INTERVIEW
Managing wealth is not an easy task, but at Hellenic Bank Private Banking, high-net worth individuals or those with more than CYP 50.000 to invest are promised a dedicated service, tailor-made to suit their growing and demanding needs.
In an effort to offer the very best, Hellenic Private Banking has teamed up with and is drawing on the enormous resources and research of some of the world’s leading financial institutions such as JP Morgan Asset Management, Merrill Lynch International, Deutsche Bank AG, BNP Paribas, Commerzbank AG, Credit Suisse Asset Management Fund Service (Luxembourg) SA, Citigroup Global Markets and Capital Invest AG.
“These global alliances offer our clients access to an unparalleled range of products and information, allowing customers to choose between diverse investment opportunities,” said Nicolas Theocharides, Hellenic Bank Manager, Private Banking.
In an interview with the Financial Mirror Theocharides said the breadth of the investment options on offer is what differentiates Hellenic Bank’s Private Banking unit, while the international alliances offer distinct benefits in terms of pricing and superior returns for clients.
Close relationship
“Our team addresses the four major requirements of any high net-worth individual, which are discretion, confidentiality, attention and good returns,” said Theocharides.
Once the customer decides on the asset allocation and risk element, our staff will then engage in continuous evaluation and follow-up dedicated service that will monitor, advise, suggest and implement solutions depending on client investment needs and changing conditions in international markets, he added.
High return
Theocharides said investment returns during the last 12 months were exceptionally good. Conservative clients who shunned risk are reported to have made returns of 5% per annum investing mainly in bonds and capital guaranteed products.
Those willing to take a measured risk of adding some equity investments to bonds and capital guaranteed products saw their return climb to 8-10%, while aggressive investors who invested heavily in emerging market equities such as India, Russia and China made from 25% to 75% depending on the level of risk that they took.
“Last year nobody lost, but that does not mean that people should get carried away,” Theocharides said, adding that investors should always keep a balanced asset allocation and follow market developments closely.
“Many people are inquiring about commodities, and some are venturing in, as people chase higher returns.”
And the level of risk that people are willing to take depends on their income expectations and many times on past experience as well as understanding the products on offer.
“People who lost money on Cyprus equities in 2001/02 are generally more inclined to be cautious and conservative, while others go as far as investing in palladium, which did a fantastic catch-up with gold recently.”
Many services
Hellenic Bank Private Banking has a wide range of financial products and services providing innovative solutions through international mutual funds, brokerage services for equities in all major stock markets, brokerage for government and corporate bonds, capital guaranteed investment products, structured products, hedge funds, exchange traded funds, reverse convertible notes and money market deposits.
For example, all international equity trading is done through the Deutsche Bank platform electronically.
Another useful service is custodian services by Hellenic Bank Custodian for safekeeping of securities and collection of dividends and coupons.
Shift to Private Banking
Theocharides believes that as people come to appreciate the need for sound advice and personal service, the private banking departments at banks will grow.
Declining interest rates for Cyprus pound investors who are witnessing a convergence of local rates with those of the euro ahead of euro-zone entry in January 2008 are increasingly turning to private banking services in search for better returns and asset diversification.
“People are already fully invested in property and now they are discovering international markets, and shifting to private banking staffed with advisors who speak their language and understand their needs,” said Theocharides, confident that the strong growth in business currently witnessed by Hellenic Bank Private Banking will continue in the years to come.
As for fees, Theocharides insists that these are very competitive. While he did not wish to generalise, he said that to set up a CYP 100.000 portfolio, the fees would range between 1-1.5% depending on the type of investments.
