Banks including Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) are collaborating to sell structured products in Asia as private wealth in the region balloons.
Six financial institutions and technology provider AG Delta have formed a company called Contineo Ltd. that will provide an Internet platform to sell equity-linked structured notes to private banks and wealth management firms, according to an e-mailed statement today. Current distribution of such products is highly manual and having a one-stop virtual network should help lower costs, according to the statement.
Asia is home to the third-largest number of ultra high net worth individuals and the region’s wealth is poised to overtake Europe within the next 10 years, a Wealth-X and UBS Group AG November study found. The report defines an ultra high net worth individual as someone with at least $30 million in net assets. Sales of equity-linked securities in Korea jumped 59 percent to 10.5 trillion won ($9.7 billion) last month, the most on record, while Japanese household investors poured more than $36 billion into uridashi bonds in 2014.