While launching the product, the banking giant described its “Exclusive Manager Access Fund Program” as the first of its kind in Asia.

“The programme will initially be offered to global wealth management clients in Singapore and Hong Kong before being extended to Taiwan,” UBS said.

As per the Swiss major, to avail the new service, clients must commit at least USD 5 million across the programme, with a minimum investment of USD 500,000 in each underlying fund.

Jansen Phee, Asia-Pacific head of fund investment solutions at UBS Global Wealth Management, told The Business Times that the thresholds position the offering for high net worth and ultra-high net worth clients and family offices.

“Family offices consulted ahead of the launch were particularly interested in gaining access to institutional managers whose investment thresholds they might struggle to meet individually,” Phee said further.

As per UBS, the programme differs from conventional fund offerings in both the managers available and the greater investment flexibility of their strategies.

“Traditional mutual funds have strict rules about how much they can stray from their benchmarks, while institutional strategies allow managers more freedom to take strong positions as long as they stay within certain risk limits,” Phee noted.

The programme will begin with six managers or strategies, split between equities and fixed income.

“Four are expected to form the first wave, with another two due in October following completion of due diligence. Managers named so far include DoubleLine, Acadian Asset Management and Wellington Management,” UBS said further.

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“It’s fair to say that our entire business in Singapore underperformed, and we haven’t hidden from that fact,” Kevin Martin, Asia Pacific head of retail banking and wealth management told Reuters.

“As we build Asia wealth… there is a really significant opportunity in Singapore, not just onshore Singapore, but offshore Singapore.”

HSBC generates more than 80 percent of its profits from Asia. Martin said that the bank plans to increase its Singapore’s wealth staff by 50. But it has not disclosed the headcount of its Singapore’s wealth management division. The division’s presence is smaller compared to China and Hong Kong.

Last year, HSBC’s Chief Executive John Flint said that the main agenda is to grow its wealth management business in Greater China and Southeast Asia. This is mainly to speed up revenue growth in Asia. It is considering both onshore and offshore clients, which a rich clientele based in China, India, and other Southeast Asian countries.

The bank’s wealthier clients mostly focus on its private banking services. That said, its retail banking and wealth management division includes clients with investable assets less than $5 million.

In Q1 2019, HSBC’s life insurance as part of the wealth management division achieved a 66 percent growth in revenue to $793 million.

Martin said that they have boosted distribution, offered all products and extended digital capabilities to promote the brand’s growth.

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