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We spoke to him about why the company established an office in an apartment complex and examples of relocation in the current environment.
Simon Hopkins (pictured), Founder and Group CEO of Miltrust International [Group]says it will quickly pivot its business to capture new opportunities and exit areas where the market has changed.
The newly launched office business for apartment complexes seems to be a good example of this.
Miltrust launched East West Private Wealth (EWPW) in 2023 and appointed former senior banker Edward Higgins as managing director based in Singapore in January this year.
In addition to investing in real assets, MFOs offer investment opportunities such as venture capital, liquid public equity funds, and co-investments focused on direct impact. Additionally, Miltrust International’s internal assets include the British Innovation Fund II, the Climate Impact Asia Fund and the Global Emerging Markets Fund, along with Miltrust International’s suite of emerging markets public equity country funds and venture funds. It also uses management functions. [funds] and real asset funds. EWPW already banks for customers in jurisdictions such as Geneva, Monaco and the United Arab Emirates, in addition to offices in London and Singapore.
With more than $6 trillion in assets under custody in banks, Singapore’s rapid rise as a wealth management center is an “amazing development” and in some ways the Asian city-state has surpassed Switzerland. said Hopkins in an interview. However, Mr Hopkin said Singapore had not yet grown a large-scale, independent domestic wealth management business that could rival the big players in the US and Europe.
And there is a strong need for wealth management businesses that can offer a full range of options to wealthy clients, he said.
“I thought we would see more forward-thinking players and domestic champions moving their asset management capabilities to Singapore,” Mr Hopkins said. “We want people who can get out there and explore their surroundings and find the best solutions.
[out there]”
“This is a ‘Road to Damascus’ moment for me,” said Hopkins, who has worked in fields such as emerging markets and sustainable agriculture. “Our organization has the ability to put together a highly specialized investment portfolio.”
change of focus
In recent years, Mr. Hopkins has focused much of his energy on areas such as emerging markets and sustainable agriculture. He was willing to change his policy if necessary. For example, Miltrust sold its UK subsidiary Miltrust Agricultural Investments to UK venture capital group Future Planet Capital in November 2021.
“Over the past 10 years, [business]In line with the Singapore framework, we have become a solution provider. “The way I’ve built my business is keeping in mind what is the best opportunity for investors within their individual time frames,” Hopkins said. Mr. Hopkins acknowledged that there were developments that were completely unexpected, such as China’s slowing growth and Beijing’s policies. As another example, strong economic growth in emerging markets is generally not fully reflected in stock markets. The only exception to this situation is India, where stocks outperform the US S&P 500.
Office drive for apartment complexes
New MFOs are part of businesses trying to ride the wave of wealth and provide solutions.
“[It] is a company incorporated in Singapore but is a global family office… with operations in London and the UAE… we have established a regulated subsidiary in Abu Dhabi,” he said. , spoke passionately about the growth of wealth in the Gulf region and the appeal of such a place. Towards “Nomads of the World”. The UAE, like Singapore, benefits from the recognition that it is a stable and safe place, a quality that is important in modern times.
Another factor at work behind his MFOs, Hopkins said, is disillusionment with what private banks have to offer customers.
“People are dissatisfied with private bank services and are leaving private banking platforms,” he said. Part of the challenge for banks, he continued, is that they work under regulatory and compliance constraints that hinder their ability to assist customers.
The growth of external asset managers (EAMs) in Singapore and the wider Asia-Pacific region mirrors, and is to some extent mirrored by, the Swiss EAM market. This news service chronicles the growth of his EAM in Asia.
There are bottlenecks in Singapore, which also opens doors for those who can address the bottlenecks.
“There is a possibility that there will be more influx.” [of wealth] If we have more people to facilitate the compliance function, we would like to go to Singapore,” Mr Hopkins said. He said much of the work needed to enable the movement of funds does not need to be done in Singapore as it is an expensive city.
The news agency asked Mr Hopkins about how the hundreds of detached offices in Singapore (estimated at around 700) are registered. He said this was driven by the belief that owning a family office amounts to a type of residential transfer by investment, given that Singapore requires residents to put some of their capital into the jurisdiction. Said to be one.
And there are new jurisdictions to watch, Hopkins concluded. The Indian government is building Gujarat International Financial Tech City (Gift City), a financial services hub with a unique tax system and structure that can compete with offshore centers such as Mauritius, for example. The growth success of Dubai, Singapore and other locations is not lost on India, and the opportunities are great, Hopkins added.
Useful facts about multifamily offices and Singapore
–Several celebrities have set up detached offices in Singapore, including Google co-founder Sergey Brin, former Fosun International CEO Liang Xinjun, and Reliance Industries chairman Mukesh Ambani. has been established.
— About 59 percent of Asia’s family offices are located in Singapore, according to KPMG.
–At the end of 2022, there were 1,500 family offices in Singapore, managing approximately S$90 billion ($66.8 billion) worth of assets. This equates to just under 2 per cent of the S$5.4 trillion in assets under management in Singapore (Source: ASEAN Briefing). Data varies. There is debate as to what Singapore considers a “family office”.
–Since 2020, the jurisdiction has also operated a variable capital company (VCC) regime to facilitate wealth management business and is considering updating its VCC program to support SFOs.
— There’s competition in Singapore: In June 2023, the Hong Kong government announced a “network of family office service providers” in preparation for attracting family offices to its jurisdiction.
— Also last June, DBS launched the DBS Multi Family Office Foundry VCC. DBS says it is the world’s first bank-backed multifamily office to utilize the jurisdiction’s variable capital company structure, which was introduced in early 2020.
— The Highworth Research Database is a useful resource for SFOs around the world, and this news service is its exclusive media partner. Click here to register.