CGS-CIMB Singapore has given all of its individual accredited investors access to ADDX’s private market offerings.
Through the partnership, CGS-CIMB was able to offer its high-net-worth clients an expanded shelf of private market products. The list of products includes private equity, private credit, venture capital, hedge funds, real estate, fixed-income products like bonds and commercial papers, as well as structured products.
The partnership is part of a new service called ADDX Advantage, which was rolled out in April.
ADDX, in its statement, said that it aims to onboard as many as 10 wealth managers by end-2023.
“As part of our mission to provide clients with an extensive suite of financial services, CGS-CIMB is always scouting for new offerings that can add value to our investors’ portfolios. Through our partnership with ADDX, CGS-CIMB’s high-net-worth investors now have access to private markets and opportunities that were historically accessible only to institutional players. We are excited to see the technology and innovation ADDX is bringing to the financial markets and look forward to working with them,” says Elgin Ting, CGS-CIMB’s managing director and group head, strategic innovation.
“Returns from a classic 60/40 portfolio mix of public stocks and bonds are at an all-time low. Against this backdrop, we have observed growth in investor awareness and appetite for private market products over the past two years,” says Choo Oi-Yee, CEO of ADDX. “Globally, private market assets under management are forecast to nearly double, from US$9.3 trillion ($12.64 trillion) in 2021 to US$18.3 trillion in 2027. Individual investor allocation to these alternative assets is likely to rise faster than allocation by institutional investors because technology is democratising access for individuals.”
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“Our solution for wealth managers provides maximum flexibility, fulfilling the different needs wealth managers have, while empowering them to help their end-clients build diversified private market portfolios. Serving wealth managers will be a key pillar of growth for us in 2023. Our priority is to optimise the user experience for wealth managers, as well as to increase the breadth and depth of offerings on ADDX,” she adds.
The partnership with CGS-CIMB represents a “strong endorsement” of ADDX, Choo continues. “Since the partnership went live, CGS-CIMB clients have contributed as much as 30% of investment volume for new fixed-income issuances. In this economic environment, wealth managers that can offer their clients access to previously out-of-reach investments will have a competitive advantage over their peers.”
