Wealth Management
Wealth management is a holistic advisory service that combines financial planning, investment portfolio management, and other financial services to meet the needs of high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients.
💼 Key Characteristics
- Tailored investment strategies aligned to client risk appetite and financial goals.
- Offered under Advisory (client makes final decisions) or Discretionary (bank manages on client's behalf) mandates.
- Covers a broad asset class universe: equities, fixed income, alternatives, structured products.
- Ongoing portfolio review with periodic rebalancing.
- Integrated with estate planning, trust services, and tax advisory.
🧾 Service Models
| Model | Description |
|---|---|
| Advisory Portfolio Management | RM recommends; client approves each trade |
| Discretionary Portfolio Management (DPM) | Bank manages portfolio within agreed mandate |
| Execution-Only | Client self-directs; bank executes without advice |
| Unit Trust / Fund Distribution | Bank distributes third-party funds |
| Insurance-Linked Investing | Whole life, endowment, and investment-linked policies |
🛠️ Operational Workflow
- Client onboarding — KYC, source of wealth documentation, CRS/FATCA classification
- Client needs analysis — investment horizon, liquidity needs, risk tolerance (Customer Knowledge Assessment)
- Investment policy statement (IPS) drafting and client sign-off
- Asset allocation recommendation by investment advisory team
- Portfolio construction and trade execution
- Monthly portfolio statements and performance reporting
- Periodic portfolio review at the frequency agreed with the client and required by the service model
- Rebalancing trades to maintain target allocation within drift bands
🧮 Example Calculation
Scenario: SGD 2,000,000 Discretionary Portfolio — balanced mandate (60% bonds, 40% equities)
| Asset Class | Allocation | Value (SGD) |
|---|---|---|
| Investment Grade Bonds | 40% | 800,000 |
| High Yield Bonds | 20% | 400,000 |
| Global Equities | 30% | 600,000 |
| Singapore Equities | 10% | 200,000 |
Annualised portfolio return (year 1) = 6.2% Management fee = 0.75% p.a. on AUM = SGD 15,000/year Net return to client = 5.45% p.a.
📋 Compliance & Monitoring
- MAS FAA (Financial Advisers Act) suitability requirements for all recommendations
- Customer Knowledge Assessment (CKA) for complex products
- KYC information kept current using a risk-based review cycle and event-driven reviews
- Enhanced due diligence (EDD) for PEPs and clients from high-risk jurisdictions
- Portfolio concentration limits enforced by risk management team
- Performance measured against the benchmark agreed in the mandate, where applicable
- Advice, client instructions and material communications documented and retained in accordance with applicable requirements and policy