WEALTH MANAGEMENT

SECTOR IN SINGAPORE
UNDER THE MENTORSHIP OF: Group No: - 3
MR. RAVI S. MACHIRAJU Dhruv Gupta
PRESIDENT & CEO Pallavi Sharma
MAXIMA GLOBAL EXECUTIVE Pratyush Thakur
SEARCH PTE LTD Surbhi Cheema

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 Table of Content
WEALTH MANAGEMENT

SINGAPORE AS A STRATEGIC HUB

HIGH NET WORTH INDIVIDUALS

WEALTH MANAGEMENT TRENDS POST-RECESSION

INVESTMENT PATTERN

INDUSTRY ANALYSIS- BANKING SECTOR

ANALYSIS & CONCLUSION

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Research Questions & Objectives
• Problem Statement:
– To study and analyze the wealth management needs of
HNWI’s & UHNWI’s with comparative analysis of different
services provided by the banks & other financial institutions.
• Objective:
– To analyze the change in investment pattern, the needs, and
the preferences of HNWI’s & UHNWI’s in post-recession
scenario.
– Study & compare different services provided by the banks &
financial institutions.
– To find out the leading players and their strategies in wealth
management industry in Singapore.
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 Wealth management
• services provided by financial institutions
to help high net worth individuals
protect and grow their wealth.
• Services include :
• FINANCIAL PLANNING
• INVESTMENT MANAGEMENT
• RISK MANAGEMENT
• ESTATE AND TAX PLANNING
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Image source: http://www.regentatlantic.com
 BENEFITS OF WEALTH MANAGEMENT

• Reducing taxes associated with income,

capital gains and estate.
• Protecting assets from misjudgements
and creditors.
• Improving yields with more diversification
and less risk.
• Managing liabilities such as mortgages
and college funding

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WEALTH MANAGEMENT
IN SINGAPORE

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 SINGAPORE AS A STRATEGIC HUB
• highly developed telecommunication network,
infrastructure , skilled and educated work
force.
• favorable regulatory business environment
– Robust economy
– Tax regimes
• Financial Services account for 11% of
Singapore's GDP

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Source: http://www.mas.gov.sg/resource/eco_research/surveys/AssetMgmt09.pdf
 HIGH NET WORTH INDIVIDUALS
• Singapore has over 67,000 High Net Worth
Individuals (HNWI)
• It has the fastest growing HNWI population at
a rate of 21.2%
• With a combined wealth of US$320 billion,
Singapore’s rich have an average net worth
of US$4.9 million.
• higher than the global average of US$3.9
million and the Asia-Pacific average of
US$3.3 million !!
source: Asia Pacific Wealth Report 2009, Merril lynch & Capgemini 9
 OTHER FACTS
• ETHNICITY: close to 30% of the high net worth
wealth here belong to Indonesians!
• SOURCE: 36% of our HNWIs became rich
because of their businesses. 22% are wealthy
because they inherited their fortunes.
• AGE GROUP :46% of them are in the 41-55 age
group, while 32% are in the 56-70 age group.
• GENDER: 78% are male

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Source: http://www.salary.sg/2009
 A typical millionaire in Singapore..
• is male,
• about 50 years old,
• has about US$5 million of financial assets not
counting his residence,
• likes to invest in property,
• became wealthy from either business or
inheritance, and
• is probably an Indonesian…
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 Wealth Management Trends Post-Recession

Source: Customer Centric Wealth Management, Oracle White Paper, http 12

://www.oracle.com/us/products/applications/siebel/customer-centric-wealth-mgmt-wp-067632.pdf
 INVESTMENT PATTERN

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Image source: Asia Pacific Wealth Report 2009, Merril lynch & Capgemini
INDUSTRY ANALYSIS- BANKING
SECTOR

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 UBS
Dedicated teams for wealth planning and investment services:

o Executives for personal solutions

o Global investor team with international exposure

o Financial intermediaries for e-banking and basic services

o Specialist group for philanthropic services

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 UOB Asset Management
• UOBAM – managing collective investment schemes and discretionary funds in Singapore for
24 years

• As of 30 June, 2010 manages about S$14.94 billion in clients‘ assets.

• Global investment management expertise through customised portfolio management services

and unit trusts.

• One of the largest unit trust managers in Singapore

• Post recession: UOB Asset Management and GYC Financial Advisory Pte Ltd, have jointly
launched a unit trust. 
SOURCE: http://www.uobam.com.sg/uobam/assets/pdfs/2010_27jul_news.pdf 16
 Fixed Income Investment Process

Source: http://www.uobam.com.sg/uobam/assets/pdfs/2010_27jul_news.pdf
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 DBS
• DBSAM and its associated companies manage about
S$29.29 billion in assets for retail, private and institutional
investors

• CORE COMPETENCY: Global fixed income, Asian

equities and absolute return strategies
Source: http://www.wealthbriefing.com/html/article.php?id=31524

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 Fixed Income Investment Process

More than two-thirds of clients have maintained their accounts with DBSAM for over
five years, while one-third have maintained their relationship for over 10 years.

Source: http://www.dbs.com/posb/investments/additionalinfo/solutionpartners/default.aspx 19
 OCBC Wealth Management
 

• SERVICES:
o Investment planning
o Insurance planning
o Education planning
o Retirement planning

• OCBC has tied up with Pacific Insurance to diversify its product offering.
Offerings from the collaboration will include home healthcare, critical
illnesses and major medical insurance.

Source: http://www.ocbc.com/wealth_mgmt/pillars/wm_investment.shtm
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Non-Banking Financial
Institutions

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 NOMURA
• Nomura is a leading financial service group and the preeminent Asian-based
investment bank.
• Wealth management services include:
o Equities and derivatives
o Mutual funds
o Trusts and foreign currency trading
Nomura's private clients can benefit from their Wealth Management services
through trading in all major stock exchanges around the world leveraging the
institution’s strength in IPO, PO and block trade and getting access to over-the-
counter (OTC) trades.
Source: http://www.nomura.com/asia/services/wealth_management/index.shtml
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 CROSSINVEST
• Offers highly personalized and exclusive financial advisory services

• Strength: Ability to combine the long and affirmed Swiss private banking
tradition and financial expertise with the specific needs of the Asian clientele.

• Services:
o Personalized advisory
o Customised investment strategies

• Source: http://www.crossinvest.com.sg/

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 Business MODEL
• The client selects a custodian bank and opens an individual account
1

• The client gives Crossinvest a Limited Power of Administration on the account to Crossinvest
which can be revoked at any time.
2

• The client signs a Portfolio Management Agreement

3

• Crossinvest implements the chosen strategy by giving instructions to the bank

4

• The client relates directly with the personal adviser at Crossinvest to adjust the objectives,
5 obtain investment ideas, receive a trusted consultation on an investment opportunity

Source: http://bizx.sbf.org.sg/ViewProfile.aspx?pop=1&Authorized=1&RegNum=200508686C 24
 Javelin Wealth Management

• Licensed financial adviser, offering wealth management, private banking and

global asset management services to clients with US$250,000 or more to invest.

• PRODUCTS AND SERVICES:

• Advisory services on asset management
• Asset allocation
• Investment in mutual funds
• Unit trusts and other collective investment schemes
• Advice on pensions and pension planning, savings plans, etc.

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 Guardian Wealth Management
• Area of expertise: GLOBAL INVESTING

• Offer services primarily to expatriates

• Wealth management services include:

o Saving plans
o Lump sum investments
o Tax planning solutions
o Retirement planning
o Portfolio management

Source: http://www.guardianwealthmanagement.com/
http://www.guardianwealthmanagement.co.uk/newsletters/
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 Business Model
• In-depth assessment of the client’s situation
• All the external elements are factored into a sophisticated asset allocation and
investment structure strategy that is built upon assessment of the economy and
projections of the risk/return of various asset classes.
Step 1
• This is then documented in a formal investment policy statement that guides
the investment product search and selection process, and provides the basis for
evaluating performance
• Careful screening and an extensive in-house due diligence process to ensure
Step 2 that recommendations are the most appropriate and cost effective.

• Careful monitoring the economy, securities markets and the performance of

investments while keeping informed via weekly e-mails, monthly newsletter
and quarterly performance reviews.
Step 3
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http://www.guardianwealthmanagement.com/
 Analysis
Analysis
• Referral system for approaching and good
relationship management to retain clients.
• Post-recession the investment pattern is
shifting towards medium or less risk and
inclined more towards equity funds, bonds and
gold equity funds rather than hedge funds.
• Real estate investment has seen a steep decline
owing to the sub-prime crisis.

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• Funds are being transferred from Indonesia,
Philippines and Malaysia and also from India &
other NRI’s scattered all across the globe to
take advantage of favorable tax policies in
Singapore.
• Market sentiment is improving, so the clients
are insisting for a change towards more
conservative asset distribution and
simplification of product offerings.
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 • Post-recession the wealth management sector
is focusing more on client relationship by using
metrics like Customer Focused Insight
Quotient (CFIQ) and Behavioral Finance.
Post-recession the wealth management sector is
focusing more on client relationship by using metrics
like Customer Focused Insight Quotient (CFIQ) and
Behavioral Finance.

Building Client Advocacy, New Opprtunities for Wealth Management Firms, BY- IBM Global Business Services, Available at
- http://www-05.ibm.com/de/financialservices/pdf/ibv_wealth_management.pdf
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Img Source: www.maximaadvisors.com.jpg
 Conclusion
Conclusion
• Issues & Challenges
– Banker turnover
– Uncertainties in the market
– Increasing client skepticism
– Focused marketing
• Role of Wealth Manager
– Need for relationship building
– Understanding the psychology of client
– Clients move with the wealth managers rather than the brand value
of the firm.
– holistic advisory process to reinforce confidence & better risk
management

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• Firms - To deliver a valuable investment basket that
meets the client’s complex wealth management
needs, the industry requires tapping in more talent.
– Improvement & expansion of the investment advisory,
sales model and process to deliver a client value
proposition.
– More investment in training & development of the private
bankers.
– Propose attractive compensations to attract and retain
foreign private banking talent.
– Focus on reducing staff turnover.
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• UBS Wealth management is the best financial
institution providing Wealth Management
Services in Singapore.
– special analytical CRM backed by SAS to cultivate
stronger relationship with their clients.
– Customized product portfolio
– Differentiating clients according to the specific
needs.

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 Reference
• (2007). MERRILL LYNCH & CAPGEMINI. Banker, 157(978), 14. Retrieved from Business Source Premier
database.
• Santini, L. (2009, October 14). Asia's Rich Lost More Than Most in 2008's Tumult. Wall Street Journal - Eastern
Edition, p. C2. Retrieved from Business Source Premier database..
• (2009). MERRILL LYNCH & CAPGEMINI. Banker, 157(978), 14. Retrieved from Business Source Premier
database.
• (2009). Prime Portal for Private Banking. To help Increase efficiency in Wealth Management, Interactive Data
Management Solutions, http://www.interactivedata.com/uploads/File/PP_PrivateBanking_en_2009_06.pdf
• (July 2010), Quarterly Report from NCB on Wealth Management,
http://www.ncb.ie/downloads/pdf/wealth/NCBWM.pdf
• ‘Global Private Banking/Wealth Management Survey 2007: Executive Summary’ by Bruce Weatherill,
PricewaterhouseCoopers
• ‘Wealth Management in Switzerland’ by Swiss Bankers Association Basel, January 2009
• ‘World Wealth Report 2009’ by Merrill Lynch and Capgemini
• ‘Article: How Will Wealth Management Adapt To The Challenges of 2009?’ by Tom Burroughes, Wealth
Briefing, January 6,2009

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THANK YOU

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