers’ Asia clients Hong Kong

Singapore

majority of respondents say 20-40%

majority of respondents say 0-20%

Average fixed income allocation amongst wealth managers’ Asia clients Hong Kong

Singapore

majority of respondents say 20-40%

majority of respondents say 20-40%

Most challenging issue with regards to Asia client portfolios Hong Kong 1. Lack of diversification 2. High cash allocations 3. Lack of assets delegated to active managers 4. Others

Singapore 1. High cash allocations 2. Lack of assets delegated to active managers 3. Lack of diversification 4.Others ASIAN PRIVATE BANKER

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A P B M A N DAT E

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APB MANDATE

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ASIAN PRIVATE BANKER

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TECHNOLOGY

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ASIAN PRIVATE BANKER

TECHNOLOGY

Financial tech firm

Launch date in Asia & HQ

Business model

Min. threshold

Fee structure (US$)

Main features

PB clients

Bambu

Feb 2016 SG

B2B

No minimum

$50,000 setup + $100 per user per month

- Aims to improve efficiency of RMs - Unified display of market and house views - Recommends relevant investment ideas for client portfolios - Powered by Thomson Reuters

None

Bento

Oct 2016 SG

B2B & B2C

US$1 million

30bps

Human-led robo that aims to help advisors build customised core portfolios for clients; portfolio construction “with fundamentally-led forward looking assumptions” with strategic asset allocation and dynamic overlays; client engagement model and IP is built internally “to suit the specific needs of the target segment”

Tie-up with Willis Towers Watson

Privé Managers

2011 HK

B2B

N/A

AUM or annual fee

Virtual funds (patented), that can be auto-allocated and rebalanced (patent pending)

2 banks, 6 robo advisors via IAMs and FOs

BondIT

March 2016 Herzliya, Israel

B2B

N/A

User subscription or enterprise licence

Fixed income portfolio construction, optimisation, monitoring, and rebalancing

Bank of Singapore

additiv

Jan 2015 SG

B2B

Minimum investment “can be very low”, using fractions (ex: 200 USD per investor)

Licensing model, with DFS solution installed on-premises or SaaS

All market segments: micro-savings/investments, robo for millennials, online portfolio management tool for family offices and professional investors

Swiss private bank and a Malaysian private bank (unable to reveal names)

Quantifeed

June 2013 HK

B2B

SaaS

AUM-based

- Goal, risk, and theme-based investing - Advisor & sales tool suite - L ibrary of thematic and strategic portfolios built by in-house quantitative experts - Hosts funds, ETFs, shares - Global market multi-currency - Available in 7 Asian languages - Integration with core banking systems - Operates in multiple configurations

A private bank in Hong Kong, a private bank in Taiwan. MFOs in Singapore (unable to reveal names)

CONNECT By Crossbridge

Nov 2016 SG

B2C

$50,000

Management fee from 0.20% to 1.25%, no other fees

- Actively-managed portfolios - e-onboarding - Backed by Julius Baer

Accredited HNW investors in Singapore

8Securities

April 2015 HK

B2C & B2B

US$100

Free under $1,000 and 0.88% on balance above. Free buying & selling. Free rebalancing.

- iOS and Android enabled - Goal-based - USD, HKD and JPY portfolios

None

Smartly

2016 HK

B2C

US$50

- Management fee of 0.5% to 1% - ETFs have an expense ratio (ranging from 0.05% - 0.17% depending on allocation)

- A digital platform mainly for retail investors - An educational platform to help clients gain a better understanding of investing

None

Infinity Partners

2015 SG

B2C

American accredited investors with minimum of US$2 million

Clients are charged about 1% of assets

American expats can buy ETFs

None

Eigencat

2017 SG

B2B

N/A

-licence fee/ maintenance fee type of structure

- Modular digital investment platform for the wealth space - Partnerships with IBM, Thomson Reuters - Uses AI and machine learning and has chatbot facilities - Sponsored by NUS

None

ASIAN PRIVATE BANKER

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A P B M A N DAT E

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APB MANDATE

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