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SINGAPORE (July 18): When it comes to wealth management, a constant dialogue with clients makes all the difference, says Dominique Jooris, South Asia CEO at Pictet Wealth Management.
In an exclusive interview with The Edge Singapore, Jooris says “These dialogues are why one would go to a private bank. This is the type of service you would find here, that you would not find at commercial banks, internet brokers or robo-advisors.”
“That is what most banks miss – the ability to have, in a sophisticated way, a comprehensive dialogue, not only about the investment but about the investor’s current financial status, risk profile and future needs.”
Robo-advisors have been gaining popularity over the years, attracting anyone and everyone who would be interested in investing, especially first-time investors and those with a low investing capital.
But is this viable for high net worth investors?
“You come to us because you have a meaningful amount of wealth that you would want to have managed for a long period of time,” says Jooris.
Pictet Wealth Management is a comprehensive wealth management service for high net worth investors and families. It is part of the Pictet Group, which operates as a partnership of seven owner-managers, including members of the Pictet family, with principles of succession and transmission of ownership that have remained unchanged since foundation in 1805.
As of Dec 31 2017, the group has US$522 billion ($712.3 billion) in assets under management (AUM), while Pictet Wealth Management has US$205 billion in AUM.
The group’s business model is to create value-added things that investors don’t typically have access to whether it’s research, advice or investment opportunities.
Creating a holistic wealth plan
“The thing that we have identified that people need when entrusting you with their wealth is that you walk with them the road through their wealth planning to ensure that their wealth is in the right place,” says Jooris.
This would include one’s risk appetite, financial status, family inheritance and governance, preferred types of investments, and more. And any one of these factors may also change overtime, thus the need for constant follow-ups.
For most, wealth transfer through generation is important.
“It’s very common for us to sit in meetings with father and son, or mother and daughter. Because we have the agility of a bank with a human size and the resources of a larger group, we have the time for every client and we also spend a lot of time educating the next generation about financial matters,” he adds.
Accessing hard to find investments
Several private equity investments out there are quite hard to reach without the right connections. Pictet, being around for over 200 years, has built the connections to get in touch with these investments.
“If there is one thing that is very hard to access for private investors, it is private equity opportunities.”
“One of the things we have at Pictet is a private equity fund of funds through which we diversify the risk of private equity by investing in a number of different private equity funds, ensuring that clients can still enjoy the return of that asset class,” says Jooris.
But it is not all about getting to those hard-to-reach investments; it is also ensuring that these investments produce results.
“It’s not just about finding or selecting funds; we also want to ensure that investors see the result of their investments. We report every quarter on the evolution of these and we make sure that investors are aware of what is happening in those funds,” he adds.