Schroders Wealth Management is looking to expand in Asia through discretionary portfolio management, access to alternative investments and steady recruitment. For Peter Flavel, Chair of Schroder & Co (Asia) Limited, the opportunity rests on bringing more of the group’s investment expertise to private clients as demand for diversified portfolios develops among the region’s wealthiest families.
He believes the breadth of that expertise is not always fully recognised. Alongside its global and UK investment capabilities, Schroders has an established asset management presence across Asian markets, which Flavel sees as a resource for the wealth business. The combination with Nuveen adds further strength in alternatives.
The immediate priority is to bring together the regional team under Evonne Tan, CEO of Schroders Wealth Management, Asia. Flavel’s approach to expansion is measured, with an emphasis on quality hires who share the firm’s culture and values.
Key Takeaways
- Investment expertise underpins the proposition: Schroders’ discretionary portfolios draw on global and UK capabilities alongside strategies focused on Asia.
- Alternatives support the offering: Flavel sees a growing role for alternative investments, with Nuveen strengthening the group’s capabilities.
- Client preferences are evolving: Among ultra-high-net-worth families and the next generation, he sees greater understanding of portfolio construction and diversification.
- Expansion will be steady: Building the team under Evonne Tan and recruiting people aligned with Schroders’ culture are the near-term priorities.
Bringing Investment Expertise to Private Clients
Flavel places discretionary portfolio management at the centre of Schroders’ competitive proposition in Asia. He describes an extensive platform that uses longstanding global and UK models and expertise, with portfolios managed and booked locally. The range includes both global portfolios and those with a specific Asian focus.
He also points to the investment knowledge available across the wider group. Schroders’ asset management presence in Asia Pacific spans markets including Australia, Hong Kong, Japan, Mainland China, Singapore, South Korea and Taiwan. In his view, the expertise supporting institutional investors can also serve wealthy individuals and families.
The UK heritage of Schroders and Cazenove Capital forms another part of that proposition. Flavel describes them as “outstanding brands”, while emphasising the investment capabilities behind those names across Europe, Asia and global markets.
Alternative investments complement the discretionary offering. Flavel sees their role growing within client portfolios and believes the deal with Nuveen strengthens the capabilities available to the business.
Responding to Changing Client Preferences
Asia’s preference for transactional investing remains evident, particularly among self-directed high-net-worth clients. Flavel nevertheless cautions against treating that preference as representative of the entire market. He sees a different appetite emerging at higher levels of wealth and among younger family members.
Some of those next-generation clients have been educated overseas and understand portfolio construction and the need for proper diversification. That creates a role for discretionary management within the wider financial arrangements of an ultra-high-net-worth family.
For Flavel, the appeal depends on the investment expertise and returns a manager can deliver. He sees discretionary portfolios playing an important part alongside alternatives as families consider how their wealth should be invested.
Building the Team for Steady Growth
Over the next twelve months, Flavel’s main priority is to assemble the team under Tan, building on the appointments already being made. The business has an existing client coverage team, which he expects to expand progressively as Schroders Wealth Management grows across Asia.
Recruitment will focus on quality and cultural alignment. Flavel acknowledges the competition for business in the region but believes there is sufficient opportunity for Schroders Wealth Management and its peers. “There’s more than enough room for lots of players to grow in Asia,” he says.
That confidence comes with a deliberate pace of expansion. “We’ll be growing steadily,” he says, with the team’s development providing the basis for the regional business to grow.
