JAM Asia Pacific’s Post

Australian wealth management: A shift in investor behaviour Insightful findings from the Australian Wealth Management report by GlobalData Plc. Here are three key takeaways: Firstly, data shows that mass affluent investors are favouring equities, signalling a growing risk appetite in search of higher returns amidst market volatility. Secondly, there's a notable shift towards advisory mandates, with independent financial advisors emerging as the preferred choice. This reflects a growing trust in expert guidance, and highlights the importance of building strong advisor networks. The report also reveals a rising interest in offshore investments, driven by the pursuit of better returns and product diversification. This presents both challenges and opportunities for wealth managers, who will need to consider offering more sophisticated investment options.   It's clear investors are adapting to market conditions, and there's significant room for innovation and tailored solutions in the sector, which will be key to capturing the opportunities this presents.

Private Banking & Wealth Management AUM in 2023 – $1.15 trillion. Top 6 Concerns on Hong Kong Private Wealth Management Industry – Macroeconomic environment & market volatility, Geopolitical tensions, Regulatory environment, Financial risk, Technology & information security, Talent attraction & retention. Top 4 Business Priorities for Private Wealth Management Firms – Prepare for inter-generational wealth transfer & capture next-gen clients, One-bank collaboration, Digitalisation of platform & operations, Expand product offerings. Hong Kong Private Wealth Management Report 2024 - https://lnkd.in/ggbn9cRa follow Caproasia | Driving the future of Asia The Hong Kong Private Wealth Management Association (PWMA) & KPMG China have released the Hong Kong Private Wealth Management Report 2024, providing key insights into Hong Kong private wealth management industry. Hong Kong Private Banking & Wealth Management AUM Overview: AUM in 2023 – $1.15 trillion (HKD 9.02 trillion) 2023 vs 2022 AUM Change – Increased by +0.6% from $1.15 trillion (HKD 8.96 trillion), Market return -3.2% and Net inflow of +3.8% AUM Overview (USD) 2016 – $796 billion 2017 – $1 trillion 2018 – $976 billion 2019 – $1.16 trillion 2020 – $1.45 trillion  2021 – $1.36 trillion  2022 – $1.15 trillion  2023 – $1.15 trillion Top 6 Impact on Hong Kong Private Wealth Management Industry: Central banks actions on interest rates Concerns about the Chinese economy  Tensions between the U.S. and China Fears of an economic recession Geopolitical uncertainty due to global elections  Regulatory uncertainty within certain industries in China Top 6 Concerns on Hong Kong Private Wealth Management Industry: Macroeconomic environment & market volatility  Geopolitical tensions Regulatory environment Financial risk (credit, market, liquidity, capital) Technology & information security, including cybersecurity Talent attraction & retention Top 8 Constraints for Hong Kong as a Wealth Management Centre: Concerns about Hong Kong’s political future – 28% Competition from other regional financial centres – 21% Evolving regulatory landscape – 14% Limited access to Chinese Mainland’s assets – 10% High cost of living & doing business – 9% Lack of government support – 6% Insufficient private banking talent pool – 6% Limited depth of advice and services in areas such as tax, succession planning, family governance – 3% Limited access to other international assets – 3% Family Offices is Important Source of Business for Organizations: Strongly agree – 31% Somewhat agree – 55% Neither agree nor disagree – 7% Somewhat disagree – 7% Origin of AUM in 2023: Mainland China & Hong Kong – 67% America – 12% Southeast Asia – 3% Europe – 4% Japan – 2% India – 1% Middle East – 1% South Korea – 1% Others – 9%

Private Banking & Wealth Management AUM in 2023 – $1.15 trillion. Top 6 Concerns on Hong Kong Private Wealth Management Industry – Macroeconomic environment & market volatility, Geopolitical tensions, Regulatory environment, Financial risk, Technology & information security, Talent attraction & retention. Top 4 Business Priorities for Private Wealth Management Firms – Prepare for inter-generational wealth transfer & capture next-gen clients, One-bank collaboration, Digitalisation of platform & operations, Expand product offerings. Hong Kong Private Wealth Management Report 2024 - https://lnkd.in/gVT6RnvH follow Caproasia | Driving the future of Asia The Hong Kong Private Wealth Management Association (PWMA) & KPMG China have released the Hong Kong Private Wealth Management Report 2024, providing key insights into Hong Kong private wealth management industry. Hong Kong Private Banking & Wealth Management AUM Overview: AUM in 2023 – $1.15 trillion (HKD 9.02 trillion) 2023 vs 2022 AUM Change – Increased by +0.6% from $1.15 trillion (HKD 8.96 trillion), Market return -3.2% and Net inflow of +3.8% AUM Overview (USD) 2016 – $796 billion 2017 – $1 trillion 2018 – $976 billion 2019 – $1.16 trillion 2020 – $1.45 trillion  2021 – $1.36 trillion  2022 – $1.15 trillion  2023 – $1.15 trillion Top 6 Impact on Hong Kong Private Wealth Management Industry: Central banks actions on interest rates Concerns about the Chinese economy  Tensions between the U.S. and China Fears of an economic recession Geopolitical uncertainty due to global elections  Regulatory uncertainty within certain industries in China Top 6 Concerns on Hong Kong Private Wealth Management Industry: Macroeconomic environment & market volatility  Geopolitical tensions Regulatory environment Financial risk (credit, market, liquidity, capital) Technology & information security, including cybersecurity Talent attraction & retention Top 8 Constraints for Hong Kong as a Wealth Management Centre: Concerns about Hong Kong’s political future – 28% Competition from other regional financial centres – 21% Evolving regulatory landscape – 14% Limited access to Chinese Mainland’s assets – 10% High cost of living & doing business – 9% Lack of government support – 6% Insufficient private banking talent pool – 6% Limited depth of advice and services in areas such as tax, succession planning, family governance – 3% Limited access to other international assets – 3% Family Offices is Important Source of Business for Organizations: Strongly agree – 31% Somewhat agree – 55% Neither agree nor disagree – 7% Somewhat disagree – 7% Origin of AUM in 2023: Mainland China & Hong Kong – 67% America – 12% Southeast Asia – 3% Europe – 4% Japan – 2% India – 1% Middle East – 1% South Korea – 1% Others – 9%

French bank BNP Paribas has appointed Bruno Boussard as CEO Taiwan succeeding Manon Breuvart who is appointed as Head of Credit at BNP Paribas Wealth Management (Paris, France).  In his new role, Bruno Boussard reports to Paul Yang (BNP Paribas CEO APAC).  Read - https://lnkd.in/gvUaxtDc follow Caproasia | Driving the future of Asia French bank BNP Paribas has appointed Bruno Boussard as CEO Taiwan succeeding Manon Breuvart who is appointed as Head of Credit at BNP Paribas Wealth Management (Paris, France).  In his new role, Bruno Boussard reports to Paul Yang (BNP Paribas CEO APAC).  In 2024 September, BNP Paribas Wealth Management (Private Bank) with $447 billion AUM (€415 billion) appointed BNP Paribas Asset Management Adrien Lalau as Head of Investment Funds Advisory to lead advisory services for mutual funds & alternatives.  Adrien Lalau has been at BNP Paribas for 16 years including 6 years at BNP Paribas Asset Management in wholesale distribution.  Based in Singapore, Adrien Lalau reports to Shafali Sachdev, Head of Investment Services APAC.  In 2024 August, BNP Paribas Wealth Management (Private Bank) launched a new EAM desk for family offices & UHNW clients (Ultra high net worth) in Hong Kong & Singapore, with the new desk headed by EAM APAC Desk Head Hugues Thierry (EAM ~ External Asset Manager).  In 2024 April, BNP Paribas Wealth Management launched BNP Paribas onshore wealth management in Thailand, targeting to increase relationship managers covering Thailand & AUM by 3 times in the next 3 years.  In January 2024, BNP Paribas hired 20 bankers in the last 6 months for the wealth management business in Asia, hiring Credit Suisse Martin Loh as Head of China, Standard Chartered Kate Lin as CEO of Taiwan, and other senior hires including Morgan Stanley Tiffeny Situ, Citigroup Wendy Chan, Angela Yang & Vicky Liu.  BNP Paribas Wealth Management CEO APAC is Arnaud Tellier, with the wealth management business managing $80 billion AUM in Asia (Assets under Management).  In 2024 April, BNP Paribas Wealth Management launched BNP Paribas onshore wealth management in Thailand, targeting to increase relationship managers covering Thailand & AUM by 3 times in the next 3 years.  In January 2024, BNP Paribas hired 20 bankers in the last 6 months for the wealth management business in Asia, hiring Credit Suisse Martin Loh as Head of China, Standard Chartered Kate Lin as CEO of Taiwan, and other senior hires including Morgan Stanley Tiffeny Situ, Citigroup Wendy Chan, Angela Yang & Vicky Liu.  BNP Paribas Wealth Management CEO APAC is Arnaud Tellier, with the wealth management business managing $80 billion AUM in Asia (Assets under Management).

Improvements to the Wealth Management Connect scheme in February have proven to be a game-changer, with investment via the cross-border trading channel jumping by four times between January and April, according to the government data and industry players. The amount of money traded under the scheme quadrupled to 50.7 billion yuan (US$7 billion) in the first four months of the year, while the number of investors using it rose 60 per cent to 110,000, according to government data. ICBC (Asia), a key user of the mechanism, has seen a fourfold increase in the number of customers opening accounts under the initiative and a tenfold leap in assets under management since measures to enhance it were introduced by Beijing. ICBC Asia is the Hong Kong unit of the mainland’s largest bank, the Industrial and Commercial Bank of China (ICBC), employing about 3,000 staff. ICBC Asia is working closely with its parent to expand in the Greater Bay Area and overseas markets. Launched in 2021, the Wealth Management Connect scheme allows residents of Hong Kong, Macau and nine cities in Guangdong province to invest directly in designated wealth management products across borders. However, sales were initially poor because of the pandemic, while tough restrictions and a limited choice of products also deterred investors. New rules took effect on February 26 raising the individual investment quota from 1 million yuan (US$140,000) to 3 million yuan and adding yuan-denominated deposit products offered by mainland banks – moves viewed by lenders as creating more business opportunities. Source: South China Morning Post SCMP

Investor vs. Advisor: A Contrasting Approach to Wealth Creation The path to wealth creation reveals a stark contrast between how investors and advisors approach investments. While investors often focus on high returns, advisors prioritize consistency, risk management, and long-term sustainability. Understanding these differing perspectives can help bridge the gap between short-term ambitions and enduring success. Returns vs. Consistency:- - Investors Want : The highest possible returns, prioritizing performance over all else. - Advisors Focus On : Consistent returns that ensure steady growth while managing risks. Risk and Return:- - Investors See : Returns as the sole metric of success, often overlooking the risks involved. - Advisors Evaluate : The delicate balance between risk and return, tailoring investments to an individual's financial goals and risk tolerance. Chasing Opportunities:- - Investors Pursue : Momentum, favoring rising asset classes or hot trends, often driven by recent performance. - Advisors Prioritize : Asset allocation, creating a balanced portfolio across asset classes to weather market cycles and ensure long-term stability. Portfolio Focus:- - Investors Compare : The past performance of individual schemes, seeking "winners" without considering the broader portfolio. - Advisors Assess : The entire portfolio, ensuring diversification and alignment with the investor’s objectives. Market Cycles and Behavior:- - In Bull Phases : Investors turn aggressive, taking higher risks in the quest for maximum gains. - In Bear Phases : Investors retreat, becoming defensive and often exiting investments at a loss. - Advisors Approach : Advisors adopt the opposite stance, reducing risks in bull markets and capitalizing on opportunities during downturns. Investment Decisions:- - Investors Focus On : Market price movements, reacting to short-term trends and emotions. - Advisors Base Decisions On : Valuations, asset allocation, financial goals, and risk assessment, ensuring a thoughtful and disciplined approach. Equity Returns: The Reality Check:- - Investors Expect : Linear returns, assuming steady year-on-year growth. - Advisors Understand : Equity returns are inherently non-linear, requiring patience and resilience to reap long-term rewards. Bridging the Gap:- The investor's pursuit of quick gains often clashes with the advisor's emphasis on strategy and sustainability. To achieve lasting financial success, investors must align with an advisor’s disciplined approach, focusing on diversification, risk management, and long-term planning. Wealth creation is not about chasing trends or short-term gains. It is about building a robust portfolio that delivers consistent, risk-adjusted returns while staying aligned with life goals. The true measure of success lies not in returns alone, but in creating lasting financial independence.

French bank BNP Paribas has appointed Bruno Boussard as CEO Taiwan succeeding Manon Breuvart who is appointed as Head of Credit at BNP Paribas Wealth Management (Paris, France).  In his new role, Bruno Boussard reports to Paul Yang (BNP Paribas CEO APAC).  Read - https://lnkd.in/guZeFHUu follow Caproasia | Driving the future of Asia French bank BNP Paribas has appointed Bruno Boussard as CEO Taiwan succeeding Manon Breuvart who is appointed as Head of Credit at BNP Paribas Wealth Management (Paris, France).  In his new role, Bruno Boussard reports to Paul Yang (BNP Paribas CEO APAC).  In 2024 September, BNP Paribas Wealth Management (Private Bank) with $447 billion AUM (€415 billion) appointed BNP Paribas Asset Management Adrien Lalau as Head of Investment Funds Advisory to lead advisory services for mutual funds & alternatives.  Adrien Lalau has been at BNP Paribas for 16 years including 6 years at BNP Paribas Asset Management in wholesale distribution.  Based in Singapore, Adrien Lalau reports to Shafali Sachdev, Head of Investment Services APAC.  In 2024 August, BNP Paribas Wealth Management (Private Bank) launched a new EAM desk for family offices & UHNW clients (Ultra high net worth) in Hong Kong & Singapore, with the new desk headed by EAM APAC Desk Head Hugues Thierry (EAM ~ External Asset Manager).  In 2024 April, BNP Paribas Wealth Management launched BNP Paribas onshore wealth management in Thailand, targeting to increase relationship managers covering Thailand & AUM by 3 times in the next 3 years.  In January 2024, BNP Paribas hired 20 bankers in the last 6 months for the wealth management business in Asia, hiring Credit Suisse Martin Loh as Head of China, Standard Chartered Kate Lin as CEO of Taiwan, and other senior hires including Morgan Stanley Tiffeny Situ, Citigroup Wendy Chan, Angela Yang & Vicky Liu.  BNP Paribas Wealth Management CEO APAC is Arnaud Tellier, with the wealth management business managing $80 billion AUM in Asia (Assets under Management).  In 2024 April, BNP Paribas Wealth Management launched BNP Paribas onshore wealth management in Thailand, targeting to increase relationship managers covering Thailand & AUM by 3 times in the next 3 years.  In January 2024, BNP Paribas hired 20 bankers in the last 6 months for the wealth management business in Asia, hiring Credit Suisse Martin Loh as Head of China, Standard Chartered Kate Lin as CEO of Taiwan, and other senior hires including Morgan Stanley Tiffeny Situ, Citigroup Wendy Chan, Angela Yang & Vicky Liu.  BNP Paribas Wealth Management CEO APAC is Arnaud Tellier, with the wealth management business managing $80 billion AUM in Asia (Assets under Management).

The Hong Kong wealth management scene is a dynamic one, full of opportunity but not without its challenges. While the industry saw a slight rebound in 2023 with assets under management edging upwards, it's still playing catch-up to its peak a few years back. A surge of new money flowing in shows there's confidence in the market, and wealth managers are setting their sights on attracting family offices and tapping into the growing wealth of mainland Chinese clients. But it's not all smooth sailing. Hong Kong faces fierce competition from rivals like Singapore as a rival hub and the UAE increasingly distributing asset ever westwards. Add in hesitancy with clients perhaps due to political uncertainties and some mixed messages in terms of focus and its not been an easy couple of years. To thrive, wealth managers need to adapt to the demands of a new generation of clients who are tech-savvy, performance-driven, and looking for more than just a friendly face. They want digital tools, sophisticated strategies, and a team of experts to handle their complex needs. They aren't looking for their parents' banker! This shift in client expectations is driving a digital transformation across the industry. Wealth managers are scrambling to build online platforms and offer seamless digital experiences. Interestingly, despite the global buzz around ESG investing, it seems to be lagging in Hong Kong. Instead, cutting-edge investments like AI, biotech, and virtual assets are taking center stage. The next generation of wealthy clients are a different breed. They're less tied to traditional relationships and more likely to spread their wealth across multiple banks. They want holistic advice that covers everything from investments and philanthropy to emigration planning. Having recently spoken to a number of Wealth Managers across Global, Mid Tier and boutique platforms, next gen want to network, be seen with the right people, become global; they are looking for personalized solutions and banks & bankers to prove their performance. Attracting top talent is also key in this evolving landscape.... whilst we are on that topic, prepare for a "candidate driven market" in 2025 with many banks focussing on driving the revenue line in an upwards direction! Competition hotting up for the first time since 2021. Talent is also evolving, while a fat paycheck still matters, the next generation of relationship managers values personal growth and a clear career path. Wealth management firms are realizing that building a diverse team with the right cultural fit is crucial to connect with these new clients and navigate the challenges ahead. In a nutshell, Hong Kong's wealth management industry is at a crossroads, balancing growth opportunities with the need to adapt and innovate to stay ahead of the curve.... to be fair the same could be said for almost every region! One thing you can always be confident in however Hong will find a way.

Hong Kong enhances Cross-boundary Wealth Management Connect in the Greater Bay Area (GBA) with WMC 2.0. Changes include individual investors quota increasing to CNY 3 million equivalent to $417,000. Read - https://lnkd.in/ddBwr7rQ follow Caproasia | Driving the future of Asia Hong Kong has announced the enhancement of the Cross-boundary Wealth Management Connect in the Greater Bay Area (GBA) with WMC 2.0. Changes include individual investors quota increasing to CNY 3 million equivalent to $417,000.  Updated (26/2/24): “The Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (“Cross-boundary WMC”) is one of the key initiatives under the mutual market access schemes between the capital markets of Hong Kong, Macao and the Mainland. The scheme was launched in September 2021, allowing eligible Mainland, Hong Kong and Macao residents in the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”) to invest in wealth management products distributed by banks in each other’s market through a closed-loop funds flow channel established between their respective banking systems. A major breakthrough of the Cross-boundary WMC is the considerable degree of flexibility given to individual retail investors to open and operate cross-boundary investment accounts directly, through a formal and convenient channel, and to choose their preferred products. In January 2024, enhancement measures for the Cross-boundary WMC were announced to refine the eligibility criteria of Mainland investors, expand the scope of participating institutions to include eligible securities firms, expand the scope of eligible products, increase the individual investor quota and further enhance the promotion and sales arrangements.  The Cross-boundary WMC consists of the Southbound Scheme and the Northbound Scheme. The Southbound Scheme refers to eligible residents in the Mainland GBA cities investing in wealth management products distributed by eligible financial institutions (banks and/or securities firms) in Hong Kong and Macao via designated channels. The Northbound Scheme refers to eligible residents in Hong Kong and Macao investing in wealth management products distributed by eligible Mainland financial institutions (banks and/or securities firms) via designated channels. Cross-boundary renminbi fund flows are subject to closed-loop and quota management. The Cross-boundary WMC creates new business opportunities for the financial industries in the three places, and facilitates cross-boundary investment with more options of wealth management products provided to the GBA residents, thereby further promoting the cross-boundary circulation and use of renminbi.

Wealth Management Trends for 2024