Founder Securities
Wealth management is a fairly new business for Chinese securities firms. The Securities Association of China ranked Founder Securities as the 13th largest domestic securities firm by assets for 2016, the latest ranking available. But the Shanghai-listed firm is ahead of other domestic securities firms in establishing a fully fitted unit and adopting international practices to enable the growth of the wealth management business.
Founder Securities is one of the first securities firms to create a business unit dedicated to managing the wealth of clients. The unit, formed under the firm’s brokerage service division, is made up of operation, training, investment advisory and private banking centres.
Through close collaboration with the firm’s asset management, fixed income, investment banking, institutional services and research divisions, the wealth management unit is mandated to seek premium asset allocation opportunities inside and outside China for high net-worth clients.
When serving clients, Founder Securities’ wealth management team has embraced the internationally adopted ‘1+1+N’ service model, whereby each client is served by a professional relationship manager, and each relationship manager works closely with a highly specialized team to develop professional solutions to address customer needs.
In December 2017, Founder Securities became the first Chinese securities firm to launch family trust products to strengthen its capability in serving ultra-high net-worth customers.
As the Chinese stock market has underperformed in recent years, wealth management has become an increasingly important source of revenue for Founder Securities. In 2017, thanks to the revenue contribution from its fast-growing wealth management business, the total revenue generated by the firm’s investment advisory services exceeded Rmb130 million ($20.3 million).