Mr De Mello said uncertainty in the market is one factor behind clients turning over the investment reins to the private bank for more nimble tweaks in the vast universe of instruments.BANK of Singapore is seeing a surge in interest from clients in discretionary portfolio management - with a 40 per cent jump among its Singapore clients seeking out the service between 2016 and 2018.
As a comparison, private banks in Asia have discretionary portfolios that make up roughly between 5 and 10 per cent of all portfolios; in some independent Swiss private banks, the discretionary component is at least half. "Clients are more cautious, and they often start with, 'should we take profits'," added Mr De Mello on the broader investment climate.
The rate cuts are deemed as"insurance", meaning that the Fed - which stands to manage inflationary pressures - is hedging against risks from uncertainties in the US economic outlook. Earlier this month, US Federal Reserve chairman Jerome Powell made no pushback against market expectations of a July rate cut during his congressional testimony.
"The trade situation is unknown to us. We've lived in a time where generally, tariffs have come down, and it's all been about improving trade and improving globalisation. In the last 10 years, there's been a reversal. None of my economics professors told me that tariffs were a good thing," said Mr De Mello.