Wealthy individuals are increasingly seeking out structured products and diversified investments in response to market uncertainty, according to Eliza Law, Managing Director and Head of Affluent Segment and Distribution at Standard Chartered Bank in Hong Kong. Law notes that the bank’s affluent clients are eager to enhance their investment knowledge and access unique products, leading to a surge in interest in investing. In the first quarter, the number of clients who moved up to the private-priority tier, which requires assets worth over $1 million, increased by 45% from the previous year.
This uptick in “up-tiering” contributed to the bank’s double-digit growth in the first quarter and is expected to be a key factor in helping the bank meet its goal of attracting $200 billion in global wealth-management business from newly affluent individuals over the next five years. Affluent clients are seeking out higher-return products, such as structured products linked to equities and interest rates, as a way to navigate current economic challenges and global trade tensions.
Standard Chartered offers a range of sophisticated products catering to professional investors within its private-priority segment, and the sales volume of these products has grown 2.4 times from 2023. Principal-protected structured products, in particular, have seen significant growth, as they offer a level of protection for investors while still providing potential for returns. Law attributes the bank’s success to its ability to provide tailored investment solutions that meet the evolving needs of its affluent clients.
The trend towards diversified investing and structured products reflects a shift away from traditional time deposits, as affluent individuals seek out more dynamic and potentially lucrative investment opportunities. With its strong track record and range of sophisticated products, Standard Chartered is well-positioned to capitalize on this trend and attract new wealth-management business from affluent individuals in Hong Kong and beyond. As the bank continues to expand its offerings and provide tailored investment solutions, it is likely to remain a key player in the region’s wealth-management sector.