Credit Suisse (Thailand) has set an aggressive growth target for its wealth management business in Thailand, hoping to take advantage of its global network and expertise in attracting well-heeled clients.
The local unit of the Zurich-based financial institution aims for 100% growth in its asset under management (AUM) for the wealth management firm's first year of operation. The service was launched in May.
The company's minimum level of assets for customers is US$2 million, and its customers' assets average $5-10 million.
Credit Suisse Thailand has steadily managed to grab customers and increase its AUM, said Thippa Praneeprachachon, executive director and head of wealth management, without revealing figures.
High-net-worth individuals are the company's largest customer group, representing 90% of AUM for the wealth management service, while entrepreneurs who have excess liquidity and are hunting for attractive returns make up the rest.
Thailand has a large high-net-worth pool of individuals when compared with South Korea and Singapore, Credit Suisse's 2015 Asia-Pacific wealth report said.
There are around 91,000 high-net-worth individuals in Thailand with more than $1 million in investable assets, owning $456 billion of investable wealth. There are an estimated 340 ultra-high-net-worth individuals with more than $50 million in net wealth, the report said.
As Credit Suisse Thailand is a new player in the market, differentiation was its key strategy, she said. The company offers clients full overseas investment portfolio management.
Ms Thippa said the Bank of Thailand's relaxed regulations on retail investors' portfolio investment abroad has widened opportunities for individuals and the company's business expansion.
Thais are now permitted to directly invest up to $5 million in overseas securities, according to the central bank.
With Credit Suisse's regional hub in Singapore, its affluent clients in Thailand can invest via foreign investment funds (FIFs) available in the city-state.
Strength in research, business expertise, and the parent group's global network offers support for Thai customers' offshore investments, she said.
In a related development, the company is preparing to offer structured funds and private equity funds to Thai customers as both instruments can help diversify investment portfolios and may create higher returns.
"In general, the prices of private equities are lower than those of listed companies. A lower price means an opportunity for high-net-worth investors to obtain a better return on investment," said Ms Thippa.