Ling Capital puts focus on customers to get ahead in the Wealth Management field

Top Quote In Japan's increasingly-crowded wealth management market, Edward King, Ling Capital's newest Vice President, is convinced that putting the interests of customers first via client experience, quality of advice and breadth of product offering, is the best way to make a mark on the industry. End Quote
  • (1888PressRelease) October 25, 2015 - In a business where the interests of customers, shareholders and staff are often at cross-purposes, Mr. King's viewpoint may seem idealistic - even quite disruptive. But the newly-appointed Vice President believes that taking care of the clients' interests before anybody else's is the only way to build a successful business in the long run.

    "Unless you put the customer first, it is not going to be a sustainable model," he explains. "You will keep on digging away every quarter to get your revenue, but sooner or later when the customer realises he or she has been taken for a ride, then they are going to go elsewhere for advice.

    "This way of thinking is more important than ever for an industry where competition has heated up significantly. Yet too many of the wealth management players operating in the Asia Pacific region essentially do the same thing." he continued.

    "In particular, the domestic industry is getting increasingly crowded. Non-banking financial companies (NBFCs), independent financial advisers, and direct distributors are all vying for a share of the expanding target audience, given the growth in numbers and assets of wealthy individuals. In the banking sector, wary of being left behind in this land-grab, institutions such as Japan Finance Corporation (JFC) and Mizuho Bank have quickly repositioned themselves by entering the asset and wealth management business. Undoubtedly, this makes good business sense." says Mr. King.

    For banks, such a move provides an opportunity to pick up untapped customers in smaller towns and cities. "I don't see why a bank should not offer wealth management facilities," he explains "A bank that is helping a client get his or her business in line by arranging cash, credit, overdrafts or by giving him or her a loan, is actually losing out on an opportunity if it is not offering wealth or asset management," he adds.

    But there seems to be a limited amount of meaningful differentiation - or even the scope to do so - from one wealth management provider to another. Whether at the banks or otherwise, what's gaining prominence instead are factors such as client experience, quality of the advice, and the strength of a firm's product capabilities. This last aspect is particularly important as the Asia Pacific's wealthy move along the investment curve, from manufacturing and real estate, to a broader array of financial assets.

    "We have a 40-member research team in Tokyo, where 24 technical analysts track nearly 160 mid-cap stocks." He also has teams focusing on wholesale debt, currencies and commodities, for example, which means it will be easier for the firm to launch products for a forward contract. "We can also take care of corporate treasury needs," he added.

    The asset classes Mr. King is particularly bullish about over the next decade are equities and debt. In addition, while the returns on physical assets, be it real estate or gold, are not going to be on par with liquid assets over the next five years, over a 20-year horizon, all asset classes will perform well.

    Gold, being a crisis currency, will do well in adverse times. 5% to 10% of gold is a must in a portfolio for the right asset allocation. "With the way the Asian economy is growing, we will see a lot of wealth creation in terms of incremental wealth, especially among the nouveau riche. In the next 20 years, I think one can make money in every single asset class and the numbers of millionaires and billionaires are only going to grow in the future," he finished.

    It's easy to see why he is optimistic for the development of his business.
    Edward King, 39, is a Vice President at Ling Capital with over 15 years of industry expertise. He was born in Leeds, Yorkshire, and went on to earn a Master's degree in Economics and Econometrics from the London School of Economics. In 2000, at the age of 24, Edward started his first employment in the finance industry, working as a junior analyst for Barclays Capital Investment. He moved to Tokyo in 2005, promptly becoming a Senior Portfolio Manager with Ling Capital. Edward has been happily married for 10 years, and has a 13 year old son.

    Ling Capital is a Tokyo based asset and wealth management firm, serving its private client division since 2011. For any further information, please visit our website or email info ( @ ) lingcapital dot com or call us on +813 45209594.

  • FB Icon Twitter Icon In-Icon
Contact Information