An increasing number of Asia-based private banks are running educational programmes for their client’s kids during holidays, in a bid to forge lasting relationships with a wealthy family.

The summer holidays are fast approaching, but some young Asians will not be putting down their books just yet.

An increasing number of private banks are running educational programmes for their client’s kids during the summer holidays – usually taking the form of a week- or fortnight-long 'bootcamp' during which participants will learn about how to inherit money and take care of a business. The programs are designed to prepare the younger generation for responsible ownership and management of family wealth, not to mention the complexities and challenges they will face as heirs.

These are usually offered free, and for a reason. Forging a bond with the next generation of millionaires is the easiest way for a private banker to win – and keep  - an account. Asian wealth is mainly still young and largely untapped. An estimated 70 per cent is in the hands of first and second generation wealthy. Earning a family’s trust at this grassroots stage will be an opportunity of a lifetime for a wealth manager.

Philip Marcovici, a retired lawyer, said at a conference in Hong Kong last week that private bankers in the city-state must “try to be farmers, rather than hunters.” He explained: “Reaching the younger generation is critical for a wealth manager’s survival in Hong Kong. This can be achieved through training next generation clients or utilising new media, for example.”

Here WealthBriefingAsia looks at a few of the region’s most popular summer camps.

HSBC Private Bank

Name: Legacy Programme

Date: June

Ages: Mid-20’s- mid-30’s

Length: Three days

HSBC held its eighth so-called Legacy Programme in Asia earlier this month, this time taking place in Macau. The course was attended by 50 participants from 13 countries in Asia and different parts of the world.

The main difference to other programmes, which often target participants at university, is that attendees are much older, often in their mid-thirties.

International experts from business and academia spoke at the three-day programme, which covered topics including succession planning and family governance, responsibilities of family wealth, family philanthropy, market trends and corporate finance.

Parents were also invited to attend a session to understand what was discussed on the programme and how to continue the conversation at home.

Bernard Rennell, chief executive officer, North Asia, global private banking, and global head of private wealth solution at HSBC Private Bank, said: “The challenges of managing and protecting wealth are often more immediate than some next generation family members might realise. Very often, we find that there is a disconnect between the expectations of parents and the aspirations of the next generation with respect to family enterprises or wealth. The Legacy Programme is designed to help families bridge that gap.”

Citi

Name: NextGen

Date: Summer

Ages: Early 20’s/ older alumni

Length: One week/Three days

Citi has two programmes that it runs globally and concurrently – one for new students, which lasts a week and the other for returning alumni, which takes place over three days. This year the bootcamps are held in New York, London and Singapore. “The aim of the programme is to introduce wealth management from all aspects, something you can’t learn in business school,” said Money K, global head of Citi Private Bank’s NextGen programme.

The programme was launched in New York in 2002 and in Asia in 2003. Last year there were 70 new participants and 40 returning alumni. Attendees come from across Asia, with 20 different nationalities including China, Thailand, Malaysia, Philippines, Singapore, Indonesia and even Mongolia.

An average day on the programme mainly revolves around financial education, including investments, trust and estate planning, and succession. “To liven things up we have an art appreciation component, including a mock art auction run by Christie’s, “ said Money K. Kids are also encouraged to explore the city, mingle and socialise. Parents are expected to foot the bill for flights and accommodation.

DBS

Name: DBS Private Bank 2^nd Generation Programme

Date: August

Ages: Early twenties

Length: Five days

Five intensive days starting at 8.15 in the morning, DBS’ programme sees kids cover a lot of technical ground, from understanding currencies and fixed income to asset allocation, to investing in Singapore property, to the current regulatory environment. Activities like simulated forex trading, an art appreciation class and other offsite activities are also on the menu. Currently held in Singapore, the bank is planning to launch the programme this year in Hong Kong for the first time, in a similar format.

Last year’s programme was held at Singapore’s luxurious Fairmont hotel. This year’s venue is TBC.

JP Morgan

Name: Futurefocused

Date: June

Ages: Early twenties

Length: Three weeks/One week

JP Morgan Private Bank’s summer program, ‘Futurefocused’, takes place this month and is in its fifth year. Most participants come from Asia, although it is a global programme and more than a quarter come from Europe, the Middle East, North America and Latin America, including such countries as Argentina, Brazil, Italy, Mexico, Saudi Arabia, Canada and the UK. Participants are in their early twenties.

The course is three weeks (or one week depending on the availability of participants) of intensive training, learning about finance and investments with an emphasis on private banking and managing family wealth. Held on site at the JP Morgan offices in Hong Kong, participants learn firsthand from experts in portfolio construction, investments and market analysis.

 Aside from portfolio simulations and mock meetings and presentations with their fellow students, participants get to learn about “life skills activities” - including art appreciation, wine tasting and spending a day with a charity organization to learn more about philanthropy.

UBS

Name: Young Successors Program

Date: In the summer months, between university terms

Ages: 20-29

Length: Two weeks

 UBS’s Asian programme seeks to provide participants with an understanding of asset classes, and the basics of investment management and risk management, the participant's prospective role in the family and impact in shaping society. Topics covered include family governance, succession planning, entrepreneurship and leadership, and are presented via a series of interactive workshops, lectures and discussions. Team-building, communication, conflict management skills, as well as grounding in cross-cultural and generational sensitivity are also on the curriculum.

Amy Lo, head of ultra high net worth, Asia-Pacific, said there has been strong growth since the programme began. “In the past, we ran a single event for the entire region. However, its success led to separate programs in Hong Kong and Singapore in response to demand from clients across the region.”

“In 2009, we launched the UBS LEADS program in Hong Kong to cater to the HNW segment. The program has subsequently been rolled out in Beijing, Singapore and Taipei,” she added.

UBS is planning to offer its course in other languages including Japanese and Chinese. 

Standard Chartered Private Bank (offers two)

1. Name: Strategy Master Class

Date: 4 July

Age: Varies

Length: Six weeks

The Strategy Master Class sees twenty invite only-participants gather for a six-week intensive business strategy training. The curriculum includes real-life projects through close interaction and mentorship with the group strategy team.

2. Name: Tools (to Build Your Financial Future)

Date: 15 August

Age: Early twenties

Length: One week

Attended by 40 of the bank’s young clients-in-waiting, the Tools course educates participants on asset allocation and products, to philanthropy and community involvement. Self-development, for example motivation and personal branding, is also covered.

Barclays

Barclays runs an educational bootcamp but declined to give any detail. A spokesperson said: “What we are doing is quite different from what other banks are doing, and (we) don't want to be giving away any competitive advantage.”