Asian millionaires turn to independent wealth advisers

When the value of his $20 million portfolio plunged in the 2008 global financial crisis, luxury car enthusiast Gerard Tan followed a growing trend among Asia’s elite investors by turning to an independent adviser for help. His bank had put most of his cash in volatile emerging market bonds, which were hammered by the financial turmoil. Tan, who asked that his real name not be used, kept his money in the bank, but engaged the services of an adviser unrelated to the institution in order to staunch the losses. Six years after the crisis, a growing number of Asia’s millionaires are turning to independent wealth advisers, who offer professional advice for a fee much like doctors and lawyers do. Without pushing clients to buy financial assets, they offer an alternative to wealth managers working for private banks, which traditionally generate revenues on commission. Banks put the focus on selling and this can sometimes lead to risks being overlooked in favour of revenue, according to analysts. ‘My positions were restructured and portfolio risks were managed,’ said Tan, a publicity-shy father of two who owns a range of high-end cars. ‘I feel a lot more comfortable now about my market exposure,’ added the self-made businessman whose assets are now more than $40 million, according to AFP.