DBS Private Bank reportedly saw its assets under management climb higher in 2021, driven in part by growth in demand for family office advisory services despite physical restrictions from the pandemic.
DBS Private Bank’s assets under management (AUM) increased 12.7 percent in 2021, according to a «Business Times» report citing private banking group head Joseph Poon, including a 40 percent increase in net new money.
This compares to the 7 percent AUM growth in 2020.
DBS Private Bank does not disclose the absolute figures for its AUMs. DBS’ overall wealth management franchise, which includes the private bank, saw AUMs rise 10 percent to S$291 billion in 2021.
Asset Origins
In 2021, asset inflows originated from multiple geographies including ASEAN, Greater China and Europe.
Family offices were a notable driver of demand with the private bank facilitating the establishment of three times more family offices this year while AUMs for the segment surged 115 percent.
According to Poon, Singapore’s status as a safe haven for wealth has been enhanced following its successful management of the pandemic alongside political stability and rule of law.
Product Demand
In terms of investments, the bank saw increasing demand for a variety of in-house products – an area that saw assets more than double to S$10 billion – including multi-asset, thematic and sustainable investment strategies.
And sustainable investments, in general, experienced increased demand with a nearly five-fold increase in ESG-related fund subscriptions. Overall, sustainable investments accounted for 53 percent of portfolios as of the end of 2021, ahead of the bank’s 50 percent target by 2023.
Not unlike its competitors, DBS Private Bank also saw a rise in demand for alternatives in areas such as private markets due to the perception of overpriced public markets and cryptocurrencies, where there is «healthy interest» from clients with the bank’s digital exchange assets under custody rising to S$800 million as of end-December.
Virtual Interface
Poon also highlighted the ability of private bankers to interface with clients effectively through digital means during the pandemic, even on relatively sensitive subjects, as a driver of success in 2021.
«Wealth planning means talking about a client's eventual death, succession and family. Everyone thought the only way to get a conversation going was face to face. But we have very strong relationships,» Poon explained.
«But we have very strong relationships. We also created virtual meeting rooms; we were very fast, and intimacy was not lost. Therefore many clients started planning and doing things for their families and trusts. Clients felt they could do the same things they were able to do face to face previously […] We're seen as a safe pair of hands for the next generation.»