LGT Securities looks to overseas investment

New blood to drive wealth management. By Darana Chudasri

LGT Securities Thailand, a private banking and asset management company owned by the Princely House of Liechtenstein, plans to capture higher demand for overseas investment and asset allocation from ultra high net worth (UHNW) investors.

The company started its domestic wealth management operations in March after receiving a licence at the end of last year.

“Besides Hong Kong and Singapore, which are financial hubs, Thailand is the third country in Asia where the wealth market is expected to see positive growth over the next year or two,” chief executive Ekkapob Makeguljai told the Bangkok Post in an exclusive interview.

Factors supporting the wealth management industry are a shift of wealth from older UHNW investors

who have a home bias for investment, focusing on traditional assets such as real estate, cash and mutual funds, towards a new generation preferring asset allocation and investment diversification, said Mr Ekkapob.

Thailand is also becoming an aged society, prompting people to pay more attention to investments and savings.

These factors are driving stronger demand for professional investment services and investment solutions, especially in overseas markets, he said.

“Investing in overseas markets will see a significant change over the next two years as it is the first time in more than 10 years that the US central bank cut the interest rate,” said Mr Ekkapob.

“The global economy is unlikely to enter a recession for at least 1-2 years, while investment in the technology sector is likely generate higher returns.”

Britain is an attractive investment destination over the next 1-2 months as Brexit uncertainty will likely see the pound’s value continue to weaken, he said.

Despite stiff competition from existing asset management companies offering services to UNHW investors, LGT Securities Thailand plans to market itself as a pure private wealth management service with a focus on offshore investment, said Mr Ekkapob.

The company’s shareholders and qualified employees also act as advantages for UHNW investors in Thailand, he said.

“Our shareholders are the royal family [of Liechtenstein], with experience in entrepreneurship and ownership stretching nearly 100 years. We are the only privately owned asset management company in Thailand,” said Mr Ekkapob.

“Our investment policy and strategy will be stable, which is suitable for UHNW families looking for a longterm commitment.”

The landscape of wealth management has changed as younger generations hardly stick to a single brand, he said.

“The market does not rely solely on traditional relationships and investors are looking for both relationships and quality of advisory and new investment strategies,” said Mr Ekkapob.

He declined to disclose the number of existing customers nor the value of assets under management in Thailand.

As of Dec 31, 2018, LGT managed assets worth US$201.2 billion (6.2 trillion baht) for wealthy private individuals and institutional clients globally.

‘‘ Thailand’s wealth market is expected to see growth the next few years.

EKKAPOB MAKEGULJAI

Chief executive, LGT Securities Thailand