Asian-based private banking clients are well aware they can no longer hope for consistent double-digit annual investment returns, an industry executive says.
'Clients today ought to be satisfied with 5 to 6 per cent return. That is a very decent return,' says Urs Brutsch, managing director of ABN Amro Private Banking.
With equity markets performing poorly, investors had been attracted into fixed-income investments, but increasingly they were turning to alternative investment strategies, notably hedge funds, Mr Brutsch says.
'People are looking for an investment where the return is not dependent on an underlying market rising, although they are not yet familiar with the concept.'
There is no doubt much of the financial and economic news in the region has been bad, but the private banking market in Asia remains lively, Mr Brutsch says.
'There is good news and bad news - the bad news is the pace of growth in assets of the private bank has certainly slowed down.