The Heart of the Matter

In our exchanges she would mark her email as ‘confidential’, and would remind me from time to time, as I press for details, that she is bound by compliance regulations. On Messenger, however, she is more candid, sometimes punctuating her messages with select Emojis.

We easily jump from one topic to another – the gala events she attends, her daily life as a wife and as a professional, her goals in life.

Ms. Lim-Chan is married to Dr. Chan Kok Weng, who holds a postgraduate diploma in practical dermatology (Wales, UK), an international diploma in aesthetic medicine (USA), and runs his own aesthetic clinic. They have three dogs, Tin Tin, Miu Miu and Zo Zo, whom she refers to as her ‘furkids’. She spends time with her young goddaughter Ashleigh – whom she adores – and participates in the local Ferrari Owners’ Club activities, of which she was the (world’s) first and only female president in 2015. She champions charitable causes, and even finds time to balance the books in her husband’s clinic. If I previously harbored any doubt that she is a real and grounded woman, I simply have to lay it to rest.

Family Comes First

"When I hear the word ‘family’, the first things that come to mind are unconditional love, unwavering support, and happiness. I’ve got too many fond memories with my family,” Ms. Lim-Chan shares, claiming that her parents have inculcated in her and her sister the values of kindness and generosity, hard work and humility, but also courage, drive, and passion for whatever path they choose. “These have been the values that carried us through our school days and still guide us in our working lives today.”

Ms. Lim Chan credits her husband for being part of her success. “Weng is my best friend, soulmate, and confidante. He takes the backseat sometimes to allow me to live my dreams and be my own woman. In 2015, when I became president of the Ferrari Owners’ Club Singapore, I took one immense responsibilities that saw me spending a lot of time away from my family. My husband was there for every single social event and in every single drive – even if that meant closing his clinic. Of course, I try to do my part as a supportive wife by managing his clinic’s accounts, website, and marketing campaign on weekends.  

“My parents, my hubby, and my sister are my support structures that give me my roots and my wings, and they are the reason why I can pursue my career and indulge in my passion.”

The Pleasure in Work

Ms. Lim-Chan tells me that she has always aimed to be good at what she does. It did not matter what it was, but she has found it easy to pour herself into whatever she had to accomplish. “When we were in school, our parents would tell me and my sister to go to bed whenever they found us studying late into the night.” Their parents impressed upon them the value of hard work and moderation, responsibility for and enjoyment of one’s tasks. “I learned to make things fun, otherwise, why do it,” she asks, convinced that there is only one answer.

Ms. Lim-Chan excelled at school, emerging with a BSc degree (summa cum laude) from the Southern Illinois University; she then obtained an MBA in International Finance & Marketing from London’s Imperial College Business School. From there she began building a career, first at OCBC where she spent five years, and then at DBS where she worked for another three. Over the past 17 years, she has been working at Deutsche Bank AG, specifically Deutsche Wealth Management, where she is a managing director covering Southeast Asia.

Years of training and experience have sharpened her nose for imminent political upheavals and brewing economic meltdowns – before they even take place. An international fiasco halfway across the globe may affect a client’s investment if he or she has exposure to it. In a highly globalized market, every asset class is inter-connected, and in situations like the collapse of the Lehman Brothers, margin calls can come anytime. Ms. Lim-Chan has to be on top of things to make quick, reliable decisions and most importantly, to manage the risk of her clients’ portfolios.

As a managing director for wealth management at Deutsche Bank, Ms. Lim-Chan typically works twelve-hour days, starting at seven in the morning, and remains available on her Blackberry until midnight. She doesn’t mind what others might consider a punishing regimen: “This has been my routine for the last 26 years, and this is so because I enjoy doing what I do.”

How Asians Invest

Ms. Lim Chan has very interesting insights into how Asians invest. “Typically, UHNWIs are defined as having investable assets of at least USD30m, while HNWIs are defined as having investable assets of at least USD1m,” Ms. Lim-Chan says when I ask for a definition of the ultra high-net-worths and high-net-worths who make up her clients.

“Asia is definitely seeing the fastest pace of growth in the number and wealth of HNWIs,” she elaborates. “There is no specific age brackets – I have clients who are in their early-30s, as well as those who are in their 70s.”

The wealth accumulated can be self-made, inherited, or a combination of both, she underlines, “although we are seeing an increasing trend of ‘self-made wealth’ especially with the boom in technology and digital technology sectors in the past decade.”

Wealth creation is also not tied to a specific industry, Ms Lim-Chan adds. “HNWIs come from traditional industries such as manufacturing, production, and real estate, from professions like medicine and law, as well as new from industries related to digital technology.”

A Methodology

The sheer variety of moneyed people in Singapore multiplies the number of services they demand from a local provider of wealth management services. Factor in the by-now standard integration of various products from different professionals and you have the type of planning and coordination work that wealth managers are expected to deliver – on any given time throughout the year.

In most cases, a single wealth manager handles a handful of ‘relationships’ that in turn may comprise several portfolios, sometimes held by one family or group. The individual portfolios, meanwhile, may have one or more decision makers, translating to hundreds of individual requirements to manage for a wealth manager who is handling, say, 30 relationships.

Typically, Ms. Lim-Chan sits down with all her clients at the start of the year for a comprehensive portfolio review. This involves updating them what has happened in the past year, sharing the new investment themes for the new year, and analyzing and recommending relevant changes to their existing portfolios. Working alongside a team of advisors from the various asset classes, each portfolio review and recommendation is highly customized based on client’s risk profile and investment preferences. After the initial portfolio review, periodic follow-ups and re-adjustments may be required throughout the year.

An Entrepreneurial Element

“Unlike in the west – North America and Europe – wealth in Asia is more entrepreneurial. Much of the wealth is linked to the business, and Asian HNWIs, more so the UHNWIs, look to leverage on the value of the business to further grow their wealth.”

As a result, Ms. Lim-Chan explains, “Asian HNWIs and UHNWIs place a lot of value on access to structured finance, using their existing wealth and business as collateral to grow their business and accumulate more wealth.”

The traditional private banking model, she says, has evolved into one of structured investment-banking model. “It emphasizes relationship building (understanding clients’ businesses to add value, for example, sourcing for strategic pre-IPO partners, capital raising via equity and debt markets, strategic co-investment, and corner investments), before the traditional asset allocation and portfolio management (after the business is listed or sold).

“A good wealth manager,” she emphasizes, “cannot simply manage a client’s wealth; more importantly, he or she must understand the client’s wealth creation process as well.”

Wealth Management Across Generations

Ms. Lim-Chan has identified an interesting variance among her clients: The older HNWIs are still very hands-on in managing their wealth, and often adopt ‘do-it-yourself’ trading strategies, particularly in areas of foreign exchange and equities. “And rightfully so, since most of them have been trading – successfully, I must add – probably longer than some of their wealth managers.”

However, she also notices that many of the second generation and the younger self-made individuals, many of whom have established connections to the west where they have been sent to school, adopt a different approach to investing. “They are more open to western model of investing in discretionary areas, more open to exploring new asset classes or investment themes, that they have identified as the ‘next millennials’, which they may or may not have a complete understanding of and yet wanting an exposure.”    

Leverage is also used a lot in Asia, Ms. Lim-Chan observes, and “as such, structures such as interest rates swaps and currency swaps become necessary for hedging purposes”, she explains.

“We have a popular saying in Asia that wealth does not survive beyond the third generation. As such, we see a growing demand from HNWIs for family offices – to allow wealth managers to put in place a governance structure that communicates the (family’s) investment philosophy and objectives, for better accountability, and with measurable results.”

The Changing Dynamics of Wealth

Ms. Lim-Chan shares that among her clients, the most common investment goals include wealth preservation, and wealth accumulation through a diversification of asset classes and investment themes.

Leverage, specifically the access to the right kind of leverage, is key in the Asian entrepreneurial environment, Ms. Lim-Chan says. “And with leverage,” she adds, “the need for hedging strategies arises – against currency movements or interest rates hikes – through structured notes.”

Wealth planning is also crucial amongst many of her clients. With the implementation of Common Reporting Standards, the objective of wealth planning moves away from the traditional objective of maintaining confidentiality to one of inter-generational wealth transfer – specifically the orderly distribution of wealth to the rightful ultimate beneficiaries to ensure business continuity and peace of mind. “Sometimes, we see wealthy individuals skipping a generation, allocating to the grandchildren instead,” she points out.

With many financial assets and family structures of HNW families spread across national borders and legal jurisdiction – which can greatly complicate the wealth transfer planning – the need for proper inter-generational wealth transfer is even more crucial.

Of Growing and Giving

Philanthropy has been a focus among wealthy individuals, especially in the West where initiatives such as Warren Buffett’s Giving Pledge encourage billionaires to give away at least half of their wealth.

“This concept takes on a different twist in Asia though, where UHNWIs prefer impact investing over outright philanthropic donations,” Ms. Lim-Chan reveals. Impact investing allocates funds and resources into businesses and enterprises that generate a positive social or environmental impact that in most times give financial returns, she explains, compared to philanthropy, which simply involves donations to causes with positive social or environmental impact without expectation of any financial returns.

“My husband and I do our small part in giving back to society whenever we can,” Ms. Lim-Chan says. Back in 2015, as president of the Ferrari Owners’ Club Singapore, she and her committee successfully raised funds for Kidz Horizon Appeal. More recently, in December 2017, she and a few of her friends – “on a very casual and social basis” – organized the Dodici Gala with a successful fund raising in support of the Make-a-Wish Singapore.

“To me, the success of such initiatives is not measured only by how much monies were raised; the creation of awareness in the community – the existence of such organizations, their goals, and other meaningful causes – is a big step towards success.

Complex Family Dynamics

”Wealth planning is key among HNWIs, and even more crucial for UHNWIs; with proper wealth and trust planning, they can ensure proper inter-generational transfer – specifically the orderly distribution of wealth to the rightful ultimate beneficiaries to ensure business continuity and peace of mind.” Ms. Lim-Chan alludes to complex family dynamics that are at play when HNW families distribute wealth and name beneficiaries – issues that may make some uncomfortable but must be addressed – with circumspection and clarity.

“As I mentioned earlier, many HNW families have financial assets and family structures that cross national borders and legal jurisdiction today, which can greatly complicate wealth transfer planning. Inter-generational wealth transfer is even more crucial so as to avoid potential disputes that can lead to years of legal battle,” she prescribes.

“Typically, the process involves the HNWI and sometimes the spouse – especially when he or she is instrumental in building the business as well. We do encourage them not to involve the ultimate beneficial owners for obvious conflict of interests. At times, we see these wealthy individuals skipping a generation, allocating to the grandchildren instead.”

Transforming Client Experience

The challenge today in wealth management is the exponential improvement and development of digital technologies and the internet, Ms. Lim-Chan points out.

“There is a high digital demand, especially in Asia. Asian HNWIs want comprehensive view of their portfolios on time, any time. They want access to information and knowledge to make better, more accurate investment decisions. They want to discuss with their wealth managers wherever they are, even remotely, whenever they can.”

Ms. Lim-Chan acknowledges that they need to embrace this new paradigm, adapt quickly to unfolding trends and developments in digital technology, and improve online digital offering in order to interact digitally and access remotely. “Simply put, we need to completely transform the client experience,” she concludes.