SINGAPORE - Asia's wealthy are readying cash to take advantage of opportunities in financial markets and private equity once the impact of the coronavirus pandemic subsides, according to the head of private banking at South-east Asia's largest lender.
"Clients are holding a lot more cash than usual. It's a very interesting phenomenon," said Mr Poon."Ultra-high-net-worth clients believe there will be a good opportunity in the marketplace once the pandemic impacts have flown through the economy," he said, referring to those with at least S$30 million in investable assets.
Mr Poon's insights mirror a wider trend. Leading private equity firms are sitting on about US$1.6 trillion of dry powder, according to data compiled by Bloomberg, after the coronavirus halted private equity deals and roiled global markets. Still, holding onto cash may mean that some investors have already missed a massive market rally, with the MSCI AC Asia Pacific Index surging about 43 per cent since its March low.
The private bank, which accepts clients with at least $5 million in investable assets, is part of DBS's wider wealth platform whose assets grew 7 per cent at the end of June from a year earlier. DBS expects AUM to grow at a similar rate this year, Mr Poon said.