Speaking the Bespoke

TRUE SOLUTIONS ARE ALWAYS CUSTOM-BUILT. TEXT BY HONEY MADRILEJOS-REYES.

THERE IS MORE the word “bespoke” can o er than just being astraightforward adjective. Yes, it is synonymous to “customized,” “made to order” and “custom-built,” but for the country’s leading private bank, bespoke steers abundance when wealth is appropriately managed.

BDO Private Bank adopted the bespoke approach when it recognized that the Philippines is home to a lot of high net-worth customers who ought to have this kind of service.

“Nobody has done that in the industry. We thought that with bespoke, BDOPB can deepen the relationship with customers and be relevant to them and their objectives,” says Stella L. Cabalatungan, executive vice president for the bank’s relationship management group.

Starting Point

The gestation of any relationship begins with an introduction. And for BDO Private Bank, the getting-to-know-the-client stage takes a long process before proceeding formally to an account opening — an approach that is unique to the bank.

“We do not start the conversation by selling products right away. What our relationship managers do is get to know the clients’ needs, investment objectives and aspirations. We talk to them and ask them about their current investment status. By doing so, we deepen our knowledge about them. That’s the time we start discussing the services

we can provide them,” explained Cabalatungan.

BDO Private Bank o ers investment management services covering a broad spectrum of foreign exchange, money market securities, equities and fi xed-income instruments, made even more competitive with an openmanagement mandate, extensive fund coverage and an openness to alternative investments.

BDO Private Bank’s bespoke solution, said Gamalielh O. Benavides, head of the bank’s business development and strategic marketing, works in tandem with the open-architecture platform. “To be bespoke, you have to have an open architecture program. This simply means that the choices you give to the clients should be as diverse as the universe,” he said.

With the prospects of an improving global economic environment, an ever-increasing number of clients are also in search of products that will optimize opportunities to better manage their wealth.

On top of the products and services earlier mentioned, BDO Private Bank also expanded the open architecture platform to allow clients to access global exchange traded funds (ETFs) for wealth accumulation and growth, and insurance for wealth and asset protection. Driven by specifi c client needs and goals for diversifi cation and protection, these instruments augment clients’ asset portfolios.

Global experts agree that outside of the usual investment products such as equities, bonds, mutual funds and foreign exchange, among others, there are also promising returns and rewards in investing in ETFs and insurance.

ETFs have emerged as a sound investment instrument, o ering diversifi cation in various asset classes, regions and sectors while maintaining transparency in pricing and market liquidity. In fact, over the past 10 years, ETFs — a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange — have grown into more than a US$2-trillion investment industry.

Tom Keenan, BlackRock’s head of ETF Specialists, Asia Pacifi c, notes there is a huge investment universe that Philippine investors are missing by investing only in local companies.

“At times, the Philippine equity market performance can diverge signifi cantly from the globe. A diversifi ed portfolio can help mitigate this type of risk,” said Keenan, who was a guest speaker at the Wealth Perspective Forum hosted by BDO Private Bank for select clients in Makati and Cebu.

There are over 5,000 exchangetraded products listed worldwide which cover a breadth of classes and exposures. These are classified under equities, fixed income and alternatives.

Another foreign expert, meanwhile, said applying insurance solutions on wealth planning would help the high net-worth clients prepare for the unforeseen.

“Wealth gradually eroded when crisis hit the US in 2009 spilling over into 2011. When you are not prepared, the impact of this type of occurrence can be of large magnitude,” said forum speaker Martin Wong, deputy CEO for private client services at the Singapore-based Jardine Lloyd Thompson Pte Ltd.

Insurance, he added, is a valuable tool for asset protection, family liquidity and security, estate equalization, liability protection, and keyman/buy-sell arrangements, a type of cover designed to protect businesses against the risk of key sta members passing away or su ering a critical illness.

Low Attrition, High Retention "If a client is genuinely ready to begin a relationship and tells you what he needs and the bank is able to address them, he will defi nitely bank with you and stay as a loyal customer," said Cabalatungan. Now with more than 6,000 clients — all with unique portfolios — BDO Private Bank’s batting average in terms of client retention is very high. Cases of attrition, on the other hand, are negligible. For this, BDOPB has its reliable and well-versed relationship managers and wealth advisors to thank.

“As [the] relationship with the clients expands, we as a bank keep on adjusting in order for us to respond to their requirements. This is the reason our private bankers have a very strong bond with their clients — they learn from each other,” Cabalatungan said.

The rewards from this give-and-take relationship come in the form of the client’s testimonials. However, one common declaration stands out.

“Most of them would say, ‘I didn’t imagine that I can do these investments with you.’ This becomes our yardstick that we are giving the clients the right service and helping them fulfi ll their goals,” said Benavides.