The licence allows Noah Singapore to deal in capital market products, including securities and units in collective investment schemes, and provide custodial services. In addition, it means the wealth manager can offer financial advisory on these products, as well as life policies which it can also arrange.
The Singapore firm, a wholly-owned subsidiary of mainland-based Noah Holdings set up in 2018, provides Chinese high net worth individuals, families and enterprises with global asset allocation, wealth management and other financial services.
“Singapore plays a strategic role in Noah’s overall expansion in servicing our clients’ overall wealth management needs,” said Singapore CEO, Tao Thomas Wu, in a statement.
The NYSE-listed group has established offices in Hong Kong, Jersey, New York, Silicon Valley, Vancouver and Melbourne. Its investment businesses include private equity, property, family wealth and discretionary mandates.
Hong Kong’s Securities and Futures Commission gave Noah Hong Kong licences in 2012 for Type 1 (securities trading), Type 4 (advising on securities) and Type 9 (providing asset management). In 2016, subsidiary Ark Trust (Jersey) obtained the Jersey Trust Licence, and a year later Noah America received the California Insurance Licence.
Through an exemption gained from its Hong Kong licences, Noah is permitted to carry out financial services in Australia, and last year, Noah Canada was granted the investment fund manager, exempted market dealer and portfolio management licences.
However, the firm hopes to build its mainland franchise.
Last July, it spun Gopher Redwoods Asset Management out of its asset management subsidiary Goper AM, with a mandate to invest directly in mainland-based fund managers, including firms with alternative strategies deployed in the domestic equity and fixed income markets.
Noah is also a promoter of qualified domestic limited partnership (QDLP) products as a way for Chinese investors to gain exposure to overseas markets.
The QDLP programme allows foreign managers to raise money in China, with assigned quotas, to invest in offshore traditional and alternative investments, including overseas equity and bond funds, hedge funds and real estate. Noah has invested in QDLP funds managed by private equity firms The Carlyle Group, Blackstone, KKR, Apollo Global Management, Warburg Pincus and TPG.
Globally, Noah advises AUM of RMB 686.7bn ($96.8bn) and a total of 293,760 wealthy clients worldwide, according the firm’s 2019 annual report,
However, a difficult fourth quarter of 2019 dampened the firm’s full year results. Net income attributable to shareholders was RMB 829.2m, up only 2.2% from 2018.
Yi Zhao, Noah’s group president, blamed the moderate increase on macro issues — China’s economic downturn, the turbulent situation in Hong Kong, Sino-US trade tensions and a changing financial regulatory landscape in China.
