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UBP in der Presse 22.03.2017

UBP Brings Institutional Investing to Asia’s Wealthy

UBP Brings Institutional Investing to Asia’s Wealthy

Baron's Asia - UBP’s Michael Blake says new fixed income fund offers access previously out of reach of private clients.


By Abby Schultz

Here’s one reason Union Bancaire Privée’s private bank clients in Asia may be sticking with their new bank — entry to an institutional strategy for investing in hard-to-access corners of the fixed-income markets like subordinated debt from leveraged buyouts or infrastructure debt.

At the start of this year UBP teamed with the investment manager  Partners Group  to create the fund, UBP PG - Active Income, which also invests in more liquid public debt markets across the globe. It’s the kind of alternative investment UBP can offer private bank clients in Asia given its relationship with UBP Asset Management. It’s also the type of offering that wasn’t available via  Royal Bank of Scotland  ’s Coutts International, which UBP bought last year, says Michael Blake, the 42-year-old CEO of UBP’s Asia private bank.

New investment opportunities, and the fact Blake, who was the former chief executive of Coutts International, based in Singapore, remains with the firm probably explains why UBP was able to retain 80% of Coutts’ Asia clients since the acquisition was announced in 2015. “You always expect some asset attrition in these kinds of situations,” Blake says, but instead, the bank’s assets under management rose 10%-to-11%.

Overall, UBP’s Asia assets banked out of its branches in Hong Kong and Singapore have ballooned ten times from about $1 billion to about $12 billion post-acquisition as of the end of 2016. UBP CEO Guy de Picciotto’s goal is to reach $15 billion in the short-term and $20 billion in the medium-term, says Blake, a goal he’ll facilitate by boosting UBP’s number of relationship managers from about 60 to 100.

What’s attractive about the UBP Partners Group offering is it gives clients a way to invest in a part of the fixed income markets - private debt - that’s increasingly desirable to institutional investors for the diversification it offers, but has been out of reach of many private clients. Under UBP, the bank’s private clients can now also invest directly in various enterprises, which in the past year has included European student housing and commercial aviation. “For a number of clients in the region, particularly ultra-high-net-worth or family office clients, those are very relevant and sought-after products we’ve been able to offer,” Blake says

The private bank’s affiliation with UBP Asset Management, which has about $30 billion in assets and a 20-year presence in Asia, also allows it to devise customized solutions. This could mean creating a personal investment committee for a client who has a particular strategy to pursue. The asset management team will manage it as if the client was a mini-institution. “That’s an extremely powerful proposition, particularly for family office clients and some of our ultra-high-net-worth clients,” Blake says. About 40% of UBP’s Asia clients are family offices or the ultra-wealthy, a percentage Blake intends to grow. You need at least $3 million to be a UBP client.

One way to spur growth is to introduce UBP asset management clients to the private bank. Recently a Hong Kong family office client who had invested in UBP’s UBAM funds and utilized the firm’s hedge fund advisory services met with the private bank to hear about a range of services, from loans that can be used as leverage, to structured products, foreign exchange and private investments.

michael-blake---ceo-of-ubps-asia

Michael Blake - CEO of UBP's Asia private bank

The private bank is also talking with the client about how UBP can assist the family with its philanthropic aspirations.

Another reason Blake says clients have stuck with UBP is that it’s a private, family-owned firm. “It gives us stability — the family continues to be the owner of the bank and provides that leadership,” he says. “And secondly, it enables us to make fast decisions. Ultimately we have a flat structure, and it enables us to meet the needs of our clients…in a very responsive way.”

Lately that’s led to a lot of conversations with clients about how to manage their portfolios for rising rates, rising inflation and corporate earnings surprises on the upside, he says. He was making the case, too, that private banking continues to be relationship-driven, despite advances in technology designed to provide clients with more real-time data and advice. “There’s a need to sit around a table and talk about all the various scenarios each of those factors can lead to over the course of this year,” he says.

Blake, who grabs time with his daughters, ages 3 and 5, whenever he’s not traveling or at the bank, has lived and worked in Asia much of the past 18 years, since he was in the British Diplomatic Service in Beijing. He continues to be fascinated by the region.

“No matter where I go, whether it’s to China, to Indonesia or any country in-between, I see people who are by and large interested in building and developing their economies. That’s what took me to Asia in the first place,” Blake says. “Nothing I see in Asia tells me that that’s going to stop.”

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Meistgelesene News

Market insight 16.02.2018

US consumer confidence surprised to the upside, UK retail sales broadly flat

US: Consumer confidence (Michigan) (Feb P): 99.9 vs 95.5 expected (prior: 95.7)

  • Current conditions: 115.1 vs 111.1 expected (prior: 110.5)
  • Expectations: 90.2 vs 87.2 expected (prior: 86.3)
  • The press release states that negative references to stock prices were spontaneously cited by just 6% of all consumers. Instead, favorable perceptions of the tax reforms dominated.
  • All in all, consumers still appear to be in strong shape to boost their spending again over the coming months.

 

US: Import price index (Jan): 1% m/m vs 0.6% expected (prior: 0.2% revised from 0.1%)

  • On a y/y basis: 3.6% vs 3% expected (prior: 3% revised from 3.2%)
  • Headline was driven by a surge in imported petroleum prices (+4.3% m/m).
  • Within non-petroleum imported prices, the bulk of the increase came from industrial supplies (+3.1% m/m), while prices of capital goods and autos recorded only modest growth.

 

US: Housing starts (Jan): 1326k vs 1234k expected (prior: 1209k revised from 1192k)

  • On a y/y basis: 9.7% vs 3.5% expected (prior: -8.2% revised from -6.9%)
  • Building permits: 1396k vs 1300k expected (prior: 1302k revised from 1300k); 7.4% m/m vs 0% expected (prior: -0.1% revised from -0.2%)
  • While the volatile multi-family category led the increase, single-family starts rose as well.

 

UK: Retail sales (Jan): 0.1% m/m vs 0.5% expected (prior: -1.4% revised from -1.5%)

  • On a y/y basis: 1.6% vs 2.5% expected (prior: 1.4% revised from 1.5%)
  • Ex autos: 0.1% vs 0.6% expected (prior: -1.6% revised from -1.5%); 1.5% y/y vs 2.4% expected (prior: 1.3%)
  • Retail sales growth was broadly flat at the beginning of the New Year with the longer-term picture showing a continued slowdown in the sector.
Market insight 15.02.2018

Rising core PPI and disappointing industrial production in the US

US: PPI (Jan.): 0.4% m/m as expected (prior: 0.0% revised from -0.1%)

  • PPI y/y: 2.7% vs 2.4% expected (prior: 2.6%)
  • Core PPI: 0.4% m/m vs 0.2% expected (prior: -0.1%); 2.2% y/y vs 2.0% expected (prior: 2.3%)
  • The annual increase in core PPI is close to a 6-year high, which partly reflects the upward pressure on import prices from the weaker dollar and provides further evidence that inflationary pressures are set to build this year.

US: Industrial production (Jan.): -0.1% m/m vs 0.2% expected (prior: 0.4% revised from 0.9%)

  • Manufacturing production was flat m/m (vs 0.3% expected) and previous readings were revised slightly lower.
  • Except the 0.6% m/m rise in utilities output, which was due to the unseasonably cold temperatures in some regions, the weakness in January was broad-based.
  • Along with the weaker retail sales data released yesterday, this report provides further evidence that economic growth may (yet again) disappoint in Q1.

US: Philadelphia Fed. (Feb.): 25.8 vs 21.8 expected (prior: 22.2)

  • Unexpected increase with a solid rise in new orders, in employment but also in prices paid.

US: Empire manufacturing (Feb.): 13.1 vs 18.0 expected (prior: 17.7)

  • New orders slightly increased while employment and prices paid rose more meaningfully.
  • These two regional surveys confirms that manufacturers continue to be optimistic for the economic activity.

US: Initial jobless claims (Feb. 10): 230k vs 228k expected (prior: 223k revised from 221k)

US: NAHB housing market index (Feb.): 72 as expected (prior: 72)

  • Homebuilders' confidence remains close to the highest level since 1999.
  • The measure on the 6-month outlook reached its highest since 2005.

Russia: Industrial production (Jan.): 2.9% y/y vs -0.5% expected (prior: -1.5%)

 

Market insight 14.02.2018

US: higher inflation and lower retail sales than expected

US: CPI (Jan.): 0.5% m/m vs 0.3% expected (prior: 0.2% revised from 0.1%)

  • Yearly trend on headline inflation was stable at 2.1% y/y; core inflation was up by 0.3% m/m (vs 0.2% m/m expected and in prior month; stable at 1.8% y/y).
  • Energy (3% m/m), apparels (1.7% m/m; related to import prices) and services (0.3% m/m) were responsible for the monthly rebound.
  • Outlook on inflation points towards a rising trend; after moderate yearly trend in Q1, headline inflation should be close to 3% y/y in Q2, and core CPI above 2% y/y according to our scenario. 2018 average headline inflation should now reach 2.5% y/y and core inflation 2.2% y/y.
  • This argues in favor of regular rate hikes from the Fed in Q1 and Q2-18, and in favor of 4 rate hikes this year.

 

US: Retail sales (Jan.): -0.3% m/m vs 0.2% expected (prior: 0% revised from 0.4%)

  • Core sales were flat (0.4% m/m expected) and past month data were revised from 0.4% m/m to 0% m/m.
  • Bad weather conditions and a pause after strong Q4 data partly explained the negative surprises on sales.
  • Purchases on several items have reversed from the past two months (autos, building materials and electronics); non-store sales were flat after 0.5% m/m.
  • Too early to see in these volatile data a reversal in US scenario, as supports should continue from the heathy labor and some fiscal easing.

 

US: Business inventories (Dec.): 0.4% m/m vs 0.3% expected (prior: 0.4%)

  • Inventories have increased (notably ex-autos); but sales were still dynamic (0.6% m/m).

 

Eurozone: Industrial production (Dec.): 0.4% m/m vs 0.1% expected (prior: 1.3% revised from 1%)

  • Except capital goods, momentum in production was positive for all major sectors.
  • Yearly trend has reached 5.2% y/y, comparable to the high pace in activity reached before the crisis.

 

Germany: GDP (Q4-17): 0.6% q/q as expected (prior: 0.8%)

  • Growth has been strong at year end; Eurozone GDP has also been confirmed up by 0.6% q/q in Q4-17.

 

Germany: CPI (Jan.): -1% m/m as expected (prior: 0.6%)

  • Rising oil and food prices, while prices for leisure and clothes have weakened.
  • Yearly trend has moderated from 1.6% y/y to 1.4% y/y.

 

Italy: GDP (Q4-17): 0.3% q/q as expected (prior: 0.4%)

  • GDP was up by 1.6% y/y (1.7% y/y in Q3-17); Italy is under a progressive recovery, but it remains fragile.

 

Poland: GDP (Q4-17): 1% q/q vs 1.2% expected (prior: 1.2%)

  • Activity was on an accelerating trend (5.1% y/y after 4.9% y/y in Q3-17).

 

Turkey: Current account (Dec.): -7.7bn USD vs -7.5bn expected (prior: -4.38bn revised from -4.2bn)

  • Rising imports and weaker exports have increased trade and current account deficits.

Auch lesenswert

Market insight 16.02.2018

US consumer confidence surprised to the upside, UK retail sales broadly flat

US: Consumer confidence (Michigan) (Feb P): 99.9 vs 95.5 expected (prior: 95.7)

  • Current conditions: 115.1 vs 111.1 expected (prior: 110.5)
  • Expectations: 90.2 vs 87.2 expected (prior: 86.3)
  • The press release states that negative references to stock prices were spontaneously cited by just 6% of all consumers. Instead, favorable perceptions of the tax reforms dominated.
  • All in all, consumers still appear to be in strong shape to boost their spending again over the coming months.

 

US: Import price index (Jan): 1% m/m vs 0.6% expected (prior: 0.2% revised from 0.1%)

  • On a y/y basis: 3.6% vs 3% expected (prior: 3% revised from 3.2%)
  • Headline was driven by a surge in imported petroleum prices (+4.3% m/m).
  • Within non-petroleum imported prices, the bulk of the increase came from industrial supplies (+3.1% m/m), while prices of capital goods and autos recorded only modest growth.

 

US: Housing starts (Jan): 1326k vs 1234k expected (prior: 1209k revised from 1192k)

  • On a y/y basis: 9.7% vs 3.5% expected (prior: -8.2% revised from -6.9%)
  • Building permits: 1396k vs 1300k expected (prior: 1302k revised from 1300k); 7.4% m/m vs 0% expected (prior: -0.1% revised from -0.2%)
  • While the volatile multi-family category led the increase, single-family starts rose as well.

 

UK: Retail sales (Jan): 0.1% m/m vs 0.5% expected (prior: -1.4% revised from -1.5%)

  • On a y/y basis: 1.6% vs 2.5% expected (prior: 1.4% revised from 1.5%)
  • Ex autos: 0.1% vs 0.6% expected (prior: -1.6% revised from -1.5%); 1.5% y/y vs 2.4% expected (prior: 1.3%)
  • Retail sales growth was broadly flat at the beginning of the New Year with the longer-term picture showing a continued slowdown in the sector.
Market insight 15.02.2018

Rising core PPI and disappointing industrial production in the US

US: PPI (Jan.): 0.4% m/m as expected (prior: 0.0% revised from -0.1%)

  • PPI y/y: 2.7% vs 2.4% expected (prior: 2.6%)
  • Core PPI: 0.4% m/m vs 0.2% expected (prior: -0.1%); 2.2% y/y vs 2.0% expected (prior: 2.3%)
  • The annual increase in core PPI is close to a 6-year high, which partly reflects the upward pressure on import prices from the weaker dollar and provides further evidence that inflationary pressures are set to build this year.

US: Industrial production (Jan.): -0.1% m/m vs 0.2% expected (prior: 0.4% revised from 0.9%)

  • Manufacturing production was flat m/m (vs 0.3% expected) and previous readings were revised slightly lower.
  • Except the 0.6% m/m rise in utilities output, which was due to the unseasonably cold temperatures in some regions, the weakness in January was broad-based.
  • Along with the weaker retail sales data released yesterday, this report provides further evidence that economic growth may (yet again) disappoint in Q1.

US: Philadelphia Fed. (Feb.): 25.8 vs 21.8 expected (prior: 22.2)

  • Unexpected increase with a solid rise in new orders, in employment but also in prices paid.

US: Empire manufacturing (Feb.): 13.1 vs 18.0 expected (prior: 17.7)

  • New orders slightly increased while employment and prices paid rose more meaningfully.
  • These two regional surveys confirms that manufacturers continue to be optimistic for the economic activity.

US: Initial jobless claims (Feb. 10): 230k vs 228k expected (prior: 223k revised from 221k)

US: NAHB housing market index (Feb.): 72 as expected (prior: 72)

  • Homebuilders' confidence remains close to the highest level since 1999.
  • The measure on the 6-month outlook reached its highest since 2005.

Russia: Industrial production (Jan.): 2.9% y/y vs -0.5% expected (prior: -1.5%)

 

Market insight 14.02.2018

US: higher inflation and lower retail sales than expected

US: CPI (Jan.): 0.5% m/m vs 0.3% expected (prior: 0.2% revised from 0.1%)

  • Yearly trend on headline inflation was stable at 2.1% y/y; core inflation was up by 0.3% m/m (vs 0.2% m/m expected and in prior month; stable at 1.8% y/y).
  • Energy (3% m/m), apparels (1.7% m/m; related to import prices) and services (0.3% m/m) were responsible for the monthly rebound.
  • Outlook on inflation points towards a rising trend; after moderate yearly trend in Q1, headline inflation should be close to 3% y/y in Q2, and core CPI above 2% y/y according to our scenario. 2018 average headline inflation should now reach 2.5% y/y and core inflation 2.2% y/y.
  • This argues in favor of regular rate hikes from the Fed in Q1 and Q2-18, and in favor of 4 rate hikes this year.

 

US: Retail sales (Jan.): -0.3% m/m vs 0.2% expected (prior: 0% revised from 0.4%)

  • Core sales were flat (0.4% m/m expected) and past month data were revised from 0.4% m/m to 0% m/m.
  • Bad weather conditions and a pause after strong Q4 data partly explained the negative surprises on sales.
  • Purchases on several items have reversed from the past two months (autos, building materials and electronics); non-store sales were flat after 0.5% m/m.
  • Too early to see in these volatile data a reversal in US scenario, as supports should continue from the heathy labor and some fiscal easing.

 

US: Business inventories (Dec.): 0.4% m/m vs 0.3% expected (prior: 0.4%)

  • Inventories have increased (notably ex-autos); but sales were still dynamic (0.6% m/m).

 

Eurozone: Industrial production (Dec.): 0.4% m/m vs 0.1% expected (prior: 1.3% revised from 1%)

  • Except capital goods, momentum in production was positive for all major sectors.
  • Yearly trend has reached 5.2% y/y, comparable to the high pace in activity reached before the crisis.

 

Germany: GDP (Q4-17): 0.6% q/q as expected (prior: 0.8%)

  • Growth has been strong at year end; Eurozone GDP has also been confirmed up by 0.6% q/q in Q4-17.

 

Germany: CPI (Jan.): -1% m/m as expected (prior: 0.6%)

  • Rising oil and food prices, while prices for leisure and clothes have weakened.
  • Yearly trend has moderated from 1.6% y/y to 1.4% y/y.

 

Italy: GDP (Q4-17): 0.3% q/q as expected (prior: 0.4%)

  • GDP was up by 1.6% y/y (1.7% y/y in Q3-17); Italy is under a progressive recovery, but it remains fragile.

 

Poland: GDP (Q4-17): 1% q/q vs 1.2% expected (prior: 1.2%)

  • Activity was on an accelerating trend (5.1% y/y after 4.9% y/y in Q3-17).

 

Turkey: Current account (Dec.): -7.7bn USD vs -7.5bn expected (prior: -4.38bn revised from -4.2bn)

  • Rising imports and weaker exports have increased trade and current account deficits.