Building a new norm in wealth management

It’s no secret that navigating the domain of wealth management and legacy planning is as much an art as it is a science. Providing sound advice and expertise to clients with intricate family dynamics and value systems requires more than an ability to wield financial jargon with accuracy and aplomb. Furthermore, with an increasing number of female investors who often seek an experience that resonates with their unique goals and expectations, the wealth management industry is undergoing an evolution to meet the demands of their high-net-worth clients.

A 2019 graduate of the SMU Master of Science in Wealth Management (MWM) programme, Esther Fung believes female wealth managers address such developments in the industry, and bring more to the table with their rich range of skill sets and competencies.

“Succession planning is considered to be the soft side of the wealth management ecosystem, which requires patience, detail-orientation, high EQ, empathy and a deep understanding of each client’s family dynamics, psyche of the clients, and appreciation of the culture and value system,” explains Esther, who is now the Head of Private Clients with PreceptsGroup International, a boutique financial services firm which adopts a holistic approach to advising high-net-worth clients with an open architecture platform. 

“Consensually, women are known to have a knack for these qualities. The ‘maternal’ approach to discussions in estate planning and succession planning tends to take the edge off the topic and allows for more candid, in-depth understanding of their needs, preferences and expectations.”

This International Women’s Day, which is marked by the theme — Each for Equal, Esther hopes individuals will take responsibility for creating a gender-equal world through our collective thoughts and actions.

“My observation is gender parity, although improving in the last 10 to 15 years in the financial services sector in Singapore, remains a work-in-progress as more can be done to inspire, encourage and motivate firms in the sector to further embrace it,” says Esther, who was formerly a Senior Vice President in the Wealth Planning Department at DBS Private Bank.

“Correspondingly, women employees in this sector should recognise they can break the glass ceiling of male dominance. I would not say that it is a major issue as increasingly, women have taken up senior management roles in the financial services sector.”

During the course of her career, however, Esther had on some occasions observed hesitation from male clients when working with a female wealth manager — especially in instances where male heirs are allocated preferential inheritance rights during estate planning.

“Due to the traditional Asian culture, some older generation clients are still passing on the family wealth to sons or grandsons,” notes Esther.

“When such clients set up structures to manage their family wealth, be it a trust, family office or investment vehicles, they often will empower males to have a certain degree of control over the structure, or receive the bulk of family trust assets.”

Conversely, Esther notes that gender-biased wealth management is less of an issue in China where, as a result of its historical one-child policy, many clients have no choice but to transfer their wealth to that sole heir, regardless of gender. In addition, some of the older generations have undergone the Cultural Revolution, during which the gender equality ideal was promoted.

While deep-seated cultural norms may take time to shift, with family office structures being a relatively new but fast-growing aspect of wealth management in Asia, she believes women working in the industry are able to overcome biases by arming themselves with relevant knowledge, relying on their experience, and demonstrating utmost professionalism as well as exude innate confidence.

“The MWM programme provided me with a holistic view of the industry and allowed me to link course segments to my areas of work,” says Esther.

“Completing the MWM course further built my self-confidence, not just as a person but also professionally, as it demonstrated that gender or age has nothing to do with achievement and further education.”

Rather than focus on gender gaps in the workplace or in school, Esther suggests for women to concentrate on personal growth, and embark on a path of lifelong learning to improve opportunities for themselves in the corporate world.

“From youth, girls should discard the ‘victim persona’ and not think of themselves as secondary,” says Esther.

“Education plays a big part in breaking the mould. In particular, the financial services sector is highly competitive, especially for wealth management. Women considering a career in financial services need to be focused and equip themselves with a wider range of knowledge and skill set.”

Rising to the top of the corporate ladder could eventually be a reality for women, even in industries that perpetuate the notion of “boys’ clubs”.  While financial institutions have traditionally been portrayed as testosterone-driven, highly segregated establishments, the industry has been taking steps towards addressing diversity — and recognised its impact on public perception as well as economic gains. And women themselves have a role to play in order to consciously break the vicious, discriminatory cycle.

“As women tend to be more meticulous, they tend to overlook or place lesser importance on the big picture, which is a prerequisite for C-suite management,” explains Esther.

“Hence, female senior executives need to constantly remind themselves to adopt a macro view when making major decisions regarding the organisation as a whole.”

“Many women feel that they need to put in more effort in order to prove their abilities than their male counterparts when dealing with the glass ceiling. I believe over time, this phenomenon will diminish as more and more women succeed at the top echelons.”