Amy Lo

chairman of Global Wealth Management Asia, co-head Wealth Management Asia Pacific, UBS Global Wealth Management, head and chief executive, UBS Hong Kong, UBS Global Wealth Management

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

2023 was a historic year for markets. As the international wealth powerhouse in APAC, we have stayed close to our clients and unlocked greater value in their portfolios. Over 90% of our clients have expressed their satisfaction with our services as seen in our annual client survey.

This confidence is reflected in our latest Q3 results. UBS GWM APAC recorded strong performance with US$13.1 billion of net new money (NNM), accounting for almost 60% of global NNM. We continue to be the largest wealth manager in this region, overseeing more than US$600 billion in invested assets.

We advised our clients that diversification is key. For example, almost half of APAC family offices prefer using hedge funds to diversify and almost 75% of those who are likely to increase their private equity investments expect private equity to outperform public markets.

Accelerating our combined growth momentum for our clients is our priority in 2024. A few key themes we expect to see next year are China 3.0, the green transition and tech innovation; the changing geopolitical arena for Asian powers; and the AI economy.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

China remains at the centre of Asia’s financial ecosystem and will account for nearly a third of all global economic expansion.

A space to watch in 2024 is China 3.0. The economy transitions to a new-world trinity of mass consumption, the green transition, and tech innovation. But the rebalancing is not easy. Potential growth could moderate to 4 – 4.5% over the next 5 – 10 years, with wide variability across shorter periods. That said, policies could smooth fluctuations, for example, ongoing easing may boost GDP growth to around 5% in 2024, in an upside scenario.

We also see opportunities in downstream renewable energy operators, select solar and wind supply chain leaders, and the electric vehicle and its auto supply chain sectors.

Young Jin Yee

co-head Global Wealth Management APAC, UBS Global Wealth Management

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Asia is increasingly shaping the world. This 2024, we are entering a new world of economic and geopolitical transformation and profound technological change.

Alternatives will continue to be one promising investment space. Specifically, private markets offer attractive return potential and superior access to the real economy, in exchange for lower liquidity.

We also expect to witness a megatrend around AI that will have a significant impact on APAC. The past decade has been defined by Asia’s “app economy” and the next 10 years will be the “AI economy”. AI’s strong growth potential is likely to offer vast investing room as we expect global AI revenue opportunities to grow from US$28 billion in 2022 to US$300 billion in 2030.

As inflation cools and the economy slows, bonds, especially high-quality ones, should deliver decent returns in different scenarios. There are potential upsides in laggards within equities and we advise picking leaders benefiting from disruption.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

UBS was the first financial institution to make sustainable investments the preferred solution for private clients investing globally in 2018 and is now the first global wealth manager to allocate to sustainable hedge funds at this scale across its sustainability-focused discretionary portfolios.

Measuring our ESG impact and investment returns is key to making better-informed investment decisions. UBS has developed an in-house sustainable investing (SI) scoring framework referencing industry best practices, that informs our investment decisions for sustainability-focused portfolios. For us, SI is not only about thematic opportunities, but a way to identify well-run companies across industries that are well-prepared to address changing stakeholder expectations.

We are investing in improving sustainability product reporting capabilities and extending our investments in this area. Such requirements accelerate the integration of ESG data into investment processes and lift the bar. With most asset managers now having to report or monitor ESG metrics for their portfolios, the minimum standards for a quality SI investment solution continue to rise. UBS’s framework is subject to annual independent audits and our product classification is subject to annual review.

Better reporting and transparency also deliver credibility as the breadth and depth of our product shelf continue to mature, for example with the launch of a sustainable hedge funds allocation in our flagship SI portfolios in 2023. Such innovations continue to enhance the investment case for SI, which we continue to see as a compelling investing strategy that delivers comparable market returns while delivering superior sustainability alignment and potential impact.

Siew Meng Tan

regional head, Asia Pacific, HSBC Global Private Banking

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Looking ahead into 2024, we see the most attractive investment opportunities in global quality bonds, US and EM Asia equities, private markets and hedge funds.

However, 2024 could present challenges including central bank policy transition, global growth slowdown and geopolitical uncertainty. These risk factors may result in heightened market volatility and create dispersion between markets, offering opportunities for nimble investors.

To mitigate these risks, we are strategically allocating to private markets for downside protection, favouring hedge funds as risk diversifiers, and relying on multi-asset strategies for diversification. We also lean on volatility strategies to capitalise on market volatility spikes, ultimately enhancing portfolio returns.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

The Chinese market has faced post-COVID economic recovery challenges, including a strained property market and decreased global demand for its exports. However, strategic measures by Chinese policymakers are facilitating recovery through liquidity injection, interest rate cuts, accelerated infrastructure investment and an increase in fiscal spending. Additionally, a special refinancing bond programme and liquidity support from the People’s Bank of China are addressing local government debt issues.

After the year-to-date correction in 2023, valuations in the Chinese equity market have come down to levels that are close to the low end of its five-year history. Despite further potential downward risk in earnings estimates, there are structural investment opportunities in the Chinese stock markets, particularly in service consumption and tech sectors like electric vehicles, renewable energy, smart power grid and smart electronic appliances. For fixed income, a focus remains on Chinese investment-grade credits, especially those from companies with strong balance sheets.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

Driven by new ESG regulations, we foresee a significant acceleration in the adoption of ESG principles by Asian investors in 2024. This shift will catalyse further innovation in ESG and impact products, expanding investment options to meet rising investor demand.

We are committed to evaluating impact strategies not only from an investment return perspective but also for their positive ESG impact. In collaboration with our internal asset managers, we are formalising partnerships with fund houses to provide stewardship and evaluations of impact investments. Our rigorous product due diligence process and these strategic partnerships equip our investors with the ability to measure the impact of their capital quantitatively, alongside financial returns from investments.

With our stringent ESG investment framework, we can provide a greater level of transparency in the portfolio companies and detailed data analytics that enable our clients to monitor the progress of sustainable investments and capital deployed towards the desired impact outcomes.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Hong Kong and Singapore continue to develop as leading international wealth hubs with distinct and complementary strengths. We are investing in our people, propositions and digital to build out our capabilities in both markets.

Hong Kong is really the key market of the group. It is our home market. Not only does Hong Kong remain a major international financial hub but it possesses unique attributes that give it a special role globally. The asset and wealth management business of Hong Kong amounted to over US$3.9 trillion as at end-2022, with 64% of the funding sourced from non-Hong Kong investors ^[1].

Singapore as our international wealth hub is strategically located to capture flows throughout Asia and internationally. It is a key hub for providing private wealth solutions to offshore clients in growth markets across South and Southeast Asia, Middle East, Australia, and the North Asia region.

We are also seeing greater traction from the Middle East – Asia corridor. Singapore’s stability as a wealth management hub has attracted Middle Eastern UHNW individuals and family offices, and entrepreneurs who want to access Asia for their businesses, family and wealth management needs.

Dubai has become an appealing destination due to its golden visa scheme and the booming property market. The migration of talent, capital and businesses, bolstered by HSBC’s expansion of its existing private banking business in the UAE in 2022, caters to a growing base of HNW investors.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross- generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

We are steadfast in our commitment to delivering secure, convenient and digitally enhanced client experiences, augmented by a human touch, empowering our clients to achieve the best outcome. To this end, we have designed an ecosystem of integrated digital tools and solutions that our clients can access on demand, wherever, whenever, to meet their needs.

Over the years, we have developed a suite of digital capabilities that enhanced every key stage of the client lifecycle. Starting from onboarding via GPB eSignature which allows clients to sign, submit, and receive documents digitally. Our GPB Chat, an instant messaging platform, facilitates real-time, secure communication between our teams and clients, and delivers personalised insight content.

In addition, we offer a comprehensive online trading platform that includes everything from cash equities and ETFs, foreign exchange spot and forward contracts, structured products, and funds to discretionary portfolios. As part of our PRISM advisory service, clients have access to on-demand, self-service portfolio analytics, empowering them to make informed investment decisions.

We make use of client data and direct client feedback to understand the diverse personas and unique needs within our client base. Our digital platforms serve as an alternative channel for client interaction, offering added convenience and freeing up our front-office advisors to focus on high-value interactions. By facilitating self-service where clients are comfortable, we ensure that each engagement is tailored to individual client preferences.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

Asia is going through a paradigm shift, now experiencing the great next-generation wealth transfer and expansion in the tech wealth segment which may lead to exponential growth in wealth assets. This affluent US$2-10 million segment is poised to drive growth in the wealth sector in the foreseeable future. We expect demand for wealth management advice and solutions will accelerate significantly across Asia in the coming years.

At HSBC, we have been investing in our DPM platform to cater to this transformation. By enhancing portfolio management solutions and launching a mobile capability for discretionary digital access, we enable our clients to have round-the-clock access to their discretionary portfolios via their mobile phones even at a low entry level. We have also invested significantly in our internal wealth acceleration training programme, bolstering our digital sales channel and equipping our RMs with the necessary tools to better serve our clients.

In 2024, our focus is to deepen our wealth management conversation, using our discretionary portfolio service to manage our clients’ wealth for the long term. The last few years have been challenging for most markets and asset classes in terms of performance and this has affected investors risk appetite and sentiment significantly. Diversification and portfolio risk management are top of mind among many of our clients today. They are keen to understand our discretionary capability and how we can assist in managing their wealth over the long term.

^[1] Financial Services and the Treasury Bureau

Joseph Poon

managing director and group head, DBS Private Bank

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Market volatility and rising geopolitical tensions, coupled with the banking tumult in Europe and the United States, have accelerated the shift in the centre of gravity of global wealth towards Asia in 2023. The shake-up of asset management, family offices and capital flows towards this region has enabled DBS Private Bank to emerge as the preferred global private bank for UHNW clients. This is underscored by our strong capital base, digital leadership, investment expertise, and strong track record of being Asia’s safest bank for 15 consecutive years.

Our dual booking centres in Singapore and Hong Kong stand out as prime landing points through which our clients, who hail from 115 countries, can access Asia’s opportunities. Indeed, global clients account for 76% of our client growth in the last two years. Our 3Q23 fee income for wealth management posted strong growth of more than 21% as compared to the same period last year, which is a testament that our clients look to us to help them manage and protect their wealth during uncertain times.

In 2024, we will continue to see growth in the family office segment as the need for succession and legacy planning intensifies. Earlier in June, we launched the world’s first bank-backed multi-family office variable capital company to offer an alternative option for UHNW families seeking to consolidate and safeguard their wealth in Singapore. We intend to maximise its potential by further developing innovative and sustainable long-term wealth structuring solutions to help our clients navigate the complexities of the evolving legal and regulatory landscape in which they operate.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

The escalation of US-China competition marked a turning point for global trade. As de-risking of supply chains from US-China tension persists, the ASEAN-6 region has made notable strides in attracting foreign direct investments, proving to be a primary beneficiary of global trade reconfiguration. With ongoing ‘China+1’ efforts such as the stabilisation of regulatory environments and further progress in regional trade integration aimed at promoting growth in the region, ASEAN presents attractive investment opportunities in the coming years.

Apart from the traditional sectors that have attracted flows to this part of the region, several sectors have seen remarkable interest – these include the electric vehicles segment (battery, ancillary, and automobile production), the electronics and semiconductors industries, as well as green technologies. ASEAN-6 also continues to attract interest in digital sectors (e.g., e-commerce and fintech), information and communication, and data centres. With air passenger traffic continuing to surpass pre-pandemic levels, the tourism sector will be a key driver for Singapore and Thailand.

Short-term challenges for ASEAN economies include a deceleration in global growth that may adversely impact export-oriented nations. Considering deep trade, investment, and diplomatic partnerships between ASEAN-6, China, and the US, wider geopolitical instability remains a key long-term risk factor.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era?

One of our biggest differentiators is how we use data analytics as well as artificial intelligence (AI) and machine learning to better serve our UHNW clients in a segment that is traditionally driven by high-touch face-to-face interactions. Having invested early in digitalisation since 2014, our ‘high-tech, smart touch’ approach has seen us effectively combine artificial intelligence-powered technology with the expertise and intuition of our RMs to help our clients navigate the best path for their investments amid market volatility.

Today, some nine in 10 of our clients monitor their portfolios and transact round-the-clock via our DBS digibank (Wealth) app. They receive curated research, actionable insights and recommendations to enable them to get guided insights and make more informed investment decisions. These ‘nudges’ are a result of us leveraging AI to analyse more than 16,000 customer attributes, including individual risk profile, browsing history, investment activity, and portfolio holdings.

Our RMs and wealth planning experts also receive similar AI-driven ‘nudges’ that sharpen their advice and enable a more nuanced and personalised engagement with clients. In 2022, our RMs held more AI-augmented conversations with clients, with each RM conducting at least four nudge-driven client conversations a week.

And amid the ongoing cross-generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

We believe that engagement and branded communications need to be built around the lifestyles and habits of our clients. This is crucial as private banking clients do not easily fit into any homogeneous grouping. Even within narrower sub-segments we find lifestyle, passion, and interests vary widely.

To remain relevant involves employing a customer-centric approach – that is to have a deep understanding of our clients’ specific needs, motivations, expectations and psyche across age bands and cultural nuances. We are constantly monitoring and anticipating how external factors, such as evolving societal values and changing consumption habits, affect and influence our clients.

We are also more selective in our marketing medium and channel selection. Careful targeting, particularly in the digital space, involves performance marketing and real-time iterations in our messaging to ensure target clients are delivered the right messaging at the appropriate time.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

As we bank more than a third of the single-family offices set up in Singapore, we recognise that family offices do have complex and highly bespoke requirements. To this end, we have a team of bankers with diverse backgrounds and experiences, such as in institutional banking or corporate finance, to constantly enhance their capabilities to support these families holistically. Our bankers and wealth planners undergo rigorous training by experienced tax and legal advisors to ensure that they are not just kept apprised of key developments, but fully equipped to help our clients navigate such challenges.

We also proactively work with our clients to look at how their family offices need to evolve to keep pace with the increasingly complex global environment. Beyond investment management, we are seeing more family offices expand their remit to include family governance and prioritising next-generation engagement. As Singapore’s leading family office practice, we are very much committed to supporting our clients through this highly personal and bespoke journey.

Vincent Chui

head of Morgan Stanley Private Wealth Management Asia, Morgan Stanley Private Wealth Management

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Notwithstanding macro and market challenges, 2023 was a good year for top-tier banks in the private banking industry, including Morgan Stanley.

As we predicted at the beginning of the year, counterparty risk considerations, particularly in Q1 and early Q2, led to liquidity migration to global banks which benefited from high interest rates and hence strong net interest margin revenues. Such financing revenues more than offset the slower flow and fees revenues.

Wallet share consolidation will continue in 2024 as clients’ smaller wallets and continued low-risk appetite compel them to do less in general and trade with the strongest counterparties.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

We believe China will do better in 2024. With a rare mid-year budget expansion when growth is on track to reach the target and an equally rare visit to the PBOC by top leaders, policymakers are sending a strong signal of their intent to reflate the economy with coordinated monetary and fiscal easing. We think investors should add weighting to market proxies in China.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Morgan Stanley PWM Asia did well in 2023. Our strategy remains unchanged, and our management organisation across all functions is probably the most stable among our peers.

We will continue to focus on the UHNW segment, particularly in Greater China, to help them navigate the challenging global and regional geopolitical and market landscapes.

Our hiring of RMs will continue to focus on those who are market and product-savvy, culturally compatible and able to market our integrated platform. The focus on quality means the number of hirings will be smaller than most of our peers, but those who join us can count on our full support to grow suitable business here.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

For Morgan Stanley PWM Asia, Hong Kong and Singapore are complementary hubs for asset booking, client coverage and talent. There is only one P&L, not two. The concept of “primary hub” is probably outdated, particularly given the work-from-home model adopted during Covid.

We can book assets and cover clients based on a collaborative model between the most suitable talent in both locations. The regulators in both jurisdictions are constructive on that approach.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

As Asia-based clients continue to focus on the US rather than non-China Asia, most DPM teams will continue to find it challenging to resource them locally to demonstrate their global alpha generation credentials to win large mandates. Global banks with global access to DPM and research capability in the US will benefit.

For Asia-centric mandates, we have excellent resources to manage them from Hong Kong and Singapore. For large global mandates, we will partner with our US wealth management business and, where appropriate, the firm’s investment management business in New York.

Vinay Gandhi

global head of South Asian community and regional head of Africa, Middle East and Europe, private banking, Standard Chartered Private Bank

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Our Private Bank has been in a growth mode for the last two years. Global market uncertainties notwithstanding, we have been able to execute our growth strategy.

There are a few priorities which have helped the business to grow. We have enhanced our bench strength, hiring quality relationship managers across our footprint who have successfully onboarded new clients and strong net new money.

We are pivoting the bank towards a focus on UHNW clients and enhancing our platform to enable holistic conversations with clients around their individual and corporate banking needs, as well as on topics such as wealth planning and family advisory.

As a universal bank, our business stands to benefit from both strong markets and high-rate environments. Maintaining our priorities into 2024, we believe we are well poised to continue our growth beyond 2023.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

The Western economies appear to be cooling from being too hot in 2023, with inflation starting to decline significantly. While the latter is clearly a positive development, the risk is the US economy goes from being too hot to being too cold, meaning we head into recession.

Initially, the positive equity-bond correlation means that this could provide a tailwind for investors in both equities and bonds into year-end. However, if the US economy ultimately moves into recession, then we are likely to see a significant correction in stocks at some point in 2024.

Therefore, one of our themes is to lean into duration. Within bonds, we have a preference for high quality investment grade bonds, which we believe will provide a strong foundation and buffer for investors through 2024. For equities, we believe that falling yields, and ultimately interest rates, will be good for the tech sector, which means that the US may still outperform, despite being a major source of economic weakness.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

China continues to see significant capital leaving the country in the form of portfolio flows and net negative FDI, in part due to the country’s Belt and Road Initiative and as companies work to mitigate the impact of US tensions on their operations. Of course, concerns about the outlook for the domestic economy amid the clampdown on the property sector are not helping sentiment.

This needs to be balanced against the fact that China is still likely to be a major contributor to global growth, even if growth falls into the 4.0-4.5% range. Meanwhile, stock markets are cheap and therefore have priced in a lot of bad news.

For long-only investors, we believe this suggests a neutral weight to China equity holdings. However, if we zoom out a bit, we believe the high dispersion in company performance and the uncertain implications of the geopolitics – which are likely to accentuate this going forward – provide a rich hunting ground for China and Asia equity long-short managers.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing, what are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

We have been working closely with clients to identify the different approaches to sustainable investing which are tailored to their portfolios and personal aspirations. With increased ESG regulations, clients are looking to us, as their advisors, to guide them and help uncover new opportunities.

The risk lens is a foundational aspect of our conversation. This is where we provide a view of the ESG risk of a client’s portfolio and the material ESG factors that need to be considered to reduce investment risk. This includes, for example, the impact of ESG regulation on a company and how well-prepared a company is in terms of managing these upcoming regulations and transitioning to a low-carbon economy.

Beyond ESG risk, there are opportunities where clients can invest in sustainable themes, particularly around climate change and climate transition. The concept of helping companies transition from high-carbon industries to more green operations is a key theme that is relevant across all industries. Transition entails a big structural shift, with technological innovation and shifts in government policy and support. Being able to identify the leaders in this transition will not only provide clients with attractive investment opportunities but also allow them to contribute towards sustainable development.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Private banking is very much a relationship-driven business, with strong talent being a key success factor, across front, middle and back-office staff. Competition for talent continues to be keen in the industry and finding the right people with the right skills and cultural fit is key.

We continue to promote and hire internally and at the same time are open to strong external talent. The region has excellent talent and we are always open to conversations with the right people who can add to our franchise.

We also believe in investing in our people. For instance, we put our relationship managers and wealth specialists through a multi-year client engagement and wealth management global education programme under the Standard Chartered INSEAD Wealth Academy.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

The debate comparing Singapore and Hong Kong as leading financial hubs is a long-standing one. For Standard Chartered, both markets are integral to our global private banking business, with each one offering strong propositions to our clients.

Standard Chartered Bank has been operating in both Singapore and Hong Kong for over 160 years. We have built up a substantive level of trust with our clients and continue to help clients manage and grow their wealth, leveraging our international network across 53 markets, our ability to harness the bank’s corporate and business banking capabilities, and our ability to provide investment and wealth planning and family office advisory solutions.

Outside of Singapore and Hong Kong, our clients can also take advantage of our network of wealth hubs in Dubai and the UK and Jersey, for their cross-border wealth needs in the Middle East, Africa and Europe. Our onshore private banking business in India is another growing franchise that is catering to the needs of a fast-growing U/HNW group of clients.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross-generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

Our priority is to be a top 3 wealth manager across our footprint. We aim to deliver the best personalised wealth advice to our clients to help them manage and achieve their life goals.

To enable end-to-end digitisation, we are investing in a single wealth platform to drive technology convergence across segments and markets, harness scale and cost efficiency, automate operations and increase the speed of deployment. By adopting a digital-first approach that starts from what clients need, we aim to deliver omnichannel, seamless and integrated RM and client experiences.

Yet we are fully cognisant of the need to balance digital services and human touch, especially with HNW and UHNW clients.

By scaling up our digital wealth capabilities, clients can perform simpler activities in their own time, anytime and anywhere. Meanwhile, these digital tools free up RMs’ time for them to engage in more meaningful and personalised conversations with clients who need more handholding.

Steven Lo

Asia North and Australia Head, Citi Private Bank, and Vice
Chair of Citi Private Bank Asia

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Frequent engagement has been key to ensuring that clients are informed amid all the volatility in the markets and concerns around geopolitical factors. Due to the interest rate environment, we engaged clients in interest-bearing structures and fixed income instruments in addition to equity-related structured products that may mitigate downside risk. We did see and were the beneficiaries of much client account consolidation which led to a record number of new client acquisitions and new asset growth in 2023.

For the coming year, new client acquisition remains a key driver for us. We are well-positioned within our organisation where we can tap internally for client referrals as a result of our extensive business platform – we call this One-Citi. We leverage a close partnership with our banking business which includes Corporate Banking, Investment Banking and Commercial Banking as we capture entrepreneurial wealth in Asia Pacific.

We continue to see growth potential in all the geographies we serve in this region. Family offices represent another significant opportunity for us as our client families become increasingly sophisticated. We have established a strong team in Asia to address the transactional and advisory needs of this growing segment.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

We see several key investment themes for 2024.

Bonds are likely to perform very well in the two years after the last rate hike. The Fed is likely done with rate hikes this cycle. We expect the US economy to slow but avoid a recession in 2024. We think inflation will continue to subside to 2.5-3% by the end of 2024. This would make the current rate on Fed funds too high for a slowing economy and the Fed will likely consider rate cuts by the middle of next year.

Equity returns are likely to remain positive, as interest rate risks subside. We expect slower but broader equity performance in US equities. While large cap tech is likely to remain a market favourite, we would also look at profitable SMID cap growth companies for attractive value opportunities.

In this age of geopolitical tensions, we believe that economic security will remain a major focus for corporates and governments. This is likely to support industries such as cybersecurity, energy security (including alternative energy and cost-effective traditional energy), national defence, and tech supply chain security (particularly semiconductor equipment).

Key risks may include inflation making a comeback or remaining at the current 3.5-4% range through next year. There is also the risk of monetary policy being too tight, causing more instability and recession. In these cases, equity downside hedges, low volatility managed funds, as well as a high-quality bond portfolio would help to mitigate volatility.

In sum, we believe that because of potential risks, investors should return to a balanced core portfolio to capture both continued economic growth and to manage risks.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

China has seen three straight years of a bear market from 2021-23, which is historically rare. Investors are keenly aware of the risks associated with real estate, geopolitics, and domestic structural challenges to economic confidence.

The level of policies to mitigate economic weakness has accumulated to a significant level. The US-China relationship, while still tenuous, appears to be improving amid an increasing number of other geopolitical hotspots. Chinese companies also continue to operate in the new normal of a more heavily regulated business environment. Even as many structural issues remain, there is likely to be a cyclical recovery in China in 2024, which will lift market sentiment marginally.

We believe that China, being the second-largest economy and equity market worldwide, deserves a place in global investor allocations. For those with no allocation, there could be some opportunities. For those with much higher than benchmark allocations, we would suggest reducing exposures on rallies.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

In addition to macro challenges, 2023 was a complex year in sustainable investing. Regulatory pressures have intensified globally, and we are seeing an increasing focus on sustainability disclosures and due diligence, as well as ESG and climate risk management. Despite market headwinds, we expect momentum in sustainable investing to continue driven by enabling sustainability-related policies, changes in consumer behaviour and investor demand.

With our broad clientele at Citi Private Bank, there is no one-size-fits-all solution. Our Investing with Purpose platform offers discretionary managed or advisory, core, opportunistic or thematic investments across four approaches: socially responsible investing, ESG integration, thematic investing, and impact investing, to enable clients to pursue both financial and sustainability objectives.

We take a personalised approach and work closely with our clients to determine which sustainable investments with diverse risks, returns and sustainability objectives are most appropriate for them. To do that, we leverage our bespoke portfolio analytic tools from our Investment Lab to provide data-driven sustainability insights that complement financial analyses and help clients make informed decisions. We also have stringent standards and oversight processes in place to classify, evaluate and validate our sustainable investing products.

Looking ahead to 2024, we expect to see emerging innovations in sustainable solutions related to greening the world, improving the quality of lives, preserving natural capital and fostering inclusive growth. This offers ample investment opportunities for investors to watch out for.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

When we make hiring decisions, we want to ensure that there is a cultural fit for the individual. This is critical and so we are selective about our hiring. We understand that a culture fit is key to the person’s success and their ability to contribute. We have observed, for example, that for new front-line talent, it takes around 18 months for a candidate to adapt and see the fruits of their labour. As we make hiring decisions, we are also mindful of maintaining an optimal ratio of front to middle and back-office colleagues.

Nitin Singh

managing director, head of private bank Asia, Barclays Private Bank

Evonne Tan

managing director, head of private bank, Singapore, Barclays Private Bank

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

In the volatile environment of 2023, Barclays Private Bank has been consistently supporting our clients with our key strengths in differentiated and institutional quality investment thinking, leveraging the broad resources of our corporate and investment bank, as well as delivering our focus on sustainable and impact investing. We want to continue doing all of these.

For 2024, while we do expect a world where economic growth trends lower and volatility remains high, it is our core principle that a well-planned and appropriately diversified portfolio remains a robust financial planning tool over the long term.

Additionally, we have started to rebuild Barclays Private Bank since mid-2021. We have achieved significant AUM in the past 2 years, onboarding many new-to-bank clients from this region. This has enabled continued investment into the Singapore office with the most recent setting up of an Asian structured product platform. Of course, there are plans to further enhance our platform in 2024 and beyond to better support clients. Looking ahead to 2024, we will continue focusing on these, whilst ensuring and encouraging our clients to remain invested with us, and to remain diversified.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

As we look towards 2024, which we think will be characterised by lower growth and lower inflation, Barclays Private Bank sees opportunities in a number of areas given the more volatile backdrop, as well as an enhanced yield environment.

Fixed income is a key asset class with more opportunities, with emphasis on higher quality credits which we believe offer better relative value. Over the medium to longer term, the increased probability of lower rates could drive returns beyond what current yields suggest, providing opportunities during periods of dislocation for investors to selectively extend duration to unlock further value.

For longer-term investors, equities are more attractive than bonds with stocks likely to outperform bonds meaningfully over a 10-year investment horizon. In the near term, we are more cautious and think a more defensive positioning within equities is warranted, focusing on sectors that would be well positioned in a scenario with lower global growth and lower yields, namely the defensives and bond proxies.

With higher volatility overall, structured products are offering a much wider opportunity set for clients with strong views on the market.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

Even though the Chinese economy faces risks of headwinds in its manufacturing and real estate sectors, combined with limited government stimulus to boost key sectors, we still feel that there are still opportunities which can be harnessed in these downturn events.

Even though China’s recovery will likely be uneven, and geopolitical developments remain uncertain, we feel the lack of inflationary pressures should allow the People’s Bank of China to keep its accommodative monetary policy in 2024.

Additionally, the Chinese government is focused on their long-term objective of ‘Common Prosperity’ and aims to raise the incomes for the worst off, promote fairness, make regional development more balanced and focus on people-centred growth. All these help align the stars to help the country accelerate the structural reforms needed to address growth, help rebalance the economy, and in turn open up fresh opportunities for investors.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

One of our key tenets and value propositions has always been our focus on sustainable investing. With constant global changes, issues such as climate breakdown and biodiversity loss will be critical.

Global challenges will continue for decades to come and navigating the markets will become a challenge for investors. Investors are likely to switch questions from simply, “To which asset classes do I allocate today for potential returns?” to “How can I protect and grow my family’s portfolio while trying to influence tomorrow?”

In looking for investment ideas, we take a look at climate scenarios in terms of what the world might look like in the future, say in 2030, and then plot that back to the present day to identify where opportunities could lie. To this effect, we see opportunities in five key structural themes in scaling renewables capacity, revitalising the energy grids, generating new energy storage, renovating our buildings, and a focus on nature-based solutions.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

It is important to focus on the value that a discretionary portfolio does for a client. There are different reasons a client would prefer to delegate, for example, if they do not have time to manage their investments or they do not have a particular expertise in an asset class (for example, managing a fixed income portfolio). Delegation requires a level of trust and more than just showing a track record of returns, it would be important for DPM managers to emphasise the “how” of the portfolio: their investment philosophy and process, how investment decisions are made, risk management framework and so on.

Jimmy Lee

member of the executive board and head Asia, Julius Baer

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

With bonds no longer priced for confiscation, we anticipate a resurgence in income investing. This extends beyond fixed income, as the current bond market situation, with its attractive yields, presents a compelling opportunity. While bond markets faced challenges in recent years, the rapid normalisation of interest rates opens a window for bonds to perform.

In the medium to long term, state-sponsored capitalism favours real assets over nominal claims, particularly in regions where investors are comfortable with political risks. The investment landscape has narrowed due to growing geopolitical conflicts in a multipolar world. Hence, investors are advised to focus on quality, often found in ‘store of value’ equity markets.

The era of politically risk-free, cross-border capital flows may be over, given events like the Ukraine war in March 2022. Looking ahead to this decade, the traditional transition in market leadership from information technology to commodities, which influences USD bull and bear cycles, appears unlikely. The USD bull regime that began after the Global Financial Crisis persists, indicating the dominance of USD-denominated assets in global capital markets.

In this new geopolitical reality, Western investors lack a substantial alternative to USD capital markets. Embracing an innovation super cycle holds the potential for significant value creation. Historically, the Nasdaq has excelled in creating such value during these cycles. Alongside the Nasdaq, brimming with US mega caps, exploring disruptive innovators in other regions selectively could be prudent.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

At Julius Baer, sustainability lies at the heart of our values and investment strategy. We are dedicated to empowering our clients with informed investment decisions, focusing on ESG factors.

We offer diverse solutions, including sustainable, impact investing, and philanthropy services. Globally, we trained over 200 senior RMs, investment advisors, and portfolio managers as ‘sustainability ambassadors’, with more than 3,000 team members receiving sustainability training.

In Asia, we are taking a two-pronged approach, enlisting key client-facing employees and investment specialists into our sustainability ambassador programme.

Looking ahead, our focus remains on increasing sustainability investments until 2025. We are committed to refining our ESG investment rating methodology, implementing global ESG client reporting (including climate metrics) by end-2025, and expanding platforms for networking and knowledge-sharing, such as our sustainability circle client community.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Our belief at Julius Baer is that our business revolves around our people. In 2023, we intensified efforts to become the preferred employer, not only at the executive level but across the organisation.

We invested significantly in hiring initiatives and building robust candidate pipelines across our core markets. This led to the recruitment of promising talent in Asia, with a focus on the front office. Our growth in Asia has been impressive, with a nearly 12% YoY increase in RMs, and we made several senior appointments across Greater China and South East Asia.

Our hiring strategy in 2024 remains strategic, with a continued pursuit of top-tier talent, particularly in front office roles. We are also committed to developing and promoting talent from within, underscoring our deep bench of skilled professionals. It is about finding the right people who understand our clients’ needs and can adapt to cultural nuances and local market insights.

Our investment in training and education through our Julius Baer Academy ensures that our RMs possess the necessary skills and knowledge to excel in their roles. Ongoing support and mentorship are integral to their continuous growth and development.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Our two-hub strategy in Hong Kong and Singapore remains robust, complemented by strategic joint ventures in Japan and Thailand. Our unwavering commitment to wealth management keeps us dedicated to creating, preserving, and transferring wealth.

Asia’s GDP now surpasses that of the rest of the world combined, with expectations to contribute around 60% of global growth by 2030. As wealth continues to grow, we expanded our presence in emerging wealth markets like Greater China, South East Asia, and India.

• In Hong Kong, we expanded our office space by 45%, showcasing our confidence in the region’s potential;
• Singapore, a key banking hub, is also a centre for technology and innovation. Our global innovation lab, based in Singapore, Launchpad, drives numerous initiatives. We plan to occupy new office space at Changi Business Park in January 2024. This facility will support our vision for innovation and business expansion;
• We are transforming our India onshore business, where we are the largest foreign private bank, expanding our coverage and relocating offices in major Indian cities.
• In China, we announced a strategic partnership with GROW Investment Group, enhancing our capabilities for domestic clients.
• In Thailand, our JV continues to grow from strength to strength and today SCB Julius Baer is ranked the top foreign private bank;
• In Japan, our JV Julius Baer Nomura Wealth Management continues to support local clients with their international wealth management needs.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

The pandemic accelerated our embrace of technology, enhancing remote working infrastructure, video call capabilities, online banking features, and digital signature chat applications. These changes were crucial during the pandemic, benefiting both RMs and our teams.

Digital interactions with clients became the norm, and we adapted by offering enhanced digital services. In this evolving landscape, we are catering to a younger, tech-savvy generation seeking personalised, digitally driven wealth management.

At Julius Baer, we remain at the forefront of innovation, planning to invest another CHF 400 million globally between 2023 and 2025. This investment covers the entire value chain, including enhancing digital channels and upgrading e-banking capabilities in Asia. We continue expanding technology partnerships to encourage collaboration in open architecture solutions.

We believe in seamlessly integrating personal connections with technology, enriching our approach with digital advancements. It is not a competition between the two but their harmonious combination that defines our business model.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

Globally, our total advisory and discretionary mandate penetration stands at 56%, and there is a growing interest in our discretionary mandates in Asia. We witnessed a consistent rise in client demand for discretionary mandates in the region.

According to APB estimates, Julius Baer’s DPM penetration rate in Asia falls within the range of 10-15%, which is comparable to other banks. Additionally, we have expanded our DPM offerings this year, introducing a global income opportunity strategy and an India equity strategy.

Discretionary mandates are a significant trend in wealth management, and we anticipate a swifter adoption of discretionary investments in Asia. This adoption is driven by insights from past cycles, diminishing information advantages, and a wealth transfer to a delegation-inclined younger generation.

Looking ahead, our focus is on enhancing the quality of our revenues by increasing recurring income. We refer to this goal as ’25 by 25,’ which reflects our aim to have at least 25% of our portfolio managed in a structured and safer manner, similar to the healthy portion of a balanced diet.

Our portfolio management team provides consistent performance to our clients. Our strategies consistently rank in the top quartile when compared to our peers, even in this challenging environment. We believe that a structured approach to discretionary solutions can help clients achieve their long-term financial goals by avoiding common pitfalls like selling winners and keeping losers.

Harshika Patel

Asia CEO of J.P. Morgan Private Bank and Hong Kong CEO of J.P. Morgan

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

In 2024, we will witness an unprecedented number of elections where around half of the global population will be voting – so it’s certainly going to be an interesting year in the markets. However, we do see a more constructive investment backdrop in 2024. As cash yields are expected to decline, we encourage clients to start to step out of cash and lock in fixed income yields at attractive levels. We continue to like US equities, in particular healthcare, tech and consumer discretionary.

In Asia, we also see pockets of growth in areas such as semiconductors which are benefitting from the secular tailwinds of AI, as well as a cyclical bottoming out of smartphone and PC demand. We also see alpha opportunities in select themes in Japan and China even as the broad indices may be range-bound. India also continues to enjoy secular tailwinds driving growth higher which should help sustain its momentum.

And of course volatility is here to stay as well given ongoing geopolitical uncertainty and continued tight financial conditions which in turn will result in policy uncertainty. Structured products can be a great way to help build downside protection into portfolios against unexpected events or market swings.

We recently launched our global market outlook for 2024, click here to learn more: https://privatebank.jpmorgan.com/nam/en/insights/latest-and-featured/outlook

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

At J.P. Morgan, we believe that addressing sustainability matters are fundamental to how the firm does business and is integral to the firm’s success. This principle is borne out of our unwavering responsibility, support and commitment to our primary stakeholders, including employees, customers, clients and communities.

There are countless ways to participate in sustainable investing and we identify different solutions to our clients by striking a balance between risk, return and impact. At the Private Bank, we have over 140 carefully selected Sustainable Investment Strategies across Equities, Fixed Income and Alternatives. Forestry is one example of where we are focusing our efforts on. Our acquisition of Campbell Global has been instrumental in providing our clients with an effective solution to make an impact on climate.

It’s also encouraging to see how the recent COP28 summit has reached a historic deal to transition away from fossil fuels. This reinforces the conversations we have been having with our clients to help them understand and make informed decisions based on the implications on their investments, as it relates to sustainability.

Jean Chia

CIO, Bank of Singapore

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Slowing growth momentum, sticky inflation and elevated interest rates point to an uncertain growth outlook in 2024. We encourage investors to focus on investments that can generate real returns (inflation-adjusted) and companies with resilient business models and margins. This includes quality companies with strong balance sheets, cash-generating capabilities, and low levels of net debt, that demonstrate the ability to navigate tighter financing conditions and slowing demand.

Investors should allocate appropriate exposure to safe-haven assets, such as gold, as part of a long-term asset allocation strategy, as gold plays a key role as a diversifier and hedge against economic and geopolitical risks.

Alternative investments – including private equity, private credit, real estate, hedge funds, direct investments, and others – continue to be a promising area of growth among wealth management clients. Bank of Singapore saw strong momentum with 50% growth in AUM from alternatives between 2019 and 2022, despite challenging market conditions.

Alternatives, such as private equity and private credit, offer exposure to unique investment opportunities that are inaccessible through public markets. Hedge funds offer differentiated strategies. For example, multi-strategy and relative value hedge funds may act as dampeners against downside risks. Alternative assets like real estate and infrastructure also tend to provide a good hedge against rising inflation as they have tangible inherent value and are income-generating.

Other notable trends, such as sustainability and generative artificial intelligence, have also shaped up as significant investment themes. There is a global uptick in demand for sustainable investing from high net worth individuals who want to align their investments to societal and climate change issues. A driving force behind this growing demand is the premise that an organisation with a strong ESG performance is more resilient and profitable in the long run. There are emerging investment opportunities in AI and supporting tech infrastructure that may offer sustainable multi-year returns.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

Next year, Bank of Singapore clients can look forward to an endowment strategy centred on a flexible approach to transitioning between alternatives and public investments within DPM.

The specific allocation to alternatives will be dynamically allocated based on the client’s risk budget. Some with a higher risk budget and longer investment horizons may see greater allocation into illiquid assets like private equity. Those with a lower risk budget will be invested more into evergreen private debt or liquid hedge funds and absolute return strategies.

The primary objective is to provide clients with a good balance between private and public investments. This endowment strategy is designed with wealth transfer in mind and clients should bear in mind the long-term commitment to investing, typically for 10 to 15 years.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

The Chinese equity market has been plagued by headwinds related to a slower-than-expected post-Covid growth rebound, a faltering property market, and broad concerns over US-China tensions. In response, the Chinese authorities have introduced a mix of policies to support the economy over the last few months.

While we remain broadly optimistic about China’s long-term outlook, it remains to be seen if more measures to directly address the sluggish property momentum and weak market confidence in China are required to achieve a more sustained recovery.

Against this backdrop, our investment strategy favours high-yielding quality defensive stocks and companies that have demonstrated stronger-than-expected growth amid a challenging macro environment. Select Chinese internet/platform companies that demonstrate operating resilience may benefit from the broad recovery of China’s economy as well as the wider adoption of AI and the consumption of digital services.

We continue to be cautious of China’s fixed income market, as the resolution of fundamental
concerns over the restructuring of property developer debt and a resumption of normal conditions will likely be a long drawn-out process.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

In our view, analysis of ESG risks is crucial for long-term investors. As such, we consider the issuer’s ESG practices as part of our basis for recommendations. These include, but are not limited to, ESG ratings, pillar scores, material factors and controversies.

In addition, given the increased focus on climate risks, we also consider the potential impact of climate change on selected high-risk sectors and assess if environmental challenges may lead to the deterioration of credit quality and whether there are any existing mitigating factors. For companies with relatively higher carbon emissions, we conduct analysis with the support of third-party data and track their climate-related performance metrics over time.

These, combined with our bottom-up fundamental and relative valuation analysis, as well as top-down macro assessment, help to create a robust research framework to identify investment opportunities with manageable climate risks and good relative value. Such a comprehensive approach can also help clients express their ESG and impact preferences through customised investment solutions and DPM portfolios.

Chew Mun Yew

head of private wealth, UOB Private Wealth

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

While inflation is above target, it has come off the highs in 2022. Growth has also stayed resilient despite earlier forecasts of a recession this year. These two factors have supported the performance of stocks.

With central banks raising interest rates substantially, cash has become an attractive asset class from the lens of risk-adjusted returns. While clients invest selectively in equities and fixed income, they also maintain a healthy level of cash, which helps mitigate portfolio volatility.

The combination of conservative risk-taking and organic business growth resulted in strong AUM growth for UOB Private Bank. For 2024, interest rates are likely to peak, and growth momentum will ease. Geopolitical risks may intensify given ongoing conflicts and major elections in Taiwan and the United States.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

We think that high quality fixed income with intermediate duration will enjoy good risk-adjusted returns. This could be an effective portfolio hedge in the event of unforeseen risks or deeper recessions.

With the elevated interest rate environment, investors need not take excessive credit risks in bonds. We expect global equities to trade sideways as markets digest a combination of slower growth offset by an eventual decline in interest rates. Some structured payoffs to take advantage of range-bound trading patterns will be effective in 2024.

As always, we continue to advocate diversification as a discipline and an allocation to alternatives. Hedge funds and private assets have outperformed in 2023 and will likely perform well in 2024.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

We have been cautious about China since the second half of 2023 due to geopolitics, inadequate policy measures made in response to the property market crisis and uncertainties in government regulations.

These forces have materially dampened business and consumer sentiments. We think there remains sufficient policy room to deal with these challenges but measures have been piecemeal and incremental thus far.

Valuations on Chinese assets are attractive and interest rates are low, but a meaningful catalyst remains absent. Hence, downside risk from current levels is probably limited. We have advised clients to be selective on companies with strong cash flow, such as firms in the technology sector, and increase investments in the market when government policy turns more decisive to promote growth.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

Over the last decade, DPM in Asia has significantly closed the gap with other regions. Asian clients today have better awareness and acceptance towards discretionary investment solutions.

Client engagement is important to help them understand how discretionary solutions can add value for them. This is reinforced when managers show their abilities to navigate markets more effectively than clients can on their own.

Our DPM business has had strong double-digit growth for the last five years. Our clients appreciate our disciplined risk management to achieve sustainable investment outcomes. 2024 will present good opportunities for strategies that can help clients lock in high interest yields for longer. Bespoke solutions will also be a big driver of growth.

Arnaud Tellier

CEO, APAC, BNP Paribas Wealth Management

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Despite the challenges, 2023 was in fact a pretty good year for us thanks to our business model which has proven to be adaptive and resilient.

Our strong franchise, reputable brand and strong balance sheet, coupled with our effective One Bank approach, have set us apart in the Asian financial landscape; our diversified business model, encompassing various asset classes and geographies, has proven to be adaptive to the changing and dynamic environment, as evidenced by our positive performance.

Despite the industry-wide asset shrinkage in Asia, we have achieved double-digit growth, and reached new record high in both revenue and net operating income. While this growth is driven by net interest income, the quality of our investment and credit platform has also played an important role in our solid performance.

As we look towards 2024, we are optimistic about an improving macroeconomic environment and believe we are well-positioned to capitalise on the growth opportunities that will emerge.
Our strategy will continue to be focused on expanding the depth and breadth of our client relationships in our key markets while also seeking new avenues for growth. We remain dedicated to our ambitious targets for 2025, which are built around three pillars: Growth, Technology, and Sustainability.

The road ahead is marked with uncertainty. However, our proven resilience, our capacity to adapt, and our forward-thinking approach enable us to navigate future challenges and embrace the opportunities that arise.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year?

In 2024, a few select trends could guide investors’ portfolio allocation.

• The impact of higher interest rates that has not yet been fully reflected in growth and some shortages of commodities and consumer goods that could continue.
• Governments will need to commit considerable resources to reduce reliance on fossil fuels and transform the economy in order to meet climate goals.
• Rising life expectancy and changing consumption patterns should also create real opportunities.

In 2024, we are looking at six investment themes:

1. Reaping real returns – Positioning to profit from real bond yields (excluding inflation) that are the highest since at least 2011 is an attractive choice for conservative investors, in order to lock in a generous inflation-protected level of income for the next few years. We see investment opportunities in US Treasury Inflation-Protected bonds, US and euro investment-grade credit, diversified infrastructure funds with growing yields, high income solutions based on corporate credit, etc.
2. Winners in a multipolar world – Shift away from globalisation could potentially trigger shortages of raw materials and goods. This shift is also powering near-shoring and re-shoring of manufacturing production in order to reinforce supply chains, especially of key strategic industries such as semiconductors. We see enhanced opportunities in investing into productivity-improving products and services, robotics and automation in new product facilities, “middle power” countries, technology security, food security and water efficiency.
3. Decarbonisation and electrification – Energy transition momentum continues to accelerate. The key to energy transition is electrification – allowing us to gradually move away from dependence on fossil fuels. Energy efficiency is also a key focus in this transition effort. We see attractive opportunities in companies and sectors that support decarbonisation, electrification and energy efficiency.
4. Democratising AI – Global stock market leadership has become very focused on a very narrow set of mega-cap technology stocks, representing a growing concentration risk. We prefer to increase diversification of investor portfolios and look to identify sectors and industries that can reap huge benefits from AI applications.
5. Diversify beyond the 60:40 portfolio – Inflation is eroding investment, volatility could remain high or increase more than that in the last 20 years, and we can no longer assume that the correlation between long-term sovereign bonds and stocks will remain negative. We prefer asset classes that can really provide additional diversification to broaden and optimise the portfolio.
6. The wellness revolution – The Covid pandemic, a changing population, and rising incomes have raised awareness of wellness. Eating sustainably and healthily, wellness technology, medical technology and innovation in pharmaceuticals including weight loss drugs will create opportunities.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

Asian investors turned more cautious in the past year due to the economic headwinds faced by China. The China market has become undervalued in the last 15 months, a trend that is clear from the market liquidity and performance, but more catalysts will be required for a sustained recovery.

Our outlook is more constructive in the medium to long term, bolstered by the government’s numerous stimulus initiatives and China’s continued wealth generation. The key potential catalyst would be a bottoming in the property sector. The benefits of these government measures could start to materialise in the stock market and the broader economy from the first quarter of 2024.

In terms of investment, we advocate for a balanced approach, diversification combining vigilance with a strategic perspective, to navigate the complexities of the Chinese market. This includes a focus on sectors that stand to benefit from government policies and the evolving consumer and technological landscape of the country.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Our strategy has always been to identify, develop and retain the right talent. We hire individuals who align with our company culture and values, and we continuously invest in our ways of working to create a positive and inclusive workplace where our employees can thrive and reach their full potential. Last year, we have successfully recruited skilled bankers and managers, allowing us to further strengthen our platform.

We believe in investing in our areas of strength, therefore, despite the challenges faced by the industry in the last few years, we have consistently prioritised investments in our people.

Despite a shortage of talent in Hong Kong and Singapore, we will continue to expand our workforce steadily and carefully to support the positive growth of our business. While we don’t have any specific hiring targets, we continue to seize opportunities to bring in right talent and teams.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Hong Kong and Singapore both possess key advantages that make them leading hubs for managing private wealth in Asia. Their strong legal frameworks, developed financial markets, and professional talent base cater well to needs of HNWIs. Additionally, these jurisdictions offer a diverse range of investment and banking options, ease of capital injection and repatriation, as well as tax neutrality for investment structures cater well to needs of HNWIs/UHNWIs.

Initiatives by both Hong Kong and Singapore have underscored their unique strengths, catering to varying client needs and solidifying Asia’s appeal for family offices. Rather than competing, I would say they often complement each other in servicing clients’ needs. Some families now opt to set up offices in both cities to capitalise on Hong Kong’s Greater China connectivity and talent base, and Singapore’s more matured family office ecosystem.

We see the growth of the Asian HNWI/UHNWI population further strengthening the proposition for both hubs and competition from other hubs will not seriously dent their unrivalled attractiveness.

Marco Pagliara

head of private bank emerging markets, Deutsche Bank Private Bank

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Our Chief Investment Office believes we are entering a year of lower growth, with 2024 still offering opportunities for bonds and equities, as slightly lower yields provide support for valuations and earnings growth potential.

Perhaps unsurprisingly, geopolitical tensions continue to be among the top risks for 2024, and mitigating the risk associated with possible market dislocation relies on active management and diversification. We have been advising clients for some time to expect higher rates for longer, and now we believe most of the rate rises are probably behind us.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

Deutsche Bank Private Bank’s emerging markets franchise is very well positioned to capture upside growth in the ultra high net worth segment, especially where the families have established single-family offices to manage their assets in an institutional manner.

This year we established a new institutional wealth management initiative, focused on the rapidly growing development of single-family offices in the region, especially in Singapore and Hong Kong. Our priority over the past few months has been to build out our offering platform to provide exclusive, bespoke solutions – either through the Private Bank or in collaboration with our colleagues from other lines of business – to these very sophisticated clients, with dedicated talent with specialist family office expertise. So far, we have received very positive feedback.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Competition will always exist between global financial centres. What is more important, however, is how individual centres play to their strengths and unique market characteristics while remaining connected within the global financial ecosystem.

Dubai’s growth continues strongly, partly because it managed to avoid most Covid restrictions, partly because it has successfully positioned itself as a bridge between the East and West, and also because Dubai serves as a finance hub for South Asia. We increasingly see capital flows between the Middle East, South Asia and Singapore, which can be attributed to the large non-resident Indian population in Dubai, and India’s burgeoning wealth onshore and offshore. Both Singapore and Hong Kong have their unique footprint, and each has an important role to play in facilitating capital flows.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

The Chinese economy has already shown signs of improvement in recent months on the back of monetary and fiscal stimulus measures. The service sector recovery was on track, especially the travel-related services. China’s electric vehicle industry has shown substantial growth.

For now, the property sector and exports are the key weaknesses. In 2024, we think there is an opportunity for Chinese equities to show good performance with the continual recovery, accommodative economic policies and low valuations. We suggest there are investment opportunities in China’s consumption recovery, technology development and green energy industries.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

DPM in Asia has seen increasing interest from our clients in the UHNW and family office segment, looking for professional and institutionalised management of their assets. With the end of the interest rate hiking cycle ahead of us and the associated reinvestment risk of deposits, we expect the fixed income asset class to be well-suited for a growth in mandates. We have been managing discretionary portfolios since 1968 and are renowned as the #1 fixed income platform and hence in pole position to attract this interest.

Asia’s investor markets have traditionally been cutting-edge and competitive in identifying investment opportunities. Deutsche Bank Private Bank’s DPM in Asia therefore offers global as well as local strategies across the asset class spectrum and has a dedicated team of portfolio managers on the ground. Our leading position is complemented by a build-out in our alternatives offering, which is being added to DPM asset allocations.

As a European house, we are also sought after in offering expertise and investment solutions incorporating an ESG focus. That is of particular concern for the second generation of our clients. As such we are looking forward to a successful 2024 in DPM in Asia.

Edmund Kam

general manager and head of private banking, Bank of China (Hong Kong) Private Banking

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Bank of China (Hong Kong)’s private banking business maintained satisfactory growth in the first half of 2023. We actively integrated green finance and ESG standards into product and service design, pushing forward high-quality and sustainable development in our business.

We also stepped up our digital transformation efforts by accelerating business process automation and digitalisation to keep enhancing our private banking service and trading platform. In addition, we have enriched our product range and strived to implement innovative service practices. As of 30 June 2023, our private banking AUM has increased by 17.1% compared to the end of 2022.

To navigate headwinds in the past years, we have been working closely with our clients in strategic portfolio construction and diversification. Strategies that have been tactically and strategically applied for clients’ portfolio construction these past few years include the following:

• Traditional vs new asset classes (e.g. Convertible bonds have been introduced which are volatility-friendly and less sensitive to interest rates);
• Public market vs private market (e.g. private credits);
• Long-only vs market neutral (e.g. uncorrelated alpha strategy);
• Symmetric vs asymmetric payoff strategy (e.g. downside protection via capital markets solution).

These strategies aim to safeguard clients’ AUM and also allow clients to participate in the potential upside of the underlying.

Looking ahead to 2024, the investment market is anticipated to have high uncertainties, brought by the United States presidential election and rising borrowing costs. USD interest rate is expected to reach the peak next year and hence all “risky” assets are likely to perform, provided that there are no unforeseen “black swan” events.

Investment in bonds (with lengthening duration) is one of the strategies to be considered. In view of the potential weakness of the USD, we are constructive on Gold and CNH. In addition, it may also offer a very positive support to the Hong Kong equity market.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

BOCHK Private Banking sees several promising areas for investments in 2024, which shed light on potential strategies to navigate the market dynamics and achieve a better risk-adjusted return.

Firstly, the Chinese mainland technology giants, which have experienced declines lately, might present a promising investment prospect in 2024. With lower valuations, potential weakness of the USD and the recovering Chinese mainland economy, it is expected that those companies may be bottoming out.

Secondly, gold is expected to benefit from the higher market risk and USD decline. In times of uncertainty, gold serves as a safe-haven asset traditionally, which may offer a hedge against market volatility.

Lastly, we are constructive on AUD/CHF while we expect geographical tension in the Middle East may linger and will be one of the potential risks next year.

With respect to overall asset allocation and investment strategy, there are two playbooks that are worth considering. One is to incorporate “quality play” and “duration extension” in the traditional 60/40 portfolio construction. Last but not least, having an even more diversified portfolio not only in equity and fixed income but also in commodities, cash and alternative investments, can help to achieve a more optimal risk-return profile in 2024.

Turning to risk, the interest rate path continues to be one of the most important factors to drive the market dynamics (e.g. data-dependent monetary policies by central banks). Liquidity risk is another one that we care about. We always believe that “continuous and yet effective risk management is not a one-off but a lifetime effort to be long-held in the process of portfolio construction for our clients.”

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

We always believe that people are the most important element of a successful business and corporation. As for the private banking industry, of which top-quality, tailored and personalised services covering all aspects of banking services, wealth management advisory and consultancy services are required and expected, the talent issue is for sure of top concern and focus.

In fact, our teams comprising professionals covering front, middle and back-office roles have grown steadily with increased numbers of staff and a diversified team structure over the past few years.

We have proactively sought and invited outstanding talents in the market to enrich our team structure, in addition to the well-structured on-job training in different aspects for our staff.

Simultaneously, the large pool of talent from internal business units including but not limited to corporate banking and retail banking from Hong Kong, the Chinese mainland and APAC, which are a great source to enrich our talent team.

Last but not least, we welcome the Top Talent Pass Scheme launched by the HKSAR Government. We believe that a group of top potential and outstanding talents with rich working experiences and good academic qualifications would be attracted to Hong Kong to serve the wealth management industry.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore?

It is predicted that Hong Kong may become the world’s largest wealth management centre within the next few years, benefiting from enormous wealth creation across the Chinese mainland and the wider Asian region.

Besides, Hong Kong is one of the world’s largest equity fundraising centres, the third-largest bond centre in Asia (excluding Japan), the largest offshore market for RMB, the largest cross-border private wealth management centre in Asia, and is ranked second in global rankings. Hong Kong owns the unique and special role of being the super-connector with the Chinese mainland, with deep capital markets and a rich pool of talent available.

In addition, Hong Kong has advantages such as a lower and simpler tax system. It has more flexible operation requirements such as lower AUM requirements, alongside simpler entry policy requirements, such as local investment requirements and prior regulatory approval. These comparatively lower thresholds and higher flexibility are believed to make Hong Kong the preferred location for family office development. Besides, Hong Kong enjoys the common law legal system, which is supported by an independent judiciary.

The growing support of the HKSAR government including the launch of different policies and measures such as tax concession and family office policies can help attract more potential family offices to establish themselves in Hong Kong.

Meanwhile, there will be unprecedented business and wealth opportunities in the GBA. An integrated zone of consumer, finance, innovation, manufacturing and tech is being shaped in the GBA. The data show that GBA achieved a combined GDP of US$1.81 trillion in 2022, making its economy the 12th largest. This mutual financial market access places Hong Kong in a strong position as the Chinese mainland’s offshore fundraising and wealth management hub.

In 2022, the GBA had 63 unicorns – startups with a valuation of US$1 billion or more, compared to 14 in 2017. These corporations have flourished in recent years with promising wealth and asset accumulation.

Albert Chiu

executive chairman, Asia Pacific, EFG Bank

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

As a Swiss private bank with a global footprint, our resilient operational framework centres on prioritising the distinctive needs of our clients, delivering a customised experience that gives us a distinctive advantage.

Amid heightened market volatility and the prevalent challenges in the banking sector, compounded by ongoing economic and geopolitical uncertainties, EFG has demonstrated exceptional execution and started to consistently deliver against its strategic plan for the 2023-2025 period. Our dedication to a client-centric and well-diversified business model has manifested a stable financial performance, evident in our record profitability during the initial 10 months of 2023 and robust growth in net new assets.

The resolute commitment of our client relationship officers has played a pivotal role in nurturing enduring relationships and fostering trust with our clients. We have made a significant investment in attracting new talent. EFG’s client-centric ethos not only aligns with our core values but also ensures the delivery of unparalleled service and top-tier investment solutions.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

In the broader scope of 2023, we advocate a tactical and diversified approach to consistently empower our clients to capitalise on opportunities.

By championing a proactive and adaptable approach, we guide our clients through the intricacies of volatile market conditions. Our overarching objective is to provide recommendations that optimise investment outcomes, prioritising the preservation and growth of their assets.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

Although the Chinese economy faces headwinds in its post-Covid recovery, driven by persistent stress in the property sector and weak consumption among various factors, we are confident of its mid to long-term prospects with the Central Government’s stimulus measures and reform initiatives expected to provide support and mitigate potential downside risks.

As the transnational environment continues to be a dominant factor, we are committed to continue to stay close to the markets and our clients. Banks must be able to clearly demonstrate the value and quality of their investment and portfolio advisory for clients, helping clients meet their long-term investment goals based on their respective risk appetites.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

Our foremost commitment is to deliver unparalleled service and guidance, offering high-quality investment, wealth and credit solutions to our valued clients. Simultaneously, in our role as asset allocators, we aim to guide our clients towards transformative technologies and companies that champion sustainable innovation.

Using regulators’ guidelines as our compass, we proactively adapt our investment processes to capitalise on emerging green opportunities. This commitment extends to refining our existing product universe and strengthening our distribution framework that would dovetail with clients’ needs. Our clients not only benefit from best-in-class service and sound product advice but will also have access to a diverse range of offerings aligned with principles of sustainable development and innovation.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

There is growing interest among our ultra high net worth clients in Asia about the establishment of family offices in recent years. Regulators in Hong Kong and Singapore are actively promoting their respective jurisdictions as key centres for managing family wealth legacies. As such, a growing number of clients are now considering the establishment of family offices in both Hong Kong and Singapore, driven by tax-friendly regimes and other favourable conditions in these locations.

EFG is well-positioned to help its clients with the establishment of their family offices. We have a wealth planning team in Asia comprising professionals with a wealth of industry networks, in-depth knowledge, and extensive expertise dedicated to providing top-tier advice to our clients in diverse wealth planning solutions including family office setups.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross-generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

We have a clear digital roadmap for our new strategic cycle, focused on enhancing client experience and operational efficiency. Substantial investments in IT, including various system solutions and upgrades have been made. Additionally, championing sustainability, we have successfully transitioned a majority of our clients to a paperless environment in Asia.

Recognising that banking is fundamentally a people-centric business, we understand the importance of maintaining personal contact with our clients to foster enduring relationships. Our goal is to offer an appealing hybrid solution, seamlessly blending personalised service with digital solutions. This approach guides our clients through the technological landscape in managing their portfolios.

Michael Blake

chief executive Asia, UBP

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

For many clients, cash became king in 2023. In the face of fast-rising interest rates in the first three quarters of the year, many clients reduced exposure to public market investments, with appetite for fixed income returning as the rate hike cycle matured. We continued to provide clients with support and solutions throughout the year.

Looking at UBP’s Asia business overall, 2023 net profit is up YoY in a challenging environment. The business mix changed during the year in line with the market environment, with a clear shift from investment-related income to net interest income. From a strategic perspective, we focused on three priorities during 2023:

Hiring: Reflecting the significant opportunities in the market, we hired more RMs in 2023 than in the past several years combined, strengthening our Greater China, ASEAN and Indonesia coverage teams, with about two-thirds of the hires in Singapore.

Mainland China: Building on the opening of our Hainan office last year, we have seen increasing demand from qualified domestic investors for global investment strategies under the Qualified Domestic Limited Partnership programme.

Alternatives: Client demand this year has focused on thematic private market strategies including fast-emerging consumer brands, European luxury real estate and bulge bracket technology managers. We have also strengthened our Asia hedge fund advisory capability and concluded several bespoke hedge fund mandates.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Powerful economic and geopolitical forces will continue to reshape the contours of the world order in 2024. Bond investors will benefit as central banks suspend their tightening and end the three-year bond bear market. Renewed fiscal dominance will drive economic growth and determine winners and losers among world economies.

Transformative technologies will continue to lead the way, with the global energy transition continuing apace. Geopolitical realignment will also feature strongly as US policies drive a diversification of supply chains away from China, creating investment opportunities for India and Latin America.

The new landscape will also bring associated risks, not least the continuation of kinetic wars and shifting regional power structures. However, the biggest unanticipated risks for 2024 are a return to 2016-style political disorder and stagflation.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

In 2024, China will benefit from a cyclical tailwind whilst also navigating a post-property bubble economic transition. In general, investors should take a longer-term view as China transforms, using this cyclical rebound to reposition towards new, emerging sectors within the economy rather than legacy sectors still in need of reform.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

We aspire to offer clients a service that combines the flexibility of a family office with the investment platform and balance sheet of a larger institution. Our hiring priorities reflect this: we seek to attract seasoned professionals who are passionate about working in an agile, entrepreneurial environment that is premised on delivering strong investment strategies for high net worth and ultra high net worth clients.

Our hiring philosophy is focused on quality over quantity: we do not have a hiring quota but are able to move quickly when we find a good fit. Reflecting significant recent market opportunities, we hired more RMs in 2023 than in the last few years combined. Two-thirds of the hires have been in Singapore and a third in Hong Kong, focused primarily on Greater China and ASEAN. Our primary target market remains clients who are ready and able to place more than CHF 10 million with UBP.

It is critical that all parts of the business evolve in tandem. Reflecting this, we recently appointed new heads of Investment Services in Hong Kong and Singapore to address local investment needs more effectively. Within the support and control areas, where we also increased headcount in specific areas, our focus is on simplifying complexity and automating routine tasks to improve operational efficiency and risk control.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

Our Wealth Planning teams in Hong Kong and Singapore are able to draw on the support of our dedicated family office unit in Geneva. Combined with an extensive network of external legal, audit and taxation specialists, who we call on when necessary, we are well placed to help clients set up a family office and to support them with governance, succession and investment management issues.

The development of family offices in mainland China remains a specific area of focus and we were pleased to publish a whitepaper on the subject jointly with Hurun Research in 2023.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Both Hong Kong and Singapore have established themselves as leading financial hubs in Asia, attracting high net worth families. Dubai also emerged strongly during Covid as an efficient and fast-developing financial hub which is attracting increased interest from wealthy individuals in Asia. We expect all three financial centres to flourish given their proximity to fast-growing regional markets and access to financial market expertise.

With Covid-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era?

We are a people-first, relationship-driven wealth manager where personal and customised advice remains essential in our digital transformation agenda. Our strategy for digitalisation is designed to help our bankers provide improved services to clients, rather than relying on low-touch, AI-driven solutions. We see a hybrid future, where technology enhances the human relationship that forms the foundation of our business.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

DPM penetration at UBP Asia is in line with our bank average, including other regions. Nevertheless, increasing DPM penetration further is a key strategic focus.

We believe that in addition to building trust and transparency with clients, customisation and asset class expertise are key to improving DPM penetration. In this regard, we will continue to offer more innovative solutions such as hedge fund DPM mandates, private markets DPM mandates and structured product-focused DPM mandates in addition to our existing suite of multi-asset and single asset-class solutions.

Omar Shokur

CEO, Asia, Indosuez Wealth Management and Singapore branch manager, Indosuez Wealth Management

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

2023 has been a rather eventful year, although it is turning out to be a better year than 2022. We have taken a rather cautious and conservative approach concerning our investment advice to clients, which has generally worked out well.

An example would be our position on fixed income, which has played out particularly well. Despite the evolving challenges in the markets, we had started the year with short duration in the fixed income buckets and increased the duration over the last quarter. We have also increased our equity allocation from underweight to neutral, favouring US equities the most.

We also advised clients to have some gold in their portfolios as a volatility hedge (and always a good asset to own in times of significant geopolitical tensions) and invest in our semi-liquid private equity products which have proven to be a strong success.

In terms of business growth, the market reorganisation announced last year for our commercial teams, combined with the arrival of substantial new bankers in 2022 and 2023, has brought us significant new AUM in 2023.

We want to continue 2024 with the same business momentum by emphasising the financial stability and safety of the Crédit Agricole group, of which Indosuez is the wealth management brand, as an important reassurance to our clients and prospects.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

The FED has been hiking interest rates for the past 18 months with 525 bps. This is undoubtedly one of the fastest rate hike cycles in history. US interest rates have now reached the highest level in 20 years. With this hiking cycle now widely expected to end, we have witnessed great interest going into fixed income strategies in 2023.

At this juncture, we have revised our growth scenario in the US upwards on the back of the resilience of US consumers while maintaining a non-linear disinflation process in developed markets countries. The base case scenario does continue to support our core conviction in the high quality credits positioning, especially on the short end of the curve. We have maintained our constructive position on risky assets and continue to favour US equities, most on the back of positive earnings and economic growth momentum.

Regarding the challenges, many risks we faced this year have cooled but some potential ones remain, namely around geopolitical risk (including the multiple ongoing wars), China’s real estate weakness and weaker earnings revisions, and multiple elections in 2024. We would in turn add macro hedge positions (such as gold, safe haven currencies, and US treasuries, among others) to hedge the tail risks.

Lastly, as in the past couple of years, private markets will be well-positioned in our view. Interestingly, this is an asset class that is well suited for uncertain and volatile markets, especially for investors with a long investment horizon.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

It could take some time to see the positive impact of the acceleration in monetary easing and the measures taken by the Chinese government to support the real estate sector. Market expectations are focused on the possibility of a strong fiscal stimulus as well as additional stimulus for infrastructure spending.

We remain neutral on China and continue to take a mid to long-term view into investing in China. Indeed, China is simply too big and too important to ignore and as such we continue to focus on quality companies in China that are well-positioned to navigate through the current challenges China is tackling.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

In 2023 we have, following similar successes in 2022, been able to grow our bench strength considerably and welcomed a significant number of senior bankers and specialists into our teams.

We continue to have a strong focus on growing in this region, and for 2024 we will focus on integrating our new colleagues smoothly into our organisation, attracting new talent and continuing to nurture our current talent pool.

Despite what is happening in the industry, Indosuez’s leadership team has been a beacon of stability, something that provides peace of mind for clients and colleagues alike.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

The competition between the two Asian financial hubs as wealth management centres continues, which also spurs them to continually raise their standards and evolve for the betterment of the industry. Hong Kong has the Greater China region, in particular the Greater Bay Area, to leverage, while Singapore caters to Southeast Asia and India, regions that continue to see growing pools of wealth.

Dubai is shaping up gradually as a wealth management hub. UAE is regarded as an ideal mid-point between the West and East. It has a business-friendly environment and a robust financial infrastructure. Global and Asian private banks and wealth managers are drawn to the economic growth in the Middle East and its growing UHNW population and as such, Indosuez has established its own presence in the DIFC.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross- generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

Wealth management is and will remain a high-touch business where strong and deep personal relations with clients remain at the core of what we do.

At Indosuez, while we do engage clients in a hybrid model of digital and in-person contact points, it is really the direct personal touch and customised solutions and offerings that we offer each client, which makes us stand out in the marketplace.

We continue to enhance our technological platform, also via our sister company Azqore, with the aim to support our bankers with the right tools (such as CRM and investment tools, among others) so that they can continue to deliver the best, tailored-made service to our clients.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

Establishing and developing a DPM offering is not an overnight process. We are in the fortunate position that we can draw upon both our local DPM team of experts as well as our DPM teams in Europe. As such, we can offer global mandates, thematic mandates, Asian mandates and most importantly, bespoke mandates.

Whilst DPM penetration in Asia is indeed still lagging behind other regions, there is a noticeable increase in uptake going on, especially with the younger generation taking over the management of the family wealth. They are much more open to delegated solutions such as DPM and other mandates such as private equity. We are pleased to be well-positioned for this growth.

Rajesh lyer

head, private banking, ICICI Bank

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

We are an India-focused private banking outfit. The key theme for 2023 has primarily been a global change in mood towards a likely soft landing of the US economy – as against a hard one in 2022 – and a decisive turn in sentiment away from China, towards secular growth markets, primarily India.

Given our investment process, which continuously seeks a margin of safety, we were able to avoid the direct fallout from the US banking crisis and the generally unanticipated write-down of AT1 bonds of a Swiss major.

2024 is likely to be slightly more challenging in our view, given the major elections lined up in the US and India, and given that the full impact of higher US rates will quite likely become visible in a global context.

If higher US fiscal spending has been helpful in 2023, a key call is whether in an election year in 2024, will the US be able to increase fiscal spending amid a generally mature economic cycle. Thus, we are not betting big on any specific theme for 2024, but would prefer to be nimble-footed given that there are no specific pockets of opportunity from a 2024 calendar year perspective. At the same time, 2024 may offer many opportunities for long-term portfolio build-up.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

We think global fixed income is generally more attractive, especially risk-free to high grade. Indian hard currency high quality longer duration papers look particularly attractive.

In an Indian context, private credit has just begun to pick up, while it is quite well entrenched in the West. There are as of yet no refinancing risks in India as there are in the West. Within private credit, we find performing credit as a compelling strategy. Over the longer term, however, Indian equities offer secular growth dynamics if bought during bouts of intermittent corrections.

We also think that unlike in the West, commercial real estate in India offers opportunities. The key risk, like in the past, shall likely emanate from any unanticipated financial global shocks.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

We are generally ESG-conscious in our approach, including product selection. Within that, climate change is surely a long-term theme and therefore a great opportunity.

In India, the most promising way of playing the climate change theme is by participating in the entire renewables ecosystem – be it wind or solar – or even move away from fossils to electric vehicles alongside power generation capex.

It is important, however, that any theme not only provides a longer-term growth opportunity but should also be available at a reasonable price. Unfortunately, as of today, this theme is not inexpensive anymore. Thus, one has to be selective and conscious of timing.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

To keep pace with the ever-changing digital landscape, a number of key digital initiatives were rolled out in 2022 and 2023 aimed at enhancing transaction journeys:

• 2FA: OTP-based transaction processing of mutual fund transactions;
• Smart Wire: Seamless inward remittances, where both beneficiaries and remitters enjoy a fully digital journey;
• Video KYC: Clients can complete their KYC for accounts digitally within just a few minutes through an additional mode;
• Mortgage disbursement: Once authorised, clients can continue the loan disbursement journey digitally by selecting from pre-approved properties;
• Companion Card: Enables transactions with ease and security. Instant reload via iMobile Pay and ability to monitor spending on the card, safe and secure with no risk of savings account details being compromised;
• Unified Customer Journey: provides uniform and consistent client experiences across all platforms. End-to-end digital journeys have been enabled for new-to-bank and existing clients;
• Discover 2.0: A unique personal finance, expense and budget management tool to engage with clients digitally and help them manage their finances effectively.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Singapore today is seen to be a good destination on all parameters, be it regulatory environment, macro-economic and political stability, diversity of diaspora, flexibility of investment options and so on.

We think, however, over time GIFT City in Gandhinagar, Gujarat, does hold a lot of promise as an alternative global booking centre. It is moving in the right direction. GIFT City also holds the future for wealthy Indians and is likely to put strong competition to Singapore for that wealth.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross- generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

ICICI Bank has been at the forefront of digital evolution. In a wealth management context, we have already embarked on a journey to transform our digital offering which is transaction-focused to an evolved digital wealth tool.

While digital enablement is likely to be very critical for future growth, wealthier clients prefer a ‘phygital’ approach – a personalised relationship with an efficient transaction cum reporting platform. Depending on client preference, an RM is empowered to calibrate the extent of personal and digital engagement with a client. This serves both new and existing clientele.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

It is true that DPM has generally lagged in Asia relative to other regions. One reason is that Asian clients tend to have a higher appetite for involvement in the process. DPM puts limits on that, making it less appealing.

In a fast-changing world, Asian clients may have a higher degree of risk appetite, especially in ‘good’ times, which may not always be very consistent with an investment process which is high on prudential norms. For example, anecdotally, usage of leverage at an individual level is typically higher in Asia than in other regions. In such circumstances, the well-accepted norms of DPM as in the West often yield less satisfying results for clients in Asia.

We have taken a calibrated approach to DPM. First, we need to recognise that not many clients prefer giving full control. Therefore, we have made a beginning by offering it as a proposition but have not yet made a core of our offering that “must be taken” by a client. We believe over time, as clients get more comfortable with the outcomes of DPM, the likelihood of its acceptance shall increase with clients. We think that is fine given the very complex and heterogeneous nature of clients.

Rakesh Singh

group head, BaaS, investment banking, private banking, thematic research, overseas, offshore international banking, and international banking platform, HDFC Bank

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

In an environment of elevated inflation and sluggish growth, India has stood out as a shining star. The government’s focus on building infrastructure and reforms across sectors have been the key factors leading to India’s strong position. India also stands to be the key beneficiary of the derisking of the supply chain with major global corporations who are setting up manufacturing facilities in India. India’s banking system, too, is in a very strong position with low non-performing assets.

Geopolitics remain one of the key risks to capital markets. The outbreak of the Israel-Hamas war in the Middle East may accentuate global risk, especially with respect to energy and commodity prices, if the contagion effect of the war spills over to other parts of the world leading to inflation becoming high and sticky.

In the past, we have seen that events such as geopolitics and elections can lead to short-term volatility. However, over a longer period, equity markets deliver returns in line with the earnings growth of the companies. Hence, with a long-term view, buying on dips could be a good strategy for an investor, should any of the risk factors play out. From a thematic perspective, allocation to infrastructure, supply chain, industrials and premiumisation in consumer products, may help portfolio performance. On fixed income, private credit looks very promising and has been gaining traction off late. Also, with recent taxation changes bringing all debt investment avenues at par, private debt can provide meaningful real returns.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

Most investors have a home bias when investing, particularly when their home country’s economy and markets are performing better than other economies. However, geographical diversification is also important for investors having future expenses and liabilities which are global, namely, education for children in foreign countries, plans to settle abroad post-retirement, or building financial or real assets abroad.

Specifically on China, we have a cautious stance on investment allocation towards that market owing to recent credit defaults in real estate, the slower-than-expected growth, and liquidity issues.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

There is a growing interest among investors towards ESG investing. It is gaining more traction as investors recognise the potential to generate both sustainable financial returns and positive social and environmental outcomes. On the policy front, the Indian Government has taken several positive steps towards ESG and impact investing which are expected to have a positive impact and drive ESG and impact investments in future.

As of now, ESG investing is still not as mainstream in India as traditional investment strategies. Currently, there are quite a few ESG theme mutual funds and a few alternate funds available in India, which are seeing increased traction from investors. At HDFC Bank, we follow an institutional approach towards selection and the due diligence of investment products. We shall continue to evaluate and onboard products based on their merit and ability to generate meaningful returns for our clients and also create a positive ESG impact.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Regular manpower movement across firms is part and parcel of the wealth management industry. At HDFC Bank, we have institutionalised a team-based approach to client engagement, which comprises a team of relationship managers, service managers and investment analysts who are responsible for managing and interacting with clients regularly.

Our relationship managers act as the primary contact point for clients and focus on building trust and deepening the relationship with the client. With multiple touchpoints available for clients, personnel transitions and handovers are managed smoothly in an institutional setup.

As we move ahead, we are looking at enriching the team by focusing more on relatively senior relationship team hiring, as we believe they bring the right amount of experience and acumen to engage with HNWIs and family offices. Our constant endeavour has been to invest in our people by way of regular training and upskilling initiatives.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

Family offices and wealthy clients are increasingly looking at wealth managers who can provide holistic solutions for their end-to-end requirements rather than mere investment products. To meet their demand, we offer a wide bouquet of products and services to our clients as per their investment requirements and risk profile, which includes regular investment options such as mutual funds, portfolio management services, alternative investments, offshore investments and estate and succession planning services.

With the use of data analytics, we can offer enhanced portfolio insights and provide real-time research-based inputs which have been appreciated by our clients. Technology and digital platforms have enabled us to provide a seamless experience to our clients.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

A transparent and robust regulatory framework is crucial to instil confidence in DPM services. India’s regulatory framework for DPM services is quite robust and includes guidelines for DPM providers, disclosure requirements and investor protection measures. The recently formed Association of Portfolio Managers in India is a great step which will bring together all stakeholders on one platform for advocating for the growth and development of DPM services.

Additionally, actively managed strategies offering tailored solutions have been able to generate meaningful alpha for investors. In the Indian context, we still believe that active fund managers should be able to continue to deliver alpha over the benchmark. With that as the key underlying benefit and as the market matures and investor awareness increases, DPM penetration is likely to grow.

Freddie Chen

head of international private banking division, CTBC Bank

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

We advised clients to increase cash positions in 2H22 to reduce risk exposures and enjoy the rising USD cash rate. In 2023, we took a relatively prudent approach by advising clients to start allocating to short-to-mid-duration investment grade bonds to capitalise on the higher rate regime. We helped clients to participate in global equity markets through structured products, which offer payoff scenarios that are best suited to our tactical market views.

We also advocated portfolio diversifications into alternative funds such as private equity and private debt. Most of our advised client portfolios delivered YTD returns of 5-10%.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

We expect returns in fixed income, equity and alternative investments to exceed cash returns in 2024.

At the moment, cash is offering good yields but we see more attractive total returns within the bond markets. We believe the Fed is at the peak of this tightening cycle and they are likely to cut rates in the 2H24, which should provide some potential capital gains in bonds.

With global investment grade (IG) bonds yielding at around 6-7%, we prefer IG bonds over high yield. In terms of duration, the intermediate duration (5-7 years) looks the most appealing to lock in yields and benefit from the steepening yield curve.

While we maintain a neutral allocation to equities, we expect positive returns for global equities in 2024 under a softer but still resilient macroeconomic backdrop. Japan remains our top pick in terms of global equity markets because of its governance reforms to increase corporate return on equity. We expect the Bank of Japan to eventually normalise its monetary policy due to more persistent inflation in Japan which should support our view of a stronger yen against the US dollar.

Although we have the US at market weight, we continue to like high-quality growth stocks that have pricing power, the ability to maintain profit margins and strong balance sheets. We also believe stocks with a focus on dividend growth and with positive free cash flow will perform well in volatile times. Within emerging markets, we are monitoring the Indian market, which is experiencing supply chain transfers and active government investments.

The biggest risk in 2024 would be policy risk and geopolitical uncertainty. Stubborn inflation could cause central banks to continue to tighten into next year. Even though not our base case, the higher-for-longer scenarios could kick off a hard landing that eventually results in a global recession. Existing wars and potential expansion or new conflicts remain noticeable risks.

To best mitigate some of these risks, we think relatively uncorrelated asset classes, such as alternative investments, would be the best solution for our clients. Private equity and private credit have significantly outperformed traditional asset classes in recent times. We recommend our clients increase their private markets allocations to at least 10-15% so as to provide some protection during any unexpected financial market turbulence.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

We believe China’s economy has bottomed out but the timing of recovery from the deep property crisis remains challenging. We expect the central government will need to provide more substantial support to the property sector before it can be turned around. Any sign of housing sales and price stabilisation could be supportive for Chinese equities.

In the short term, we see tactical opportunities for clients to participate in technical rebounds with any improving economic data and ongoing support from the government, such as government agencies directly buying equities and the issuance of government bonds to support the domestic economy.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Our hiring strategy for front-office staff will be to recruit RMs familiar with the Greater China and Southeast Asia markets. For middle-office staff, we may look for individuals with digital and risk management expertise. And for back-office staff, our focus for hiring will be proficiency in operation and project management.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

As Hong Kong has been affected by COVID-19’s strict entry control and the promulgation of the National Security Law in the past three years, Singapore seems to have a slight advantage in the short term due to its political stability and financial openness.

Having said that, Hong Kong remains the largest overseas hub for CTBC Bank, especially in corporate and commercial banking. The assets and revenue of CTBC Hong Kong Branch saw all-time highs this year.

For CTBC IPB, we will continue to maintain and enhance the dual platform in both Singapore and Hong Kong so that clients can choose either one based on their individual considerations.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

DPM has been substantially more popular with European investors than Asian investors. Moreover, high interest rates and other yield-enhancing financial products have also been fierce competitors to DPM.

However, DPM is still one of the important services. We acknowledge that not many clients are open to DPM at this stage. However, as first-generation entrepreneurs start to hand over their businesses and wealth to the next generation, the investment mindsets of investors may change, and the willingness to accept professional management of their assets may increase.

Yunyong Thaicharoen

senior executive vice president and chief wealth banking officer, SCB Wealth

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Regarding client services, we will focus on deepening client relationships and emphasising diversification. Our private bankers have tried to get to know their clients on a deeper level, understand their needs and concerns, and provide them with personalised advice on diversification strategies. This has helped to build trust and loyalty, which is essential for retaining clients and attracting new ones.

Second, looking at providing timely and accurate information. We kept our clients informed about the latest economic and market developments, and how they may impact their investments, including diversification options. This has helped clients to make informed decisions about their portfolios.

Third, we will look to offer a range of investment solutions to meet individual needs and risk tolerance. This has helped clients to diversify their portfolios and protect their assets. We have also taken specific steps to deal with the unique challenges posed by the current environment.

New investment products and services have been launched to help clients hedge against inflation and preserve wealth, while also assisting clients in navigating the complex and ever-changing regulatory environment. Beyond protecting the AUM, we even increased it by offering rate products and fixed maturity funds.

Looking ahead to 2024, our strategy will centre on the following risk factors and investment themes. First, higher for longer. We will focus on rate products with high cash flow generation and structured products.

Second, geopolitical risk. We will carefully advise our clients to understand geopolitical issues and diversify across asset classes, including alternative investments, to manage volatility and seek out performance.

And lastly, a focus on sustainability. ESG investing will definitely be the next successor in Asia, aligning with Asia’s growing commitment to sustainable development.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

As we navigate a dynamic economic environment, our investment strategy leans towards products designed for resilience and consistent performance. We see promise in absolute return strategy products, such as absolute return bonds, equity funds, market-neutral hedge funds, private asset funds, structured products, and derivatives.

In addition, inflation-hedged instruments, such as real estate investment trusts, commodities, and infrastructure funds also present opportunities for portfolio diversification and risk-adjusted returns.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

In 2024, our investment strategy prioritises firms with strong ESG features likely to offer long-term financial robustness and climate resilience.

We are boosting allocations to green bonds and sustainable funds, expecting them to benefit from stricter environmental policies. For SCB Wealth, ESG mutual funds have been introduced, such as thematic funds including an EV theme, a clean energy theme, and others.

We are also integrating third-party ESG assessments to ensure our investments are truly sustainable and performance is measurable. There are various sources and tools that we will utilise to ensure our investment products and strategies are in compliance with global ESG practices. For instance, the Morningstar Sustainability Rating will be the key metric to use in mutual fund selection.

Both SCB Wealth and SCB Bank will strive to comply with the Dow Jones Sustainability Index rating. SCB Wealth is in partnership with leading companies such as BNP Paribas and Schroders and collaborates with them to learn the best practices on ESG training. In addition, SCB Wealth is working with our internal academy to create training sessions for RMs to pass ESG knowledge on to clients.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

To support HNWIs, the SCB Wealth Planning and Family Office team has provided customised advice on family wealth management from onshore investment to offshore investment, and from the wealth creation to wealth transfer stages. This advice relates to corporate structures for family businesses, for instance, family holding companies, tax for succession planning, offshore trusts, offshore property and investment for residence or citizenship. To help the clients understand and identify key complexities and risks, we offer onshore and global wealth advisory to clients.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

For 2024 in Asia, we need to focus on investor education, emphasising DPM’s role in achieving personalised investment objectives.

We will concentrate on crafting individualised portfolios that resonate with the region’s cultural and economic context, and underscore DPM’s capacity to manage risk and enhance returns amid Asia’s unique market fluctuations.

To increase the penetration, in our current plan for the upcoming year, DPM can be boosted via our digital channels, such as SCB Easy and wPlan.

Narit Kosalathip

managing director, head of wealth management, Kiatnakin Phatra Securities

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Private markets continue to present intriguing opportunities for clients seeking superior risk-adjusted returns and diversification. The illiquidity characteristic of the private market and varying performance among managers necessitate thorough due diligence. Choosing lock-up and semiliquid funds, along with comprehensive client education, is vital to mitigating the inherent risks associated with private market investments.

Structured products prove invaluable in navigating market uncertainty, with the flexibility to incorporate enhanced safety measures and defensive elements. During times of uncertainty, structuring these products to mitigate potential risks becomes crucial. This feature is particularly relevant for clients who remain cautious about re-entering the markets.

Given the prevalent home bias among Thai clients, now is an opportune time to advocate for diversification away from the local market and Baht. With lacklustre performance in the local equity market in 2023 and an unfavourable outlook for the coming year, persuading clients to diversify becomes crucial. Educating them on the potential benefits and risks of diversification can mitigate concerns related to home bias.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

From a risk-reward standpoint, we maintain a neutral stance on Chinese equity. While there was initial positive sentiment during the reopening at the beginning of the year, economic indicators reveal a slower-than-expected recovery. The government’s stimulus measures may provide some economic uplift, but the prevailing property crisis and geopolitical risks weigh significantly on overall sentiment.

Specifically for Thai investors, we currently do not identify compelling reasons to advocate for a substantial exposure to Chinese equity. The combination of economic uncertainties, the property crisis, and geopolitical tensions underscores the need for caution. As such, our advice to clients is tempered by a careful evaluation of the risk landscape, and we are not currently recommending a significant allocation to Chinese equities at this juncture.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

In response to the expanding ESG regulations across Asia, particularly acknowledging the nascent stage of ESG development in Thailand compared to global counterparts, our strategies for 2024 are multifaceted. We recognise the inherent risks and the emerging opportunities that ESG considerations present, and are committed to integrating responsible investment practices while ensuring returns for our clients.

In the absence of a fully matured ESG ecosystem in Thailand, we are proactively working on the development of an internal ESG framework for product selection and disclosure standards. This framework is designed to guide our investment decisions and ensure transparency in communicating ESG-related information to our clients.

As a subsidiary of a bank with oversight from the Bank of Thailand, we prioritise alignment with both our parent company’s initiatives and regulatory guidelines. This ensures a cohesive and standardised approach to ESG integration across our operations.

Recognising the need for widespread awareness and education on ESG matters, both within our organisation and among our clients, we incorporate ESG training and seminars in our annual planning. This multifaceted strategy aims to position us at the forefront of responsible investing in Thailand’s evolving ESG landscape.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

Admittedly, Thailand faces limitations in fully supporting a comprehensive family office framework due to regulatory constraints and an evolving ecosystem. As such, we transparently advise clients considering family offices to explore established financial hubs like Singapore or Hong Kong, where regulatory frameworks and infrastructure are more conducive to such endeavours.

Nevertheless, recognising the local landscape, we have identified a niche within Thailand. While the number of full-fledged family offices may be limited, there is a significant portion of families adopting a family office mindset with a more modest scale and sophistication level. In this niche market, we position ourselves to provide tailored solutions and efficient access to the investment marketplace.

Recognising the unique dynamics of the Thai market, we offer customised solutions that align with the scale and sophistication level of families adopting a family office mindset. This allows us to cater to their specific needs and challenges within the local regulatory framework. We provide streamlined access to the investment marketplace, ensuring that even families with reduced scale and sophistication can benefit from efficient investment strategies. This includes leveraging technology and strategic partnerships to enhance accessibility.

Given the evolving nature of family offices in Thailand, we prioritise educational support for clients. This involves keeping them informed about regulatory changes, technological advancements, and best practices to empower them in navigating the landscape.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing crossgenerational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

We acknowledge the diversity in client preferences, which may not be solely determined by age. Therefore, we have adopted an omnichannel strategy to enhance efficiency in client interactions. This strategy spans both client service and advisory delivery, providing a seamless and integrated experience across various communication channels.

Recognising the significance of digitising the client experience, we are investing in digital solutions to enhance accessibility and convenience. This includes digital platforms for account management, financial planning tools, and interactive interfaces that cater to the preferences of a technologically diverse client base.

By embracing an omnichannel approach and tailoring our digital strategies to meet the diverse preferences of our clientele, we aim to navigate the post-pandemic era effectively. This involves not only enhancing efficiency in client interactions but also ensuring that the integration of digital tools aligns with the unique communication preferences and expectations of both the younger and existing generations.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

Rather than presenting DPM as a product, we advocate for positioning it as a systematic and institutionalised method of investing. Emphasising the structured and disciplined nature of DPM can enhance its appeal to clients seeking a comprehensive and strategic investment approach.

The recent market uncertainties provide an opportune backdrop to showcase the benefits of DPM. Highlighting its ability to navigate volatility and deliver consistent returns can resonate well with clients seeking stability in uncertain market conditions. However, you cannot rush client decisions regarding DPM. Instead, we recommend a gradual incorporation of DPM into client portfolios, allowing for a smoother transition and ensuring clients are comfortable with the shift in their investment strategy.

It is crucial not to view DPM as merely a more efficient way to serve clients from the relationship manager perspective. Instead, our focus is on conveying the substantive advantages of DPM in delivering tailored, risk-managed investment solutions. Continuous communication is key to ensuring clients are informed and engaged. Regular updates and dialogues are essential components of our strategy, helping to keep clients well-informed about the performance and benefits of DPM, fostering transparency and trust.

Kwan Chi-man

group CEO and co-founder, Raffles Family Office

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

The past few years were filled with unexpected events. Far from a setback, those years actually turbocharged our growth. We have become the largest multi-family office in Asia and are now safeguarding and growing our clients’ wealth with a 150-strong team of professionals, five offices covering Asian gateway cities, and eight diverse asset classes, spanning traditional and alternative investments.

We’ve always been an advocate for future-proofing our clients, and incidentally, our business. We explored uncharted territories in terms of services and asset classes, including digital assets, real estate, and private equity, in the past year.

In navigating challenging economic headwinds, our focus remains on diversification, resilience, and adaptability. Continuous monitoring of key economic indicators will be essential for assessing the geopolitical and socioeconomic situation.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Promising areas for investments in the upcoming year include sectors with robust earnings growth potential, such as technology and communication services.

Recent developments, such as the meeting between the leaders of China and the United States, suggest the possibility of improved China-US relations. This has the potential to ease geopolitical risks and create a more stable and conducive investment environment in the future.

All said, to mitigate associated risks, we maintain a defensive stance with allocations to healthcare and short-duration bonds. Continuous monitoring of market trends and risk factors is crucial.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

We prioritise thorough due diligence, focusing on sectors with growth potential while considering the impact of geopolitical tensions. Diversification across regions and asset classes remains key.

Additionally, China’s strategic positioning in key sectors is noteworthy, whereby it has established itself as a dominant player in critical industries such as electric vehicles and renewable energy components. China is positioned to benefit continuously from growth in these booming sectors, as it leverages its competitive advantage.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

As a family office, we embrace the weight of wealth and what it can achieve, with a firm belief that we are shaping a future that is not only prosperous but ecologically responsible.

On that note, our approach to impact investing involves measuring ESG impact and aligning with our clients’ values. Transparency and engagement with ESG-focused companies are integral to our approach.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Six years ago, Raffles Family Office had a total of seven people, and today it houses more than 150 talents. The process has been challenging, but the opportunity is so significant that it is well worth making the great effort to build for the future, especially as so much wealth is being created in Asia and being transitioned from founders to the second and third generations. Our goal is to double in size within the next two years.

We need to make sure that we help our people do the right thing, that we are responsible, we invest in a world that is going to be more sustainable. We believe this family office community will play a critical role in all this.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

In Hong Kong’s family office sector, there’s a shortage of talent, especially in roles that involve bridging the gap between external service providers and family members. This gap exists because many Chinese family offices are mainly run by the first generation, leading to a lack of specialisation in their internal operations. This can result in challenges related to efficiency and how things are managed.

That’s where we, Raffles Family Office come in. We’re here to serve our clients with a highly professional group of people who truly understand how to navigate the complexities of family dynamics and can assist service providers in meeting the family’s unique and often private needs.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Our approach involves leveraging the unique strengths of each jurisdiction to serve our clients’ needs effectively.

Hong Kong and Singapore are not mutually exclusive. I believe that Hong Kong and Singapore have complementary roles to play. Hong Kong is the super connecter to mainland China and the Greater China region. Singapore is strategic for Southeast Asia. For us, more than 90% of our clients have businesses in Singapore and Hong Kong.

This is why we have a dual HQ set-up in both Hong Kong and Singapore, as well as offices in Beijing, Shanghai, and Taipei. We are eyeing setting up offices in Seoul and Bangkok as well, and we are actively exploring the potential in African and Middle-Eastern regions.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross- generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

During the seven-year history of Raffles Family Office, we actually achieved our most significant milestones during the three-year pandemic period. It was during this challenging time that we expanded our capabilities by introducing digital wealth management, private equity offerings, and real estate services. I would venture to say that “digitalisation” is an integral part of our DNA as we continuously strive to future-proof our operations.

Now, when it comes to addressing the ongoing generational wealth transfer and adapting to the evolving communication preferences of the younger generation – which is actually the theme of this year’s Raffles Family Office Annual Forum: Family Office 3.0 – we’ve taken proactive steps. Approximately 40% of our clients are single-family offices, and part of our commitment to them involves preparing the next generation for their future roles.

To achieve this, we’ve opened our doors to younger generations, offering internship opportunities that provide them with hands-on experience and insights into our operations. During these internships, they get exposure to various aspects of asset class expertise and have the chance to explore different jurisdictions. By collaborating closely with our diverse teams across various markets, they can confidently prepare themselves to take the reins in managing their family’s wealth.

This approach ensures a seamless transition between generations while also aligning with the evolving communication preferences of the younger demographic, all while maintaining the sophistication and integrity that define our services at Raffles Family Office.

The development and appetite for DPM in Asia is still lagging behind other regions. What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

To promote broader awareness and adoption of DPM among investors, education is paramount. For us, the goal is to enlighten investors about how this approach can offer bespoke and efficient investment solutions.

Furthermore, we advocate for heightened engagement and communication with investors. Transparent and clear communication is essential for establishing trust and ensuring that investors grasp the benefits and potential risks associated with DPM. By delivering comprehensive information and addressing investor inquiries, we can cultivate increased confidence in this investment strategy in this part of the world.

Kenny Ho

managing partner, Carret Private

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Despite the swing of the market volatility in 2023, Carret continues to advocate our core principle of a disciplined and effective approach to investing. Carret has been advising our clients to be disciplined in staying diversified and being strategic and tactical in asset allocation at their suitable risk level.

We often emphasise to our clients that this disciplined and effective strategy is the only solution to face ups and downs in the market. For example, if investors missed the best 20 consecutive days of the Nasdaq Index in late October this year, they would have missed a positive 13% market return. Thus, it is crucial that we provide advice to our clients timely and diligently to ensure that they do not overreact to market volatility and keep the patience to stay the course regardless of the market situation.

Regarding the key strategies and themes of 2024, we see various asset classes are currently at a valuation unseen in the past 10 or 20 years. This is happening in specific credit and equity spaces. We believe they are at very attractive levels. We have clients whose portfolios are already positioned for these opportunities in order to prepare for the tipping point of the markets in 2024.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

At Carret we are watching the key economic indicators very closely such as interest rates, CPI, unemployment, and consumer index etc. We see opportunities in investments with attractive valuations. At the same time, we seek lower volatility diversification of our client portfolios. For example, we tactically favour selective high quality Japan and emerging market bonds, equities, and currencies. We complement them with appropriate low-cost hedging instruments.

Markets are unpredictable, especially this year, many investors are very comfortable sitting in cash deposits or staying defensive due to the conflicting market developments. At the same time, who would have thought “The Magnificent 7” US companies would have performed so well this year?

The biggest risk associated is that market performance turns out differently from the expectation. We constantly remind our clients that even in a volatile or slowing economic environment, there are always some investment opportunities which will still benefit from the economic situation. The Carret in-house CIO team and investment specialists provide support to our clients to capture these opportunities.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

While we are waiting for more positive news from China, our CIO team has an underweight rating for China exposure throughout 2023. Given the challenging macroeconomic environment in China, we need to carefully select sectors or themes that show an improving earnings cyclicality and alignment with long-term policy.

Despite China being the world’s second-largest economy, our investment approach does not make decisions based on the size of the economy in terms of world ranking. Instead, we put more emphasis on world economies with fundamental economic development and growth based on top-down and bottom-up analysis.

We have had overweight country allocations to India and Indonesia since 2Q23, and we are convinced that these are some of the economies that can substitute part of the China exposure in our client portfolios.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

Other than perhaps some acquisitions we are looking at, hiring is probably one of our key growth initiatives.

Our primary focus is on the hiring of senior private bankers who are no longer enamoured with the many conflicts offered by private banks. It is our job, on the independent wealth side, to find suitable bankers who can help us educate clients with the best independent, sensible investment advice.

In addition to senior front staff, our intention is to support them with senior middle and back office staff.

As the family office client base grows, technological and regulatory challenges emerge, as well as an increasing competition for talent. How are you steering your clients to navigate these obstacles while catering to their demands?

We have been quite lucky to bring in fintech company Endowus as a shareholder. With one of the best technology offerings in Asia, Endowus has been able to offer us sufficient guidance as to how we better create an efficient and effective digital offering for our clients. As such, we have been able to develop our own platform in the ultra high net worth space that is quite effective.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

I think this is completely overblown. It is true that a higher percentage of clients are booking their money in Singapore, but that has always been the case. To us, what is more important is where the client is based. Where is the money being generated? And where is the capital markets action happening? The answer to all that is North Asia. Having said that, we do see some clear secular trends that are positive for Southeast Asia.

With COVID-19 creating a need for digitalisation, how are you integrating and leveraging digitalisation in the post-pandemic era? And amid the ongoing cross- generational wealth transfer, how are you adapting to the evolving communication preferences of the younger generation without alienating the existing clientele?

We have a number of initiatives aimed at educating and integrating the younger generations into managing family wealth. The education begins with a number of face-to-face initiatives with industry and our own experts. We have also made various upgrades to our digital offering and use real-world silos where we involve the next generation in the actual wealth management and structuring.

Of course, none of this is possible without the buy-in of our clients – the existing patriarch or matriarch – and generally we will get a full buy-in as all the aforementioned is done in a controlled environment.

What is needed to bolster DPM penetration in Asia? Going forward, how will you approach DPM in 2024?

At Carret Private, we are more focused on aligning client interests with our own. With the oncoming regulations of the Markets in Financial Instruments Directive (‘MiFID’), we want to be the first mover to charge a fixed asset fee – instead of charging clients with retrocessions. As part of this, clients are going to know that we are managing their whole portfolio with their best interests in mind. Of course, DPM is a crucial part of this strategy.

Kevin Teng

CEO Singapore, WRISE Wealth Management

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

The investment landscape has been volatile in the past couple of years. We implemented resilient risk management strategies to safeguard clients’ assets against the impacts of inflation and market volatility.

Through this process, constant communication with clients is vital, especially in keeping them informed about market conditions and their portfolio status amid negative market headlines. This approach helps us build trust and manage expectations during volatile times.

Heading into 2024, we see investors focused on a few developments, such as how the Federal Reserve will adjust policies to mitigate the effects of a likely recession and the effects of the US elections slated for the second half of 2024. There are also considerations about the impact of geopolitical uncertainties that come with increasing deglobalisation, as investors keep their eyes peeled on the most opportune moment to invest in China.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Investors should be on the lookout for opportunities that are more favourable to a shifting economic landscape.

With equities, investors should look towards companies that present a stable outlook coupled with the potential for significant free cash flow growth. Opportunities continue to exist in the artificial intelligence (AI) sector, especially among service providers that offer AI-driven efficiency tools, cloud computing, and semiconductor manufacturing.

The global healthcare sector, which is currently lagging, is also expected to see a post-pandemic revival in the coming year. Gold also presents a positive outlook as it serves as a hedge against market volatility and geopolitical uncertainties.

Where fixed income is concerned, investors should focus on investment-grade and short-duration instruments, even as they heighten awareness for an anticipated steepening of the USD interest rate curve.

The key risks in 2024 include interest rate fluctuations as market pricing is expected to go through four rate cuts with the first likely to happen in May 2024, ahead of the Federal Reserve’s actions. Geopolitical tensions could pose a further risk as escalation would impact markets globally.

To mitigate these risks, investors should maintain portfolio liquidity to make adjustments quickly and to keep ahead of market volatility. With implied volatility on major equity indices being historically low, investors can also consider hedging their exposure by buying options.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

Our approach to investing in China remains cautiously selective, considering the challenges the economy has faced, including the property crisis, liquidity issues, and a slower recovery from COVID-19, along with geopolitical tensions.

In view of these concerns, we recommend investors target quality companies with stable outlooks and robust cash flows. State-owned enterprises (SOEs) present such opportunities, as they benefit from potential market rebounds and fiscal stimulus. Notably, China’s SOEs have shown resilience during the pandemic and are comparatively undervalued (with a P/E of 8x for SOEs under HSCI, versus 25x for non-SOEs).

Another area that investors can look at is AI, with China’s substantial investments in AI ensuring the long-term growth potential of AI-related companies. Hence, we encourage our clients to consider these as part of their investment portfolio.

The electric vehicle (EV) sector in China is another area where we foresee sustained growth. China’s current dominance in the EV market, both domestically and in terms of exports, coupled with its commitment to achieving carbon neutrality, presents ample investment opportunities. By investing in the EV value chain, our clients can tap into the burgeoning green tech themes and align with China’s green initiatives.

Overall, our investment strategy in China for 2024 is centred around identifying undervalued quality stocks, particularly in SOEs, leveraging the growth potential in the AI sector, and capitalising on the promising trajectory of the EV sector. This approach aims to align with China’s green initiatives and its global leadership in these spaces, providing a balanced and strategic investment avenue for our clients.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

WRISE currently boasts a dynamic team of approximately 90 financial professionals, and we will continue to boost our human capital in the coming year with a recruitment strategy centred on attracting top-tier talent, particularly for our front office. This approach is crucial to maintaining and enhancing the high level of service we provide to our clients.

We are actively seeking individuals with exceptional skills in financial management, and placing strong emphasis on finding candidates who embody our core values in innovation, transparency, and a client-centric approach to service. By prioritising these qualities, we aim to foster a team that not only excels in their roles but also drives WRISE forward in alignment with our principles and goals.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

Each city holds its unique positioning and advantages in the financial sector. Singapore, for instance, is known as the financial gateway to the world. This contrasts with Hong Kong’s strategic location adjacent to Mainland China, offering the distinct advantage of “leveraging the Mainland, engaging globally.”

Singapore’s primary advantage lies in its “Global Investor Programme,” which was initiated back in 2004 to attract ultra-high net worth individuals (UHNWIs) and bolster the wealth management industry. Since then, Singapore has continually refined its approach. The updates to sections 13O and 13U of the fund tax exemption scheme are significant because these amendments aimed to tighten criteria for establishing single-family offices, enhancing clarity and transparency, and ensuring better commitment planning for investors. By the end of 2021, Singapore had approximately 700 single-family offices, marking a substantial year-on-year increase of 400.

Hong Kong, as an international financial centre, boasts a conducive business environment. This includes a straightforward and low tax system, a comprehensive regulatory framework and legal system, and mature professional services and talent. These factors collectively cater to the diversified asset allocation needs of family offices. Moreover, Hong Kong’s proximity to Mainland China is a significant advantage. According to the Hurun China Wealth Report 2021, Mainland China has over 133,000 UHNWIs, with 79,000 of them classified as ‘ultra-high-net-worth families’ with investable assets exceeding RMB 100 million. Hong Kong’s wealth management services are well-positioned to capitalise on these market opportunities.

Dubai emerges as a key financial gateway to the Middle Eastern markets. While it shares some similarities with Singapore and Hong Kong as a global financial gateway, it presents a distinct opportunity due to its unique culture, language, and business practices. The comparison between these three cities underscores the complexity and dynamic nature of the private wealth landscape, each presenting its own strengths, challenges, and prospects.

Patrick Tsang

chairman, Tsangs Group

Lingering inflation, deglobalisation, sluggish growth and market volatility have all challenged private bankers’ plans in 2023. How have you navigated these headwinds to protect AUM and revenue, attract net new assets and maintain the client base, and what will be the key strategies and themes for 2024 in Asia?

Whether you face inflation, deflation, or fierce competition, being proactive is key to tackling the above-mentioned challenges. By ‘proactivity’ we mean that we never rest on our laurels, but rather look to new opportunities.

Invest wisely by diversifying your portfolio by sector and region. We do not look at regional markets to diversify. We invest in sectors by picking stocks and companies from the same sector whereas the country risk comes second.

Inflation can mean a chance to cut costs, and an opportunity to increase sales velocity. In times of inflation, money becomes a ‘hot potato’. People want to get rid of cash fast because consumers do not want to wait until inflation eats up purchasing power.

Deglobalisation is happening less than some voices suggest. Trade flows are intact, including between China and the US, despite some roadblocks such as tariffs and export-import restrictions from both sides. In 2022, bilateral exchange between the world’s two biggest economies reached a record high at U$690.6 billion.

Amid an evolving economic landscape, what areas do you perceive as the most promising for investments in the upcoming year? In addition, what are the key associated risks and how best to mitigate them?

Although we maintain an agnostic approach to location and sector, this approach greatly contributes to our risk management strategy. However, we have a particular interest in AI, robotics, clean tech, food tech, climate, smart city tech, logistics and other advanced and cutting-edge technologies.

Furthermore, we are closely monitoring the developments in the Web3 space as the bear market gradually draws to a close. We have significantly decreased our positions in Web3 and blockchain due to current market conditions.

Additionally, the global ageing of societies has led us to pay special attention to the healthcare sector. Moreover, with the 10th anniversary of the Belt and Road Initiative, we are closely following the logistics and infrastructure industries.

In the past year, China’s economy has been hit by a property crisis, liquidity issues, as well as a slower-than-expected post COVID-19 recovery and geopolitical tensions. How are you advising clients to invest in the world’s second-largest economy in 2024?

On the upside, the pandemic has strengthened the digital sector as work-from-home has spurred innovation in the areas of e-commerce. The expansion of the New Silk Road has not flagged. On the contrary, logistics and supply chains were widened and upgraded to ensure the smooth flow of masks, protective clothes and sanitisers. China has also advanced its 5G network. The country’s 2.31 million 5G base stations mean that mainland China now has the largest 5G network in the world.

With increased ESG regulations across Asia to address climate change come risks as well as new opportunities and ways of investing. What are your strategies to measure and create a positive ESG impact while delivering investment returns in 2024?

ESG and economic growth must go hand-in-hand. We cannot cut growth just to look green or to please the mainstream. China has spearheaded investments in solar, wind, and biotherm energy.

Singapore suffered from pollution when Malaysia practised deforestation for palm oil gains. This example shows that only regional and international cooperation and partnerships can increase the use of renewable energy, reduce pollution, and transit to a zero-carbon world economy.

From the reshuffling of leadership roles across the industry to wholesale changes in the industry landscape, 2023 was characterised by heavyweight hirings in the region. Looking ahead, what is your focus and strategy regarding hiring for front, middle, and back-office roles, as well as managing personnel transitions?

The hiring and employment landscape will improve as the economy recovers. From the perspective of family offices, it is worth noting that financial hubs such as Dubai, Hong Kong, and Singapore are all competing to attract the same pool of capital and decision-makers.

Selecting the optimal location involves various factors, including financial considerations and the overall quality of life for top executives and principals. Based on the increasingly complex and volatile nature of the global market, individuals must carefully evaluate both short-term and long-term prospects.

To promote the growth of family offices, the Hong Kong government has been actively attracting these entities. Chairman Patrick Tsang has played a crucial role in supporting the advancement of ‘Hong Kong Inc.’ through his partnership with The Hon Jeffrey Lam, GBM, GBS, JP, a member of the Legislative Council and Executive Council of the Hong Kong SAR Government. Together, they co-founded the Hong Kong Ambassadors Club, a platform aimed at fostering impactful business groups and facilitating connections with top-level investors, particularly in strategic regions such as the Middle East. Notably, the UAE is recognised as a prime location for establishing and nurturing business and investment partnerships.

Last year and this year, both China President Xi Jinping and the Chief Executive of Hong Kong, John Lee, visited the region, showcasing the significance attached to strengthening ties. Going forward, we hold a positive outlook for the coming year, particularly in the Middle East and Southeast Asia. We believe that personnel relocation may be necessary to seize the emerging opportunities in these regions.

The debate on whether Singapore has overtaken Hong Kong as Asia’s primary hub for private wealth continues. Is Hong Kong lagging behind Singapore? Are there any onshore markets, such as Dubai, to look out for? What are the strengths and obstacles that each city holds, and what prospects do they present?

We observe that Hong Kong-Dubai ties are strengthening, a development that was kicked off by the visit of Hong Kong Chief Executive John Lee to Dubai with a delegation of businessmen and women earlier this year in February. Anecdotal evidence also points at fully booked flights that serve the Dubai-Hong Kong axis. Dubai is also a gateway to the wider Middle East and Africa for Hong Kong businesses. Western banks are also betting on a Hong Kong comeback.

Regarding neighbouring financial centres as arch rivals is a bit of a western concept. We see more the concept of partnerships. London and Frankfurt, for example, compete in relation to global IPOs, but both financial centres also benefit from each other in relation to research, market depth, know-how, bilateral trade and exchange between the EU and the UK.