UOB Private Bank’s discretionary portfolio management (DPM) team has grown sharply since its inception in 2016. The team now comprises 14 members, including eight portfolio managers, overseeing more than S$4 billion ($3 billion) in assets across various mandates.
In 2024, the bank introduced three major initiatives aimed at enhancing portfolio strategies, broadening accessibility and investing in long-term technological advances.
One of the most notable developments was the introduction of a bespoke derivative strategy that generates income while positioning clients for equity investments at more favourable valuations. The strategy offers diversification across underlying assets, features and time horizons while eliminating knockout levels to enhance returns.
Given high equity valuations in 2024, the approach provided an effective way for clients to extract income while awaiting better entry points. The methodology mitigates opportunity costs and volatility, allowing clients to systematically accumulate equities during market downturns, rather than relying on reactive, emotion-driven decisions.
In parallel, UOB Private Bank expanded its DPM strategies to a wider client base, reaching both retail investors and the UOB Privilege Reserve segment. Through a collaboration with UOB Asset Management, the bank introduced chief investment office funds with retail share classes, making discretionary strategies available to everyday investors through the bank’s TMRW app. For privilege reserve clients, the team launched its first UCITS fund leveraging its flagship Asian fixed income strategy, which has grown to S$220 million.
The bank also built a five-year roadmap to enhance its technology and platform capabilities. Spearheaded by the portfolio management team, in collaboration with change-makers from the broader private wealth segment, this aims to modernise its core system, optimise portfolio management tools and develop a client-friendly dashboard on the bank’s app.