PROVIDEND IS unlike most private wealth management firms as it can lay claim to being a pioneer in some of its practices.
From the time it started operations in 2003, Providend has a policy of charging a flat fee for its services, instead of collecting commissions based on the value of products sold.
This was its way of “providing the most honest, independent and competent advice,” as it said. Providend remains the only ‘fee only’ private wealth management company in Singapore.
Providend, which now manages more than S$250 million of clients’ assets, has also been appointed External Consultant to the CPF Board Retirement Tool and Investment Consultant to The People’s Association, among others.
Yesterday, it marked a milestone by launching Providend Global Portfolios.
With access to both active and passive instruments sourced globally, the Providend Global Portfolios is a solution previously unavailable to most local high networth investors, said the company.
”While private banks are an option, they often recommend only actively managed funds or structured products, for which they are paid high front-end and recurring commissions,” it said.
Providend believes these fund managers cannot consistently beat the market index, so it prefers passive funds which offer market returns.
These passive funds - mainly exchange-traded funds - also have a lower cost of investing, translating into potentially higher returns.
Explaining that there are exceptions when actively managed funds will be used, Mr. Christopher Tan, Chief Executive Officer of Providend, said: “With the Providend Global Portfolios, we can truly handpick the best of breed and lower cost instruments worldwide”.
The Providend Global Portfolios comprise 3 global portfolios—Global Balanced Strategy, Global Growth Strategy and Global Retirement Income Strategy, which is the first retirement income portfolio built to provide perpetual retirement income in Singapore.
This investment solution was designed from the asset allocation strategy and robust investment process that clients have always been using, according to Providend.
The Providend Global Portfolios are currently available to Providend clients who are accredited investors – that is, they have a total net worth of S$2 milion or more, or a minimum of $300,000 income per annum for the preceding 12 months. These investors can park a minimum of $250,000 in the Providend Global Portfolios.