There has been a number of shrinking or evacuation of foreign banks, which leads to some former employees to start their own business, hence the expansion of wealth management companies. Harmen Overdijk founder of AIAM believes that the development of Hong Kong’s Market will follow America’s footsteps. 10 years ago only few Independent Asset Managers (IAM) who are in the business which represents few percentage of the whole market, when now some IAM companies may hold up to 80% of the local assets.
Wealth Managers, Family Officers, and Independent Financial Advisors are included in the field of IAM. AIAM estimates that Hong Kong currently has 40-59 Independent Asset Management company, which averagely hold 3 Billion USD. Harmen said, much of the assets were held by small companies 20 years ago, but then got acquiesced by banks, with the increased regulation and business capital pressure, the servicing model has changed, and there is more room for smaller company once again.
Harmen thinks the bigger challenge for starting is not to obtain clients from private banks, but the lack of public knowledge about IAM. IAM’s main services are to provide consultation, but parts of trusteeship and other bank related services would still use Private Bank’s support. Many Chinese-funded Securities Companies are developing asset management business in Hong Kong, Harmen believed they would do well, by strengthen the public’s knowledge of this industry as well as clients trust.