Investment-Unlimited aims to consolidate portfolios of high net worth clients

  • Business
  • Monday, 05 May 2003

AT CIMB private banking, the concept of managing a broader wealth, is taking shape. 

“Over the last 10 years, people have bought many products from brokers, insurance agents, banks and unit trust companies.  

“Much of their overall portfolio has yet to be consolidated,” said CIMB private banking unit's head Neville Azzopardi. 

“At one count, somebody came in with 100 stocks in his portfolio. We reconstruct that fragmented portfolio in accordance with his needs and manageability of the portfolio, with a large focus on giving control to the client.” 

CIMB private banking unit's latest and most innovative product is Investment-Unlimited, a wrap account service that allows people to invest across a range of asset classes and investment instruments, for an annual management fee. 

There are no transaction charges such as brokerage or upfront fees when buying or selling equities, or investing in unit trusts that include equity, balanced, income or bond-based unit trusts. 

A minimum fee of 1% is imposed, based on total contributions which are pro-rated, and closing balances as at the end of the previous calendar year. 

At year-end, if the accumulated management fee exceeds the minimum fee, the latter does not apply.  

However, if the minimum fee is greater than the management fee, the difference is charged.  

Among other things, the investor gets an equity trading limit which takes into account his total holdings, and access to a dedicated equity dealing team housed with CIMB Securities. 

“Response to this product has been positive,” said Azzopardi.  

Similar products have been introduced by financial giants such as Merrill Lynch, Morgan Stanley and UBS Paine Webber.  

According to Cerulli Associates, a Boston and London-based research and consulting firm, fee-based accounts of this nature have grown to US$151bil in assets under management. 

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