Register to get unlimited access to all of Citywire’s fund manager database. Registration is free and only takes a minute.

Five facts private bankers should know this week

Mergers and acquisitions, investment in artificial intelligence, Singaporean entrepreneurs and offshore funds are some highlights this week

Private banking at heart of M&A

The mergers and acquisitions (M&A) market worth more than $10 billion is up by over 301% in the first half of 2018 compared with the same period in 2017, a study by law firm Allen & Overy has revealed.

Luxembourg, for instance, has seen a significant uptick in M&A transactions among private banks.

There is a growing number of big Chinese banks choosing to base their European operations in Luxembourg, Allen & Overy said, while Swiss banks are circling the market looking to reinforce their foothold in the Eurozone.

The number of big deals has grown steadily over the last two years and these have continued in 2018, with UBS acquiring Nordea and BNP Paribas buying ABN Amro’s Luxembourg operations.

Regionally, while Western Europe stands out as top performer with deal values up 103% year-on-year, the US showed a more muted but still impressive 81% increase in deal values.

Asia continues to grow with Japan a key market in the region with record-breaking outbound M&A figures up 365% from the same period in 2017.

The significant transactions this year so far are Takeda’s proposed $76 billion acquisition of Shire, the SoftBank-led investment in Uber and the $6.1 bullion Xerox and FujiFilm deal.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Private banking at heart of M&A

The mergers and acquisitions (M&A) market worth more than $10 billion is up by over 301% in the first half of 2018 compared with the same period in 2017, a study by law firm Allen & Overy has revealed.

Luxembourg, for instance, has seen a significant uptick in M&A transactions among private banks.

There is a growing number of big Chinese banks choosing to base their European operations in Luxembourg, Allen & Overy said, while Swiss banks are circling the market looking to reinforce their foothold in the Eurozone.

The number of big deals has grown steadily over the last two years and these have continued in 2018, with UBS acquiring Nordea and BNP Paribas buying ABN Amro’s Luxembourg operations.

Regionally, while Western Europe stands out as top performer with deal values up 103% year-on-year, the US showed a more muted but still impressive 81% increase in deal values.

Asia continues to grow with Japan a key market in the region with record-breaking outbound M&A figures up 365% from the same period in 2017.

The significant transactions this year so far are Takeda’s proposed $76 billion acquisition of Shire, the SoftBank-led investment in Uber and the $6.1 bullion Xerox and FujiFilm deal.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Investments in AI expected to rise

A recent survey conducted by market research and advisory firm IDC highlights that artificial intelligence (AI) adoption in the ASEAN region is on the rise.

With 24.6% of organizations in Indonesia adopting AI, the country leads the pack in terms of adoption, followed by Thailand (17.1%), Singapore (9.9%) and Malaysia (8.1%).

The top use cases in Southeast Asia include algorithmic market forecasting (17%), and automated asset and infrastructure management (11%).

‘With its positive impact already visible across banking, manufacturing, healthcare and government, there are clear opportunities for more organizations in Southeast Asia to leverage AI to create differentiating value,’ said Chwee Kan Chua, global research director of IDC Asia Pacific.

‘We expect investments in AI to continue to rise, as more organizations begin to understand the benefits of embedding AI into their business and how data and analytics can help uncover new insights,’ he said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Singaporean entrepreneurs eye new opportunities

Singaporean entrepreneurs like to be the ones that nurture their business, but are keeping the door open to other opportunities, a study by HSBC Private Banking, quizzing 3,700 business leaders in eleven countries, has revealed.

According to the report Essence of Enterprise, 33% of Singapore respondents said their main priority when running a business is financial security. When looking for opportunities, 44% said they look to their social network, 38% seek professional networks and 37% seek venture capital networks.

HSBC said consistent with their serial business mentality, Singapore entrepreneurs are most likely amongst their global peers to exit their core business but, ironically, are among the least likely to have a plan as to its execution.

‘The embracing of venture capital is opening up what has traditionally been a closed, harder to break into social network. This bodes well for a thriving ecosystem in Singapore with the funnelling of capital and expertise back to the entrepreneurial community,’ said Philip Kunz, head of Southeast Asia at HSBC Private Banking.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

 

China strengthens its travel links

China gained visa-free access to Belarus and visa-on-arrival access to Zimbabwe in June. Its visa-waiver agreement with the British Virgin Islands, signed on 29 June, is set to come into effect at the end of this month.

'China has been successfully tying its investment strategy to its diplomatic and consular priorities, especially in developing countries and emerging markets,' said Parag Khanna, managing director of FutureMap, an advisory firm.

‘Given China’s focus on Belarus as a node on the ‘Belt and Road’, this is an expected development. Meanwhile, the shift in government in Zimbabwe and other African countries signals an openness to foreign investment from all directions, including China.'

China is Zimbabwe’s fourth largest trading partner.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Offshore funds set to continue thriving

Cross-border fund assets under management (AUM) in Asia ex-Japan climbed 18.6% to nearly $166.6 billion last year, according to asset management research firm Cerulli.

Korea, Taiwan, and Singapore, in particular, witnessed double-digit growth in their offshore AUM last year, buoyed by market appreciation, with Singapore leading the pack with a 33.3% jump.

Cerulli said offshore funds in Taiwan, Hong Kong, and Singapore look set to continue their reign.

Regulators in Singapore and Hong Kong are working on guidelines for the new fund structures, but it is still too early to tell if these will dent the dominance of offshore funds.

‘Meanwhile, Ucits funds have not lost their shine. Asian managers looking beyond their home markets tend to see launching Ucits funds as a preferred strategy for expansion, while global managers would likely use this structure to expand their businesses in key Asian markets,’ the firm noted. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Asia Bangkok Retreat 2018: day one images

    Citywire Asia Bangkok Retreat 2018: day one images

  • Citywire Asia Bangkok Retreat 2018: day two images

    Citywire Asia Bangkok Retreat 2018: day two images

  • Citywire Asia Taipei Retreat 2017: day one images

    Citywire Asia Taipei Retreat 2017: day one images

  • Citywire Asia Taipei Retreat 2017: day two images

    Citywire Asia Taipei Retreat 2017: day two images

  • Citywire Asia Bangkok Retreat 2017: day one images

    Citywire Asia Bangkok Retreat 2017: day one images

  • Citywire Asia Bangkok Retreat 2017: day two images

    Citywire Asia Bangkok Retreat 2017: day two images

  • Images from Citywire Thailand Forum 2017

    Images from Citywire Thailand Forum 2017

  • Citywire Asia Awards 2017: images from Singapore

    Citywire Asia Awards 2017: images from Singapore

  • Citywire Asia Awards 2017: images from Hong Kong

    Citywire Asia Awards 2017: images from Hong Kong

  • Citywire Asia Retreat in Bangkok: day two images

    Citywire Asia Retreat in Bangkok: day two images

  • Bangkok buzz: day 1 images from our Asia Retreat

    Bangkok buzz: day 1 images from our Asia Retreat

  • Images from Citywire's Thailand Forum

    Images from Citywire's Thailand Forum

  • Pictures from Citywire's Hong Kong forum

    Pictures from Citywire's Hong Kong forum

  • Images from our Citywire Singapore Forum

    Images from our Citywire Singapore Forum