«We are using local expertise and networks to build a production and sales hub for structured products between Asia and Europe,» says David Schmid of CAT Financial Products in an interview with finews.asia.
David Schmid, CAT Financial Products (CATFP) suffered a higher loss for 2023 than in the previous year. What is the reason for this?
The result is mainly due to the expansion of our business activities and the higher capital expenditures. Last year, we received a license as a Swiss securities firm from the regulator and continued to invest in IT, infrastructure as well as additional employees.
These were important steps to offer and scale our new services. The persistently difficult market environment with geopolitical tensions, combined with high interest rates, has depressed investor sentiments. As a result, earnings have not developed as quickly as we originally anticipated.
How did the 2024 financial year start?
Since the beginning of the year, we have been able to launch a large number of new actively managed certificates (AMC) as well as other exchange-traded products on the SIX Swiss Exchange.
«We are proud to partner with SBI Digital Markets in Singapore»
Revenues from management fees doubled compared to the previous year. Those from transaction fees have even increased fivefold. Sales from our other products as well as from the brokerage business of third-party products are also developing very well.
And last but not least, we are proud to partner with SBI Digital Markets (SBI) in Singapore for the distribution of structured products in Asia and Europe, and with whom we have already been able to launch several products.
What’s your strategy in Singapore?
We focus on leveraging local expertise and networks to build a production and distribution hub for structured products between Asia and Europe.
«I like to remember the dynamic business culture and quality of life in Singapore»
Our collaboration with SBI aims to leverage the expertise, global reach and technology of two industry experts. The partnership has already led to the strengthening of our market position in Singapore.
SBI is a very interesting partner for us with its customer base inside and outside of Japan.
You have lived and worked in Singapore for several years. What do you remember most?
I particularly like to remember the dynamic business culture and quality of life, although the high temperature and humidity were sometimes quite a challenge. I was also very impressed by the hospitality and the extremely high level of service.
For Singapore, I hope that openness to new products and innovation in the financial sector will continue in order to support positive developments in the region.
Could you imagine living and working in Asia again?
Asia is great and I enjoyed my time there. My private center of life is now back in Switzerland. A move is therefore not likely.
«We have the necessary know-how to identify the specific needs of Asian investors»
In terms of business, however, I will focus heavily on Asia and, in particular, on the partnership with SBI. I am looking forward to visiting our business partners and friends in the region again.
How would you describe the Asian market for structured products?
It is a growth market per se, with special potential for tailor-made financial solutions for private clients.
We already serve a large number of independent asset managers in Singapore and Hong Kong and will be able to serve Asian clients even better in the future through our partnership with SBI.
Does CATFP have the products to succeed in the Asian market?
We have access to local products in Asia and the necessary know-how to identify the specific needs of Asian investors. That’s how we can offer tailor-made solutions through targeted product structuring.
«I want to accelerate our international expansion»
Our offering is complemented by the unique, custom-built CUGLOS service platform, which enables us to monitor products throughout their lifecycle and provide detailed information about their risks.
Thanks to our innovative strength, we can offer AMCs specially designed for the Asian market. This supports our goal of increasing our market share in the region and further expanding our position.
What goals have you personally set for 2024?
I want to accelerate our international expansion, further improve operational efficiency and establish the company as an innovative provider in select financial markets.
David Schmid is Co-CEO, Partner and Head Markets at Swiss-based CAT Financial Products. He leads the trading and structuring of financial products and is responsible for the Group's governance and strategy. Before that, he spent 13 years at Leonteq (formerly EFG Financial Products), including as CEO Asia, where he was responsible for building and growing the firm in the APAC region. He studied at the University of Zurich with a degree in Banking & Finance.
