Last Updated –
What is Wealth Management?
Wealth management refers to financial advisory services offered by various investment firms and banks to clients who want a customized strategy for building, managing, and preserving their wealth so it matches their financial goals.
Beyond investment advice, it may also include tax, insurance, trust fund, retirement planning, and estate management services. The idea is to have a single wealth manager who will help handle all these aspects of your finances so it aligns with your current and future financial strategy.
What are the services included in Wealth Management?
Wealth management services encompass a variety of financial solutions that generally revolve around 3 key categories:
- Lifetime planning
- Capital management
- For investment portfolio management
- Succession planning
- Covers protection and estate planning, tax planning, Trust products, etc.,
What is Private Banking?
If you’re one of the lucky few with a net worth well above seven digits, then private banking is just what you need to take your finances to new heights.
Private Banking is a personalized service to the elite who are serious about growing and protecting their funds. And while this service is pretty unheard of for most of us, the Philippines is positioning itself to become one of the fastest-growing economies wherein very high net worth (VHNW) individuals reside.
Private banking is a personalized and exclusive service that caters to VHNW clients.
These lucky few have the privilege of access to services such as personal advisors, concierge management, 24/7 customer care for all their needs, including bank transfers or bill payments in any currency – even if your bank does not offer it!
Criteria for Private Banking Clients?
The Total Relationship Balance is the sum of all your assets, and it usually includes a monthly average balance for each account you have. Most financial institutions want to know this number when deciding who to serve under their VHNWI client services.
With their millions of assets in one bank, VHNWIs get preferential treatment for banking. They are assessed and deemed qualified for priority banking or given a much more prominent option with wealth management services where there is an assurance that people like them will always come first.
For instance, UnionBank offers private banking for clients with PHP 100 million worth of assets1.
While this is not disclosed to the public, most private banking is given to clients with PHP 10 million to PHP 25 million2 in assets. Most banks offering this service usually include wealth structuring, philanthropy, and wealth structuring, to name a few.
Private Banking Perks, Services, and Benefits
Private banking is a new luxury privilege for VHNWIs. It’s about customized investments that are tailor-made to each person based on their needs.
Clients receive financial advice from experts to protect and provide maximum returns for their investments or savings. These banks also offer frequent updates of how much money you have growing in your account every day and all other perks, including VIP concert tickets at a moment’s notice or even the first flight out of the country if needed.
Most financial institutions offer this type of service for these unique clients. With private banking, VHNWIs can have access to tax advisers, global investments, and mortgage experts.
They have a whole team of advisors at their disposal so that even in the worst market conditions, their wealth will stay afloat against market fluctuations.
Clients of this caliber are always in a hurry. So, they need private bankers to help them get through the bureaucratic process of banks and financial institutions on their time-frame with no waiting or delays.
These VIP clients have 24/7 concierges with these banks following all their orders and requests so that there’s never any wasted time for them at all.
Other types of perks might include lower interest rates on their home equity loans or higher annual percentages for your savings account. Plus, businesses could also find several lending opportunities whenever they need them.
Best Private Banking & Wealth Management Companies in the Philippines
In the Philippines, banks are the most common providers of wealth management and asset services.
These vary depending on the actual services and features that each bank offers which can go from the basic investment and asset management to a more complete solution that includes private banking, estate, and tax planning, and various trust products.
It’s also important to note that these services are tailored for high-net-worth individuals looking to leverage the expertise from these providers for handling their assets and managing wealth-related matters.
1. Security Bank
Security Bank’s wealth management services include personalized investment portfolios, expert financial advice, estate planning, and financial planning solutions.
Investment Management Account (IMA)
Through Security Bank’s IMA, you can have your assets managed by investment professionals (both for personal and corporate accounts). It comes in two options:
- Directional IMA: You can specify terms and conditions and direct SBC – Trust on where to invest funds. Minimum Requirement PHP 1,000,000
- Regular IMA: SBC – Trust is given full discretionary authority in the management of your funds. Minimum Requirement PHP 100,000,000
Protection and Estate Planning
Personal Management Trust helps you manage and transfer your assets to designated beneficiaries. It can also be used to complement your existing estate plan. Aside from providing the terms and conditions of Trust assets, they also help clients form a unique investment portfolio with higher returns.
Other services under SB’s Wealth Management:
- Comprehensive Financial Planning
- Portfolio Management
- Global Investment Solutions
UnionBank Private Banking aims to provide clients with holistic wealth management solutions and globally diversified portfolios along with bespoke asset management and family services advisory.
- Using an open-architecture investment approach, the goal is to provide clients with an optimal investment portfolio that matches their risk profile and earnings objectives.
Global Funds and Investment Strategies
- UB partnered with Swiss private bank Lombard Odier to give clients access to global diversified investment portfolios, holistic wealth management solutions, and a global trading platform through AllFunds Bank.
Local Investment Outlets
- Clients get direct access to local investment outlets such as Philippine Government Securities, US Treasuries, Corporate Bond Issuances, Common & Preferred Equities, UITFs, and special rates on Money Market Instruments.
- Clients get access to structured products that will enhance the yield of their investment holding while taking into consideration credit, liquidity, and other related risks that will impact the investment.
Through Metrobank’s Wealth Management Services, clients can have financial experts manage their investments and set the terms of how the proceeds of their wealth will be distributed.
Personal Management Trust
- Establish and manage a trust fund for family and loved ones. You can designate the terms and conditions on how the earnings from the trust fund will be distributed.
Life Insurance Trust
- Metrobank manages the distribution of your life insurance payments to loved ones in the event of your death.
Investment Management Activity
- Access to various kinds of investments by having Metrobank establish and manage a tailored investment portfolio for you.
RCBC Wealth Management is the company’s private banking arm dedicated to serving the investment and financial requirements of high net worth individuals. It’s a high-level professional service through a dedicated relationship manager for handling the following aspects of wealth management:
Financial and investment advice
Expert advice from RCBC’s finance experts for your various investments and assets.
Strategies and ways to achieve your financial goals for when after you stop working.
Lets you establish terms and conditions on how your wealth and assets will be distributed in the event of death.
BPI Asset Management and Trust Corporation provide clients with personalized solutions for acquiring and managing wealth.
Personal Management Trust
BPI’s PMT service lets clients set aside a portion of their assets to be managed by BPI Asset Management and Trust Corporation as Trustee for your own and/or your designated beneficiaries’ benefit. It can be customized according to the Trustor’s investment needs, whether for the preservation of assets or for the future needs of your chosen beneficiaries.
Investment Management Account
Through an Investment Management Account, clients get access to investment knowledge and expertise of BPI Asset Management and Trust Corporation.
Regular Subscription Plan
It’s an investment program that allows clients to designate a regular contribution amount for the purchase of units/shares for your Investment Fund/Mutual Fund account on a periodic basis (monthly or quarterly).
Personal Equity & Retirement Account
PERA is short for Personal Equity and Retirement Account. It’s a voluntary retirement account established by and for the exclusive use and benefit of the Contributor for the purpose of being invested solely in PERA investment products in the Philippines.
BDO’s Private Banking arm provides investment management, wealth planning, and structuring services to clients who will be given access to Dedicated Relationship Managers and Wealth and Legal Advisors.
Provides clients with an open architecture platform for their investment portfolio planning and execution, estate planning, and access to investment advisory services.
Allows for delegation of asset allocation, portfolio construction, investment selection, investment execution to BDO in 3 ways:
- Managed account – BDO will provide a custom portfolio that matches your investment goals and risk tolerance. This option allows BDO’s wealth advisors, investment managers, and analysts to select and execute the appropriate investments that meet your objectives.
- Advisory account – For clients who want more active involvement and responsibility in managing their assets. They can select investments based on the ideas and suggestions of wealth managers tailored to the client’s portfolio. Access to BDO’s capital markets and investment research is provided as well as assistance in analyzing asset classes and specific investments.
- Execution – For clients that are well versed in the intricacies and movements of volatile markets. BDO provides a platform for executing its investment strategies along with the recording, settlement, and custody of your investments.
Wealth protection and distribution
Various frameworks for holding and preserving your wealth for achieving your long-term goals. This includes the following services:
- Living Trust
- Estate Life Insurance Trust
- Professional Pension Trust
- Special Educational Trust
- Other Special-Purpose Trusts
- Testamentary Trust
- Legacy, Endowment, and Charitable Trust
- Special Purpose Trust
China Bank Trust & Asset Management Group (TAMG) provides Investment Management Account (IMA) and Personal Management Trust services.
Investment Management Account
China Bank’s TAMG will proactively manage your funds on a full-time basis, in all market situations. They’ll have full authority to make investment decisions, considering the pre-agreed investment guidelines; or directional, wherein investment decisions require prior client consent.
- Professional fund management with flexibility on investment mandate
- Dedicated Trust Relationship Officer
- Access to a wide range of financial instruments across various asset types for risk diversification and to maximize returns on investment
- Customized portfolio design and management according to investment objectives, liquidity requirement, yield expectation, and risk tolerance
- Regular updates on the market movements and the value of client’s investments
Personal Management Trust
A living trust agreement wherein China Bank TAMG acts as Trustee to manage a portion of your wealth or estate for your own and/or your beneficiaries’ financial security.
- Portfolio wherein clients can access a wide range of investment outlets without opening multiple accounts
- Professional management of funds to benefit from the market knowledge, investing experience, and discipline of China Bank’s fund managers
- Wealth distribution by assigning designated beneficiary/ies and defining dispositive provision on how clients would want to pass on their wealth.
- Flexibility to choose the type of trust arrangement, whether revocable or irrevocable. Where in the case of irrevocable trust arrangements, assets will not be subject to estate tax
- Dedicated Trust Relationship Officer for assisting with all Trust-related needs
8. Philippine National Bank
PNB’s Wealth Management Group is the distribution arm of the bank, providing various financial services to its Retail Individual Investors and High Net Worth Individual Investors. They provide the following services:
Personal Trust Account
For setting aside money and funds for the future of your family or other beneficiaries, PNB can help set it up and manage it for you.
Investment Management Account
Professional fund management for individuals and corporations who/which do not have the time nor the expertise to manage their funds. Experienced portfolio managers will design a specific investment portfolio and strategy so clients can achieve their financial goals.
PNB provides advisory services for helping clients manage their finances and business affairs as well as the distribution of assets in the event of death.
9. Development Bank of the Philippines (DBP)
DBP offers Investment Management Account (IMA) and Personal Management Trust (PMT) services to individual clients.
Personal Management Trust (PMT)
Living trust enabling trustors to set aside funds for a particular purpose while having it invested in a suitable outlet. The minimum investment is at P3M and investment outlets include deposit products, government securities, investment-grade bonds, and promissory notes.
Investment Management Account (IMA)
Tailor-fit portfolio based on the client’s liquidity and growth needs. For a minimum of P5M, investment outlets they can leverage include deposit products, government securities, investment-grade bonds, and promissory notes.
Landbank offers Investment Management Account (IMA) services to individual and institutional clients by serving as their portfolio manager.
It gives clients access to different financial markets without the need to transact with different brokers or counterparties.
5 Things to Consider When Choosing Wealth and Asset Management Firms
It goes without saying that doing your due diligence is crucial in picking a wealth and asset management firm, we’re talking about your hard-earned money and assets here after all. Here are a few things to keep in mind to help you choose the right one for you.
1. Track record and credentials
Check the bank/firm’s track record when it comes to wealth generation and asset management for their clients.
How long have they been operating their asset management arm and how have they been performing so far? Are they well-known in the business when it comes to this particular segment?
Related awards and accolades can be indicators as well of good performance too.
2. Fees and pricing
Learn about how much these firms/banks charge for managing your account.
Ask how they get their fees if it’s commission-based or fixed-fee structure. When and how do they get paid?
Knowing about these things is important, especially if you’ll be using their services for a long time.
3. Scope of services
What type of services and features does each firm or bank offer?
Which ones are more specialized in some areas? Which ones offer a more holistic approach?
Ask yourself which services are crucial for your needs (and which ones you can live without) so you can pick the right firm for you.
4. Execution of services
Learn how a particular firm’s client service model works to determine if it’s actually structured in a way that works to your preferences and needs. Accessibility of both investment managers and their online services, for example, is essential and should be verified.
5. How they fare against competitors
Shop around to check which firms provide the best matching services tailored to your needs.
Credentials, track record, price, features, and extras are aspects you should compare to get a better grasp of your options.
- Best Credit Cards in the Philippines
- How to get Health Insurance in the Philippines
- How to evaluate & improve your Financial Health
- How to manage your finances like the Top 1%