Helping Asian Wealth Management Communities interact

Investment Solutions Forum 2019 SG - Highlights - Paul Stefansson

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1. What are the challenges and opportunities for this industry?

Video transcript

1. What are the challenges and opportunities for this industry?

When I look at the future, I'm quite optimistic, because I think that technology will continue to drive both productivity progress, which will mean more wealth for all of us. We live in platform markets, where you have winner-take-all companies like Google, Amazon, Facebook, Alibaba, which is going to create many billionaires and hundreds and hundreds of millionaires. The opportunities for growth in the wealth management business are quite large, particularly in Asia. And the challenges are really figuring out ways to add real value. One of the things that becomes very important is having an investment strategy the clients actually implement. Discretionary wealth management will always have a place, because you're getting the best strategies and getting them implemented for the client, but many clients want to have more control, and that's where having some kind of a platform that aligns our interests is needed. In Canada, we always used to have an old joke that you should never ask a barber if you need a haircut, and it's very important to understand how your advisors get paid. That's why we've got UBS Advice, which gives you one fee which covers all of your charges, and so you know our interests are perfectly aligned. We also use technology there again to try to make sure that we allow you to control the major things that drive investments, like asset allocation, like security selection, and try to keep you away from the bad habits in investing. Like smoking and eating too much are in life, market timing is very similar. It's very hard to resist, but if you can, it will greatly improve your performance.