Turbulent periods earlier this year drove home to Asian investors once again the importance of diversification, according to Credit Suisse’s Singapore chief executive Benjamin Cavalli, who shared with finews.asia about strong asset growth in managed solutions.
At Credit Suisse, managed solutions – defined as funds alongside discretionary and advisory mandates – have grown in the high teens per annum. And growth in the first half of 2020 corresponded to the all-time record profits registered in the Asia-Pacific unit at 298 million Swiss francs ($326 million) in the same period.
«The pandemic was a wakeup call once again for many investors on the importance of something as basic as diversification» Cavalli, who is also Credit Suisse's South Asia head of private banking, told finews.asia.
«[W]e continued to stay close to our clients In recent times, and we continue to be focused on moving clients towards managed solutions as we believe it is key to bringing outperformance of their portfolios.»
Solutions Shortlist
In the region, Credit Suisse adopts a best practice approach of relying on a very limited shortlist of solutions – be it mutual funds or alternatives – which are reviewed and, if required, updated on at least a quarterly basis.
The practice of using this «Focus Solutions» list, according to Cavalli, has been instituted since 2014 and has been a key driver of growth for managed solutions.
«Often only as numerous as we have fingers in our hands, for example, in mandates,» added Rodolphe Larqué, Credit Suisse’s APAC head of managed solutions.
Digital Boost
In addition to volatile markets, accelerated digital adoption fuelled by the social distancing conditions contributed to direct communication of investment advice to clients and improved engagement. The bank has seen the adoption rate of its digital private banking platform reach 65 percent with total regional attendance of virtual conferences hosted between February and July this year totaling a whopping 29,500.
«Traditionally, we would make the case internally first to the bankers, and the bankers have to then reach out to the clients,» Larqué recalls. «These days, especially during the lockdown, many clients have excess time on their hands, and joined our increasing online calls on investment themes and ideas making the communication process direct, much faster, and more impactful.»
Investment themes recently being promoted at Credit Suisse in the region include 5G connectivity, China’s domestic growth and impact investing opportunities in Asian small and medium-sized enterprises to become leaders in agriculture, healthcare, affordable housing and education alongside companies generally involved in ocean improvement.
Integrating Sustainability
Credit Suisse’s focus on sustainability extends beyond just investment products – it already has a comprehensive shelf of sustainable investment solutions across asset classes.
Under the newly formed global corporate function entitled «Sustainability, Research, & Investment Solutions», the bank will look to more deeply embed sustainable practices and philosophies across the business.
«It has been a strategic decision to integrate Sustainability in the DNA of Credit Suisse, which sets us apart from the competition in Asia,» said Larqué. «While the creation of this overarching corporate function is still in its early stages, I am confident that it will result in new and even more innovative solutions for our clients, definitely by the same time next year.»
