This led to recognition of restructuring costs of €6m in the first half of 2024, Saxo Bank said as part of its H1 2024 results, while reporting an overall adjusted net profit of €68m, compared to €50m for the same period last year, corresponding to an increase of 35%.

During 2024, the Saxo Bank Group said it rolled out a new competitive pricing structure that lowers costs for clients as well as improvements to the client experience, leading to a record number of clients and client assets, with over 1.2 million end clients and €109bn in client assets as of 30 June 2024.

Volatility across financial markets has been low in the first half of 2024 resulting in lower trading and investing activity, while the higher interest rates and positive inflow of client funding impacted the financial performance positively.

Despite the short-term negative impact of reduced pricing, total income increased slightly to €311m in the first half of 2024 and was diversified almost equally between the business areas with trader clients accounting for 34%, investor clients 34%, and institutional 32%.

Moreover, S&P upgraded Saxo Bank’s rating to A- from BBB during the first half of the year “in a testament to the Saxo Bank Group’s strong financial position”.

The Saxo Bank Group expects the full year’s adjusted net profit to be maintained in line with the previously guided range of €114 – 134m.

Kim Fournais, CEO and Founder of Saxo Bank, said: “The positive momentum we’ve experienced in the first half of the year is a strong indicator that our strategy is resonating with our clients. More than 1.2 million clients now trust Saxo with more than EUR 109.38 billion in assets. This is a result of our relentless focus on enhancing our investment platforms, products, and services, and offering very competitive pricing that empowers our growing client base to make more of their money.

“It’s also encouraging to see our clients increasingly recognising the value of diversifying their portfolios across different markets and asset classes. In these uncertain times, we remain fully focused on facilitating diversification across asset classes, making it easier and more attractive for investors to build healthy and profitable portfolios and manage their risks.

“Diversification is truly the “only free lunch” in investing – and we are here to provide the tools, product range, and insights to help our clients navigate their portfolios with confidence.”

Founded by CEO Kim Fournais in 1992, Saxo launched one of the first online trading platforms in Europe in 1998, providing professional-grade tools and easy access to global financial markets. Saxo formed its first partnership in 2001, with a partner that is still with Saxo, and has grown the Saxo Institutional business to more 400 partners today.

Today, more than 1.2 million clients with over DKK 800 billion in client assets is invested.

In addition, the SFC has awarded Saxo Capital Markets HK a type 4 licence, which allows it to offer investors on securities, the subsidiary of Copenhagen-based Saxo Bank said on 25 October 2021.

Richard Douglas, Hong Kong chief executive of Saxo Markets, said: “The licences give us greater room to now provide more comprehensive services to clients, whether they want to trade global capital markets or invest into their future. It’s especially meaningful for the Hong Kong office, as Hong Kong is a key growth market for Saxo and the gateway connected to mainland China.”

China auto-maker Zhejiang Geely became Saxo’s majority shareholder in September 2018, which signalled the Danish bank’s ambitions to expand its business into China.

‘Ready to tap into’ markets

Saxo Markets currently holds SFC Type 1, 2 and 3 licenses, and has been operating in Hong Kong since 2011. Together with Type 4 and 9 licenses, Saxo Markets is now able to extend its business further to asset and wealth management.

Leveraging its fintech background and presence in the local market, Saxo Markets can provide an alternative to traditional asset management for investors who are looking for a more personalised option with at a lower fee threshold.

“Investors in Hong Kong now are very much digital-savvy. They are looking for an easy-to-use platform that can provide tailor-made solutions based on their financial situations, and can handle their needs through one single account with top-level professional assistance,” said Lester Chan, head of wealth management and responsible officer of Saxo Markets,

The firm launched a new online and mobile phone platform for investing in securities and mutual funds, called “SaxoInvestor” in February this year, and it is now “ready to tap into the asset and wealth management area”.

As the commercial owner, Hong Kong-based Chan oversees all aspects of Saxo Markets’ wealth and asset management strategies and offerings in the Greater China region. Previously, he was a portfolio manager and strategist at traditional asset managers.

Singapore-based Lion Global Investors (LGI) and Saxo Markets launched a global multi-asset portfolio last February. Curated by LGI, the Lion Global Dynamic Growth: Asian Perspective portfolio was Saxo’s first managed portfolio that is tailored for investors looking to invest in a globally diversified portfolio “built with an Asian lens”.

The LGI portfolio sits within the online platform’s Saxo Select managed portfolios, which features managed portfolios curated or inspired by Blackrock, Nasdaq Dorsey Wright, Morningstar and Brown Advisory.

For more insight on asset and wealth management in Asia, please click on www.fundselectorasia.com

The asset management arm of HSBC has promoted Michael Cross to global fixed income chief investment officer.

He joined the firm in 2015 as global head of official sector institutions and was most recently vice-chair of institutional business.

The appointment will be effective from 1 September 2021, and Cross will be based in London.

Deutsche Bank Wealth Management

Urs Brudermann has joined the wealth business of Deutsche Bank as a managing director and group head of south-east Asia.

He was previously at Credit Suisse where he served as team leader for the Thai market.

Additionally, Shawn Ngoh will become a director, and Pichaya Prawanmeet will become the team’s vice-president, both joining from Credit Suisse.

Aegon Asset Management

Nicole Grootveld-Sandig will become Aegon AM’s chief technology officer.

She will be responsible for architecture plans and strategic roadmaps as well as overseeing governance activities related to technology design, implementation and information security.

She was previously at Netherlands-based pensions management firm MM Vermogensbeheer, where she was director of investment management services and chief operations officer .

PGIM Investments

The investment firm has hired Jessica Jones as managing director and head of Asia.

In the newly created role, she will lead the firm’s expansion of its global intermediary business in the region, building teams in Hong Kong and Singapore to support sales and distribution capabilities.

Jones will be based in Hong Kong.

RadiantESG Global Investors

The newly launched investment firm, backed by HSBC AM, has made several senior hires.

Harry Prabandham will become the company’s chief investment officer. He joins from Rosenberg Equities where he spent 14 years and was most recently head of multi-factor and alpha strategies.

Mauricio Bustos joins as head of data and technology after spending more than 22 years at Rosenberg Equities in various positions within research, data and technology.

Kevin Lin will take on the role of senior portfolio manager after spending 17 years at Rosenberg Equities as well. He was most recently principal researcher of multi-factor and alpha strategies and portfolio manager for the firm’s small cap strategies.

Saxo Bank

Camilla Dahl Hansen has been promoted to chief experience officer.

She joined the Danish bank in April 2021 as chief operating officer in the Saxo experience office after working at Danske Bank for 13 years.

Impax Asset Management

The London-based asset management firm has recruited Cath Bremner as chief commercial officer.

In the newly created role, she will be responsible for risk, compliance and IT.

She joins from the UK government’s department for business, energy and industrial strategy where most recently she was director for international energy and climate finance.

Hodge

The savings and mortgages provider has hired Jan Preece as chief financial officer.

She was previously finance director at Friends Provident International.

Securities & Futures Commission (SFC)

The Hong Kong regulator’s executive director for corporate finance, Brian Ho, will retire at the end of his three-year tenure on 27 August 2021.

While the SFC looks for a successor, Megan Tang, senior director for corporate finance, has been named as interim head of corporate finance pending the completion of the recruitment process.

Ho will take on an advisory role with the regulator for six months starting from 28 August 2021.

The parent company of RL360, International Financial Group Limited (IFGL), has hired two senior staff members to fill major news roles.

Sue-Ann Ind has joined as group risk director, while Donald McLeod takes on the role of RL360’s chief actuary.

As group risk director, Sue-Ann will take responsibility for risk, legal and compliance across all of IFGL’s companies. She joins from Old Mutual Plc in the UK, where she was risk and compliance director.

Sue-Ann is a chartered accountant and executive director with over 25 years’ experience in global FTSE50 financial services, including a number of senior roles working with boards, executive management and regulators.

While Donald McLeod, RL360’s chief actuary, will report to appointed actuary Alistair Brogden and together they will shape the Group’s actuarial functions as it looks to the future and the acquisition of Friends Provident International. He has joined from Scottish Friendly Assurance in the UK, where he was head of actuarial.

Originally from Stornoway in the Western Isles of Scotland, Donald began his career in 1998 at Standard Life, where he remained for 12 years before moving to Hymans Robertson. Two years later he moved into the role of chief actuary and head of investments at Scottish Friendly.

Indosuez Wealth Management

Indosuez Wealth Management, the global wealth management brand of Crédit Agricole Group, has hired Julien Collin as head of markets, investment and structuring in Singapore.

In this role, Collin is responsible for providing global asset allocation advice, investment solutions and recommendations dedicated to Indosuez Wealth Management’s ultra-high net worth clients, serviced by Singapore-based relationship managers.

Collin began his banking career in 2007 when he joined Crédit Agricole Corporate & Investment Bank in mergers & acquisitions and later the general inspection division carrying out strategic assignments related to activities in Europe, the UK, the US and various Asian countries.

In 2014, he joined Indosuez Wealth Management as head of markets and investment solutions in Paris.

His strong performance in growing the business and management of strategic projects saw his relocation to Singapore In July 2017 Collin relocated to Singapore to take up the position of acquisition programme director for Indosuez.

Janus Henderson

Janus Henderson Investors has appointed two investment analysts, Tom O’Hara and Tom Lemaigre to the European Equities team. They will both report to John Bennett, head of European equities.

O’Hara joins from Exane BNP Paribas where he was vice president responsible for analysing the metals, mining and steel sector. He has more than 10 years’ experience working in financial markets, including positions at Redburn and Citigroup.

Lemaigre joins from RWC Partners, where he was an investment analyst responsible for fundamental bottom-up research of Pan-European Equities, specifically consumer sectors. Prior to this he worked at Redburn.

O’Hara joins Janus Henderson on 16 May 2018 and Lemaigre on 10 July 2018.

Saxo Bank

Saxo Bank, a Fintech specialist focused on multi-asset trading and investment, has announced that Vitali Butbaev will rejoin the bank in the role of chief executive officer for Central and Eastern Europe.

Butbaev joins Saxo Bank from Velstand Capital, where he was chief executive and founder. Prior to this, he worked with Saxo Bank for 13 years. During his first stint at Saxo Butbaev was regional head of CEE & Russia for seven years. He has also held various sales positions for Saxo Bank’s retail, HNW and institutional clients.

In his new role, Butbaev will assume overall responsibility to grow and develop the business and client base in the CEE region. Furthermore, he is tasked to ensure alignment and execution of global strategic priorities and make Saxo Bank first choice for traders, investors and wholesale clients.

In the aftermath of a near decade of QE the “downward trend” in interest rates over the last three decades will end, argued Steen Jaobsen, chief economist at Saxo Bank in the report. “This has enormous implications – the world has amassed $237trn (£175trn, €199trn) of debt with little growth to show for it.”

The rest of the year will see “the gradual degradation of corporate credits”, said Saxo Bank fixed income specialist Althea Spinozzi. As a result, an increase in bond market volatility appears likely over the coming months, as 10-year US Treasury yields hit 3% and the US Federal Reserve remains focused on monetary tightening.

“We believe that in Q2 we will see intensifying signs of distress in the corporate [debt] space which may provoke confined periods of volatility. However, a more severe sell-off [in bond markets] will not happen until the end of the year.”

Corporate bonds within the lower investment grade space (BBB/Baa) are widening surprisingly fast as the chart above shows.

The next chart (above) shows investment grade versus high-yield spreads, and illustrates that the former are widening faster than the latter. “Investors should be concerned about this trend, as it is a clear sign that valuations are too tight according to the rising risk,” Spinozzi said.

Moreover, these market shifts are taking place at a time when companies are issuing more bonds or refinancing existing debt to take advantage of favourable market conditions.

EM debt less attractive

In a volatile environment characterised by rising interest rates, emerging market debt and BBB- rated bonds are less attractive options, according to Saxo’s report.

On the other hand, blue-chip bonds guarantee good returns in a volatile environment.

“Although weaker credits are normally the first to suffer from rising interest rates, we believe that interesting opportunities can be still found within short-term high-yield bonds,” Spinozzi adds. “Defaults are still at historic low levels and looking at maturities up to three years, investors can find still risk-reward opportunities that would enable them to lock in yield for a specific period.”

Equities, meanwhile, are under pressure on many fronts, ranging from a potential trade war to disappointing macro numbers and technology regulation, according to Peter Garnry, head of equity strategy at Saxo Bank. “Caution is critical in such an environment and portfolio diversification and defensive choices therefore make sense.”

Defensive equities

“We recommend investors to be overweight defensive sectors such as health care and consumer staples, as well as interest rate-sensitive sectors including utilities and telecoms as rate expectations could take a hit in Q2 while markets digest the changing landscape.”

According to Saxo Bank quantitative analyst Anders Nysteen, it’s important in the current market environment to have a portfolio not just with “soft” assets but to be prepared for sudden market changes with a more diversified portfolio including “hard” assets such as commodities and real estate.

“With the current slightly negative credit impulse and highly indebted financial system, minor events could trigger increased uncertainty in the market, leading to a further expansion of the corporate spreads,” he said.

Chinese industrial group Zhejiang Geely – which owns Swedish carmaker Volvo Cars – acquired a majority stake in Saxo Bank last year.

Saxo Bank, which brands itself as a fintech specialist, derives most of its income from its online trading platforms for private foreign exchange traders rather than traditional banking.