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Spain’s Cluster Family Office to go live with Prospero solution from SAGE Group SA

IBS Intelligence, the leading consulting and research firm dedicated to the financial technology industry, recently published a case study on Cluster Family Office’s selection of SAGE Group SA’s Prospero solution for wealth management.

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Breakfast Briefing: La Suisse a les moyens de défendre sa place financière

La Chine est en train de développer son secteur bancaire au même rythme que son industrie. La concurrence est vive pour la Suisse, d’autant que le dynamisme asiatique chamboule la donne. Les attaques des États-Unis et de l’Europe qui touchent les banques impliquées dans les malversations ébranlent la place financière suisse et jette son opprobe tous azimuts. La Suisse doit pourtant réagir et ne pas se laisser impressionner par ces réactions parfois épidermiques. La qualité de la place financière de Genève en termes d’infrastructure, de qualité de vie, de protection de la sphère privée, d’établir des réseaux, de créer une entreprise et de trouver des partenaires de proximité sont tout autant d’avantages déterminants pour gérer et développer des affaires. C’est ce qu’est venu expliquer Ago Cluytens, expert en stratégie marketing, spécialisé dans le conseil aux prestataires de haut de gamme lors du séminaire sur la gestion de fortune et le secret bancaire qui s’est tenu mardi à Genève. «Les banques genevoises ont une bonne conscience de l’importance de ce qu’est le secret bancaire » a-t-il rappelé. Un message d’autant plus rassurant dans l’optique de la délation à laquelle on assiste actuellement.

«D’une manière générale, la Suisse bénéficie d’une excellente stabilité, d’un faible niveau de corruption et d’une fiscalité qui ne décourage pas les clients fortunés» insiste-t-il. Selon une enquête réalisée aussi bien auprès des banques que de leurs clients, selon ces derniers, c’est la capacité à résister qui est le critère le plus important dans le choix d’une place financière, alors que pour les banques, c’est la performance. Cette différence démontre bien quels sont les critères majeurs qui sont déterminants sur le marché. Pour François Reyl, CEO de l’enseigne du même nom, dans un contexte où les banques sont soumises à une pression importante, ces dernières doivent s’adapter à leur nouvel environnement et profiter de cette situation pour se réinventer dans ce nouveau paradigme où le secret bancaire n’est plus le principal critère de différenciation par rapport aux autres centres financiers. «La stabilité est la critère décisif pour les clients d’aujourd’hui. Il faut que les banques donnent l’assurance de la stabilité, d’un haut niveau de qualité, d’un cadre fiscal clair et d’une parfaite transparence», note-t-il.Si le système bancaire actuel doit se réinventer, il faut que cela se fasse en misant sur l’amélioration des performances, sur la transparence et sur un attitude active et proactive en matière de service à la clientèle, explique de son côté Osmond Plummer, conseiller international spécialisé dans la gestion de fortune. «En matière de performances, il s’agit pour les banques de gestion de se focaliser sur l’excellence.»«Et pour ce qui est de la transparence, cela découle de l’attitude actuelle des clients qui veulent savoir ce que vous allez faire avec leur argent.» Il s’agit surtout de développer le service à la clientèle. Une réalité qui n’est pas toujours comprises par les banques, qui ne sont pas toujours convaincues qu’il y a un réel besoin de formation dans ce domaine.Quant à Heinrich Weber, directeur de l’agence genevoise et du bureau chargé des relations avec le Moyen-Orient de Falcon Private Bank, il témoigne du fait que les clients des pays du Golfe ont toujours une excellent confiance dans les professionnels de Genève. Ils sont surtout attirés par le niveau de vie de la Suisse, de la sécurité qui y règne et le professionnalisme des banques. «95% des clients du Golfe ne sont pas intéressés à aller déposer leur argent dans les banques asiatiques». A Singapour, explique-t-il, si vous ne pouvez pas montrer une facture d’électricité à votre nom, vous ne pouvez pas ouvrir de compte bancaire, même si vous habitez chez un parent qui n’a pas forcément le même nom de famille, ce qui n’est pas rare dans ces pays. Ces obstacles sont rédhibitoires pour ces clients et les banques chinoises ne sont pas habituées à ce genre de situation.S’il est vrai qu’en Suisse, personne ne peut exclure qu’il y ait un risque de se faire bloquer un compte pour ces grandes famille d’oligarques du pétrole, l’accueil est plus professionnel. Il faut pourtant s’adapter à ces nouvelles donnes et mettre en place des équipes mixtes de gestionnaires de la relation client pour instaurer la confiance, souligne encore Heinrich Weber.

Analyse plus fine des besoins
C’est pour répondre aux besoins plus spécifiques d’une clientèle en quête de transparence que la société SAGE Group SA a développé une plateforme dénommée Black Swan dont le principal intérêt est d’associer le client à la définition des paramètres macro-économiques qu’il recherche. Ceux dépendent ainsi de son choix et de la prise de risque qu’il entend adopter. Le premier produit répondant à cette nouvelle approche a pour nom Prospero Optimize Solution. Il n’a pas l’ambition de remplacer les conseillers de la banque, mais uniquement de démontrer clairement aux clients les conséquences que peuvent avoir leur choix. L’analyse des risques est démontré en direct et le conseiller peut leur démontrer comment leur portefeuille évoluerait avec d’autres paramètres. «Avec ce produit, nous ne voulons pas remplacer la fonction du banquier car elle reste primordiale pour assurer la confiance du client dans sa banque» souligne Jean-luc Freymond, PDG de l’éditeur de logiciel. (PHB)

© Pierre-Henri Badel
Agefi – 13.09.2012
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English Version

China is in the process of developing its banking sector as fast as its industry. Competition to Switzerland has been fierce, particularly because the dynamics of the Asian market have added confusion to the game. Attacks in the United States and Europe which affect banks involved in professional negligence further undermine the Swiss financial center and result in criticism being thrown in all directions. Nonetheless, Switzerland must respond, and not be intimidated by these knee-jerk reactions. The quality of the financial center in Geneva in terms of infrastructure, living standards, and protection of the private sector so as to allow for the establishment of networks, the formation of companies and the finding of partners are just as important in managing and developing businesses. This is exactly what was explained by Ago Cluytens—an expert in marketing strategy who specializes in advising high-end service providers—during the seminar on wealth management and banking secrecy held in Geneva on Tuesday. “Geneva’s banks are well-aware of the importance of banking secrecy,” he reminds us. This is a message all the more reassuring in light of the criticism we are currently facing.

“Generally speaking, Switzerland benefits from excellent stability, a low level of corruption, and a level of taxation that doesn’t discourage wealthy clients,” he insists. According to a survey conducted on both banks and their customers, clients consider the resilience of a financial center to be the most important factor in choosing where to put their money, whereas for banks, the most important factor is performance.

This difference does a good job of showing what the major criteria are that are deciding factors in the market. For Francois Reyl, eponymous CEO of the Francois Reyl brand, in a context where banks are subject to significant pressure, they must adapt to their new environment and take advantage of the situation to reinvent their image in this new paradigm where banking secrecy is no longer the main factor that people use to decide between financial centers. “Stability is the deciding factor for today’s clients. Banks must provide the assurance of stability, a high level of quality, a simple-to-understand tax system, and perfect transparency,” he notes.

If the current banking system is in need of reinventing, it must be done by focusing on the improvement of performance and transparency, and based on an active and proactive attitude in relation to customer service, explains Osmond Plummer, an international adviser specializing in wealth management. “In matters of performance, it’s up to the wealth management banks to focus on excellence.”

“And to do this, they need to have transparency, because the current attitude of clients is to want to know what you’re going to do with their money.” This is best achieved by developing customer service—a reality that is not always understood by banks, which are not always convinced that there is a real necessity for training in this area.

As for Heinrich Weber, Director of the Falcon Private Bank’s Geneva office, as well as its office responsible for Middle East relations, he states that customers in the Gulf countries always have an excellent level of confidence in Geneva’s professionals. They are particularly attracted to the living standards in Switzerland, Switzerland’s stability, and its banks’ professionalism. “Ninety-five percent of customers located in the Gulf do not want to deposit their money in Asian banks.” He explained that in Singapore, if you cannot produce an electricity bill in your name, you cannot open a bank account, even if you live with a parent who does not have the same family name, which is not uncommon in Gulf countries. These obstacles are unacceptable for these clients, and Chinese banks are not accustomed to such situations.

It is true that in Switzerland there is a risk that accounts will be blocked for the large families of oil oligarchs, but the reception of clients is very professional. But we must adapt to these new realities and develop mixed teams of relationship managers to help build client confidence, stresses Heinrich Weber.

 
Closer analysis of requirements
In order to meet the requirements of a more discerning clientele searching for transparency, SAGE Group SA has developed a platform under the name “Black Swan,” the main purpose of which is to involve the client in defining the parameters for macroeconomic research, depending on their preferences and the level of risk that they are willing to tolerate.

The first product using this new approach is Prospero Optimize Solution. It is not designed to replace the bank’s advice, but instead only to demonstrate clearly to clients the potential consequences of their choices. Risk analysis is demonstrated live and the advisor can demonstrate how their portfolio can change using other parameters.

“We do not replace the banker’s role with this product, because it is crucial to preserve the client’s confidence in their bank,” emphasizes Jean-luc Freymond, CEO of the software publisher.

Breakfast Briefing for Swiss Wealth Managers: USPs beyond secrecy

Date:
Wednesday, 12th September

Theme:
Swiss wealth management: USPs* beyond secrecy

Program:
8:15 am to 9:00 am: Registration and breakfast
9:00 am to 10:00 am: Panel discussion
10:00 am to 11:00 am: Solution showcase

Venue:
Hotel President Wilson, 47 Quai Wilson, 1201 Geneva

Cost:
Complimentary

Swiss wealth and asset management actors have a lot to offer beyond banking secrecy – and it’s now high time that the performance and service quality offered by the Swiss financial sector is put front and center in a bid to attract and retain clients and assets.

This event will see a panel of senior industry figures giving their views and engaging with a lively panel debate with delegates – making a morning which is both informative and stimulating.

It will be followed by the prime time presentation of a unique tool for portfolio optimization and risk analysis: Black Swan. This solution allows to minimize the expected shortfall and to maximize the expected windfall in event of crisis.

Main topics and Panelists

Ago Cluytens is an experienced marketing strategist, specialized in working with high-end professional services clients.

Cluytens will kick-start the discussion on how the global wealth management “centers of power” have shifted in recent years Specifically, he will look at what Switzerland’s USPs are for ultra high net worth (UHNW) clients and how the jurisdiction can craft a sustainable value proposition which will fend off competition from rival centers.

François Reyl is the CEO of REYL & CIE, an independent banking group created by his father Dominique Reyl in 1973.

Reyl will explore how Swiss wealth management firms need to readjust their business models, such as building up additional expertise in legal and fiscal cross-border matters and providing even more personalized service.

Osmond Plummer is an international wealth management consultant and trainer as well Swiss correspondent for WealthBriefing.

Plummer will be looking at how, in a post-secrecy world, transparency over fees and performance will be a key differentiator and how the Swiss wealth management industry will have to make this a key area of focus going forward.

Heinrich Weber is the Head of the Geneva branch and Middle East desk head at Falcon Private Bank.

Weber will be exploring how Switzerland can remain the jurisdiction of choice for Middle Eastern clients, despite fierce competition from jurisdictions like Singapore.

Jean-Luc Freymond is the CEO of SAGE Group SA and one of the main architects of Prospero.

Freymond will address how new technologies can help wealth managers improve their relationships with their clients by enhancing their appreciation of issues like risk/return payoff and fostering a collaborative approach to decision-making.

*Unique Selling Proposition

For more information on this news, please contact SAGE at +41 21 653 64 01 (Switzerland).

Market.ch – 200 milliards en un clic

La gestion de fortune du XXième siècle sera en réseau, ou ne sera pas. Rapides, souples, capables de s’étendre d’un clic au monde entier, les plates-formes d’experts indépendants représentent un modèle d’organisation qui permet d’envisager l’avenir avec confiance, y compris pour les PME.

Même s’il tient parfois un discours aux résonnances «geekiennes», Olivier Collombin n’a rien d’un doux rêveur. OEuvrant depuis un quart de siècle au développement du service destiné aux gérants de fortune indépendants au sein de Lombard Odier, il a lancé début 2009, la plateforme E-MERGING. D’abord essentiellement dédiée aux gérants indépendants qui souhaitaient acheter/vendre ou fusionner leur société avec une entité active dans le même domaine, la plate-forme, forte de son succès,a évolué pour devenir un réseau social destiné à faciliter les collaborations entre tous les professionnels de la gestion de patrimoine, une organisation qui leur permet de relever les nombreux défis auxquels ils sont confrontés. Ceux-ci sont bien connus: baisse des masses sous gestion due à la régularisation fiscale des actifs privés d’une part, et hausse des frais liés à la réglementation, d’autre part. Résultat, dans un environnement concurrentiel qui tend à comprimer les marges, le seul salut est dans l’acquisition de nouveaux clients, notamment dans des zones en croissance comme l’Asie. Pour des entités de petite taille, cela revient à tenter de résoudre le problème de la quadrature du cercle!

Réseau et indépendance
C’est effectivement le cas pour ceux qui campent dans le «20e siècle» et ses structures fortement hiérarchisées. Pour Olivier Collombin, «le salut est bien plus dans le changement de modèle que dans l’évolution de l’expertise: nos organisations sont basées sur un modèle 20ème siècle, très verticalisé. Leurs pilotes étant issus de la culture du 20e, ils défendent ce modèle. Leur leitmotiv est: je possède une expertise, je la défends et je la protège car c’est là que réside mon avantage concurrentiel pour me distinguer sur le marché. Or, l’avenir appartient plutôt à des modèles de type «open source», c’est-à-dire basés sur le partage d’expertise, l’ouverture et l’échange. Dans ce nouvel environnement, l’avantage concurrentiel se déplace et se situe désormais, non plus dans la défense d’un pré carré, mais dans la capacité à échanger avec les bonnes personnes et les bons talents au bon moment. Or, en Suisse, dans le domaine de la finance, l’ouverture à ce type de concept est relativement limitée car elle implique un changement radical des modes de fonctionnement des différents acteurs économiques». Olivier Collombin parle d’expérience: «2011 et 2012 ont été parmi les meilleures années jamais enregistrées en termes de croissance des affaires de notre département dédié aux gérants indépendants. La plate-forme a attiré des gérants suisses et étrangers, ainsi que de nombreux autres acteurs de la chaîne de valeur de l’activité de gestion et notamment, des spécialistes en matière de fiscalité, d’informatique, des avocats d’affaires et des risk managers (1). Aujourd’hui, les membres enregistrés sur la plate-forme sont au nombre d’un demi millier. Ils sont présent dans 30 pays, emploient plus de 4000 personnes et représentent un total de 200 milliards d’actifs sous gestion. En un seul clic, la plate-forme permet d’accéder directement aux décideurs en charge de ces actifs, ce qui montre bien que l’addition des compétences peut représenter une force de marché considérable». Et, souligne Olivier Collombin, «le contact se fait avec des entreprises qui ne sont pas économiquement dépendantes du système et ne doivent rien à la plate-forme. C’est en quelque sorte un nouveau type d’association professionnelle, sans inertie ni hiérarchie».

À un clic de l’Asie
Concrètement, la plate-forme permet d’aller chercher le client final au travers d’intermédiaires choisis. «Par exemple, explique Olivier Collombin, nous travaillons aujourd’hui avec des gérants indépendants en Australie,  à Hong Kong ou Singapour. Pour les PME enregistrée sur cette plate-forme, cela signifie qu’elles ont un accès quasi instantané à ces réseaux… Ainsi, pour autant qu’elles effectuent le bon choix de partenaires, l’opération est d’emblée intéressante. Elle n’exige pas, comme par le passé, la mise en place d’infrastructures lourdes et long un horizon d’investissement avant de pouvoir, éventuellement,  rentrer dans ses frais». E-MERGING entend également se positionner sur le marché chinois, un marché en forte expansion puisque, pour faire face à la demande, des dizaines de milliers de conseillers financiers doivent être certifiés chaque année.  Mais comme le précise Olivier Collombin, «la Chine continentale n’est accessible que via Hong Kong, d’ailleurs le plus grand gérant indépendant de clientèle continentale vient d’ouvrir une représentation à Hong Kong. Or il gère quelques 20 milliards de dollars, c’est une dimension de clientèle potentielle très supérieure à ce que l’on a connu jusqu’ici». Et là-bas les atouts du «made in Switzerland» ne sont pas négligeables: «pour la Chine, la Suisse demeure la référence en matière de gestion de fortune. Il y a donc possibilité d’apporter notre expertise aux acteurs chinois en échange d’accès à leur marché», explique le spécialiste qui a déjà présenté la plate-forme à Shanghai.

Le client ambassadeur
Pour ce qui est de l’avenir, l’optimisme d’Olivier Collombin tranche nettement avec la morosité ambiante: «Quand nous (la Suisse) serons repositionnés à l’international, je suis persuadé que nous retrouverons une croissance soutenue. La stabilité, la sécurité et la solidité sont des valeurs très recherchées. Et la Suisse reste, envers et contre tout, l’un des endroits les plus sûrs au monde! Pour ce qui est de notre expertise, il suffit de voyager, y compris en Europe, pour se rendre compte que les acteurs locaux sont toujours peu familiers avec l’international. Par exemple, en matière fiscale, nous sommes d’ores et déjà en mesure de fournir à nos clients des relevés bancaires intégrant les nouvelles réglementations, relevés qui sont transmissibles quasi directement à leur taxateur. Nous avons ainsi développé une avance par rapport à certaines banques locales». Comment faire connaître ce «know how» et conquérir une clientèle qui n’a pas, traditionnellement, eu recours aux services de la gestion privée suisse? Il est inutile de passer par les canaux traditionnels comme les annonces, les dîners VIP à Pékin ou le tournoi de golf. «Le client de demain viendra parce que vous avez été recommandé par une communauté de clients. Le parcours est laborieux: il faudra apprendre à utiliser les outils qui vont donner la parole aux clients qui seront eux-mêmes nos ambassadeurs».

(1) Fin juin, SAGE Group SA, société suisse spécialisée dans les solutions technologiques financières, annonçait son intégration en tant que partenaire au réseau e-merging. Pour Jean-Luc Freymond, CEO de la société, ce partenariat permettra de «collaborer étroitement avec l’ensemble de la communauté des gérants indépendants et des family offices et de proposer des solutions qui non seulement collent au plus près de leurs besoins mais qui, d’ores et déjà, les anticipent

 
© Véronique Bühlmann
Market.ch – Juillet/Août 2012

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Swiss banks focus on Dubai to park funds

Swiss banks, coming under growing pressure from regulatory authorities in pursuit of secrets relating to the ownership of funds they handle, are turning to Dubai as an alternative safe haven to park these funds on behalf of their clients.

Sources close to Swiss banking circles confide that the funds are either being parked with local banks or entrusted with subsidiaries being created at financial free zones like DIFC, allowing clients to choose local custodian banks to keep their funds with. This route turns out to be a relatively simple way to keep clients happy as they get increasingly wary of the changes being forced on to Swiss banking secrecy laws.

There have been reports that substantial amounts of funds are flowing to Dubai from countries affected by the Arab Spring as accumulators of wealth under discredited regimes feared retribution at the hands of the new power centres. No official figures of such fund flows are available, but a recent pick-up in property prices in the higher segments of villa and premier housing in Dubai and other emirates has largely been attributed to such funds.

Financial circles are abuzz with suggestions that the forced changes in the Swiss banking secrecy laws as well as the heightened vigil by governments to track down wealth stashed by their citizens in secrecy-shrouded channels may also be contributing to the repositioning of wealth. In this context, Dubai is reckoned to be among the leading beneficiary jurisdictions.

“With business stagnating in Switzerland and Europe, Swiss banks are significantly increasing their presence in the Middle East, anchoring on Dubai and for this its geographical advantage of being in between Switzerland and the financial hubs of Asia is not the only reason; there are tactical advantages as well,” says Jean-Luc Freymond, CEO of SAGE Group SA, a technology firm that works closely with Swiss banks. The Switzerland-headquartered company provides solutions that specifically service the needs of wealth and asset management, fund administration, trading, portfolio management etc.

“Dubai offers a relatively safe alternative for recalcitrant Western clients of Swiss banks, who do not feel safe with the gradual erosion of banking secrecy in Switzerland. The opening of a Dubai subsidiary offering management services allows the client to choose a local custodian bank and this helps the Swiss bank to keep these clients,” Jean-Luc points out.

The local banks on their turn are gearing up for a bigger slice of the cake by strengthening their private banking departments through investments in new technologies as well as new hirings so that they can quickly respond to the increasing expectations of clients, who are looking for more sophisticated products and risk management tools.

According to Jean-Luc, the Swiss bank clients are more comfortable with Dubai in comparison to competing jurisdictions like Singapore, which is readying to sign a new treaty with the Swiss government regarding regulatory disclosures between the two sides. There might be some more time left for Dubai’s turn to come.

While there does seem to be a short-term opportunity, as Jean-Luc sees it, on a larger political perspective, this route may not be much of an option as the UAE is a strong signatory to the Recommendations issued by the Financial Action Task Force (FATF), the global standard- setter for combating money laundering and terrorist finance and the Dubai Financial Services Authority (DFSA) is committed to comply with all its provisions.

It has been stated on behalf of the DFSA that the Authority cooperates closely with regulatory bodies in Switzerland, particularly with the Swiss Financial Market Supervisory Authority, in regulating Swiss-domiciled firms.

“If any firm is considering authorisation in the DIFC as a method of hiding their activities from authorities or prosecutors elsewhere in the world, they should reconsider their decision,” a spokesperson said in response to a question on the possibility of DIFC being used for suspicious activities.

“The DFSA is not, of course, under any obligation to enforce another country’s legislation but it is obliged to comply with any request received by the UAE Ministry of Finance pursuant to an international agreement entered into with a country such as the USA where it relates to a request for information for taxation purposes,” the spokesperson clarified.

*This article was written by K Raveendran of Banking & Business Review on its July 2012 issue for the UAE.

SAGE Group SA, partner of the e-merging Network

Geneva, 26 June 2012, SAGE Group SA has partnered with the E-MERGING network, launched by the private bank Lombard Odier. This partnership enables the linking of the specialized software and services used by wealth management professionals with the broader community of independent asset managers and family offices.

SAGE Group SA, which has a wide range of solutions for the financial industry, hopes to bring the community of independent asset managers and family offices insights and answers to their problems with portfolio optimization, portfolio consolidation, wealth management, and interfacing directly with their custodian banks.

“We are very honored to have been entrusted by our partner, E-MERGING. In the context of the crisis affecting the Swiss banking sector, technological innovation plays a major role in creating sources of growth By using the E-MERGING platform, we will work closely with the entire community of independent asset managers and family offices and suggest solutions that not only adhere closely to their needs, but anticipate them,” said Mr. Jean-Luc Freymond, CEO of SAGE Group SA.

About E-MERGING
E-MERGING is designed for companies active in the field of wealth management and, more importantly, independent asset managers, investment advisers, multi-family offices, and other financial intermediaries. The E-MERGING network offers independent asset managers a social network that facilitates collaboration between wealth management professionals.

www.e-merging.com

About SAGE
SAGE Group SA is a company specializing in financial technology solutions, headquartered in Switzerland with subsidiaries in Dubai and Singapore. The company develops Prospero, which is a range of products intended for the financial sector and which responds with precision to the different segments of the financial services industry. The solutions that Prospero offers cover all financial operations: wealth management, fund management, fund administration, independent asset managers/family offices, and portfolio optimization. These applications allow financial companies to concentrate on their core business, and improve their productivity by doing so.

www.finartis.com

SAGE Group SA launches Prospero’s new SIP module

SAGE Group SA has just launched the latest addition to its flagship Wealth Management solution Prospero – a complete set of features designed to automate the Systematic Investment Plan (SIP) process. The new addition is a module which enables SIP investments to be directly added to a client’s portfolio allowing for flexible selection of plans, execution of trades and automatic processing.

Prospero is a suite of solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, Family Office, and Portfolio Optimization. The addition of Prospero’s SIP module ensures that clients have better control over their investment decisions while also helping to limit losses. It is also an attractive tool for Dollar or Money Cost Averaging (DCA) to help reduce volatility in the worst of market conditions.

“With today’s uncertain markets and the very thin margins in the financial industry, you need a tool that can automate trades and manage a higher volumes of trades”, states Tarek Hamdan, Chief Marketing Officer of SAGE Group SA. “Our new SIP module answers a need of large financial institutions that need to lower their operational risk, while increasing their client base by proposing innovative products.”

Key features of Prospero’s Systematic Investment Plan (SIP) module include:

• Subscribe to flexible SIPs with different execution dates, and modify the SIP anytime during its life
• Use for Dollar Cost Averaging (DCA) plans and Systematic Withdrawal Plans (SWP)
• Select investments from an approved list of securities
• Contribute for SIPs for any amount and for any frequency
• Keep track of failed / successful subscriptions with exception reports
• Collect contribution from one portfolio (e.g. father) and distribute in a different portfolio (e.g. child)
• Check online cash availability
• Set-up retry count for failed subscription for each client SIP level
• Send SIP subscription orders in a workflow of authorization (maker / checker)
• Define your own SIP status and query on them
• Calculate using flexible commission schedules and book trades seamlessly in portfolios
• View your SIP investments with your other investments under one consolidated statement
• Use SIP with a wide array of Wealth Management features such as Order Management, Portfolio rebalancing and analytics

Prospero is currently used by prominent financial institutions in Switzerland, Europe, and Asia Pacific as they rely on Prospero to expand their market share in Wealth Management.

For more information on this news,please contact SAGE at +41 21 653 64 01 (Switzerland).

The Asian Banker – Changing focus in private banking scene drives need for better portfolio management

_{Figure 1. HNWI distribution, 2007-2010 (by region)}

Without a doubt, wealth management and private banking are big businesses. In an international ranking of wealth managers published in the International Private Banking Study of 2011 by the University of Zurich, total market volume of wealth managers by Asset Under Management (AUM) stood at $42.7 trillion in 2010, with the top 20 wealth managers holding 16.6% of that amount. Every year, millions enter into the HNWI category due to the rapid growth of family-owned businesses in emerging economies of Asia, as the new rich replace the old. However, it is important for banks eager to tap into this area to note that the characteristics of Asian HNWIs differ from their counterparts in the West.

Asian HNWIs tend to be younger and more focused on wealth creation as opposed to wealth preservation. Many of them are successful business owners who are more ambitious and willing to take risks. One feature that stands out is the inclination for the Asian rich to keep their own counsel when it comes to managing their money. The growing size of the global ETF market, which has increased from $40 billion at the end of 1999 to $1 trillion at the end of 2009, is an indicator of this trend.

The largest numbers of millionaires are in Asia, and there is an estimated $11 trillion of unmanaged wealth in emerging Asian economies. Banks are beginning to recognize that this represents a great opportunity to be exploited, with Julius Baer being one of those and expanding into the region with a series of office openings – Singapore in 2006, Jakarta in 2008, and Shanghai in 2011.

As financial institutions compete for a piece of market share in this highly lucrative business, there is a need for them to build up robust portfolio management processes, software and teams in order to meet the diverse requirements of their clients. Portfolio management involves decisions on asset allocation through the matching of risk profiles with appropriate investment mix and policies based on individual client’s investment objectives.

Portfolio management software aids customization of risk profiles
Portfolio management software is useful in helping financial institutions in customizing risk profiles for their clients, especially for the Asian rich who are more involved in managing their wealth. Robust portfolio management software needs to have the flexibility of meeting clients’ unique requirements, as each client’s time horizon, risk tolerance, as well as tax conditions differ. As each asset class (equity, fixed income, derivatives, real estate, etc.) have their respective risk characteristics, the software must be able to compute and utilize relevant algorithms customized to meet clients’ needs.

Regulatory requirements drive need for cost-efficient portfolio management solutions
Private banking clients are becoming increasingly demanding, as well as risk and performance conscious. Swiss banks have experienced a drop of gross margins from their wealth management divisions at about 20% from 2004 to 2010, due to pressures on tax compliance and banking transparency. Hence, there is an increasing need for cost-efficient solutions on the part of financial service providers to minimize costs while serving their clients. All these mean that portfolio management software will need to be both cost-efficient and possessing the flexibility to cater to diverse clients as well as cost-efficient. This is where Software as a Service, has an added advantage. Customers are typically charged according to their level of usage of the software in the form of monthly fees.

“An area where we saw success in the past, is when organizations have strong growth plans and ambitious visions, but requires a product that is complex and expensive. We have a unique selling proposition, where we provide complex product but sell it as a service, just like electricity. So as their business grows, they pay more,” explained Jean-Luc Freymond,chairman and chief executive officer, SAGE Group SA. Prospero, the firm’s wealth management solution suite has been successfully implemented at ADCB’s Wealth Management Group and Kuwait-based Global Investment House. SAGE is currently focusing on providing wealth management solutions in the Southeast Asian region, Singapore in particular.

The changing focus of wealth management from Europe to Asia; from the traditional Swiss private banking offshore centers to financial offshore centers in Asia, coupled with the increasingly diverse needs of customers, require better portfolio management by financial providers. Financial institutions will need to do so in order to remain relevant in the eyes of their clients.

 
*This article was written by Levina Lim of The Asian Banker on 15th June 2012.

Wealthy giving Switzerland a miss to head for Dubai

So much for the famous Swiss bank account – Europe’s major moneymen are ditching their traditional alpine safe haven to put their money in Dubai.

That’s according to Swiss banking ‘trend spotter’ Jean-Luc Freymond, who says a combination of tougher Swiss banking laws and the simplicity of operating in the Dubai International Financial Centre (DIFC) is seeing some big-hitters choose to move their money from snow to sand.

“The current offering of Swiss banks is not what people are looking for and there is a growing and maturing private business,” Freymond, CEO of Swiss financial software firm SAGE Group SA, told 7DAYS.

Switzerland, the world’s largest offshore financial centre, which holds more than $2 trillion worth of global wealth, has always been considered perfect for wealthy clients who value discretion.

However, in 2009, under considerable pressure from tax-paying nations, the country agreed to accept concessions on bank secrecy – saying it would only accept ‘declared assets’ into Swiss accounts. And according to Freymond, those wanting to legally avoid the taxman are instead choosing to move their money to Dubai.

“Contrary to what a lot of (Swiss) banks are saying officially, in reality they are finding different places for clients,” the SAGE Group SA boss said.

“One of the most interesting things is that money is now moving from traditional places like Switzerland to the Middle East – and especially Dubai.”

In a trend that is “new, less than a year old”, Freymond says “billions” of dollars that would have previously been headed for Switzerland – which is also famous for its clocks – is now safely stored in accounts in the UAE.

“It’s primarily European clients of countries who are signing (declared-asset) agreements with Switzerland. People who have sold their companies, or who are in industry, or also people who are from the entertainment or sports world,” he said.

Dubai may well soon be welcoming business from established Asian hubs too, according to Freymond.

“People fear Singapore’s going to be next on the (declared-asset) list because it has a very similar profile to Switzerland,” he said. And it’s not just money that’s moving from Switzerland to Dubai, according to the SAGE Group SA boss.

“Within the financial industry bankers – highly trained bankers – are moving from Switzerland to Dubai,” he said.

*This article was written by Duncan Hare of 7Days on 28th May 2012 in Abu Dhabi/Dubai (UAE).