Bank of Singapore has collaborated with leading global fintech iCapital[1] to launch an alternative investment digital platform – FIM Alternatives Select – dedicated to the Bank’s financial intermediary partners that are also known as independent asset managers. This initiative helps Bank of Singapore’s ambition to grow its financial intermediaries, family office, and wealth advisory (FFWA) assets under management by 50% for the period of 2024 to 2026.
iCapital is a leading fintech firm that connects wealth managers and their advisors and clients to hedge funds, private equity firms and other alternative asset managers via its technology platform. As of September 2024, assets invested through iCapital’s platform have surpassed US$200 billion. The platform provides access to over 1,600 funds from over 600 asset managers. Leading global alternatives managers are among those who distribute their funds via iCapital’s platforms.
In Asia, asset managers and investment solution platforms, like iCapital, avail alternative investment solutions to financial intermediaries, ultra-high and high net worth individuals through private banks. By doing so, it allows them to benefit from the economies of scale in terms of reach and efficiency. Typically, private banks market two to six alternative funds annually.
For a start, close to 30 funds will be made available from asset managers such as KKR, The Caryle Group and Apollo via FIM Alternatives Select, with more funds to be added going forward. Bank of Singapore is the first private bank in Asia to avail a platform of this scale for financial intermediaries. These funds span across a broad spectrum of investment strategies, structures, sectors and geographies, allowing the Bank’s financial intermediary partners and their clients to better express their diverse investment views and requirements.
FIM Alternatives Select will also equip the Bank’s financial intermediary partners with due diligence reports and tools, provided by iCapital, to evaluate and access a carefully curated range of alternative investment opportunities via the digital platform. This empowers financial intermediaries to offer holistic recommendations and build diversified investment portfolios that include alternative assets across private equity, private credit, real assets and hedge funds to better meet their high and ultra-high net worth clients’ investment objectives. At the same time, the platform provides access to post-investment tools such as fund reports and performance updates for financial intermediaries to monitor their positions.
Interest in alternative investments is on the rise as investors look to diversify their portfolios, mitigate risk and deliver more consistent income and returns. According to private capital database provider Preqin, the global alternatives industry is poised to exceed US$30 trillion in assets under management by 2030, up from US$16.8 trillion at the end of 2023. Notably, Bank of Singapore has seen a strong momentum in alternative investments - as of September 2024, the financial intermediary segment recorded a close to 30% year-on-year growth in invested assets.
The financial intermediary segment is one of the fastest growing segments in Bank of Singapore. Assets under management for the Bank’s financial intermediary clients grew at a compounded annual growth rate of about 20% in the period of 2019 to 2023. FIM Alternatives Select is the latest in a concerted series of efforts to sharpen the Bank’s value proposition to this client segment.
Earlier this year, the Bank created a specialised unit to serve its financial intermediary partners. The unit, reporting to Head of Financial Intermediaries Ms Annabelle Chow (金融机构业务主管周颖洁), comprises relationship managers and investment specialists dedicated exclusively to this segment. Its headcount has grown by 30% since the start of the year. Products and solutions are specially tailored to this segment with technology being a key component.
Most recently, the Bank held its inaugural Global Financial Intermediaries Conference, bringing together its financial intermediary partners and other industry experts to discuss the future trends of global family wealth management, tax planning strategies and philanthropic investing.
Said Ms Vivienne Chia, Global Head, Investment Solutions Group, Bank of Singapore (谢慧彬投资方案部环球总监新加坡银行), “Geopolitical tensions are expected to continue and create more volatile market conditions. Investors need to be nimble in accessing the whole spectrum of solutions available, including alternative investments which can potentially diversify investment risks. With FIM Alternatives Select, we are making it easier for financial intermediaries to augment the strength of their client portfolios with alternative investment opportunities and achieve their wealth objectives.”
Mr Marco Bizzozero, Head of International, iCapital, said: “We are delighted to extend our collaboration with Bank of Singapore and support the adoption of alternative investments for their financial intermediaries’ clients with our innovative operating system and solutions. This underscores the growing importance of alternative investments for wealth managers as they increasingly make alternatives a key component of a diversified client portfolio, enhancing financial outcomes for their clients.”
Mr Kenny Ho, Managing Partner and Founder of Carret Private Capital (家瑞创始人兼管理合伙人何祖光), and a client of the Bank, said, “Bank of Singapore is clearly setting itself apart from its competitors by developing a focused and differentiated strategy just for independent asset managers like us. With FIM Alternatives Select, I now have easy access to a pipeline of global managers, investment opportunities and due diligence insights to better address the diverse investment views and requirements of my clients.”
[1] iCapital, Inc., and its affiliates (together, “iCapital”)
