Citigroup offers a personal strategy
Citigroup Private Bank, recognised as a leader among its counterparts in Asia, is a name that repeatedly crops up when market share is discussed.
Kaven Leung, regional head for Greater China at Citigroup Private Bank, chooses to focus on an interesting measure of industry leadership: not assets under management but profitability.
'Our profitability has been very strong. We have been able to show double-digit growth every year for the past three to four years,' he says.
One key to this success has been the client-focused approach which has led to remarkable loyalty with some people who have been customers for 40 years, according to Mr Leung.
'Obviously, we have a strong franchise. Clients perceive us as bringing value to the relationship,' he says.
'We serve them, hopefully, across the spectrum of wealth management needs. We are able offer a full service because of our internal resources and our approach. We don't focus on offering a single popular product. We look closely at the client's situation.'
Mr Leung says many private bank clients have become long-term in their approach to the difficult investment climate.
'Most clients have taken a step back . . . to see what is really suitable and beneficial to them. I think now investors are prepared to take their time about investment. They want to develop a suitable, tailored plan before they invest.'
Mr Leung says this has led to a more balanced approach in developing a diversified portfolio. In his view, investors have been tempered by their recent experiences in markets.
People who lived through tough investment cycles become more realistic about returns and risk exposure, Mr Leung says.
'So now we are dealing with a group of investors who are more experienced, having been through a few cycles. They are more informed when it comes to making an investment plan.' He says another trend is emerging where people want to preserve existing wealth rather than multiplying it. 'They don't just spend money and energy on pure investment, they look at other relevant issues as well.'
Families with members in different tax jurisdictions are interested in trust structures, Mr Leung says.
He says many clients are the second generation. 'They have been educated and many have hands-on investment experience.'
Now they are helping to manage the family wealth and are making investment decisions involving the business.
'They are familiar with the latest investment theories . . . and probably more open-minded to accepting new ideas and structures in their portfolios,' Mr Leung says.
