Asia DPM Panel Backs Hybrid Model as Some Firms Put 60% to 90% in Discretionary Mandates
Updated
Updated · Hubbis · Sep 21
Asia DPM Panel Backs Hybrid Model as Some Firms Put 60% to 90% in Discretionary Mandates
1 articles · Updated · Hubbis · Sep 21
Summary
Hong Kong forum panellists said Asia’s recent discretionary portfolio management growth is most likely to scale through a hybrid structure—a managed core portfolio with advisory sleeves for private assets, company shares and tactical ideas.
50% to 80% cash levels seen in some client portfolios during market shocks helped drive demand, as property losses, trade tensions and concentrated holdings exposed the cost of staying uninvested or trading ad hoc.
60% to 90% discretionary-asset shares cited by some firms showed traction, but panellists said wider adoption still hinges on trust, transparent pricing and convincing clients that mandates preserve control through risk limits, restrictions and permitted markets.
Relationship managers were identified as the main bottleneck to scale because they must explain the mandate clearly and see DPM as support for, not a threat to, client relationships and compensation.
AI can speed research and portfolio work, but the panel said durable growth will depend on human judgement, family-specific mandate design and proving value to younger clients scrutinising layered fees.