Zurich-based Bank Vontobel has launched a wide-ranging partnership with an Asian private bank. The Swiss bank's head of external asset managers tells finews.asia what Vontobel hopes to win from the deal.
Mr. Fisher, how did the talks between Vontobel and Bank of Singapore come to pass?
Vontobel has offered structured products in Asia for institutional clients since 2012, so we've been in touch with BoS in the past. The specific catalyst for this partnership was the fact that many BoS clients, like others in Asia, were looking for opportunities to diversify their investments. This was especially true following the market volatility in China in 2015 and last year. The partnership is entering a new dimension now.
When did you begin talking?
We got down to specifics roughly one year ago. BoS ran a real selection process with several providers. We began outlining our cooperation with them last autumn.
What does this cooperation mean strategically for Vontobel?
It's our largest strategic cooperation with an institutional partner. It may be the first time a private bank in Asia or Singapore enters this type of venture. For us, the partnership strengthens our presence in Asia and it opens a completely new segment of clients for us.
Bank of Singapore employs 400 private bankers and manages more than $75 billion in assets. The cooperation has an immediate effect, but even more mid-term potential for us in the next three to five years.
What does that mean specifically?
We offer a Swiss booking platform combined with European investment know-how and an emphasis on diversification. Our goal is to offer these clients our discretionary mandates outside on Asia through their BoS private banker. This cooperation underscores our cross-border approach.
The model isn't actually new for Vontobel – we already maintain similar relationships to external asset managers. But the depth and breadth of this partnership groundbreaking for us.
How many BoS clients do you believe you will win?
In terms of the interest from BoS' private bankers who will cater to the clients locally, there is major potential. Vontobel will serve and advise the BoS relationship managers as if they were independent asset managers. This means a massive upgrade for this area, because they can access investment expertise from another market for their clients.
What kind of clients does BoS have?
Wealthy private clients from various Asia countries, with at least $5 million in assets to invest.
Can Vontobel clients also benefit from BoS' products and services?
No, the current agreement only provides for external asset manager services for BoS' advisors. But clearly, this cooperation opens up a range of options in both directions. In addition, Vontobel is active in private banking in Hong Kong.
Do you expect further deals of this sort?
For now, we're preoccupied with implementing this partnership, but I'd still say that cooperations of this type are an option in other parts of the world. Clients are increasingly looking for opportunities to diversify their investments.
The advantage of theBoS model is that the client remains with the bank and the advisor, and we can offer that additional diversification and know-how without much disturbance. For example, in the U.S. we maintain so-called B2B partnerships with a number of institutions holding client assets between $100 million and $20 billion.
