Investments

White Paper - How to remove the funds blockage in Asian private banking

Hubbis

Oct 3, 2016

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In September 2016, we published a White Paper, in conjunction with Westoun Advisors, on how private banks can increase funds penetration to ensure a greater proportion of recurring fee income.

The portion of income at private banks in Asia which comes from recurring revenue, more specifically from funds and discretionary portfolio management (DPM) has been in the single-digit percentage, on average, since the early 2000s.  This is despite initiatives at most firms post-2008 to increase penetration, with a view to reducing the volatility of revenues from Asia.

Among the 23 banks we interviewed – with a total Asia-based AUM of USD1.5 trillion – average penetration was 9%.

The output from these interviews and further validation research identified six steps for success (in terms of fund AUM, given inconsistencies in DPM offerings) and four obstacles.

I hope you find these initial insights interesting and valuable.

We welcome and greatly appreciate your thoughts and feedback - please email [email protected]

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