Chinese wealth managers have risen to prominence, with success stories that international private banks keenly follow. Wang Dian, CEO of Hywin Wealth, told finews.asia in an exclusive interview her thoughts on clients, markets, philanthropy, and how she feels about Hywin being called the «Lombard Odier of China».
Madame Wang, could you tell us about the origin of Hywin Wealth?
Hywin Wealth was founded in 2006 by one of the leading entrepreneurial families of China. The timing couldn’t have been better, as the newly-minted Chinese High-Net-Worth Individuals (HNWI) began to appreciate the independence of investment advice amidst multiplying products and providers.
Thirteen years later, Hywin Wealth has become a nation-wide leader in the Chinese wealth management market, serving more than 100,000 clients from 70 offices, across investing, financing, succession planning, philanthropy, and other family pursuits. We achieved 30 percent of Assets under Management (AUM) growth in 2018, a ringing endorsement by clients in a challenging year for the industry.
Several foreign private banks entered China onshore in 2006 or 2007 but most of them retreated a few years later. Can you tell us the secret of Hywin’s success?
You are right – China has attracted and humbled many renowned global institutions. I guess Hywin Wealth got a few things right early on. First, we jumped started the franchise with energetic and disciplined expansion and achieved a critical mass of clients quickly. Size and pan-China coverage gave us the commercial clout to invest in the best and scale up successes.
«We divide Chinese clients’ activities into three spheres»
Meanwhile, we built a platform that’s robust, intelligent, and nimble. Our full range of licensed entities allows us to access the whole product universe to build client portfolios on advisory or discretionary basis. Our talent strategy targets senior Relationship Managers (RMs) in leading private banks and upgrades them to the next level. Our streamlined decision-making anticipates and adapts to market trends with precision and speed.
Also, we have leveraged the wisdom of our retained consultants including McKinsey, Boston Consulting Group (BCG), and Roland Berger, to drive better design and implementation. Very importantly, Hywin Wealth is a good listener. As a wealth manager with entrepreneurial DNA, we really care and we really understand.
Chinese clients are going global. What is Hywin Wealth doing to assist?
Conceptually, we divide Chinese clients’ activities into three spheres: In the «onshore» space, they pursue entrepreneurial endeavors and tap into local investment opportunities.
In the «near-offshore» space, i.e. Hong Kong as the offshore financial center on the doorstep of Mainland China, clients seek international investment and financing opportunities with a strong China bias and China connectivity, enjoying the convenience of the same time zone and the same language.
«As we always say, being rich is an arduous job, even more so for Chinese clients»
In the «far-offshore» space, i.e. financial centers such as London, New York, Zurich, clients set up bank accounts, trading units, treasury hubs, and M&A outposts, to benefit from the global flow of deals, funding, and information.
To serve clients’ activities across the three geographies, Hywin Wealth established a «continuum» platform, comprising our wealth management and asset management entities in China, the asset management and insurance businesses in Hong Kong (Haiyin International), and our advisory and asset management entities in the U.K. (Hywin Wealth) and the U.S. (Hywin Capital Management).
These entities, through close collaboration and a unified vision, have achieved integrated client coverage, coordinated delivery of a global proposition, and agile responses to cross-border trends.
With your presence in China and beyond, Hywin must have gathered a lot of client insights. What’s keeping them awake at night?
As we always say, being rich is an arduous job, even more so for Chinese clients. They must grow their businesses and take them across milestones, be it a certain revenue quantum or market ranking. They have to foresee and react to change of trends and change of rules, like current trade frictions. They always watch out for disruptive technologies, which could be the next catalyst or a sudden show-stopper.
But one thing weighs on the minds of almost all Chinese clients: their next generation. Where to educate the children on what system has always been a debate; wealth transfer and passing the corporate baton are obvious topics to plan for.
«Hywin’s owner family recently led dozens of clients’ heirs and heiresses on a trip to Africa»
But increasingly, how to distill a set of family values and use it to align perspectives across generations becomes imperative. Family charter, family governance, family council - these concepts have leaped from books into the conversations within the families, and between families and their advisors.
What is Hywin doing for clients’ next generation?
To help our Ultra-HNW clients nurture their next generations and master other challenges, Hywin Wealth has set up a family office unit, which is part investment panel, part advisory board, and part educational institute. Hywin Family Office is staffed by the best investment managers and trust specialists, but the owner family of Hywin is directly involved in daily operations. «An entrepreneurial family serving another entrepreneurial family» enables strong trust, candid conversations, and unhindered problem-solving.
As one example, Hywin’s owner family recently led dozens of clients’ heirs and heiresses on a trip to Africa. These privileged teens saw a very different world and were impressed by the fortitude, optimism, and potentials of the local communities.
«We built 13 Hywin Libraries in remote provinces to provide a room to read for 8,000 children»
The expansive nature and primitive environment also set them thinking, on a broader and longer horizon, about goals they could achieve and the difference they could make. Some clients who were also on the trip found the bond with their children were refreshed and deepened, to their surprise and joy.
You really put a strong emphasis on the clients’ next generation.
Indeed. But we care about not just our clients’ children. As a matter of fact, how to help the younger generation achieve their full potentials is a key focus of Hywin Wealth’s philanthropic activities. We financed «Hywin Classes» in some struggling schools to expand student intakes.
We built 13 «Hywin Libraries» in remote provinces to provide «a room to read» for 8,000 children. We also have an assistance program to help young people who due to family circumstances couldn’t have finished their education otherwise.
How are you using tech?
Technology is definitely a great enabler, for our clients, for our RMs, and for bringing specialists together around the globe to work on key cases. Getting daily investment commentaries, selecting mutual funds, diagnosing portfolio performance – our clients have been doing these on their Hywin apps for years.
«The comparison with Lombard Odier is very flattering»
Increasingly, Hywin Wealth is using big data and AI to enhance client profiling, portfolio management, trade execution, and risk controls. Of course, the conundrums of life and the vicissitudes of markets will always require a human to confide in and to brainstorm with. That’s why our RMs and specialists are even more sought after now than ever.
Hywin is said to be the «Lombard Odier of China». What’s your comment?
The comparison with Lombard Odier is very flattering. Lombard Odier is the benchmark of Swiss private banking and an inspiration for us.
Stable ownership, a real long-term perspective, a passion for excellence, and a commitment to sustainability. These values are associated with the Lombard Odier brand but are also the guiding light for Hywin Wealth. For century-old private banks and young wealth managers alike, the complication and contradictions of today’s world require discernment, humility, stamina, and courage. At Hywin Wealth, we are prepared.
Wang Dian has been active in China's financial services for many years and is regarded as one of the leading figures shaping China's wealth management market.
