Legacy planning plays an important role in ensuring that one’s wealth is optimally bequeathed to their loved ones or next of kin. (Photo: Getty Images)

The concept of wealth varies from one person to another. For some it could mean being asset-rich, while others may deem it as having the financial freedom to pursue their dreams. For CGS-CIMB Private Wealth, it is the ability to meet one’s financial obligations: To sustain a desired lifestyle, to care for loved ones, or to help others live out meaningful lives. 

The number of wealthy individuals in Singapore is rising. A 2021 report by Statista reveals there are more than 244,000 millionaires in Singapore, and that number is projected to increase to almost 388,000 by 2025.

According to the Henley Global Citizens Report, Singapore is Asia’s top wealth management centre and is projected to attract many more affluent individuals to the country. The asset management industry in Singapore grew to a record size last year, with total assets under management (AUM) rising 16 per cent year-on-year to S$5.4 trillion, according to a survey by the Monetary Authority of Singapore. 

The Lion City continues to serve as a global gateway for asset managers and investors to tap into the region’s growth opportunities, with 78 per cent of AUM originating from outside Singapore and 90 per cent of total AUM invested into assets overseas.

High net-worth individuals (HNWIs) choose Singapore for its sound financial regulation, strong rule of law, as well as political and economic stability.

To meet the rising demand in wealth management, the private wealth arm of CGS-CIMB Securities was created three years ago to cater to HNWIs and accredited investors. 

“Many of our clients have been with the firm for a long time and are HNWIs, hence we saw the opportunity to pivot and create a one-stop platform to service them efficiently,” says Edmund Choy, head of investments, products and solutions of CGS-CIMB Securities Singapore.

“The Covid-19 pandemic was a once-in-a-generation event that undoubtedly created more awareness on wealth preservation and intergenerational wealth transition, especially considering the damage it caused to human lives, investment portfolios and the global economy – all within a relatively short period of time,” Choy adds.

A different approach to wealth management

CGS-CIMB Private Wealth approaches wealth management and preservation in a holistic manner which includes looking at factors such as desired lifestyles, values and priorities, to help HNWIs achieve their short- and long-term goals, taking into consideration the individuals’ risk appetites and financial needs.

On top of equities and bonds, Private Wealth’s clients are able to invest through a discretionary portfolio management (DPM) service, as well as access traditional mutual funds, alternative investments, structured products and variable universal life policies amongst other offerings.   

An essential part of wealth management is legacy planning, which plays an important role in ensuring a client’s wealth is optimally bequeathed to their loved ones or next of kin. Without proper planning, clients’ assets can be severely eroded by different countries’ jurisdictions on wealth transition and delay the distribution of wealth unnecessarily.

The private wealth management arm aims to offer a comprehensive product suite beyond what a traditional securities house can provide. It offers solutions such as trust and estate planning and will writing services that can be customised to fit clients’ needs and goals.

Formed as a joint venture between China Galaxy Securities and CIMB Group in 2005, the CGS-CIMB Securities is one of the leading integrated financial services groups in Asia. The brokerage was awarded “Best Boutique Prime Broker – Innovation” at the HFM Asian Services Awards 2022 in  December 2022. The With Intelligence HFM Awards recognises hedge fund service providers who have demonstrated outstanding customer service, innovation, and strong business growth over the past 12 months.

In partnership with CGS-CIMB.