Winners rationale

Despite recession fears with rising geopolitical uncertainties, risk assets performed strongly in 2019 as the year wore on, benefiting those banks which stayed bullish over the course. Representing the ‘Credit Suisse House View’, which is a single view across the integrated bank, Credit Suisse Private Banking’s CIO office showcased its capability as the engine driving investment performance, AUM growth and client retention of the bank, establishing a remarkable risk adjusted return track record over the past few years.

While a number of banks were taking profit from global equities in 2019 as risk sentiment receded, Credit Suisse was one of the few banks that stayed disciplined and kept overweight on risk assets throughout the year, allowing the bank to generate attractive returns amid an uncertain investment environment. As a result, the global tech overweight call generated 39% in returns year-to-date, as of November 2019, and global, US and China equity tactical overweight positions enabled the bank to generate strong positive alpha over the same period. Similarly, the bank’s positive call on Asian high yield also made the bank return 13%.

Worth mentioning, a highlight of Credit Suisse’s CIO house view this year was its innovation on asset allocation scheme by adding the bank’s five secular investment trends — Angry Societies-Multipolar World, Infrastructure-Closing the Gap, Millennials’ Values, Silver Economy, and Technology at the Service of Humans — into its asset allocation strategy which allowed the bank to even better capitalise on the long term investing opportunities.

Currently, the bank allocates 6.5% of a global balanced portfolio into those equities that cover its ‘Supertrends’. Actions always speak louder than words: in the first 10 months of 2019, all five ‘Supertrends’ generated an average 24% in returns for clients, outperforming MSCI AC World by 4%.

Credit Suisse’s strength in CIO office could not be achieved either without its unparalleled platform for thought leadership and market insights for clients. Apart from its flagship programmes — the Bi-Annual Market Outlook Seminar, Asian Investment Conference, and China Investment Conference — the bank’s targeted and customised events for UHNWIs gained a tremendous amount of positive feedback from its clients throughout the year.

Credit Suisse Private Banking is Asian Private Banker’s Best Private Bank – CIO Office for 2019.