Group CEO and co-founder of Raffles Family Office Chiman Kwan discusses the impact of the recent global banking crisis with finews.asia.
The recent banking crisis, and notably the collapse of Credit Suisse, has shaken many the world over, including the ultra-wealthy. As a result, many of them have been forced to review their risk management strategies and explore a broader range of investment options.
«The crisis forced them to recognize the importance of diversification, including where and how they choose to hold their wealth,» Chiman Kwan told finews.asia.
Nimble Strategies
To cope with the volatile global situation, Raffles employs nimble and flexible investment strategies. Strategic diversification is applied to balance risks while creating good returns, Kwan said.
To address the more sophisticated demands of clients, the firm has been expanding its platform into a diversified range of alternative investment options. Private equity, digital assets, and real estate are the preferred choices.
Transfer of Wealth
The world is going through the largest transfer of wealth in history. That presents both opportunities and challenges for the family office industry, Kwan said. Given that, there has been an intense emphasis on multigenerational planning to help navigate the changes underway.
Currently, family offices have emerged as a compelling option in the wealth management landscape for high-net-worth individuals and families. In that vein, Raffles emphasizes its ability to understand the motivation of first and new-generation high-net-worth investors in a way that caters to their increasingly sophisticated wealth management demands.
Switzerland to Asia
Indeed, the recent crisis has encouraged the ultra-wealthy to consider shifting their assets, including Raffles’ clients. As part of that, there have been rumors of an influx of assets from Switzerland to Asia following the collapse of Credit Suisse.
«Many of our clients are considering moving around their assets, ensuring their portfolios are well-prepared to weather any future storms,» Kwan said without elaborating further.
Popular Destinations
As is publicly known, Hong Kong and Singapore have become increasingly popular destinations to steer assets to – and the rivalry between the two is getting fiercer.
However, according to Kwan, there is no single financial hub that is best at everything and it is not a zero-sum game as both possess strengths among other qualities. «Both Hong Kong and Singapore can benefit family offices differently,» Kwan said.
