Transcript Relevance of a Global Private Bank Services to Affluent Asians

Global Private Bank Services to Affluent
Asians
AILENE M. LITONJUA
Chief Representative
HSBC Private Bank (Suisse) SA
Manila Representative Office
The Market Size
Market Size Based on Total Assets
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By 2015, the Philippines will be one of the largest numbers of HNI – those with
$1million or more investable assets in Asia.
The Philippines belong to the Top 10 Asian Millionaire Nations by 2015
38000 Filipino millionaires by 2015 with total net worth of $164B (Julius Baer)
Sources: Julius Baer, Swiss Private Banking Group, www.pinoymoneytalk.com, September 2011
Asia Pacific Wealth Markets Database by Datamonitor, December 2011
The Market Size
Sources: Julius Baer, Swiss Private Banking Group, www.pinoymoneytalk.com, September 2011
Asia Pacific Wealth Markets Database by Datamonitor, December 2011
The Market Size
Market Size Based on Liquid Assets
Source: Asia Pacific Wealth Markets Database by Datamonitor, December 2011
•In terms of liquid assets, the USD3M+ band will grow from 23.9B (2011) to 35.6B (2015)
•In the Philippines, the number of individuals with liquid assets of USD 3 million and up is estimated to be around
2,700. Liquid assets (or also called liquid wealth) are defined as direct holdings in the typical retail savings and
investment classes, including deposits plus cash outside of banks, direct holdings in quoted stocks and shares,
direct holdings in government and other bonds, mutual funds and other collective investment schemes
Market Segment Psychographics
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Core Values and Beliefs
Need State: Self-actualization, building a legacy
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Optimistic about the future
Want a holistic and well-balanced life so keeps on improving self
Contented with life
Family and children are very important
Enjoy taking challenges
Financial Management
Wealth Goal: Legacy Wealth
Type of Saver / Spender: Compulsive and Big Savers, Frugal Spenders
– Always save money
– Financial goals are long-term
– Willing to pay extra for quality
Source: Quantitative and Qualitative Profiling Study on HSBC’s Customer Segments, March 2009, Ipsos
Private Bank Players in the Philippines
Local Banks offering
Private Banking Services
Foreign Banks offering
Private Banking Services
• Bank of the Philippine
Islands
• BDO Private Bank
• Metrobank
• China Bank
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Source: Bank Websites
Union Bank of Switzerland
(UBS)
 Credit Suisse
 JP Morgan Chase
 Bank of Singapore
 Morgan Stanley
 Citibank
 HSBC
Breadth of Private Bank Services
Investment Services – Offering & Approach
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Investment services make available a wide range of investment vehicles
from around the world, including bonds, equities, derivatives, structured
products, mutual funds and hedge funds.
Offering
• Client-driven Investment Services
• Discretionary Management by Managers
• Alternative Investment Services
Approach
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Unrestricted access to the world’s financial
opportunities through in house research &
open architecture
• Selection and validation of “best of breed”
investments based on your individual needs
and investment strategies
• Sharing of international expertise due to
worldwide network of offices & institutional
knowledge
Investment Services : Strategic & Tactical Approach
Investment Services – Sample Allocation Model
Other Specialist Services & Wealth Solutions
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Addresses wealth-related personal and family situations to enhance
opportunities for clients and their heirs
– Help clients preserve wealth, avoid probate formalities, enhance privacy
and manage tax and succession issues
– Takes into account the international aspects of client’s life
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Trusts
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Insurance Services
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Foundations
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Family Office Advisory
Corporate Finance Advisory
Wealth and Tax Advisory
Specialist Property Advisory
Advisory on other wealth
management aspects such as
Charities and Foundations
Specialist Services: Family Office Advisory
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Clients with complex, international financial affairs require advice and
service that is globally integrated
The Family Office team takes advantage of both the skills and the
international reach to provide expertise in three core areas:
– Wealth preservation
– Wealth management
– Special client services
Critical Path Questions – Client Profiling
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What financial and non-financial assets do you own? In what countries?
Who do you want to benefit from your estate, when and in what proportion?
Who would you want to manage the distribution of your estate? Do they
have the time or experience to handle this task?
Who will care for your dependant children? What provisions do you need to
make for educational and living expenses?
What are your family’s liquidity needs?
What is your anticipated estate tax liability? How will that liability be paid
off?
Do you have any philanthropic interests?
Family Office Advisory
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In order that the client’s needs are addressed in the best way possible, they
will have access to an extensive range of products and services
– Tax advisers, lawyers and accountants
– Trust and estate planning
– Corporate finance, mergers and acquisitions
– Custodians, banks and investment managers
– Service providers from school advisory to art professionals
– Insurance providers
– Real estate advisers in both commercial and residential
– Philanthropic services
In Summary
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Affluent / Hi- Networth Individuals need specialized platforms for their
investment needs to diversify critical size of wealth
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Financial Services companies need to cater to their special set and growing
needs
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Legacy and succession planning are key to perpetuate family enterprises
"Should you find yourself in a chronically leaking boat, energy devoted to changing
vessels is likely to be more productive than energy devoted to patching leaks.“
Warren Buffet
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