European investors place priority on structuring for tax purposes, while this is less of a concern in the region
The typical Asian private banking client requires a different approach from that taken by bankers in Europe, according to Daniel Truchi, chief executive of SG Private Bank (Asia Pacific).
Mr Truchi said the main difference arose from the blurred distinction between the interests of the enterprise and the individual client in Asia. In Europe, this boundary was clearly defined. A European client would place a high priority on structuring for taxation purposes, while this was far less of a concern for Asian clients.
'In Europe, you have a clearer distinction between the enterprise and the private client, while in Asia you have sometimes mixed interests. When private individuals in Europe want to invest, they are really seeking pure investment advice, mainly focused on tax issues, while in Asia it is performance-oriented. Asian clients are looking for absolute performance, mixed with corporate requirements.'
Mr Truchi said the main differences between Asian and European clients related to the contrasting origins of private wealth.
'The main source of wealth creation in Asia is entrepreneurship. New money is the greatest component of the growth of wealth creation in Asia. It has developed through initial public offers, mergers and acquisitions, the sale of the enterprise, stock options and dividends. In Europe, the pace is maintained by old money.'
The predominance of new, entrepreneurial wealth in Asia was one reason private wealth in the Asian region had been growing faster than in Europe or the United States, Mr Truchi said.
