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Interview with: Philippe Legrand,
Chief Executive Officer of the Multi
Family Office, London and Capital
Asia Limited.
The...
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marcus evans Summits group
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The Future of Wealth Management in Asia - Interview: Philippe Legrand, Chief Executive Officer of the Multi Family Office, London and Capital Asia Limited - Private Wealth Management APAC Summit

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For more information contact: emailus@marcusevans.com

An interview with Philippe Legrand, Chief Executive Officer of the Multi Family Office, London and Capital Asia Limited and a speaker at the marcus evans Private Wealth Management APAC Summit 2013, discusses the changing landscape of private wealth management in the region and what high net worth individuals are looking for in Asia.

Join the 2014 Summit along with leading regional family offices and wealth advisors and international fund managers and consultants an intimate environment for a focused discussion of key new drivers shaping wealth preservation and investment strategy.

For more information contact: emailus@marcusevans.com

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Transcript of "The Future of Wealth Management in Asia - Interview: Philippe Legrand, Chief Executive Officer of the Multi Family Office, London and Capital Asia Limited - Private Wealth Management APAC Summit "

  1. 1. Interview with: Philippe Legrand, Chief Executive Officer of the Multi Family Office, London and Capital Asia Limited. The global financial crisis highlighted the benefits for independent and unbiased financial and investment advice in Asia, according to Philippe Legrand, Chief Executive Officer, London and Capital Asia Limited. The way banks in the region reacted to the crisis, minimising their exposure to other institutions and as a consequence minimising their product offerings, means that today’s wealthy clients cannot always be certain that they are getting the best available advice and/or solution. Nor do they always find the answer they are looking for within their existing bank. The ability to now work with advisors, independent from the banks themselves, thus provides a new alternative for Asian investors, he explains. A speaker at the marcus evans Private Wealth Management APAC Summit 2013, in Macao, Asia Pacific, 28 - 30 October, Legrand discusses the changing landscape of private wealth management in the region. What is missing in the private wealth management industry in Asia? First, we have to assess two timeframes: before the global financial crisis and after it. On average, Asian high net worth individuals have four private banks and one consumer bank servicing their private needs. Before the crisis, they enjoyed one-to-one relationships with each of their banks solely talking of the assets the client held within that institution. There was no perceived need for overview, and risk management of the correlation between the client’s different accounts or asset classes. After the crisis, the investors realised the correlation risk they had been exposed to and hence grew the need for such a consolidated overview for efficiency of overall asset allocation and risk management purposes. As for the banks, they reacted to the crisis by drastically reducing their own counterparty risk towards other financial institutions. As such, they reduced the depth of the open architecture model they had offered before, thus affecting the available choice to clients. Finally Asian clients, being business owners and first generation wealth creators, often have needs that require both private and corporate solutions. Although banks sometime cater to both if the size of the deal is right, the teams are different and the coordination and trust remain topics for the client. How did the move away from open architecture of banks impact investors? Irrespective of the level of open architecture that each bank may provide, the selection is not unlimited. Yet when sourcing a solution to answer the particular needs of a client, the issue always remains: what is the best solution for the client and who, amongst the providers, offers the best performing solution. Clients want to have the security of knowing their wealth is in the custody of large financial institutions of their choosing; but since they do not have unlimited access within each bank, they also want to ensure that the solution provided to them in the form of advice, truly reflects an independent “best of breed” approach. Hence the emergence of the concept of Multi Family Offices that caters to independently advising the clients on the best solution for them. And then finding it for them irrespective of the provider. What are the key characteristics of the independent advice business model? How do manager selection and risk management differ? A typical private banking account offers three main components bundled up into one: custody of liquid assets, advice in managing these assets and execution of trades related to these assets. The concept of Multi Family Office is to unbundle them and freely choose each provider for these components. With this model, the client chooses the custodian but we provide the advice (and overall relationship management) through a limited power of attorney on the account, with which we use the custodian and execution platform of the bank (although we can also execute outside the bank itself). Since clients have more than one custodian bank, we provide a one-stop solution team, independent from the bank itself but fully regulated by the same regulatory authorities What future does this model hold in Asia? There is a huge potential. All high net worth individuals have one trend in common: they all lack time and they need someone they trust to manage their accumulated nest egg. The concept of independency and one- stop financial solutions that are offered within Multi Family Offices is relatively new in Asia but has a proven and successful track record in Europe and North America. Asia has a limited number of players for the moment, but the segment of clients attracted by such services is continuously growing, not to mention the number of private bankers who now have an option for a career outside the banks. Independent financial advice is relatively new in Asia The Future of Wealth Management in Asia
  2. 2. The Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional t r e n d s a n d b r e a k t h r o u g h innovations. Please note that the Summit is a closed business event and the number of participants strictly limited. About the Private Wealth Management APAC Summit 2013 This unique forum will take place at The Venetian Macao Resort Hotel, Macao, Asia Pacific, 28 - 30 October 2013. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on wealth preservation, wealth structuring, sustainable long-term investment strategy and strengthening the family office model. www.pwmsummit.com Contact Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: + 357 22 849 313 Email: press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.com About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-to-one business meetings. For more information, please visit: www.marcusevans.com Upcoming Events APAC Investments Summit - www.apacinvestmentssummit.com European Pensions & Investments Summit - www.epi-summit.com Private Wealth Management Summit (North America) - www.privatewealthsummit.com To view the web version of this interview, please click here: www.pwmsummit.com/PhilippeLegrand

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