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Top Independent Asset Managers 2023
n the GCC, the independent asset managers (IAMs) space is growing at pace, supported by the expansion of high-net-worth private wealth
Paromita Dey Deputy editor, Citywire Middle East
I
Introduction
The inaugural Top Independent Asset Managers publication surveys the state of the increasingly dynamic independent asset management market in the region.
The trendsetters
through or moving to the region. Post-pandemic, the numbers have kept increasing as the sector shows potential in a market traditionally dominated by private banks. In this publication, 23 IAMs in the region talk about the regulatory conditions for setting up shop, the challenges they face, and the opportunities they encounter in the ever-evolving space. It is evident from their comments that to survive in the cut-throat competition, IAMs must charter a differentiation strategy to stay ahead in the game. They must align their goals with their clients and focus on quality and trustworthiness. The replies indicate that the regulators have been doing a good job in the past years to support IAMs. For example, the new DIFC family arrangement regulations proposed to provide a regulatory framework and hub for global and regional family-owned businesses, ultra-high net worth individuals and private wealth, and further differentiate Dubai and the DIFC as a global hub for leading financial institutions and businesses. However, some mentioned that the time to set up a new IAM could be reduced. One aspect that emerged from the replies is the lack of talent in the industry. The regional financial industry has a limited supply of qualified professionals, which makes it difficult for IAMs to source suitable talent. In short, there is plenty to look forward to. Welcome to the world of independents.
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The data
Welcome
Profiles
Prashant Tandon - Lighthouse Canton › Shivkumar Rohira - Klay Capital Ltd › Taimur Satii - Plurimi › Rana Besada - MSM DIFC › Bhavnesh Thakkar - Taurus Wealth › Geoff Dover - Heirloom Investment Management › Eric Swats - Rasmala Investment Bank Ltd › Bernard Bonvin - Probus Midddle East Ltd › Naser Nabulsi - Al Mal Capital › Alain Amin Raad - ADS Investment Solutions Ltd › Mohammad Danish - Branford Capital Ltd › Anuj Goel - Century Private Wealth Ltd ›
Rohit Nanani - Arrow Capital (DIFC) Ltd › Anmol Budhraja - Three Comma Capital Advisors Ltd › Harsha Vardhana - InCred Global Wealth Ltd › Kunal Chawla - FinMark Capital Ltd › Madhavan Sivashankar - Gulf International Finance Ltd › Tommaso Leodari - Index & Cie Ltd › Kunal Kapoor - Bluegold Capital Asset Management Ltd › Shanti Kaliappan - Moonrock Investments Ltd › Pratap Choubal - Pearl Advisory Asset Management Ltd › Sajjad Habib - Habib Investment Ltd › Mina Sedhom - Fidele Capital Ltd › Puneet Narula - SH Capital Ltd ›
Prashant Tandon - Lighthouse Canton › Taimur Satii - Plurimi Wealth Dubai Limited › Rana Besada - MSM DIFC › Bhavnesh Thakkar - Taurus Wealth › Geoff Dover - Heirloom Investment Management › Eric Swats - Rasmala Investment Bank Ltd › Bernard Bonvin - Probus Midddle East Ltd › Naser Nabulsi - Al Mal Capital › Alain Amin Raad - ADS Investment Solutions Ltd › Mohammad Danish - Branford Capital Ltd › Anuj Goel - Century Private Wealth Ltd ›
When were the firms founded? With the exception of Rasmala, which was founded in 1999, profiled firms have been around for an average of five years. How many employees form their teams? Firms had an average of 25.1 employees. What is the total AUM as of 31 December 2022? Based on the data from the profiled firms, there is a dearth of medium-sized IAMs in the region. What is your current asset allocation? What does your current portfolio structure look like? What proportion of assets is allocated to third-party products?
The IAM market in the region is a land of opportunity. Can the independents, whether new or the incumbent, adopt the correct market techniques to command more market share in the region and attract the right clients? Our data below gives a snapshot of the past, present and future of the IAM space in the region.
Key observations and findings
2001 – 2005 = 4.16%
2006 – 2010 = 4.16%
2011 – 2015 = 25%
2016 – 2020 = 41.6%
2021 – Present = 20.83%
1 to 10 = 29.1%
11 to 20 = 37.5%
21 to 30 = 8.3%
31 to 40 = 8.3%
41+ = 16.6%
Q&A
Prashant Tandon - Lighthouse Canton › Taimur Satii - Plurimi › Rana Besada - MSM DIFC › Bhavnesh Thakkar - Taurus Wealth › Geoff Dover - Heirloom Investment Management › Eric Swats - Rasmala Investment Bank Ltd › Bernard Bonvin - Probus Midddle East Ltd › Naser Nabulsi - Al Mal Capital › Alain Amin Raad - ADS Investment Solutions Ltd › Mohammad Danish - Branford Capital Ltd › Anuj Goel - Century Private Wealth Ltd ›
MD & CEO UAE Lighthouse Canton
Prashant Tandon
What is your investment philosophy? Our strategy allocation, data-backed research, focus on capital preservation and risk-adjusted returns set us apart. We take a dynamic approach when allocating across various strategies depending on valuations (ie, long-term opportunities) and correlations. As such we see ourselves as asset class agnostic and take a multi-asset coverage with no inherent biases. We are independent thinkers and conduct our own fundamental research. Our portfolios benefit from the higher allocation to unique, well researched, diversified strategies uncorrelated to markets. The majority of these have given positive returns even in stressed market conditions providing stability to the portfolio. Our focuses are on capital preservation and generating strong risk-adjusted returns. Even for a client who has higher return expectations and is willing to risk more, capital preservation is paramount to stay in the game over the long term. We implement disciplined and rigorous risk assessment & management processes and place a strong emphasis on balancing the risks to achieve targeted returns. We ensure that volatility and drawdowns are agreed with clients prior to portfolio construction. This unique investment philosophy and portfolio construction framework helped our clients minimise their downside and protect capital through 2022’s turbulence. What are the drivers behind the growing demand for IAMs in the region? There is an increasing divergence in the client experience and portfolio performances as they work on their own via their own brokers or private banks as compared to when they are serviced by an IAM. We see a shift from execution driven client engagements to a much deeper value driven and close relationship approach. This approach consists of providing holistic advice and better alignment of interests to clients. Clients seek less transaction led, isolated relationships and value more personal and aligned services. They also seek a broader range of products beyond the public market space. Are the local regulatory conditions conducive for setting up an IAM? We see that a trend is clear, and the winds of change are becoming more favourable to the IAM ecosystem. There have been recent regulations aimed to give the IAM ecosystem a push. For example, the new DIFC family arrangement regulations that have been proposed to provide a regulatory framework and hub for global and regional family-owned businesses, ultra-high-net-worth individuals and private wealth, and further differentiate Dubai and the DIFC as a global hub for leading financial institutions and businesses. Covid also helped to act as a catalyst and the region's authorities took the initiative to capture the opportunity at hand. We see these moves as clear commitments by the rulers to encourage both local and international business and economic development in the UAE, making it a more attractive financial centre for investors. What are the challenges for IAMs in the region? Talent in this industry is scarce. Exceptional talent that understands the need to align with their client interests, who are entrepreneurial enough to carve their own path in this industry and who are tech-savvy, innovative and see beyond traditional investment solutions. That is what is missing. Globalisation is another challenge. Ever-evolving landscapes and increased regulatory complexities mean each of our clients faces unique circumstances and no one size can fit all. Being able to keep up with these changes and complexities is one thing; being able to provide innovative solutions that both meet and exceed client expectations is another. With that is the other challenge of explaining to clients how an IAM/MFO is different from just your traditional wealth management or private banking service. In the Middle East and UAE, there is a relatively low acceptance rate, and it is still a nascent industry. Here the challenge is twofold. One is that many call themselves wealth managers or advisers. Small players may not have a robust enough infrastructure to scale or serve their clients in an adequately regulated manner. Some may not sustain and hence collapse or sell into the bigger ones. Secondly, there is a huge wealth transfer waiting to happen and not enough understanding of the structures, tools, and cross-border considerations to ensure that wealth is transferred properly and safely across generations. Clients require further education on the differentiation and the ways to properly protect and grow their personal and business legacies.
Head of Advisory EMEA Klay Capital Limited
Shivkumar Rohira
What is your investment philosophy? Our investment framework is based on the fundamental understanding that long-term consistent portfolio returns are driven by asset allocation and disciplined diversification. At Klay, we have built a 20-person in-house investment team that is asset specific. With access to over 5,000 analysts globally, the team employs a rigorous due diligence process to build globally diversified risk-adjusted portfolios across fixed income, equities, and alternatives. All our portfolios are built around three pillars of returns, including beta exposure through global indices, diversified alpha exposure to the best managers globally across asset classes through superior manager selection, and alpha through in-house fundamental security research conducted by our asset class teams. What are the drivers behind the growing demand for IAMs in the region? Over recent years, the region has seen significant growth in the high- and ultra-high-net-worth segments and has become a primary or, in some cases, secondary home for wealthy expats. This has increased the demand for wealth advisory and management services. As has already happened in other markets, there has been a growth in the IAM space to meet the growing needs of families who have increasingly become aware of transaction-led or product-pushing practices, conflicts of interest, and placing more value on advice rather than just products, leading to a gradual loss of trust in traditional wealth management relationships. Clients now value independent client-centric advice, trusted client advisers, and stability and continuity in their wealth management relationships as a natural corollary. Yet many clients prefer to maintain the status quo. In our experience, this is because clients seek the peace of mind of having their assets in the safe custody of a brand they trust. IAMs provide a credible alternative to traditional wealth management relationships, offering independent, personalised, client-centric investment advice and the peace of mind of holding assets in the safe custody of a trusted brand – a genuine best of both worlds. At the same time, the Middle East continues to show solid growth of HNWI, financial institutions, and corporations, both in terms of population and wealth, which is driving increasing demand for IAMs in the region. To meet this growing demand, Klay is looking to hire over 100 advisers globally over the next few years to manage its clients. What services do you value the most from an intermediary bank? First, we look for intermediary banks that are subject to a strong regulatory framework and have financial soundness and credibility. We then look for their capabilities in terms of access to global markets and products, research capabilities, state-of-the-art execution, and investment platform. Finally, we look for competitive pricing and robust client support. What are the challenges for IAMs in the region? IAMs have low entry barriers making it easy to start one. Their main challenge is building a business with the scale, expertise, and platform to handle the complex needs of UHNW families and family offices. Initially, most IAMs rely on their custodian bank brand to promote their services. However, the same low entry barriers and lack of an independent value proposition make smaller IAMs extremely vulnerable to replacement. To succeed in the long term, strong IAMs must differentiate themselves from their custodian banks, develop competitive advantages and provide a clear independent value proposition to their clients while attracting and retaining talent, building and retaining culture and values, and strategic investments where it counts. For this, they must invest continuously in technology, infrastructure, and people over the long term.
What is your investment philosophy? Our investment framework is based on the fundamental understanding that long-term consistent portfolio returns are driven by asset allocation and disciplined diversification. At Klay, we have built a 20-person in-house investment team that is asset specific. With access to over 5,000 analysts globally, the team employs a rigorous due diligence process to build globally diversified risk-adjusted portfolios across fixed income, equities, and alternatives. All our portfolios are built around three pillars of returns, including beta exposure through global indices, diversified alpha exposure to the best managers globally across asset classes through superior manager selection, and alpha through in-house fundamental security research conducted by our individual asset class teams. What are the drivers behind the growing demand for IAMs in the region? Over the last few years, the region has seen significant growth in the HNW & UHNW segment and has become a primary, or in some cases, secondary home for many wealthy expats. This has resulted in an increase in demand for wealth advisory and management services. As has already happened in other markets, there has been a growth in the IAM space to meet the growing needs of families who have increasingly become aware of transaction-led or product-pushing practices, conflicts of interest, and placing more value on advice rather than just products, leading to a gradual loss of trust in traditional wealth management relationships. Clients now value independent client-centric advice, trusted client advisors, and stability and continuity in their wealth management relationships as a natural corollary. Yet, many clients prefer to maintain the status quo! In our experience, this is because clients seek the peace of mind of having their assets in the safe custody of a brand they trust. IAMs provide a credible alternative to traditional wealth management relationships, offering truly independent, highly personalized, client-centric investment advice and the peace of mind of holding assets in the safe custody of a trusted brand - a genuine best of both worlds. At the same time, the Middle East continues to show solid growth of HNWI, financial institutions, and corporations, both in terms of population and wealth, which is driving increasing demand for IAMs in the region. To meet this growing demand for delivering quality advisory, Klay is looking to hire over 100 advisors globally over the next few years to manage its clients. What services do you value the most from an intermediary bank? First and foremost, we look for intermediary banks which are subject to a strong regulatory framework and have financial soundness and credibility. We then look for their capabilities in terms of access to global markets and products, research capabilities, state-of-the-art execution, and investment platform. Finally, we look for competitive pricing and robust client support. What are the challenges for IAMs in the region? IAMs have low entry barriers making it easy to start one. Their main challenge is building a business with the scale, expertise, and platform to handle the complex needs of UHNW families and family offices. Initially, most IAMs rely on their custodian bank brand to promote their services. However, the same low entry barriers and lack of an independent value proposition make smaller IAMs extremely vulnerable to replacement. To succeed in the long term, strong IAMs need to differentiate themselves from their custodian banks, develop competitive advantages and provide a clear independent value proposition to their clients while attracting and retaining talent, building and retaining culture and values, and strategic investments where it counts. For this, they need to invest continuously in technology, infrastructure, and people over the long term.
Prashant Tandon - Lighthouse Canton › Shivkumar Rohira - Klay Capital Ltd › Taimur Satii - Plurimi Wealth Dubai Limited › Rana Besada - MSM DIFC › Bhavnesh Thakkar - Taurus Wealth › Geoff Dover - Heirloom Investment Management › Eric Swats - Rasmala Investment Bank Ltd › Bernard Bonvin - Probus Midddle East Ltd › Naser Nabulsi - Al Mal Capital › Alain Amin Raad - ADS Investment Solutions Ltd › Mohammad Danish - Branford Capital Ltd › Anuj Goel - Century Private Wealth Ltd ›
Senior Executive Officer Plurimi Wealth Dubai Limited
Taimur Satti
What is your investment philosophy? We find solutions for our clients having the flexibility and choice of an array of institutions. We aim to simplify the client experience and act as a gate to all their investment needs. Our scale and experience allow our clients to benefit from our ecosystem and networks. Being present in Dubai, London and Monaco, we help in designing optimal solutions based on the client’s needs, not just at one bank but often harnessing the capabilities across several institutions. What are the drivers behind the growing demand for IAMs in the region? Clients are looking for flexibility in terms of product offering, pricing, and access to multiple custodians in different jurisdictions through a single platform. In the region, clients are dealing with both local and international banks and IAMs are consolidating their global investment requirements under one roof. The IAMs are not biased about a specific bank in terms of product offerings which makes the client very comfortable having an unbiased approach. Are the local regulatory conditions conducive for setting up an IAM? The UAE has a very favourable regulatory environment with several free zones and incentives to encourage foreign investment. Plurimi’s Dubai office is in the DIFC and was very well supported by the DFSA and DIFC during the licensing process. The regulations and laws are familiar to international businesses and the processes are streamlined to make it easier for firms like Plurimi to set up offices in the country. What services do you value the most from an intermediary bank? We look for the safety and stability of the bank. Since Plurimi deals with 21 private banks and nine investments banks, we have a lot of flexibility in terms of platforms. One of the most important aspects is that the client must be comfortable with the intermediary bank and their services after onboarding the client. Hence, we offer the clients the option to choose the intermediary banks depending on the jurisdiction, their needs and the banks’ flexibility. What are the challenges for IAMs in the region? I believe the main challenge in the region is the mindset of the clients. Most of the clients are not familiar with an IAM model and they prefer to deal with the big banks in the region. What is your favourite spot for a business meeting? DIFC.
Senior Investment Advisor MSM DIFC
Rana Besada
What is your investment philosophy? Our underlying investment philosophy focuses on the use of macroeconomic views to drive our allocation process; make direct investments in markets where we have expertise; allocate to third-party managers who invest in special themes; and use technical indicators to drive our tactical portfolio investments. What are the drivers behind the growing demand for IAMs in the region? The demand for independent asset management services is driven by several factors, including increasing wealth, a favourable regulatory environment, tax advantages, access to global markets, and the use of technology. IAMs provide unbiased financial advice tailored to the individual's financial goals and objectives. They do not receive commission or other compensation for recommending a particular product or service. This ensures their advice is impartial and in the client’s best interest. Are the local regulatory conditions conducive for setting up an IAM? Yes. The DIFC offers a range of incentives and benefits, including a tax-free environment, a secure and regulated legal framework, and access to a wide range of financial services. Additionally, it has a dedicated regulatory authority that ensures that all businesses operating within it comply with the highest standards of corporate governance and financial regulation. What services do you value the most from an intermediary bank? When looking for an intermediary bank, it is important to consider the bank's reputation, fees, and platform. The ease of opening accounts and the bank’s ability in providing sophisticated products that match with our ultra-high-net-worth individuals. Execution speed is critical for banks to remain competitive in the global market, while investment platforms enable customers to diversify their portfolios and maximise their returns. Competitive pricing helps customers to obtain the best value for their money, while other sophisticated products such as trust formation, philanthropy, and derivatives provide additional options for customers to manage their wealth. What are the challenges for IAMs in the region? The main challenges for IAMs include staying competitive in a crowded market, managing risk, and staying up to date with the latest regulations and technology. Additionally, IAMs must be able to attract and retain clients, and build a strong reputation in the industry. They must also be able to develop and maintain relationships with other financial institutions, such as banks and brokers, to access the necessary resources to manage their clients’ assets. Finally, IAMs must be able to effectively market their services and differentiate themselves from competitors. What movie/series would you recommend on Netflix? The Chosen.
Senior Executive Officer Plurimi
CEO Taurus Wealth Advisors Limited
Bhavnesh Thakkar
What is your investment philosophy? Our investment philosophy is centred around thorough research, disciplined risk management and a long-term approach to wealth creation. We believe in taking a prudent and strategic approach to investing, based on a deep understanding of market dynamics, macroeconomic factors and individual company analysis. What sets us apart from others is our client-centric approach. We prioritise building long-term relationships with our clients based on trust, transparency and open communication. We foster a collaborative and inclusive culture that encourages creativity, critical thinking, and continuous learning. Our team’s depth of knowledge and skill allows us to effectively manage investments and deliver strong performance for our clients. Overall, our organisation’s investment philosophy is characterised by a forward-thinking and adaptive approach, a client-centric mindset, and a team of skilled professionals. What are the drivers behind the growing demand for IAMs in the region? A key driver is increasing awareness from high-net-worth families of the need to have their wealth serviced more holistically. Going beyond investment management, this entails the servicing of broader wealth needs, including optimal structuring of holdings, preparations for intergenerational transfer of wealth, private and strategic investment portfolios, management of collectables including art, availing suitable options of residency and citizenship programs, and optimising insurance coverage to assure continuity of family businesses, guiding philanthropic and sustainability goals. IAMs that are oriented to building and leveraging the right service partnerships and are positioned to add value in the coordination and execution of relevant mandates can assure clients of a more holistic value proposition straddling all relevant nodes of a typical HNW family’s needs. As in the West, underlying this trend is an increasing acceptance that a fee-based service model (where the service provider is on the client’s payroll) is inherently free of conflict of interest and unbiased relative to models that are compensated by trades and products. Increasing attractiveness of the region in general in attracting expat HNW families as viable residency options have become widely available and increasingly relevant to a global audience in the post-pandemic phase. The higher prevalence of an independent and professional wealth servicing framework for rich immigrants makes them more amenable to adopting IAM support as they move to the region. IAM models inherently lend themselves better to an open architecture approach (typically, with less reliance on homegrown products) as opposed to banks that are compelled to have an organisational orientation when it comes to the universe of products and ideas being shown by them. Clients are increasingly recognising the IAM’s ability to better source and coordinate ‘best-in-breed’ offerings by actively sourcing the same from third-party sources. The emergence of jurisdictions and legal frameworks that are at par with those of leading international financial centres, such as that of the DIFC. Are the local regulatory conditions conducive for setting up an IAM? Having originally commenced operations in Singapore under the regulatory purview of the Monetary Authority of Singapore, before establishing a presence in the Middle East, the firm diligently reviewed the available options. Having identified the DIFC as a jurisdiction conducive to business growth and providing sufficient assurance to clients of a robust supervisory and licensing framework, Taurus Wealth Dubai was set up in the DIFC in 2016. As we grow our presence here, we have found our initial assumptions to be fully corroborated by the conduciveness of the jurisdiction to our business model and service approach and its well-founded acceptance in the international investor community. What are the challenges for IAMs in the region? IAMs face several challenges in today's complex and dynamic investment landscape. Some of the key challenges include talent sourcing and retention, the transition of mindset from private banking to a multifamily office orientation, connectivity with the universe of bank partners and consolidation of information, managing a business framework and culture that empowers team members to partner and harness best practices and differential expertise across the firm, calibrating a remuneration and incentive model that prioritises the interests of clients while also balancing and aligning those of the client coverage personnel, and harnessing a collaborative culture between the client coverage and support and governance team members. Aligning it overall to keep the clients at the centre of delivery whilst also keeping regulatory and licensing requirements at the forefront of all engagement and delivery and strategically ensuring that we remain relevant for the succeeding generations to our current clientele. What is your favourite sport? Cricket.
Chief Investment Officer Heirloom Investment Management
Geoff Dover
What is your investment philosophy? We are thematic investors. Rather than allocating to asset classes, we build portfolios around themes that capture long-term trends and dislocations. What are the drivers behind the growing demand for IAMs in the region? Increasing sophistication among family offices is the main driver. IAMs can take better advantage of the advantages that family offices have by being nimbler and able to think on a longer-term horizon than private banks can. Are the local regulatory conditions conducive for setting up an IAM? Not at all. However, they are starting to improve. The biggest issue is consistency across the region. There are simply too many regulators and variations on rules for such a small region. What services do you value the most from an intermediary bank? Reliability is certainly of top importance. Openness to underlying investments is next. We do a lot ‘off book’. Customisation of reporting is also important. What are the challenges for IAMs in the region? The lack of a brand is one of the main challenges. With most clients having relatively low investment sophistication, they find it hard to judge who is good and who is not. So, they rely on brand, or (worse) pure personal relationships. What is your favourite sport? Padel.
CEO Rasmala Investment Bank Limited
Eric Swats
What is your investment philosophy? We adopt a thematic investment approach that is fundamentally geared, and research driven to exploit the mispricing of assets and capitalise on market inefficiencies across multiple asset classes. Our multi-asset platform is led by investment professionals divided into teams each focusing on an asset class. The extensive research conducted by the investment teams allows us to identify attractive investment themes and trends. The company’s in-house structuring capabilities are key differentiating factor that enables us to provide the right products and/or investment solutions that satisfy the risk/return objectives of its clients. Our strategy focuses on providing Shariah-compliant alternative investments in real assets to help regional clients deploy capital away from the region (outbound). Therefore, our offering is characterised as low volatility and income generating. What are the drivers behind the growing demand for IAMs in the region? Continuous growth of capital in the GCC that seeks investment/deployment opportunities, and the desperate need for innovative products and structures that enable investors to build a globally diversified multi-asset portfolio. Moreover, facilitating access to real assets such as digital infrastructure through best-in-class investment professionals, presented through legally sound vehicles utilising the most efficient tax structures. The lack of Shariah-compliant products focusing on alternative investments in international markets; the increasing need of deploying capital within the region away from traditional asset classes such as listed equities, fixed income, sukuk and money market instruments; the dearth of professional and independent investment advice; and the excessive level of fees charged by intermediaries coupled with a lack of transparency. What services do you value the most from an intermediary bank? We look for counterparties that believe in establishing a long-term relationship that grows over time. Obviously, timely response, accurate reporting, and the ability to lend against our positions or portfolios are key factors. What are the challenges for IAMs in the region? The availability of anchor investors that are willing to provide the seed capital; high cost of operating a business, especially fixed costs such as license fees, rents, utilities, etc.; an overly regulated environment that hinders creativity and flexibility investment managers can offer clients; rigid banking systems can also hinder flexibility; regulatory biases that could favour on-shore entities; and law enforcement that allows investment managers to recoup and recover on behalf of their investors. What is your favourite spot for a business meeting? The Capital Club at the DIFC.
Managing Partner & SEO Probus Middle East Limited
Bernard Bonvin
What is your investment philosophy? We follow a long-term investment philosophy that focuses on value and fundamental analysis. The investment universe is thoroughly screened to compose our portfolios of the highest quality companies. These companies fit specific criteria of profitability, cashflows and earnings growth, leverage and margins that result in higher degrees of stability, and predictability for the businesses. We use our in-house proprietary model to estimate the fair value of each company in our universe to optimise our entry and exit points. Our valuation model helps us to optimise our portfolio construction not only based on valuation but also on market and company-specific dynamics. By investing across asset classes and grounding investment decisions on value and fundamentals, we can diversify the source of returns and provide our investors with confidence that their portfolios are well equipped to weather short-term volatility across a wide range of economic and market environments. We have over 40 years’ experience in wealth and institutional asset management and a fully open architecture with privileged access to over 50 banks and brokers. These banking relationships allow us to negotiate preferential fees for our clients. Usually, we do not invest in funds with retrocessions. If we invest in funds with retrocessions, we account for these and share them with clients. Our direct access to international funds and brokers leads to lower costs and the best prices on markets. We have impartial third-party fund selection with no conflict of interest. Our selection is made based on internationally recognised criteria. What are the drivers behind the growing demand for IAMs in the region? Firstly, the influx of HNWIs in the region, especially the UAE where the government has opened doors for HNWIs to live a comfortable hassle-free life. Secondly, the region is quickly becoming a hub for innovation driven by entrepreneurship, research and development and flexibility. Thirdly, the international banking network provided by IAMs can help clients secure industry leading services at the best price. Finally, IAMs are well equipped to provide strong expertise across many asset classes and regions globally. What services do you value the most from an intermediary bank? We favour top tier banks that are well established with a reputable brand name. We prefer banks that have a simplified cost structure and that offer competitive all-in fees for our clients. We look for good quality execution capabilities and responsiveness. A state-of-the-art IT system that matches our infrastructure to feed our database and software (online portal, consolidation system, and portfolio execution system). Finally, having access to their internal research is also highly regarded. What are the challenges for IAMs in the region? One challenge is cost pressure. Several trends and factors affecting the asset management industry in recent years have resulted in downward pressure on fees, the rise of passive investment, the increase of competition, access to knowledge, and technology. Understanding of our business model, including prospects sometimes do not comprehend the concept of IAMs. They fail to understand that an IAM is not a bank and that its assets will stay with the custodian of their choice. That could lead to confusion and complicate the onboarding process. Clients want an IAM that looks after their needs without having to worry about the safety of their assets. Building this trust can take years or even decades. What is your favourite sport? Aikido.
Vice Chairman & CEO Al Mal Capital
Naser Nabulsi
What is your investment philosophy? We believe in investing in businesses and their leadership team. We focus on wide margins of safety and balanced risk-reward profiles while ignoring near-term market noise. We have a track record of not only assisting but also championing companies through their business lifecycles and transitioning them from private to public. Our tailored financial and investment solutions enable our clients to set goals, make decisions and mitigate risk when dealing with complex financial transactions in an ever-changing business landscape. We seek to identify high-quality investments that have the potential to deliver strong returns over a multi-year horizon. Short-term volatility can present opportunities, but our focus is on building resilient portfolios that can weather market turbulence. We follow a disciplined approach to investing and we believe in the importance of risk management and seek to manage risk through a combination of diversification, asset allocation, and active monitoring. In the end, it is all about being transparent to all the stakeholders. What are the drivers behind the growing demand for IAMs in the region? Drivers behind the growing demand for IAMs in the region include economic and geopolitical stability exhibited by the region’s incredible resilience in the wake of obstacles like the global pandemic and the Russia–Ukraine war as well as a strong track record for growth and a highly skilled workforce. The GCC has experienced rapid economic growth over the past few decades, driven by high levels of oil production and government investment in infrastructure. As a result, many individuals and institutions in the region have accumulated significant wealth that requires professional management. Institutional and retail investor interest has increased because of improved corporate governance, increased foreign ownership limit, and strong proven track records benchmarked against international indices. GCC countries continue to implement regulatory reforms to attract foreign investment and promote the growth of the asset management industry. These changes include the introduction of new investment vehicles, increased transparency, and improved governance. Are the local regulatory conditions conducive for setting up an IAM? Overall, regulatory conditions have allowed independent firms, especially in financial centres or free zones, to set up more easily. However, we still feel there is room for improvement if Mena financial centres need to compete with international financial centres. Local regulatory conditions have paved the way for a strong inflow of new asset managers and hedge funds in the UAE because of factors such as an attractive business environment, tax structure, and regional affluence. What are the challenges for IAMs in the region? Some of the key challenges include regulatory compliance, which can be complex and time-consuming. Others include new technologies that make significant investments practicable which might be more difficult for smaller asset managers. The AM industry is highly competitive, and IAMs face competition from traditional banks, brokerage firms, robo-advisors, and other IAMs. IAMs need to continually market themselves and provide value to their clients to attract and retain them while maintaining their investment performance. This can be particularly challenging during periods of market volatility or economic downturn. Overall, the challenges facing IAMs require them to be adaptable, innovative and focused on providing value to their clients. Those that can navigate these challenges successfully can build strong, sustainable businesses. What is your favourite sport? Football.
Chief Investment Officer ADS Investment Solutions Limited
Alain Amin Raad
What is your investment philosophy? We are firm believers in the principle of conditional edge staking, or making high-conviction probabilistic assessments based on accumulated evidence and a clear read of market conditions. As such, we put consistency in our systematic and model-based approach, and in risk management, at the forefront of our investment process, to minimise drawdowns, protect our investors’ capital and achieve superior risk-adjusted returns. What makes us stand out is our ability to remain neutral to any asset class, which allows us to generate trade and investment ideas in any market conditions. We also remain in harmony with our local DNA, as evidenced by products such as our smart-beta Saudi fund, for example, which provides investors with exposure to the Saudi market on a reduced-volatility basis, while outperforming the index. What are the drivers behind the growing demand for IAMs in the region? Beyond specific products or local markets expertise and knowledge, the rising demand for IAMs in the region can be attributed to clients’ growing need for customised solutions that larger firms may not be able to offer. In response, IAMs have focused on proximity, developing a deeper understanding of their clients’ concerns, and adopting a more personal approach to find ad-hoc and tailored solutions that are well-suited to their needs and the region’s specific requirements. Are the local regulatory conditions conducive for setting up an IAM? Local regulatory conditions have greatly improved over the last few years. Financial hubs such as the ADGM have managed to strike a balance between creating a business-friendly environment for these firms and at the same time maintaining an industry-standard level of investor protection. What services do you value the most from an intermediary bank? Given the large competition and the alignment of fees across the industry nowadays, pricing has become less of a criterion to select a financial intermediary. Focusing on high-quality client service is the best way for asset and wealth managers to distinguish themselves from the rest. This aspect of client focus does not only involve the way a client is engaged but also the way a whole product suite is designed. Firms that combine these characteristics while maintaining trust, ethics, transparency and integrity as their core values will have a competitive advantage to succeed. What are the challenges for IAMs in the region? One of the biggest challenges IAMs face is the pressure to continuously innovate in terms of both technology and client-centricity. To prepare for the future of asset and wealth management over the next decade, firms need to act today across their entire business model. This includes product strategy, investment capabilities, sales and distribution channels, and operations. Embracing new tech capabilities will be vital to achieving scalability, as well as reinventing client interaction and improving their investment decision-making process with AI and other advanced technologies. By incorporating these elements into their business strategies, asset managers can position themselves for success in the years to come. What is your favourite sport? Swimming.
CEO & Founder Branford Capital Limited
Mohammad Danish
What is your investment philosophy? We believe in different strategies which come with a lot of research and innovative ideas. What are the drivers behind the growing demand for IAMs in the region? Clients want to have all the flavours from the markets. They want to have limitless banking along with the power of negotiations. Are the local regulatory conditions conducive for setting up an IAM? Yes. We are operating in the most regulated place and the Dubai Financial Services Authority has set up the right processes for companies to follow and make this place compliant for everyone. What services do you value the most from an intermediary bank? An intermediary bank must be open and flexible in terms of onboarding and seamless processes to execute the trades for valuable clients. They should have strong research and development team who can support IAMs with their products development and ideas. What are the challenges for IAMs in the region? One of the challenges is hiring the right private bankers, who have the required experience, more visibility for EAMs and IAMs. This can be achieved by creating more awareness in the region, for example the EAM model is still new to this region. What is your favourite spot for a business meeting? A business lounge in a cafe or a hotel or outdoors in any polo or golf club.
Senior Executive Officer Century Private Wealth Limited
Anuj Goel
What is your investment philosophy? To be a one-stop bespoke solution for professional clients. We offer custom-made, independent and unbiased research and advice based on clients’ risk appetite and investment preferences. Each client is unique, and we don’t believe in the philosophy of one size fits all. We strive to maximise investment returns through our differentiated investment approach in an environment where traditional strategies have become commoditised. What are the drivers behind the growing demand for IAMs in the region? The last few years have witnessed an influx of HNWIs into the UAE, especially on the back of the conducive business environment and its capability to handle emergencies like Covid-19. Moreover, private banks operating in the region are not able to offer customised solutions to smaller clients. Overall, the pie has increased and there is a gap when it comes to quality and unbiased advice, and this is where IAMs fill the void. Are the local regulatory conditions conducive for setting up an IAM? The Dubai Financial Services Authority and the Financial Services Regulatory Authority are considered one of the strongest regulators, at par with global peers like the FCA and the MAS. The regulators are extremely prompt and understand the nature of the business. This makes the environment highly conducive and safe. The time to set up a new IAM could be reduced though. What services do you value the most from an intermediary bank? There are a couple of things here, including fast account opening, being receptive to certain geographies, competitive pricing, unique investment ideas, and an efficient, user-friendly platform. Different tie-ups are entered into with different perspectives; hence, we look at specific things on a case-to-case basis. What are the challenges for IAMs in the region? One of the biggest challenges is the onboarding process, which sometimes takes too long, and the client loses interest. Also, some clients have not come to terms with the idea of an independent adviser when they can go to the bank directly. Charging advisory/management fees to the client also gets tough at times. We want the client to look at the bigger picture and the overall value proposition. What is your favourite sport? Cricket.
Founder & CEO Arrow Capital (DIFC) Limited
Rohit Nanani
What is your investment philosophy? Our investment philosophy is based on three main principles. A clear analysis of the investment goals of our clients enables us to formulate a structured approach to achieving those goals. In managing their assets efficiently, we spare no effort in the due diligence that goes into identifying investment opportunities that address our clients’ needs. Investment Policy, like we chart out the financial needs, risk tolerance and time horizon to customise investment matrices and options for our clients. Keeping communication lines open with our clients helps to operate on a seamless interaction-based progress pattern that augurs well for the investment and the relationship. Portfolio strategy, where risk-adjusted returns touch new levels of stability, based on client expectations. We carefully tailor the investment framework to effectively achieve the desired returns and our strategies are uniquely customised after thoroughly studying several economic factors. This helps with the accurate allocation of assets in pre-determined investment patterns. What services do you value the most from an intermediary bank? We work from the panel of custodian banks with different offerings such as platforms, expertise and resources. The firm’s approach towards the custodian banks is more of business partners than competitors as we rely on the bank’s products and balance sheets that best suits the client’s needs. It is our firm’s leverage on long-term relationships, in pair with the trust nurtured over years by offering elevated transparency and no conflicts of interest, which makes our services independent and unbiased. What are the challenges for IAMs in the region? IAMs are facing several challenges that are distracting their focus from their core competencies. These challenges include regulatory and compliance. The current and future regulatory developments like automatic exchange of information, general data protection, MIFID II, and increased legal risks in cross-border financial activities are expected to have a significant impact on IAM. The IAMs may not be able to afford resources fully dedicated to compliance procedures. Operational risk management is another primary challenge for IAMs. Dedicating resources to this area may not always be feasible, especially for small and mid-sized IAMs. Fully integrated IT solutions which do not fit smaller entities is another issue. What is your favourite sport? Golf.
Founder & CEO Three Comma Capital Advisors Limited
Anmol Budhraja
What is your investment philosophy? To deliver a high batting average rather than extreme successes and painful failures. Our emphasis on consistency, specialisation and risk control is what defines us and makes us stand out. Market conditions change, but adhering to strong principles of risk management and deep fundamental analysis from a top-down and bottom-up approach at the firm does not. What are the drivers behind the growing demand for IAMs in the region? As the wealth market size grows in any part of the world, the clients demand more specialised/personalised services including a wider range of diversification options. These could include alternatives and lending/FX solutions. Clients are pressing ahead with a higher emphasis on the independence of their wealth adviser with an overview of different service providers across banks, asset management, and strategic advice. Another softer element is the clients’ growing wish to deal with a less bureaucratic culture. Are the local regulatory conditions conducive for setting up an IAM? The key factors that an independent firm considers while setting up operations (most are entrepreneurial ventures) are full ownership norms; transparent regulations covering various activities with different levels of complexities and capital requirements; and a regulatory environment which exudes trust and comfort at the international level. We have the good fortune of having a local regulator that is modern, pragmatic and close to the IAM community. The regulatory conditions have a high beta to rapidly changing environments while remaining grounded in the core principle of protecting investors and the industry alike. What services do you value the most from an intermediary bank? Strong credit rating, multi-asset product platform with competitive pricing and execution capabilities, efficient turn-around times, high service quality standards, institutional coverage mindset, and access to top management. Commitment to technology is another key contributor. What are the challenges for IAMs in the region? To run a successful IAM, the most crucial element is for the advisers to maintain their independence in terms of serving clients, but to do so under a shared philosophy that defines the culture and the ethos of the firm they represent. Making sure the two go hand in hand is key. Marrying the right technology to an IAM remains a challenge. The technology available remains fragmented and no one-stop solution is available to cater to the tailored needs of each IAM.
CEO InCred Global Wealth Limited
Harsha Vardhana
What is your investment philosophy? Our investment advice is centred around our corporate ethos of integrity, expertise, and service excellence. The following makes us stand out. We associate with best-in-class partners to source products and services that reflect our ethos. Our in-house independent and unbiased advice is formulated considering the best interest of our clients. What are the drivers behind the growing demand for IAMs in the region? The need for professional and bespoke investment advice. A cookie-cutter approach is not suited to the unique requirements of high-net-worth-individual clients. There is a need to break free from the shackles enforced by any one financial institution on the investment advisor and thereby the client. Are the local regulatory conditions conducive for setting up an IAM? Yes. Well defined regulatory guidelines and a smooth incorporation process are conducive for setting up an independent firm. What services do you value the most from an intermediary bank? Global presence with a solid financial strength; access to holistic wealth management products and services; an efficient tech-enabled platform; easy access and responsive service staff; and competitive pricing. What are the challenges for IAMs in the region? High initial set-up costs can be a deterrent to sustenance. An ever-changing global regulatory framework, limited control over high staff turnover, and primary dependence on the capabilities of custodian financial institutions are also some of the challenges. What is your favourite sport? Cricket.
Founder & CEO Three Comma Capital Advisors Ltd
Chief Investment Officer Finmark Capital Limited
Kunal Chawla
What is your investment philosophy? While there is no one-size-fits-all investment philosophy that is considered universally superior or effective, the optimal investment philosophy for an investor will be influenced by several factors, including their personal investment goals, risk tolerance, investment time horizon, and level of investment expertise. At Finmark, we categorise our clients into three distinct investment buckets based on their investment goals and risk tolerance. These buckets are income, income & growth, and growth. Clients who fall into the income bucket typically prioritise generating a steady stream of income from their investments. They are more risk-averse and may be retired or nearing retirement. Investments for this bucket may include fixed income securities such as bonds, dividend-paying blue-chip stocks, or high-yield deposits as are currently available. Income & growth clients are seeking a balance between generating income and growing their investments over the long term. They are willing to take on a moderate level of risk and may be in the accumulation phase of their investment journey. Investments for this bucket may include a mix of income-generating securities such as bonds and dividend-paying stocks, as well as growth-oriented securities such as growth stocks or mutual funds or alternatives. Growth clients prioritise long-term growth of their investments over generating income. They are willing to take on a higher level of risk and with a longer time horizon. Investments for this bucket may include growth-oriented securities such as growth stocks, mutual funds, exchange-traded funds (ETFs), or alternatives. By categorising clients into these investment buckets, we can tailor our investment recommendations to their specific goals and risk tolerance and help them build a well-diversified portfolio that aligns with their unique investment objectives. Are the local regulatory conditions conducive for setting up an IAM? The UAE’s local regulatory framework, whether Abu Dhabi or Dubai, is today considered equally world class by most financial institutions for them to accept the IAMs as their partner to offer their services and for the clients to build their trust and faith in the IAMs regulated in the UAE. Both ADGM and DIFC provide a regulatory environment that is favourable for the establishment of independent firms, particularly investment management firms. The regulatory framework is aligned with international best practices, overseen by regulatory bodies such as the DFSA. These bodies work closely with firms to ensure compliance with all applicable laws and regulations. Apart from regulatory advantages, setting up a business in the DIFC or ADGM also offers tax benefits, access to world-class infrastructure and a highly skilled workforce. Business support services, such as legal and accounting services, office space, and networking opportunities, are also readily available. These regulatory regimes are principle-based, allowing firms greater flexibility in their operations, while still maintaining high standards of corporate governance and risk management. Overall, the ADGM and DIFC provide a business-friendly environment that attracts financial services firms from around the world or qualified your entrepreneurs to set up their IAM business. What are the challenges for IAMs in the region? One of the challenges faced by the IAMs in the region is capital management. Since most of the IAMs are on their maiden entrepreneurial journey, they can find the overall cost pressures and capital management to be daunting, and an adverse market environment can lead to difficulties and shake the confidence of the clients in the IAM model as it is still in its nascent growth stage. The UAE market is highly competitive, and IAMs may struggle to create their own unique selling proposition or differentiating image which may not be substantially different to the competition offering and therefore can lead to a price war. While clients may benefit from the lowered tariffs, IAMs may find it difficult to sustain this under-cutting and may end up tarnishing the overall IAM business image. Talent acquisition remains another issue. Like any jurisdiction, the UAE's financial industry also has a limited supply of qualified and experienced professionals, especially in niche sectors such as independent asset management. IAMs are not only competing with other IAMs but also with the well-established regional and international banks along with asset managers for acquiring right talent. One of the biggest challenges of regulatory compliance is keeping up with changes to regulations and ensuring that the firm's policies and procedures are up to date. IAMs must devote significant time and resources to ensure that they comply with all relevant regulations and that their employees are trained to understand and adhere to these regulations, which could also add up to the cost pressures for a young start-up. What movie/series do you recommend on Netflix? The Billion Dollar Code.
Founder & CEO Gulf International Finance Limited (GIFL)
Madhavan Sivashankar
What is your investment philosophy? We service our clients’ needs from individual and business standpoints. We have a robust wealth management team to look after personal wealth solutions and a corporate advisory team to address topics such as debt raising, restructuring, M&A advisory etc. We have also reduced our dependence on traditional asset allocation theories as the world after the Lehmann Brothers debacle has changed. We have now started focusing on opportunistic investment alternatives, irrespective of which asset class it belongs to and showcase the same to our clients, per their agreed risk profile. What are the drivers behind the growing demand for IAMs in the region? The new breed of clients are well educated and opportunistic in their investment behaviour. They demand full open architecture that begins with the selection of the custodian banks and funds. Further, independent firms primarily work for the client and not for a bank or any other captive employers, which may lead to a bias in their advisory capabilities. Are the local regulatory conditions conducive for setting up an IAM? Absolutely. The DFSA and other regulators are up to date with policies and procedures. The environment is conducive to setting up an independent firm provided you run the firm in a fit and proper fashion. Furthermore, excellent airline connectivity and world-class infrastructure are added advantages. What services do you value the most from an intermediary bank? Primarily service, including account opening timelines, order execution efficiency, and timely communication. What are the challenges for IAMs in the region? One of the challenges is the cost. The Dubai International Financial Centre (DIFC) is a high-cost jurisdiction. If the IAMs do not have a robust business plan and execution, they will perish.
Chief Investment Officer Index & Cie Limited
Tommaso Leodari
What is your investment philosophy? Everything begins with a first layer of global macro analysis and continues with a second layer of bottom-up fundamental research on single companies or assets we seek to have in our portfolio. Finally, we conduct a third layer of quantitative, algorithmic optimisation. Our target companies are high quality, solid, ever growing, best-in-class businesses that have managed to maintain a competitive advantage in their respective industries for years. Once we find them, we try to maximize our capital performance by buying when an irrational negative sentiment hit markets indiscriminately, and trading around positive and negative momentum. Are the local regulatory conditions conducive for setting up an IAM? The current regulatory conditions to set up IAMs in the Dubai International Financial Centre (DIFC) are straightforward and accessible by modern financing standards. We have also noticed an increased flow of both professionals and clients getting out of Europe and China and into the UAE – flows totally unrelated to Russian wealth. What services do you value the most from an intermediary bank? A distinction must be made in stage of evolution for IAMs. At inception, intermediary banks are necessary and sufficient to perform the job. The vital services are custody, brokerage, segregation, and core system, leaving the IAM time to focus on investments. At a non-startup level, things can be quite different. An IAM might still need these services centralised in its partner intermediary bank, but the price can be questioned. In our experience and in the study of history of the past 10 years, banks have essentially lost all revenue streams from interest rates. Most of them managed to survive by either overcharging on commoditised services, or by launching a brokerage online platform. The question of how much you pay for these services becomes central for non-startup IAMs, such as us. We chose to challenge the intermediary bank model by splitting it into three main parts. Today, we receive custodial services for cash and assets from two different custodians. We also place our market orders with several pure brokers. In addition, we have our own internal core system to aggregate all client data. This means we do not depend on any intermediary bank to digest and present data to us and our clients. What are the challenges for IAMs in the region? Setup and operating costs, competition, clients and the talent pool. We are talking about a substantial investment in cash and time to set up a well developed infrastructure. Less thorough infrastructures risk a collapse due to personal relationships breaking down. Dubai and the DIFC are over-served markets, with lots of players already entrenched for decades now. Observation shows that clients tend to stay put from a jurisdictional point of view for several years. This means that capital rarely flows around major cities. In turn, the same clients are served by many providers, making competition high. With one of the most varied cultural melting pots in the world, the UAE offers wildly diverse ranges of professionalism. As with everything, looking for the highest professional and ethical standards is always a challenge, but the UAE might surprise on the upside.
CIO & Executive Director Bluegold Capital Asset Management
Kunal Kapoor
What is your investment philosophy? We are a multi-banking advisory platform with each portfolio based on the client's investment policy statement which mentions both the objectives as well as constraints. What are the drivers behind the growing demand for IAMs in the region? IAMs are unbiased and independent with low overheads leading to better value for the client. Are the local regulatory conditions conducive for setting up an IAM? Our experience with the DFSA has been extremely good. They have been very supportive as well as have guided us in our journey. What services do you value the most from an intermediary bank? Platform capability, best execution, costs, and client confidentiality. What are the challenges for IAMs in the region? Barriers to entry are low so competition has intensified. The main challenge is to ensure continued independence and unbiased approach, cost of research, regulatory compliance, and human resources. What is your favourite sport? Table tennis.
Chief Investment Officer Gulf International Finance Limited
CEO Moonrock Investments Limited
Shanti Kaliappan
What is your investment philosophy? Our firm is built on core beliefs, principles and practices designed to align with our clients’ interests. Our focus is on processes and risk monitoring with a strong client-centric approach. Investment strategy is important, but in a highly uncertain and volatile environment, it is important to keep it simple, cut the noise and focus on long-term goals. What are the drivers behind the growing demand for IAMs in the region? In a highly regulated environment, with increasing restrictions on cross-border activities, IAMs play a critical role in supporting large global wealth platforms to reach out to various markets. With increased complexity in financial instruments like cryptos, coupled with multiple players and participants like fintech platforms, clients do need professional financial guidance to make prudent decisions. Are the local regulatory conditions conducive for setting up an IAM? It is tough and challenging, but with increased cross-border transactions in a complex environment, there is a need for an ever evolving regulatory framework to protect investors and IAMs. What services do you value the most from an intermediary bank? The two key services we value the most are the digital capabilities to help us manage clients and optimise operations, and the capability of the product development team. What are the challenges for IAMs in the region? Hiring good resources is a challenge. Not many banks have dedicated IAM desks to support the IAMs.
Senior Executive Officer Pearl Advisory Asset Management
Pratap Choubal
What is your investment philosophy? We try and reduce the surprise element from the results of the investment process. Therefore, we constantly monitor our client portfolios and rebalance them when necessary. What are the drivers behind the growing demand for IAMs in the region? The ability to advise clients across asset classes (financial and non-financial); the ability to advise clients for their business, through business partners where necessary; the alignment of interests between the client and the IAM; and the ability of the IAM to showcase interesting ideas, which their conventional private bank may not be able to do. Are the local regulatory conditions conducive for setting up an IAM? Yes, they are, given that the Dubai International Financial Centre and the Dubai Financial Services Authority have set high standards for IAMs to operate in the region. The clients get a lot of comfort from the regulatory requirements, and this helps build trust. What services do you value the most from an intermediary bank? After discussing clients’ goals, we help suggest the right platform for the client. Of utmost importance is the ability of the platform to provide the client with systems and products to achieve their financial goals; the transaction and trading costs; the loan to value ratios and cost of leverage; and the availability of booking centres in various geographies. What are the challenges for IAMs in the region? Acquiring the right talent and managing costs. What is your favourite sport? Tennis.
Senior Executive Officer Habib Investment Limited
Sajjad Habib
What is your investment philosophy? We believe the secret to achieving the best results lies in a strong consultation process, to gain a thorough understanding of a client’s investment objectives. Risk management remains at the core of how we allocate and deploy assets. Based on these principles, growth then, is a by-product. What are the drivers behind the growing demand for IAMs in the region? Regulatory bodies adopting best practices, trust, independence, meticulous reviews, and customising portfolios to meet client goals are key drivers. This is coupled with the fact that this region is experiencing unprecedented growth with ambitious targets for the next 10, 20, and 30-year timeline. Are the local regulatory conditions conducive for setting up an IAM? Dubai International Financial Centre and Abu Dhabi Global Market are prudent and mature regulators that have adopted best practices and follow stringent procedures when considering the issuance of regulatory licences for firms, especially in the money management business. This means clients are comfortable with the protection afforded to them through the legal framework with firms having to keep in mind the investment process, compliance, accountability, and their responsibility. What services do you value the most from an intermediary bank? Apart from pricing, easy access to their research, coverage, and service teams. What are the challenges for IAMs in the region? The biggest challenge is scaling and scaling fast organically, while managing competition from intermediary banks themselves. What is your favourite sport? Tennis.
Managing Director Fidele Capital Limited
Mina Sedhom
What is your investment philosophy? Make careful choices and stick to your decision in line with long-term goals. That said, you shouldn’t hold off changing your path to reflect ever-evolving global economies. What are the drivers behind the growing demand for IAMs in the region? Diversification and cost control. What services do you value the most from an intermediary bank? Being a real adviser and giving a speedy service. What are the challenges for IAMs in the region? Investors may have once been content putting their money into a fund and only caring about returns, but now they want greater oversight of where and how this capital is being deployed. What is your favourite sport? Football.
Senior Executive Officer & Director SH Capital Limited
Puneet Narula
What is your investment philosophy? We aim to generate attractive long-term risk-adjusted returns by looking at the ever-expanding range of investment opportunities out there. The investment world is far more complex today than ever before and we adapt to this by performing due diligence alongside an understanding of a client’s particular needs and circumstances. A client-centric approach is at the heart of all our decision making and our open-architecture model means we do not have to deal with the conflicts faced by traditional investment banks. What are the drivers behind the growing demand for IAMs in the region? As the region diversifies away from oil as a source of wealth there are a number of factors that make it an attractive destination for the wealthy: its location between the East and West; its tax-friendly business environment; low crime rates; and a high standard of living. As wealthy families and their businesses thrive through the generations, the need arises to address their wealth advisory through a single-family office (SFO) or multi-family office (MFO) structure. IAMs can provide the attention and close alignment of interests of SFOs, while offering the economies of scale and specialisation of an MFO structure. What services do you value the most from an intermediary bank? Firs, safekeeping client assets and the financial strength of the intermediary bank. While evaluating the banks, we check the balance sheet, credit rating and the insolvency regime of the jurisdiction where the assets are custodied. Service also makes a huge difference, and we like to work with intermediary banks that are responsive to requests and understand the local market and its special requirements. What are the challenges for IAMs in the region? The local IAM market is in its infancy in the region and the most established players are still less than a decade old. As the IAM model gets more widely adopted, ultra-high-net-worth clients will understand the benefits offered by such model. There are clients who would prefer working directly with the banks and this conversion will require a demonstrated track record from the IAM of successfully managing and outperforming the clients expectations as opposed to working directly with large banking corporations. What is your favourite sport? Golf.
