THE definition of wealth has widened significantly in recent years and now also includes physical and mental wellbeing. Julius Baer has not only taken note but applied this development to better serve its focus client group, high-net-worth and ultra-high-net-worth, today and tomorrow.
Jimmy Lee, Member of the Executive Board, Julius Baer Group Ltd and Head Asia Pacific says: “Julius Baer firmly believes that wealth is no longer solely about financial health, freedom, and security, and there is a pressing priority to future-proof both body and mind. This extends to building better relationships with family and friends and creating a secure home environment.”
This view has also been confirmed in Julius Baer’s 2023 Global Wealth and Lifestyle Report. It revealed that people’s understanding of wealth has over time shifted past financial health and security, and now also encompass physical wellbeing, health and security.
Julius Baer is committed to reflect this change as it looks to the future and continues to concentrate on value creation for clients and sustainable profitability. For more than 130 years, Julius Baer has managed clients’ wealth and served them as trusted, personal and holistic advisors. Helping clients understand and shape the future in which they and their families will live, and enabling the new generations to thrive.
In times of complexity, such as the current ones, this clear vision of goals and values is of particular importance. Julius Baer’s crystal-clear focus on serving only HNWI and UHNWI clients also provides it with a clear advantage for stability and growth because it can focus solely on clients’ needs and be relevant to them by providing quality advice.
“By building talented teams, fostering long-term relationships with our clients and delivering sound wealth solutions using all the innovations at our fingertips, we remain at the leading edge of wealth management in Asia. Our clients are at the heart of everything we do,” says Lee before adding: “In all we do, we are inspired by our purpose: creating value beyond wealth.”
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Even with a focussed business model, the bank’s revenue sources are diversified and this generates resilience over economic cycles. The bank strives to achieve this through high-quality revenues and improved efficiency, by scaling its business in key growth markets through organic and inorganic growth, and commitment to innovate wealth management in Asia through digital advancements.
Nurturing intergenerational financial wellbeing
At Julius Baer, wealth planning is a core pillar of a successful wealth management strategy. Catering to both single-family offices and multi-family clients, the bank acts as a trusted provider, facilitating intergenerational wealth transfer and long-term preservation.
“We empower our clients through education, focusing on financial management, entrepreneurship, and sustainability,” Lee says.
“Our initiatives and programmes are tailored to equip the next generation of clients with the necessary skills to navigate cross-generational transitions and preserve their family legacies,” he adds.
From expert talks and workshops to university certificates, the bank empowers clients by providing education for the next generation in all areas of succession planning.
These include topics such as financial management, digital assets and ESG, all while maintaining the discipline of generating a financial return that creates a legacy for future generations.
In addition, the bank also provides discretionary mandate services, where an investment management team will be able to manage a client’s wealth on their behalf based on defined mandates.
These can range from globally diversified mandates, which allows for investments in all major asset classes to sustainability mandates.
The first-of-its-kind Wealth Planning Certificate Programme was also launched in 2023. Jointly issued with Cornell University, the programme coaches clients in the necessary skills to navigate cross-generational transitions.
The joint venture between Siam Commercial Bank and Julius Baer (SCB-Julius Baer) in Thailand also launched “The 45 Academia” to equip clients with the knowledge to pass on their wealth sustainably from generation to generation.
Other highlights include the Young Partners Elective Asia, physical workshops in Singapore and Hong Kong tailored for the younger generation of clients as a regional initiative, and an exclusive partnership with the Beijing Wealth Management Institute, which trains Chinese wealth management professionals on topics relating to wealth and succession planning.
Underlining their belief in a holistic approach to wealth management, Julius Baer also recognises the integral role that art and culture play in society and aims to support their advancement.
The NEXT initiative, a collaboration with forward-thinking artists and institutions, explores megatrends across the arts, science, and technology. Refik Anadol Studio was chosen for the first initiative, which saw the creation of a series of multisensory artworks based on a vast dataset of glacier images from around the world, symbolising both the wonder of life and the fragility of our planet.
Lee says: “We believe in the power of art to drive societal progress. Through this initiative, we foster collaboration, focusing on new forms of cultural production and encouraging exploration of the intersection between art, science, and technology.”
Julius Baer has also been proud to be a founding global partner of the world’s first fully electric street racing series - The ABB FIA Formula E World Championship.
The series, with its first race held in 2014, provides fertile ground for some of the world’s leading companies to develop and test sustainable solutions for mobility and energy production, and their wider applications as viable and sustainable alternatives.
A growing footprint in Asia
Julius Baer’s phenomenal growth in Asia over the past two decades is a testament to its ability to thrive in a competitive environment. As the largest pure-play bank in Asia, Julius Baer remains dedicated to expanding its presence in the region.
Lee says: “Thanks to our focus on a pure wealth management business model, Julius Baer is now number two among Swiss listed banks by market capitalisation, and the largest pure-play bank in Asia.”
“Our strategic focus on wealth management has propelled us to new heights, and we are committed to offering the highest standard of personal and professional financial services to our clients, solidifying our position in Asia as our second home market.”
Hong Kong, considered the main centre for North Asia, with its proximity to mainland China and the Greater Bay Area, attracts business from the wider region.
In April 2023, the Group announced the opening of its new office at Two Taikoo Place, bringing together all Hong Kong employees in a single location, further demonstrating commitment to the region.
Julius Baer’s digital innovation is a crucial component of enhancing the wealth management experience for clients. Singapore plays a pivotal role in the bank’s digital transformation as a key banking hub and a centre of technology and innovation. Singapore is also Julius Baer’s second largest location globally.
Singapore Branch Manager, Greater China (Singapore) Location Head and Group Head Yee Kim Tan says, “Julius Baer is committed to growing our Singapore office, and with our clients at the centre of everything we do, we aim to deliver unparalleled service and best-in-class solutions to them.”
Julius Baer’s Marina One office houses their first innovation lab, Launchpad, dedicated to pioneering and transforming the future of banking with advanced technology.
“Accelerated investments in human advice and technology have revolutionised how Julius Baer creates value for and interacts with clients,” says Chin Lit Yee, South-east Asia Head.
“Our continuous innovation ensures that clients can achieve their financial goals while benefitting from a seamless and personalised wealth management experience,” he says.
With an ambitious five-year transformation plan for India, Julius Baer aims to expand from seven cities to over 10 and significantly invest in its talent pool to meet a new strategy of capturing growth beyond tier 1 cities, with new offices in New Delhi opening in July and in Mumbai later this year.
Further growth has been driven at joint venture entities such as SCB-Julius Baer in Thailand and Julius Baer Nomura Wealth Management in Japan, supporting local clients with their international wealth management needs.
Julius Baer’s unique approach to wealth management revolves around nurturing financial well-being.
By embracing the changing definition of wealth, Julius Baer remains at the forefront of growth in the Asia Pacific region, solidifying its presence here, empowering families through education and intergenerational wealth transfer, supporting art and cultural exploration, and driving digital innovation to enhance the wealth management experience.
Why clients should consider discretionary mandates
Discretionary mandates are a key trend in wealth management and Bhaskar Laxminarayan, Chief Investment Officer and Head Investment Management Asia Pacific, says: “Bringing more clients into the mandate type that is ‘right’ for them, our discretionary mandate offering is all about our clients’ individual needs, financial objectives and tolerance for risk, which sets the guidelines in designing their overall portfolio.”
The bank positions delegated solutions to complement market-leading advisory offerings and is aiming to have discretionary mandate penetration at 25 per cent of assets under management by the end of 2025.
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