Private banking CEO roundtable: What about higher-returning investment strategies for clients?
Private banking CEO roundtable participants
PdW, Deutsche We are cautious about hedge funds as they are impacted when the markets have become politically driven. Conversely, small mid-cap private equity funds have seen an increase in demand. They have provided investors with some shield against volatility.
TK, Barclays The choice for clients is still between return and liquidity. Most of our aggressive investors are in private equity. There are opportunities in real estate: some clients like trophy investments; others are looking for long-term commercial assets in the major cities in markets like New York, London and Hong Kong.
JF, Citi Most clients that want to take risk are doing so in their companies. European banks will start offloading assets and that will be a tremendous opportunity for some clients. There are also some mega trends around demographics, scarce resources and growth in consumption in emerging market cities, such as luxury brands in Asia.
GL, RBC We would advise a more aggressive allocation to equities with some structured products.
|”Clients are reducing their expectations in terms of growth and returns, and looking to asset value protection"
Sofia Merlo, BNP Paribas
SM, BNP Paribas Investments for those clients would be in high-yield corporate bonds, select emerging market equities, hedge funds and prime real estate.