Private Banks and Alternative Assets: DBS Reports 300% Surge in Semi-Liquid Fund Sales in Greater China

DBS Group's Impressive Growth in Fund Sales

DBS Group, Southeast Asia’s largest banking entity, has reported an astonishing 300% increase in the sale of its semi-liquid fund products aimed at Greater China investors this year. Carol Wu, head of private banking in North Asia, noted that this surge in demand aligns with investors' increasing preference for alternative assets and their desire for more flexibility in asset liquidation.

The Rise of Semi-Liquid Funds

These semi-liquid funds, which are partially based on private assets, offer more frequent redemption options compared to traditional close-ended funds. This allows DBS to introduce professional investors to products that were once confined to institutional players.

• Major Contributors: The funds are managed by renowned asset managers, including Apollo Global Management, KKR, and Brookfield Asset Management.
• Investor Preferences: A notable trend is the shift among DBS's private bank clients who prefer semi-liquid products accessible on a quarterly basis.

Global Market Dynamics

As of the end of 2023, global semi-liquid funds have reached a record USD 350 billion in assets. According to data from Preqin, there’s a significant transition, with Chinese clients moving away from equity-focused investments towards increased allocations in US and European markets.

DBS's move to bolster its private banking division, especially in Hong Kong, aims to attract wealth from mainland China, Taiwan, and other North Asian clients. The bank has now overtaken Credit Suisse to become the third-largest private bank in Asia, excluding onshore China, boasting assets under management totaling approximately USD 201 billion.