Advisory still dominant
Globally, total assets under management are €200bn ($223.8bn).
Speaking about the firm’s discretionary business, Haberer said that a majority of the firm’s AUM in the region is still in advisory. Since 2011, around 20% of its assets in the region have been in pure discretionary mandates. Including managed investment funds, that figure rises to around 30%, he noted.
The reported figures are lower for some other private banks. Bank of Singapore, for example, has around 7% of its S$139bn ($102bn) AUM in discretionary mandates, according to the firm’s website. For Deutsche Bank Wealth Management, its discretionary business accounts for around the “mid-single digit” area of its Asia AUM.
According to Haberer, the average in Asia for pure discretionary is low – at around 5-10% of managed assets.
Haberer explained that wealth accumulation is less mature in Asia.
“In Europe, we are faced with fourth or fifth generation business owners, often not even running their businesses anymore. They are used to delegating. They delegate the management of running of the business and they delegate the management of their funds.
“In Asia, where most businesses are run by the first or second generation, the mentality is very much you run your business, you make your decisions and you take your risks. That is why the non-discretionary part is higher in Asia.”
