Bank of Singapore, the private banking subsidiary of OCBC, has launched a dedicated sustainability advisory team called Sustainability Partners, according to a statement. Christine Cheong has been appointed head of the team, which sits within the bank's chief investment office. The bank set it up to better support clients, in particular those in the ultra-high-net-worth (UHNW) segment.
The team will work with relationship managers and experts from across OCBC Group. It will support clients across three interconnected pillars: investments, businesses and multi-generational stewardship, bringing together expertise from private banking and commercial banking.
CLIENTS SEEK ADVICE BEYOND PORTFOLIOS
According to the bank, UHNW clients are often entrepreneurs and business owners. They are seeking guidance not only on sustainability-related investment opportunities, but also on navigating the sustainability transition within their own businesses and creating lasting impact across generations.
Cheong said that for many UHNW clients, sustainability has evolved from an investment consideration into a broader question of stewardship. Jean Chia, global chief investment officer at the bank, said: "As clients' wealth and business interests become increasingly interconnected, they seek advice that spans both domains." She added that the team strengthens the bank's ability to harness sustainability expertise from across the OCBC Group, supporting clients across their investment portfolios, businesses, family interests and broader community ambitions.
CHEONG'S REMIT AND THE SUMMIT LAUNCH
Before her latest role, Cheong was responsible for formulating in-house ESG methodologies and ESG fund selection within the chief investment office.
The new team was unveiled during the bank's inaugural Sustainability Summit, themed "Leading through investments, impact and resilience". Around 150 clients and partners attended. Speakers included Sunway Group founder and chairman Tan Sri Sir Dr Jeffrey Cheah, Tommy Phun, founder of Singapore-based maritime electrification tech startup Pyxis, and OCBC's group chief sustainability officer Mike Ng.
EXISTING SUSTAINABLE INVESTING OFFER
The bank's services are dedicated to clients with at least USD 5 million in investable assets. Its sustainable investing solutions are designed to align portfolios with clients' values and beliefs, and it gives clients exposure to a breadth of sustainability themes through fund managers. It says sustainability factors can potentially enhance portfolio resilience for long-term risk-adjusted returns.
The advisory process begins with a consultation to understand a client's sustainability preferences. The bank then identifies approaches and opportunities that best align with investment needs and those preferences, guided by the client's sustainability vision. It tailors a sustainability-incorporated portfolio that considers investment goals and risk and return expectations, and reviews it with the client to ensure investments are based on their goals.
GROWTH PUSH IN THE UHNW SEGMENT
Over the past year, the bank has strengthened its family office and wealth advisory senior bench to support its UHNW push. Its assets under management stood at $124 billion as of 31 March 2023, up from $120 billion at the end of 2022. To meet its growth target, it plans to expand its team of relationship managers to 500 by end-2025, compared with over 400 at the time of that disclosure.
Among asset managers based in Singapore, monies managed with an ESG overlay constituted 48% of total assets under management, according to the Monetary Authority of Singapore. At OCBC, wealth management income for 2023 rose 26% to $4.32 billion, up from $3.42 billion a year earlier.