Asian Wealth Management Forum 2019 SG - Highlights - Gary Dugan

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1. What are the challenges and opportunities for this industry?

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1. What are the challenges and opportunities for this industry?

Some of the biggest opportunities at the moment are really a significant repositioning of the product line at an asset management business. In the past it's been largely about risk taking, now it's just about hunkering down, but still giving people some kind of income that they can live off. So you're typically asking clients to look at propositions that are going to be 4-5% returns over the medium term after costs. Now the challenge to that is the cost line. Still today the industry tries to generate at least 1% return out of a client. And that I think is just unsustainable. I think the industry could be down to half that level over the longer term. So we're looking at a return from the client of only 50 basis points, requiring the industry to get much more cost effective.

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