Trust and Suc­ces­sion

While many fam­ily busi­ness own­ers in­vest sig­nif­i­cant re­sources in grow­ing their busi­nesses, HSBC Pri­vate Bank also sup­ports those fam­i­lies in the tran­si­tion of wealth over mul­ti­ple gen­er­a­tions

Hong Kong Tatler - - Tatler Focus | Hsbc Private Bank -

HSBC Pri­vate Bank’s strength in Asia lies in its proud her­itage, a com­mit­ment to un­der­stand­ing the needs of its clients and its abil­ity to pro­vide a com­pre­hen­sive prod­uct and ser­vice of­fer­ing by look­ing at clients’ port­fo­lios holis­ti­cally. The range and depth of its ex­per­tise, aug­mented by a con­stant aware­ness of new trends and de­vel­op­ments, means that HSBC Pri­vate Bank is well placed to meet the de­mands of the re­gion’s grow­ing fam­ily wealth.

A key dif­fer­en­tia­tor for the bank is its sub­stan­tial in­vest­ment in wealth and suc­ces­sion plan­ning, in­clud­ing busi­ness suc­ces­sion and fam­ily gov­er­nance. Its ex­per­tise in this area is re­flected in its pre­em­i­nent mar­ket share and has been ac­knowl­edged with sev­eral in­dus­try ac­co­lades.

“We aim to be the pri­vate bank of choice for busi­ness own­ers and lead­ers, en­trepreneurs and their fam­i­lies through­out Asia, by of­fer­ing in­dus­try-lead­ing bank­ing, in­vest­ment and wealth plan­ning so­lu­tions to help our clients pre­serve, man­age and grow their wealth over the longer term,” says Bernard Ren­nell, re­gional head of global pri­vate bank­ing, Asia-pa­cific and global head of fam­ily gov­er­nance and fam­ily en­ter­prise suc­ces­sion at HSBC Pri­vate Bank.

The bank takes a co­or­di­nated and sys­tem­atic ap­proach to iden­ti­fy­ing its clients’ spe­cific per­sonal and cor­po­rate needs, which is sup­ported by ex­ten­sive global com­mer­cial bank­ing and cap­i­tal mar­kets ca­pa­bil­i­ties.

The HSBC Group’s pres­ence on 60 trad­ing floors through­out the world en­sures best or­der ex­e­cu­tion. Its top-rated re­search teams are renowned for their strength in emerg­ing mar­kets. The group’s trans­ac­tion bank­ing and trade fi­nance ac­tiv­i­ties in mul­ti­ple cur­ren­cies, in­clud­ing a cen­tral role in off­shore ren­minbi flows, means that the pri­vate bank can not only of­fer its clients tai­lored in­vest­ment ad­vice, it can also de­liver on its rec­om­men­da­tions.

“The pri­vate bank pro­vides be­spoke so­lu­tions to our clients and fa­cil­i­tates in­tro­duc­tions across the en­tire HSBC Group, con­nect­ing them to op­por­tu­ni­ties to build their wealth,” says Ren­nell.

The ap­petite for man­aged in­vest­ments in Asia is con­tin­u­ally grow­ing for struc­tured prod­ucts, tra­di­tional funds, and dis­cre­tionary wealth man­age­ment ser­vices. Al­ter­na­tive in­vest­ments, es­pe­cially, have at­tracted tremen­dous in­ter­est among both in­sti­tu­tional and pri­vate clients dur­ing the past decade.

Man­age­ment con­sult­ing firm Mckin­sey cal­cu­lates that the com­pound an­nual growth rate of al­ter­na­tive in­vest­ments rose at twice the rate of tra­di­tional in­vest­ments be­tween 2005 and 2013. An al­lo­ca­tion to al­ter­na­tives such as in­fra­struc­ture or prop­erty of­fers di­ver­si­fi­ca­tion op­por­tu­ni­ties and im­proves a port­fo­lio’s volatil­ity.

“Al­ter­na­tive in­vest­ments have be­come more trans­par­ent and thus more at­trac­tive to in­vestors in Asia,” says Ren­nell.

As the pri­vate bank­ing in­dus­try ma­tures in Asia Pa­cific, HSBC con­tin­ues to build on its le­gacy in the re­gion that stretches back to 1865. Given the re­cent changes in the reg­u­la­tory en­vi­ron­ment fac­ing the in­dus­try, im­ple­ment­ing the high­est global stan­dards of fi­nan­cial crime com­pli­ance and know­ing its cus­tomers, en­hanc­ing risk man­age­ment con­trols, sup­port­ing tax trans­parency, and sim­pli­fy­ing pro­cesses re­main top pri­or­i­ties for HSBC Pri­vate Bank.

A ma­jor fo­cus for HSBC Pri­vate Bank is to help its clients in the tran­si­tion from wealth cre­ation to wealth man­age­ment in­clud­ing the trans­fer of in­ter­gen­er­a­tional wealth.

The sig­nif­i­cance of this em­pha­sis will be­come in­creas­ingly ap­par­ent. Ac­cord­ing to in­ter­na­tional con­sult­ing firm BCG, the re­gion is ex­pected to make up more than one-third of global wealth by 2018, with its pri­vate wealth fore­cast to reach US$76.9 tril­lion.

“There are real con­cerns amongst Asian clients, many of whom have built their wealth in re­cent decades, about the trans­fer of this wealth to the next gen­er­a­tion. For th­ese first-gen­er­a­tion wealthy en­trepreneurs, the fam­ily busi­ness com­pli­cates suc­ces­sion plan­ning. Many clients have shared that while they in­vest a sig­nif­i­cant amount of time and re­sources in build­ing their busi­nesses, they feel un­pre­pared when con­sid­er­ing the tran­si­tion of wealth to fu­ture gen­er­a­tions,” says Ren­nell. “But, through our ca­pa­bil­i­ties in wealth struc­tur­ing, suc­ces­sion plan­ning, fam­ily gov­er­nance and phil­an­thropic ser­vices, we can sup­port and guide clients in the preser­va­tion of their fam­ily wealth.”

HSBC Pri­vate Bank re­cently hosted its flag­ship Fam­ily En­ter­prise Fo­rum in Sin­ga­pore, where it gath­ered clients from around the re­gion to dis­cuss “man­ag­ing the busi­ness of the fam­ily”. They were able to en­gage can­didly with in­ter­nal and ex­ter­nal ex­perts, as well as each other, about the im­por­tance of proper fam­ily gov­er­nance and suc­ces­sion plan­ning, the im­pact of fam­ily val­ues, phi­lan­thropy, im­pact in­vest­ing and cor­po­rate sus­tain­abil­ity in the con­text of the fam­ily busi­ness.

“We have un­par­al­leled depth in re­sources and ex­per­tise in suc­ces­sion plan­ning and this, cou­pled with in­ti­mate knowl­edge of our clients, has helped us to earn their trust as demon­strated by their con­tin­ued pa­tron­age through mul­ti­ple gen­er­a­tions,” says Ren­nell.

HSBC Pri­vate Bank is a di­vi­sion of The Hongkong and Shang­hai Bank­ing Cor­po­ra­tion Limited.

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