Investec Wealth & Investment (Investec Wealth), the wealth management unit of the Investec Group, has come up with a unique business model for wealth managers that combines the responsibilities of the customer relationship manager (CRM) and the investment manager into a single person.

 

This is a departure from the traditional business model of most wealth managers where the CRM and the investment manager are two different people with the CRM focusing on client-facing activities while the investment manager focuses on portfolio management.

 

“The average tenure for our colleagues is more than two decades. They are seasoned investment professionals. But in addition they have strong well-established relationships with their clients,” says Catherine Kirchmann, Hong Kong-based divisional director of Investec Wealth & Investment in an interview with The Asset.

 

Wealth businesses usually hire a client relations manager (CRM) to support portfolio managers who focus on managing investments. CRMs usually face the clients and communicate the clients’ requirements to the portfolio manager.

Investec Wealth, however, believes that both roles are best assumed by one manager.

Headquartered in London, the firm recently opened its first Asian office in Hong Kong. The group’s asset management unit has had a presence in the region since the 1990s.

Investec Wealth globally has about £44.6 billion in assets under management as of September 30 2015.

Investec Group acquired the wealth business in 2010 from Sheppard Scott Pelly that founded the firm in the UK in 1827. The wealth business expanded with the acquisition two years later of Williams de Broë, one of London’s oldest and most prestigious wealth management firms. Investec Wealth has 15 offices in the UK.

Investec Wealth chose Hong Kong as the base for its business in Asia because its parent company already has a presence in Hong Kong through its asset management and corporate banking units.

 

The firm’s expansion into Asia involves opening a unit in Hong Kong with a three-member investment team that will focus on servicing the requirements of two types of clients. These clients would be professional investors who are either affluent expatriates based in Hong Kong or high net worth Hong Kong Chinese residents.

 

In terms of products, Investec Wealth will focus on offering bespoke, discretionary and advisory investment services designed to meet the individual requirements of these types of clients.

 

“If you look at the affluent expatriate market, our bespoke approach to managing portfolios is very much suited to their cross border needs. An example would be a UK expatriate who aims to be based in Hong Kong for the next five to ten years and is looking for a growth portfolio that’s suited to their needs now,” Kirchmann says.

 

This individual, however, may decide to move back to the UK for retirement. Their investment requirements will change and they will require an investment solution that is flexible and can help them through the transition from Hong Kong back to the UK.

 

“We can design tailor-made portfolios that would be suitable for their changing investment needs,” Kirchmann says.