September 12, 2013. This presentation was delivered to a group of very qualified Insurance Agents at Manila. I wanted them to understand the new changing world, where customers expectation has vastly increased. The digital world is building huge expectations. Suraj

1. © 2013 aprikot knowledge. All rights reserved
confidential
Wealth Management!
! September 2013,
Manila, PHILIPPINES!
Version
1.0
Do Insurance Advisers need
to be Wealth Manager?

2. ANALYSIS: World Bank – Washington D.C.
§ Financial Analyst
BANKING: BCCI, BNP Paribas & ING Bank
§ Retail, Corporate & Private Banker
SECURITIES: Kotak (Goldman JV, India)
§ Head of Non-Resident Clients
FUND MANAGEMENT: Prudential / Templeton (EastSpring)
§ Distribution / Partner Management
§ Regional Product (Asia)
§ CEO, Singapore, UAE & Malaysia
INSURANCE: Prudential (PRULife, Regional HK)
§ Regional Head for Banassurance, Asia
QUALIFICATION
§ MBA, Bcom(Hons), CWM, CFP, CIPM
www.aprikot.biz - 2
Please call me SURAJ (su raj)
47 / 24 years

3. CLIENTS

4. RELATIONSHIP

5. CONNECTIVITY

6. ACCESSIBILITY

7. MOBILITY

8. SOCIAL
ENGAGEMENT

9. MANAGE
CHANGE

10. PEOPLE

11. TECHNOLOGY

12. TRUST

13. WHAT IS !
HAPPENING

15. If Facebook
were a country,
it would b e
the third most
populated
in the world,
ahead of the
United States.
If Facebook
were a country,
it would b e
the third most
populated
in the world,
ahead of the
United States.

16. CHINA
1.3
billion
INDIA
1.1
billion
USA
300
million
Brazil
190
million
Facebook
500
million
Only
China
&
India
are
more
populated
than
Facebook.

17. 500
BILLION.
The
number
of
minutes
spent
on
Facebook
per
month.
Last
year,
that
number
was
only
150
billion.
Today
it’s
500
billion.

18. 25
BILLION.
The
amount
of
content
(web
links,
news
stories,
blog
posts,
notes,
photos,
etc.)
shared
each
month
on
Facebook.
That’s
more
than
6X
last
years
volume.

19. ONE-THIRD. The proportion of women aged 18-34
who check Facebook when they first
wake up—even before going to the bathroom.
13

20. That’s more than
DOUBLE last year’s
volume.

21. 800
MILLON.
People
visit
YouTube
every
month.

22. 2
BILLION.
The
number
of
YouTube
Videos
viewed
per
day.
That’s
twice
as
many
as
last
year.

23. More videos were uploaded on
You Tube in the last 2 months
than all the videos on since
1948.

24. That’s
13X
more
than
the
LIBRARY
of
CONGRESS

25. NINETY-FIVE.The percentage of companies using LinkedIn
to find and attract employees.
59% use Facebook and 42% use Twitter.
14
LinkedIn

26. 1 in 6.The number of marriages last year between
people who met through social media.
THAT’S MORE THAN TWICE THE NUMBER OF PEOPLE WHO
MET AT BARS, CLUBS, AND OTHER SOCIAL EVENTS COMBINED.
15

27. THESE WERE ALL
SOCIAL MEDIA
COMPANIES.

28. WHAT HAVE
THEY DONE ?!

29. WHAT ABOUT
DIGITAL
COMPANIES ?

30. DIGITAL COMPANIES - ENTERTAINMENT
www.momenta.biz - 30
Online
Money
Transfer
(2000,
USA)
Oct
2002
>
acquired
by
ebay
for
US$
1.5
billion
As
of
2012
>
total
payment
volume
exceeds
US$
145
billion;
194
markets;
232
million
accounts.
Customers
can
sent,
receive
and
hold
in
26
currencies
worldwide.
Travel
Website
(2000,
USA);
Discovering
Treasure
on
its
travels
World’s
largest
travel
website
in
over
30
countries;
over
100
million
users;
21
languages.
2011
went
public,
now
listed
on
NASDAQ.
400,000
hotels
and
500,000
restaurants
across
70,000
ciees
worldwide.
TripAdvisor
PayPal
Online
File
Hoseng
(2007,
USA);
Out-­‐of-­‐the-­‐box
success
October
2011
>>
50
million
users;
Nov
2012
>>
reached
100
million
users.
Dropbox
revenue
exceeded
US$240
million
in
2011.
Dropbox

31. DIGITAL COMPANIES - ENTERTAINMENT
www.momenta.biz - 31
Image
&
Video
Sharing
(2004,
Canada)
§ 51
million
registered
users;
80
million
unique
visitors;
6
billion
images.
§ Flickr
is
valued
at
US$
4
billion.
Online
Encyclopedia
(2001,
USA)
§ Not-­‐for-­‐profit
company.
§ Donaeons
>>
2009
US$
8
million,
doubled
in
2010
to
US$16
million;
2011
raised
US$
20
million.
§ Free
to
all.
20
million
arecles
in
282
languages.
Wikipedia
Zynga
Online
Social
Gaming
(2007,
USA)
Feb
2011
>
$1
billion
venture
capital
funding
Late
2011
>
Zynga’s
games
had
232
million
monthly
users.

32. DIGITAL COMPANIES - ENTERTAINMENT
www.momenta.biz - 32
Twitter
How
140
characters
changed
the
world
Social
Media/microblogging
(2006,
USA)
Mar
2011
>
more
than
140
million
monthly
users
Revenue
>
Twijer
is
expected
to
take
in
$950
million
in
2014
before
vauleng
to
$1.33
billion
the
following
year.
This
year’s
revenues
are
pegged
at
$582.8
million,
a
year-­‐over-­‐year
doubling.
Wonga
Short-­‐term
consumer
finance
(2006,
UK)
–
UK,
South
Africa,
Canada
&
Poland.
§ Offers
£400
-­‐
£1,000
for
1-­‐30
days
short
term
loans
>>
money
within
one
hour.
§ Wong
has
approved
over
3.5
million
loans
in
4
years.
§ Focus
on
innovaeon.
Amazon
World’s
largest
e-­‐retailer
(1995,
USA)
Started
as
an
online
bookstore,
but
soon
diversified,
selling
DVDs,
VHSs,
CDs,
video
and
MP3
downloads/streaming,
sooware,
video
games,
electronics,
apparel,
furniture,
food,
toys,
and
jewelry.
Cloud
compueng
services.
Customer
base:
+30
million
Sales
–
US$16.1
billion
(2013
1st
Quarter).

33. www.momenta.biz - 33
ALL THESE COMPANIES ARE
REACHING YOUR CUSTOMERS
DIRECTLY AND ALSO BUILDING
RELATIONSHIP.
RELATIONSHIP THAT IS STRONGER
THAN WHAT WE HAVE BUILT.

34. A. Technology
B. Chemicals
C. Automotive
D. Media
E. Banks
F. Consumer Health
Care
G. Consumer
Electronics
H. Energy
I. Food & Beverages
J. Aerospace &
Defense
K. Consumer Goods
L. Metals
M. Pharmaceutical
N. Telecom
O. Financial Services
P. Brewing & Sprits
Q. Food Manufacturing
R. Entertainment
WHICH ARE THE MOST TRUSTED
INDUSTRIES?

35. A. Technology
B. Chemicals
C. Automotive
D. Media
E. Banks
F. Consumer Health Care
G. Consumer Electronics
H. Energy
I. Food & Beverages
J. Aerospace & Defense
K. Consumer Goods
L. Metals
M. Pharmaceutical
N. Telecom
O. Financial Services
P. Brewing & Sprits
Q. Food Manufacturing
R. Entertainment
Please
indicate
(by
ranking)
how
much
you
TRUST
businesses
in
each
of
the
above
industries.
There
are
18
industries
listed
here
–
rank
them
by
order
of
#1
being
most
TRUSTED
and
#18
least
TRUSTED.
Name:
_________________________________________________________________
TRUSTED
INDUSTRY

36. FINANCIAL'SERVICES'INDUSTRY'FINDINGS'

37. Edelman's 13th Annual survey
37
GLOBAL
ONLINE
SURVEY
IN
26
COUNTRIES
• 31,000+
respondents
• 5
years
in
20+
markets
• 8
years
in
10+
markets
GENERAL
POPULATION
• 1000
respondents
per
country
surveyed
• Ages
18+
• 2
years
of
data
INFORMED
PUBLICS
• 500
respondents
in
U.S.
and
China
&
200
in
other
countries
• Ages
25-­‐64
• College-­‐educated
• In
top
25%
of
household
income
per
age
group
in
each
country
• Report
significant
media
consumpeon
and
engagement
in
business
news
and
public
policy
• 13
years
of
data
Source:
Edelman's
13th
Annual
survey

38. banking & financial services Industry – are least trusted
38
TRUST IN INDUSTRIES GLOBALLY
Source:
Edelman's
13th
Annual
survey
MOST
TRUSTED
LEAST
65% & above
64 to 60%
59 to 50%
Less than 50%
Technology
(73%)
Consumer
Electronics
(70%)
Automoeve
(66%)
Food
&
Beverages
(62%)
Aerospace
&
Defense
(62%)
Entertainment
(62%)
Metals
Industry
(61%)
Food
Manufacturing
(61%)
Telecommunicaeon
(60%)
Consumer
Packaged
Goods
(60%)
Pharmaceuecal
(57%)
Energy
(57%)
Consumer
Health
Companies
(55%)
Brewing
&
Sprit
(55%)
Chemicals
(51%)
Media
(50%)
Banks
(49%)
Financial
Services
(46%)

39. 39
Financial SERVICES is at the
bottom. People don’t trust us,
as much.
WHO is RESPONSIBLE?
WE

40. Financial Services Industry
40
DEVELOPED MARKET VS EMERGING MARKETS
Industry Average
Sectors

41. Drilling down further, Asia is most trusting and EU is least trusting of financial
service sector
41
TRUST IN FINANCIAL SERVICES INDUSTRY SECTORS BY REGION
Industry Average

42. Copyright © EON Inc. and Ateneo Graduate School of Business 2013 Read more at www.eon.com.ph/philippinetrustindex
Healthcare most trusted industry; trust in mining
increased but not enough to pull up its ranking
37.3
25.3
25.3
24.7
24.0
23.7
23.7
22.1
21.8
19.4
18.6
17.5
17.3
16.1
15.8
12.2
8.9
6.2
4.7
Health Care
Information Technology
Agriculture
Water & Sanitation
Telecommunications
Tourism & Hospitality
Food and Beverage
Pharmaceuticals
Energy & Power
Insurance
Professional & Technical Services
Banks & Financial Services
Training & Human Development
Construction
Transport & Logistics
Recreation & Entertainment
Real Estate
Alcohol & Tobacco
Mining
N=1200 general public. Very much trust responses. Q: How much or how little do you trust each industry that I will mention?
INFORMED Public - URBAN Areas
Gainers (%)
1st PTI 2nd PTI
Healthcare 22.2 29.3
Agriculture 11.2 16.7
Insurance 7 12
Mining 2.6 4.3
Losers (%)
Training 21.6 15
Real estate 10.0 6.7
PHILLIPINES
42

43. THE MESSAGE IS SIMPLE !
§ Trust has been lost and the digital world is here.
§ The Technology Sector - Two issues – (1) Potentially preparing to
take away our clients, and (2) building very high client
expectations.
§ Successful relationships with customers in the digital world are
high-trust relationships.
§ It is time for financial advisors to rebuild trust at the same time as
developing all the communications and analytical advantages of
digital technology. There is no other way.
§ The highly digitalized, non-bank competitors are already taking the
best parts of banking, will soon take other parts of the financial
industry. Retail General Insurance is substantially moved to the
digital world. Time is short. Is Apple about to join the fray? Is
Amazon? Is Facebook? {Or is it the telecom industry?}
!

44. Trust has been lost and the digital world
is taking over.

45. www.aprikot.biz - 45
ZERO MOMENT OF TRUTH

46. Traditional Purchase Process
Traditionally, there have been three critical junctures within a customer’s
purchase process where product must be successful: stimulus, shelf,
experience
Semulus
This is the moment
when an advertisement/
knowledge connects
with a consumer in such
a way that pushes him
or her to visit a start the
discussion.
Second
Moment
of
Truth
Experience
(Experience) - Once
home with the product,
the consumer uses it
and forms an opinion of
his or her purchase.
First
Moment
of
Truth
At
shelf
In-­‐store
The consumer, driven by
an advertisement or
knowledge, visits your
office and the combination
of product packaging and
salesperson claims, results
in a purchase.

47. www.aprikot.biz - 47

48. s
New Paradigm

49. www.aprikot.biz - 49

50. www.aprikot.biz - 50
Mobile
Phone
Example

51. www.aprikot.biz - 51

52. Google
37%
31%
29%
28%
27%
24%
23%
22%
22%
21%
18%
50%
49%
38%
36%
31%
22%
22%
18%
41%
37%
33%
30%
20%
19%
SawadsonTV
Receivedmailathomefromabrandmanufacturer
Sawanadinanewspaper
Readnewspaperarticles
Readmagazinearticles
Sawadsinamagazine
Readanemailreceivedfromabrand
Noticedadsonline
Receivedmailathomefromaretailer
WatchedaTVprogramthatfeaturedtheproduct
Sawanadonanoutdoorbillboard
Searchedonlinewithasearchengine
Talkedwithfriends/familyabouttheproduct
Comparisonshoppedproductsonline
Soughtinformationfromabrand/manufacturerwebsite
Readproductreviewsonline
Soughtinformationfromaretailerwebsite
Readcommentsfollowinganarticleonline
Becameafriend/follower/”liked”abrand
Lookedattheproductpackageinthestore
Readbrochureabouttheproductinthestore
Talkedwithasalespersoninthestore
Lookedatsignage/displayabouttheproductinthestore
Talkedwithacustomerservicereponthephone
Triedasampleintheproductinastore
SearchingonlineandwordofmouthareamongtopZM
Q2Whenyouwereconsideringpurchasing[PRODUCT],whatsourcesofinformationdidyouseekoutto
helpwithyourdecision?
Base:N=5,003
Source:Google/ShopperSciences,ZeroMomentofMacroStudy,Apr2011
www.google.com/think/insights
www.aprikot.biz - 52
Stimulus
ZMOT
FMOT

53. ZMOT
This is a new World

54. This is the new World of ZMOT
50% 49% 38% 36% 31% 22% 22% 18%
Searched
online
Talked with
friends /
family
Compared
product
online
Sought
info. from
manufacturers’
website
Read
product
reviews
Sought
info. From
retailers
website
Read
comments
Became
friend/
follower/
’liked’ a
brand

55. HNWI

56. IN LIQUID FINANCIAL ASSETS
1
.
0
m
USD

57. IN LIQUID FINANCIAL ASSETS
3
.
9
m
PHP
4

58. HNWI at RECORD LEVELS
(2012)
North
America
Asia-Pacific
Europe
Latin
America
Middle East
Africa
Total
Wealth (US$ Trillion)
12.7 (11.4)
12.0 (10.7)
10.9 (10.1)
7.5 (7.1)
1.8 (1.7)
1.3 (1.1)
46.2 (42.0)
%age Change 2011-12
11.7%
12.2%
8.2%
6.7%
8.6%
11.5%
10.0%
Source:
Capgemini
Lorenz
Curve
Analysis,
2013

59. $12.7Trillion
3.7Million
NorthAmerica!
$12.0Trillion
3.7Million
Asia-Pacific!
$10.9Trillion
3.4Million
Europe!
$7.5T
0.5M
LatinAmerica!
$1.3T
0.5M
Africa!
$1.8T
0.5M
MiddleEast! Data
Source:
Capgemini
Lorenz
Curve
Analysis,
2013
World
2011
2012
%é
Population
11.0
12.0
9.2%
Wealth
42.0
46.2
10.0%
Asia-Pacific expected to lead robust Global HNWI Wealth Growth
Global HNWI investable wealth is expected to grow to US$55.8 trillion by 2015. Asia-Pacific is
expected to reach US$15.9 trillion (by 2015).

60. HNWI Population, 2007 -2011 (by Asia Market)
‘000
(Thousands)
1517
1366
1650
1739
1822
412
364
477
535
562
169
129
174
193
180
118
105
127
146
144
123
84
127
153
126
78
61
82
99
91
71
58
83
94
89
96
37
76
101
84
44
42
50
58
65
24
19
24
30
32
149
138
154
166
173
0
500
1000
1500
2000
2500
3000
3500
4000
2007
2008
2009
2010
2011
Other Markets
Indonesia
Thailand
Hong Kong
Taiwan
Singapore
India
South Korea
Australia
China
Japan
2.8m 2.4m 3.0m 3.3m 3.4m
Source:
Capgemini
Lorenz
Curve
Analysis,
2012.
Note:
Chart
numbers
and
quoted
%ages
may
not
add
up
due
to
rounding.
Philippines
within
“Other
Markets”

61. Composition of Asia-Pacific HNWI
Wealth
$11.4 t
Individuals
3.4 m
+$30 m
Ultra-HNWI
$5 - $30 m
Mid-Tier Millionaire
$1 - $5 m
Millionaire Next Door
WORLD’S POPULATION OF HNWI
FIGURE 1. HNWI Population, 2007 – 2011 (by Region)
(Million)
0
2
4
6
8
10
12
20112010200920082007
Asia-Pacific
North America
Europe
Latin America
Middle East
Africa
1.1%
-1.1%
1.6%
5.4%
3.9%
2.7%
Global 0.8%
% Change Total HNWI Population
2010-2011
10.1 8.6 10.0 10.9 11.0
CAGR 2007-2011: 2.1%
Number
of HNWIs
Worldwide
(Million)
3.1
3.3
2.8
2.7
2.4
3.1
3.4
3.3
3.4
3.4
0.4
0.4
0.1
2.6
3.0
3.0
3.1 3.2
0.4
0.4
0.5
0.4
0.1 0.5
0.4
0.1
0.5
0.5
0.1
0.1
FIGURE 1. HNWI Population, 2007 – 2011 (by Region)
(Million)
Note: Chart numbers and quoted percentages may not add up due to rounding
Source: Capgemini Lorenz Curve Analysis, 2012
FIGURE 2. HNWI Wealth Distribution, 2007 – 2011 (by Region)
(US$ Trillion)
CAGR 2007-2011: 0.8%
FIGURE 2. HNWI Wealth Distribution, 2007 – 2011 (by Region)
(US$ Trillion)
21.7 k
(0.6% of total)
266.0 k
7.9% of the total
3080 k
91.5% of the total
24.5%
[$2.8 trillion]
23.8%
[$2.7 trillion]
51.8%
[$5.9 trillion]

62. Snippets
In
associaeon
with
copyright@aprikot
2012
62
45years or younger
Asia-Pacific, 41%
of the HNWIs are
50Years
China, average age
of UHNWI is

63. Who is the Philippines HNW investor?
§ Most HNW individuals are between 31 and 50
years old
§ Credit Suisse Reports forecast 38,000 HNWI by
2015.
§ The majority of HNW individuals have amassed
their fortunes through entrepreneurship.
§ Moderate knowledge and a conservative
attitude make for a difficult client profile for
Wealth Managers.
§ Philippines wealth managers must be able to
deal with high degrees of financial illiteracy.

64. www.aprikot.biz - 64
TonyV3112
/
Shujerstock.com
/
*2012
Americas’
topped;
Asia
second.

65. HNW – What do they look for ?
§ HNWI focus on wealth preservation
§ The preference for a single point of advice and service
is strong.
§ HNWIs perceive their wealth management needs to be
“straightforward” (focused on investments, cash, and
credit)
§ The current demand for digital channels is robust
globally, especially for HNWIs below 40 years of age.
Highlight from the 2013 Global HNW Insight Survey

66. HNWI Trust & Confidence
§ Wealth Manager competency emerged as the single
largest service priority among HNWIs, with 67.5% rating it
as most important.
§ Asset Allocation: HNWIs exhibited a clear bias toward
safety and wealth preservation, allocating nearly 30% of
their financial wealth into cash and deposits.
Capgemini, RBC Wealth Management, and Scorpio Partnership
Global HNW Insights Survey 2013
4,400 HNWI’s : 21 Wealth Markets : 77.2% USD 1–5 mn,
10.2% over 10 mn – excluding primary residence.

67. Asset Allocation
16 2013 WORLD WEALTH REPORT
as their primary focus put 26.4% of their assets into cash,
only slightly less than HNWIs primarily focused on capital
preservation who put 29.7% of their assets in cash.
regulatory velocity, and creating service interruptions due
to a lack of jurisdictional regulatory alignment. In Europe
and North America, where the regulatory change is
FIGURE 12. Breakdown of HNWI Financial Assets, Q1 2013
(%)
0%
25%
50%
75%
100%
Middle East
& Africa
Latin
America
EuropeJapanAsia-Pacific
excl. Japan
Asia-Pacific
North
America
Global
Cash/Deposits
Equities
Real Estateb
Fixed Income
Alternative Investmentsa
28.2%
26.1%
20.0%
15.7%
10.1%
21.3%
37.2%
13.5%
18.7%
9.3%
22.7%
22.3%
24.6%
16.7%
13.7%
49.4%
22.6%
11.9%
9.2%
7.0%
27.3%
21.5%
26.7%
15.3%
9.1%
27.6%
12.5%
30.1%
16.8%
13.1%
26.0%
17.0%
24.7%
16.0%
16.3%
FIGURE 12. Breakdown of HNWI Financial Assets
(%)
a Includes structured products, hedge funds, derivatives, foreign currency, commodities, private equity
b Excludes Primary Residence
Note: Chart numbers may not add up to 100% due to rounding
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013

68. Allocation to Investment of Passion

69. HNWI Behaviors & Preferences, Q1 2013
FIGURE 15. HNWI Behaviors and Preferences, Q1 2013
(%)
Single Firm
I prefer to work with a single wealth management firm
that can meet the full range of my financial needs
HNWI Preferred Wealth Management Approach
Preferred Wealth Manager Relationship
42.1% 22.8%
41.4% 14.4%
35.1%
35.0% 22.9%42.1%
32.7% 26.3%41.0%
32.2% 27.1%40.7%
34.0% 23.5%42.4%
33.9% 26.9%39.1%
44.2%
Straightforward Needs
My wealth needs are straightforward: I want to manage
my cash and credit, and grow my investments
Wealth Preservation
I am currently most focused on preserving my wealth
Personal Wealth Advice
I seek advice and solutions for my own
personal wealth needs
Financial and Life Goals Measurement
I judge the success of my portfolio based on my own
financial and life goals (i.e. on an absolute basis)
Multiple Firms
I prefer to work with various wealth management firms
who each have a specific area of expertise that meets
my needs
Complex Needs
My wealth needs are complex and may encompass
my business, or my extended family or philanthropy
Wealth Growth
I am currently most focused on growing my wealth
Family Wealth Advice
I seek advice and solutions for the wealth needs
of my extended family
Financial Benchmark Measurement
I judge the success of my portfolio, by comparing it
to financial market performance and benchmarks
(i.e. on a relative basis)
Self-Managed Investments
I rarely seek professional financial advice because
I prefer to make my own decisions
Single Touch Point
I want a single touch point with one individual who
facilitates all aspects of my relationship with the firm
Professional Advice
I seek professional advice and I usually act on it
Multiple Experts
I only want to speak to the different experts at my
wealth management firm who can deal with my
specific requirements
FIGURE 15. HNWI Behaviors and Preferences, Q1 2013
(%)
HNWI Preferred Wealth Manager Service
34.0% 23.5%42.4%
33.9% 26.9%39.1%
28.4% 27.8%43.8%
44.5% 20.0%35.6%
30.7% 23.7%45.6%
30.9% 26.0%43.1%
26.8% 26.0%47.2%
Self-Managed Investments
I rarely seek professional financial advice because
I prefer to make my own decisions
Single Touch Point
I want a single touch point with one individual who
facilitates all aspects of my relationship with the firm
Uncomfortable With Mostly In-house Products
I am uncomfortable when my wealth manager
recommends mostly in-house products
to meet my needs
Direct Contact
Overall, direct, personal contact is more important
than digital contact (internet, mobile, email)
Real-Time / Anytime Reporting
It is important for me to be able to see how my savings
and investments are doing at any time
Comprehensive Communication
I want my wealth manager to keep me fully updated on
transactions, opportunities, events, and news
Standardized Services
I am happy for my wealth manager to offer
a standardized level of service to me, so long
as it meets all my needs
Digital Contact
Overall, digital contact (internet, mobile, email) is
more important than direct, personal contact
Scheduled Reporting
It is most important for me to receive written reports at
agreed-upon points in the year
Filtered Communication
I want my wealth manager to filter communications
so I only receive what is necessary
Customized Services
To ensure all my needs are met, I am happy
to pay more for a customized level of service
from my wealth manager
Professional Advice
I seek professional advice and I usually act on it
Multiple Experts
I only want to speak to the different experts at my
wealth management firm who can deal with my
specific requirements
Comfortable With Mostly In-house Products
I am comfortable that my wealth manager’s own range
of in-house products is adequate for most of my needs
Strong Preference for Parameters on Left No Strong Preference Strong Preference for Parameters on Right
Note: Chart numbers may not add up to 100% due to rounding
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013

70. Focus on
Wealth Growth vs Wealth Preservation
years – the MSCI World Index grew by 6.9% annually
compared to their counterparts in emerging markets.
FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013
(%)
0%
25%
50%
75%
100%
Middle East
and Africa
Latin AmericaAsia-Pacific
(excl. Japan)
JapanEuropeNorth AmericaGlobal
Wealth Preservers
Wealth Growers
No Strong Preference
26.3%
41.0%
32.7%
27.7%
39.6%
32.6%
23.3%
44.2%
32.5%
15.3%
60.4%
24.3%
31.5%
29.6%
38.9%
37.7%
18.4%
43.9%
42.4%
24.9%
32.7%
Asia-Pacific
FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013
(%)
Note: Question asked on a 10-point spectrum: Please indicate your focus on growing your wealth vs. preserving your wealth? “Wealth Preservers” and “Wealth Growers” are percentage
of respondents providing a top three rating across the spectrum extremes for wealth preservation focus vs. wealth growth focus; “No Strong Preference” are the remaining percentage o
respondents with responses near the mid-point on the spectrum
Chart numbers may not add up to 100% due to rounding
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013
years – the MSCI World Index grew by 6.9% annually
compared to their counterparts in emerging markets.
FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013
(%)
0%
25%
50%
75%
100%
Middle East
and Africa
Latin AmericaAsia-Pacific
(excl. Japan)
JapanEuropeNorth AmericaGlobal
Wealth Preservers
Wealth Growers
No Strong Preference
26.3%
41.0%
32.7%
27.7%
39.6%
32.6%
23.3%
44.2%
32.5%
15.3%
60.4%
24.3%
31.5%
29.6%
38.9%
37.7%
18.4%
43.9%
42.4%
24.9%
32.7%
Asia-Pacific
FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013
(%)
Note: Question asked on a 10-point spectrum: Please indicate your focus on growing your wealth vs. preserving your wealth? “Wealth Preservers” and “Wealth Growers” are percentage
of respondents providing a top three rating across the spectrum extremes for wealth preservation focus vs. wealth growth focus; “No Strong Preference” are the remaining percentage o
respondents with responses near the mid-point on the spectrum
Chart numbers may not add up to 100% due to rounding
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013
The majority of
reference for
lecting an
rategies and
of 49.4%.
the focus
f robust
last three
9% annually
only 22.9% prefer to use relative benchmark returns to
evaluate success.
Measuring wealth performance on an absolute basis
was of particular importance among HNWIs in higher
wealth segments. Of HNWIs with US$20 million and
above, 44.3% prefer an absolute measure. Interestingly,
on a regional basis, HNWIs in mature markets were
considerably less likely to use an absolute measure
compared to their counterparts in emerging markets.
vs. Wealth Preservation, Q1 2013
Wealth Preservers
Wealth Growers
No Strong Preference
3%
2%
5%
15.3%
60.4%
24.3%
31.5%
29.6%
38.9%
37.7%
18.4%
43.9%
42.4%
24.9%
32.7%
th Preservation, Q1 2013
d not show a strong preference for
eservation, perhaps reflecting an
owards their wealth strategies and
and deposit holdings of 49.4%.
erences also reflected the focus
on. Even in the face of robust
uity markets over the last three
World Index grew by 6.9% annually
Measuring wealth performance on an absolute basis
was of particular importance among HNWIs in higher
wealth segments. Of HNWIs with US$20 million and
above, 44.3% prefer an absolute measure. Interestingly,
on a regional basis, HNWIs in mature markets were
considerably less likely to use an absolute measure
compared to their counterparts in emerging markets.
on Wealth Growth vs. Wealth Preservation, Q1 2013
Middle EastLatin AmericaAsia-Pacific JapanEuropeNorth America
Wealth Preservers
Wealth Growers
No Strong Preference
27.7%
39.6%
32.6%
23.3%
44.2%
32.5%
15.3%
60.4%
24.3%
31.5%
29.6%
38.9%
37.7%
18.4%
43.9%
42.4%
24.9%
32.7%
Wealth Growth vs. Wealth Preservation, Q1 2013
n home. Thirty-five percent of HNWIs now prefer
e their portfolio using such absolute measures, while
2.9% prefer to use relative benchmark returns to
e success.
ring wealth performance on an absolute basis
particular importance among HNWIs in higher
segments. Of HNWIs with US$20 million and
44.3% prefer an absolute measure. Interestingly,
gional basis, HNWIs in mature markets were
erably less likely to use an absolute measure
red to their counterparts in emerging markets.
Q1 2013
Wealth Preservers
Wealth Growers
No Strong Preference
37.7%
18.4%
43.9%
42.4%
24.9%

71. Competency
Single point
Wealth preservation
Wealth advice
So,
what
are
HNWI
looking
for

72. WEALTH
MANAGEMENT
What is a

73. .. more than investment
advice, encompass
person's financial life

74. WHY Wealth Manager?
The
Asia-­‐Pacific
HNWI
populaeon
grew
9.7%
to
3.3
million
in
2010,
exceeding
Europe
and
nearing
North
America.
The
region’s
HNWI
wealth
grew
12.1%
to
US$10.8
trillion.
Japan
remains
the
single
largest
HNW
segment
in
Asia-­‐Pacific,
accouneng
for
52.5%
of
the
region’s
HNWIs,
followed
by
China
(16.1%),
and
Australia
(5.8%).
Asia-­‐Pacific
is
home
to
many
of
the
world’s
fastest-­‐growing
HNWI
populaeons.
The
20
fastest-­‐growing
HNWI
populaeons
were
in
Asia-­‐Pacific
and
MEANA
markets.

75. Wealth Manager?
…..
consetutes
unique
job
tasks
and
specialized
knowledge
and
skills
different
from
financial
planning
and
designed
to
serve
a
unique
type
of
client:
those
who
are
affluent
and
High
Net
worth
client.
Where
you
relaeonship
is
based
on
professional
TRUST.

76. COMPETENCY STANDARDS
for Wealth Managers
A wealth manager’s competencies are encompassed into three distinct layers –
§ Build trusted relationship – client relationships that result in a successful partnership.
§ Realistic Goals - recommendations leading to the creation and implementation of a
comprehensive whole-life wealth management plan.
§ Wealth Accumulation - implement wealth accumulation by managing strategies and
monitoring developments.
§ Wealth Preservation – preserve and optimize wealth by managing an optimal strategy of
generating income from assets.
§ Wealth Transfer - Legacy and Estate planning - implement strategies to transfer assets
as per the legacy plan of the client.
§ Implement & Monitor – Coordinate a trusted and respected team of specialists to provide
a well- rounded wealth management advice and service to the client.
To achieve the client centric competencies, Wealth Manager must have the necessary
knowledge and skills of wealth planning, products, services, legal & compliance, capital markets
and the Industry.

77. T =
R + I + C
S.I.

78. Customers Expectations
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Excellent
Customer
Service!
Transparency!
Objective
Advice!
Professional
Competency!

79. www.aprikot.biz - 79
ProfessionalCompetence
ObjectiveandQualityAdvice
Excellent Customer Service
Transparency
Wealth
Advisor / Manager
§ Certification
§ ResearchandHouseview
§ UnderstandingPortfolio
§ Systematicprocess-
§ Independentinvestment
§ Consistency
§ Regular customer contact
§ Customer reporting
§ Disclosures

80. 4W
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A framework to find solutions for the client’s needs. Deals with
diverse goals and unique individual preferences.
Growing the wealth in optimal ways while observing the
client’s risk-tolerance profile or desired targets.
Maintain wealth through insulating it from market shocks or
dangers with appropriate risk-management techniques.
Figuring out the best ways to transfer wealth to the client’s
heirs or beneficiaries. Takes into account any tax implications
and philanthropy but also needs to considers social and
cultural value.
Wealth
Management!
Wealth
Accumulation !
Wealth
transfer!
Wealth
Preservation!

81. In
today’s
context,
what
is
wealth
management?
§ “Wealth
Management
addresses
every
aspect
of
a
client’s
financial
life
in
a
consultaeve
and
a
highly
individualisec
way.
§
It
uses
a
complete
range
of
products,
services
and
strategies.
§ A
wealth
manager
has
to
gather
informaeon
both
financial
and
personal
to
create
an
individualized
series
of
recommendaeons
and
be
able
to
make
those
recommendaeons
completely
tailored
to
each
client.
§ Off
the
shelf
–
it
won’t
do.
§ What
wealth
management
requires
is
conneceng
with
clients
on
a
personal
level
that
is
way
beyond
the
retail
financial
services
industry
norm”
Robert
J
McCann,
President
of
the
Private
Client
Group,
Merrill
Lynch

82. Advisory Process
Investment Advisory
Process
Risk
Profiling
Recommend
the portfolio
Execute
transactions
Rebalanci
ng
Reporting;
transparency
Goals &
Objectives
Review;
Rebalance, if
required
1
2
3
4
5
6

83. Next Generation Financial Advisor, must take on
the role as a Wealth Manager
The next generation wealth manager has a lot more on his or her plate. That
means:
§ moving away from a product-centric to customer-centric focus
§ to be the primary financial relationship based on a bond of trust, and the
ability to deliver client-focused solutions and options.
§ delivering a quality customer experience at every touch point
§ offering better reporting, more frequent updates to keep clients informed in
real-time, using various forms of technology
§ being the bridge between the client, the specialists within your firm and the
back office to create a seamless flow of excellence
§ in a multi-racial environment, having the high-touch soft skills while remaining
sensitive to the demands of different cultures
§ dealing with newly emerging needs for succession planning requires a
different set of skills.

84. Calling all Insurance Advisors
Two problems:
1. High Net Worth Clients - The banking model with
Wealth Managers & Specialist functions, will lure away
your HNW clients, gradually.
2. Retail Clients. The technology companies will lure
away your retail clients by offering them better pricing
and technology driven quality service.
What about personalized Service?
Some services don’t require personalized service –
technology driven consistency in service serves the
client better. Example – Car Insurance, why will one
need personalized service? Or ATM Vs Teller,
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85. New Insurance Landscape
§ Regulators world-wide are taking action to ensure customers get better and
more professional financial advisory services.
§ The focus cannot just be on sales, but rather on ongoing quality advice and
remunerating people who can provide this.
§ The required skills and knowledge which tomorrows insurance adviser is
expected to have, in particular:
§ a wider scope and greater in-depth of product knowledge – not limited
to life insurance products;
§ more effective communication skills to translate some of the technical
terms to layman’s language fro better understanding; and
§ Excellent interpersonal skills to enhance consumer trust
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86. New Insurance Landscape
“rather than training being focused on products, as in the past, it needs to be
more broad based, focus on clients needs. It is then possible to select the right
products to meet these needs”
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87. THANK YOU
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