Nominations are open for the Fourth WealthBriefingAsia EAM Awards, 2025, with the public announcement in Singapore, on 16 October.

What do VP Bank’s EAM services consist of?
Hofstetter: VP Bank Group’s services are offered through its home market of Liechtenstein and its four international locations in Switzerland, Luxembourg, Singapore and the British Virgin Islands. VP Bank Ltd Singapore Branch was established in 2008 and serves as the Bank's strategic booking location in Asia. VP Bank Singapore offers a full range of banking services, specialised wealth management solutions and family office services to meet the needs of high-net-worth individuals and professional asset managers. True to VP Bank's DNA, with financial intermediaries representing more than 50 per cent of the Bank's global business, the EAM business is undoubtedly our primary focus segment. Partnership arrangements with professional asset managers include tailor-made investment advisory, discretionary management solutions, and custodian services.

As a boutique private bank, we are committed to a highly personalised business philosophy. Our team of experienced advisors has in-depth knowledge of both the Asian and European markets. In Singapore, we have also established an international team, which has opened very different opportunities for us, such as in the Dubai International Financial Center (DIFC). We understand the specific needs of local clients as well as those of Intermediaries and professional asset managers operating in these markets. This means that our clients benefit from our global network of relationships.

What sort of clients have you taken on?
Hofstetter: While we respect the confidentiality of our clients and do not disclose specific names, we can share that we have partnered with a variety of EAMs, from boutique firms to larger, well-established entities. VP Bank works with a range of EAMs, including independent wealth managers, family offices, and other asset managers, providing bespoke solutions and personalised services. Our relationships with these clients are built on trust and our ability to adapt to the evolving needs of the wealth management industry. Our focus is on building long-term relationships and providing tailored solutions to meet their unique needs.

In approximate terms, how important is the EAM business line to the bank in general, such as for revenue growth, etc?
Hofstetter: One of VP Bank's unique value propositions is that the intermediary business is one of its core activities, accounting for more than 50 per cent of total assets under management, a ratio that no other bank has achieved. This is the result of a long history of partnership with wealthy individuals and financial intermediaries dating back to 1956, when the Bank was founded by Guido Feger, one of Liechtenstein's most successful entrepreneurs and trustees, as an extension of Liechtenstein's largest and oldest trust company. 

Intermediaries remain our North Star. It not only drives revenue growth but also enhances our service offering and strengthens our market position. The EAM segment has shown robust growth in recent years, and we expect this trend to continue as more asset managers seek specialised custody solutions.

When dealing with EAMs, what are the main tasks and forms of support they ask for the most and why, in your experience?
Hofstetter: With the rise of (U)HNW individuals and intergenerational wealth transfers, financial intermediaries will be in high demand for wealth management needs such as wealth planning and succession. We are strategically positioned in the ecosystem of partners such as trust companies, family offices, tax advisors, legal advisors and consultants, enabling us to leverage these networks for further growth. 

With three family foundations as cornerstone shareholders of VP Bank Group, family offices are also in our DNA, and we are confident that our product offering, combined with our wealth planning expertise, positions us well to meet their evolving needs in the years to come. We also work closely with EAMs to provide advisory services to help them align their portfolios with ESG criteria.

In addition to customized investment solutions, EAMs typically seek support in areas such as efficient transaction processing, detailed reporting and regulatory compliance. They value our expertise in providing seamless operational support that allows them to focus on their core activities of managing client portfolios and growing their businesses. ProLink, for example, is a dedicated information area designed specifically to meet the needs of intermediaries. With just a few clicks, our EAMs can find relevant information, important forms, and who to contact. With our convenient digital services, our EAMs can focus on the needs of their clients.  

We also regularly organise events and knowledge-sharing sessions on various trending topics, such as VCCs for our intermediaries with subject matter experts. We believe these sessions are of great value to both VP Bank and our clients.

How important has been the rise of VCCs (Variable Capital Companies) in driving what EAMs do and the services they need?
Hofstetter: The introduction of VCCs has been a game changer for the asset management industry in Singapore. VCCs offer greater flexibility and efficiency in fund structuring, which has been very attractive to EAMs. This has led to increased demand for our custody services as EAMs seek to take advantage of VCCs while ensuring robust asset protection and compliance.

Regulatory issues remain important, and Singapore is of course no exception, along with Southeast Asia more generally. Are there topics that are particularly front of mind? (KYC, AML, data security)? Is compliance causing you cost issues that have to be managed?

Regulatory compliance is indeed a top priority for us, with key areas of focus including KYC, AML, and data security. Staying ahead of regulatory changes and ensuring compliance can be resource-intensive, but it is essential to maintaining the trust and integrity of our services. We continually invest in training and developing our people's expertise to uphold the highest standards of compliance. EAMs and banks alike must remain vigilant to ensure that client onboarding and ongoing monitoring processes are rigorous.

How is digital technology shaping the sort of custody services you provide, such as affecting its cost, range of service, etc?
Hofstetter: Our Open Wealth Service platform provides clients with access to innovative wealth management services that leverage our ecosystem of partners.

Digital technology enables us to provide more efficient, secure, and cost-effective solutions. Innovations such as blockchain, artificial intelligence, and advanced data analytics enhance our ability to provide real-time reporting, automate processes, and improve risk management. These advancements not only reduce operational costs but also expand the range of services we can offer our clients, ensuring we remain at the forefront of the industry.