How is the largest wealth manager in Asia dealing with the worst crisis to hit the region in over a decade? finews.asia speaks exclusively to UBS chief Amy Lo in Hong Kong to find out.
Amy, the volatility of the last few months has been a shock for investors worldwide. How have clients in Asia responded?
The market volatility over the last two months has given clients a reason to be cautious, but even in volatile markets, APAC clients look not only to protect their assets but also to capture opportunities. In such markets, diversification and strategic asset allocation are key.
«Clients are monitoring the situation closely and they are still positive about the long term growth in China»
We are talking to our clients every day and bringing them ideas from our chief investment officer to help them navigate the current volatility. Clients, in turn, are monitoring the situation closely and they are still positive about the long term growth in China.
Any specific investment themes or products that clients are gravitating towards in these markets?
In particular, our sustainable investing solutions have had good traction in 2020 so far. Across the bank, we have grown sustainable investment assets by 56 percent in 2019 and these assets now account for 13.5 percent of our overall invested assets around the globe.
«The outbreak and the resultant situation has pushed us to speed up our digitalization journey»
Our 100 percent sustainable investing cross-asset discretionary portfolio has grown from zero interest to having a share of close to 20 percent of all mandates now in APAC. This means on a net sales basis, one in five new dollars added to the bank’s mandate book is a sustainable investing discretionary mandate.
Over the recent weeks, we have also observed interest in specific thematic exposures, such as the healthcare sector or disruptors in the food and retail industry.
What will private banks have to do differently in order to survive the uncertainty that lies ahead?
It is important for us, especially in this period of time, to come up with innovative tools and solutions that suit our clients’ needs in the short and long run. Although we have been focussed on increasing automation and digitalization, the outbreak and the resultant situation has pushed us to speed up our digitalization journey, both internally and externally.
«This is the time where we can differentiate»
We launched the weekly CIO Webinar in early February. Hundreds of clients log in to listen to and ask our CIOs questions every week. We also have frequent Skype meetings with clients who have turned out to be very efficient. In addition, we also communicate with them through WeChat and WhatsApp in Hong Kong and Singapore. We will continue to invest in technology and we have a comprehensive suite of digital communication resources available to communicate with clients.
Now more than ever, clients need a trusted partner. This is the time where we can differentiate. We are here for our clients.
Amy Lo is the Co-Head of UBS Wealth Management Asia Pacific, and Chairman and Head of UBS Wealth Management Greater China. She is also Chief Executive of UBS Hong Kong Branch. She has over 30 years of experience in the banking industry. Since joining UBS in 1995, she has held a number of senior management positions including Regional Head of Ultra-High-Net-Worth in Asia.
