Investment advisory firms increasingly drawn to Dubai

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A recent report by Altrata highlights that Dubai boasts the largest share ultra-high net worth individuals of UHNWIs, with about 67% of the approximately 830 UHNWIs based in the city treating Dubai as their primary residence.

Moreover, the UAE is projected to attract 4,500 millionaires this year, with a significant influx from countries like India, UK, Russia, and Pakistan.

In line with this trend, a number of investment advisory firms are also setting up base in the country to cater to this group.

Octave Asset Management (OAM), a prominent investment advisory firm, has officially established its presence by acquiring a license to operate from the Dubai International Financial Centre (DIFC).

“We recognise the unique and sophisticated investment needs of this elite clientele. Our offerings span a wide range of solutions, from traditional assets like global stocks and global bonds to non-traditional assets such as private equity, private debt, global real estate and art. Furthermore, our unique discretionary portfolio and private REIT offerings, managed in collaboration with esteemed partners, ensure that our clients have access to exclusive investment opportunities. While our primary market is the UAE, we also view the UAE as a gateway to the world. We aim to offer investment avenues that go beyond what typical retail banks provide, ensuring our clients receive a bespoke and holistic financial experience,” Ahil Mansoor, Chief Executive & Chief Investment Officer of Octave Asset Management, told Khaleej Times in an interview.

Excerpts:

What is your outlook for the global markets next year (with reference to wars, inflation)?

Global markets face challenges from geopolitical tensions, higher interest rates and inflationary pressures. The 10-year US treasury recently hit 5% which impacts a lot of lending rates in the US. This will cause the US economy to slow down. Considering this expected higher volatility going forward, the client portfolios need to be adjusted to reflect the new reality. With respect opportunities, the UAE presents a bright spot. The UAE’s trajectory reflects strong Q4 growth, driven by population growth, government spending, and key sectors like transport and tourism. The Central Bank of the UAE forecasts a 3.3% growth for 2023, rising to 4.3% in 2024, aligning with the IMF’s projections. Dubai’s GDP growth of 3.2% in the first half of 2023 further underscores this positive trend.

At OAM, our core values are transparency, accountability, and integrity. While we monitor global uncertainties, we remain bullish on the UAE’s prospects. Our focus is on long-term value, backed by thorough research tailored to each client’s profile. With the UAE’s resilient economic landscape, we’re poised to deliver exceptional value to our clients amidst global complexities.

What would be your advice to potential investors?

There is a heightened sense of volatility and uncertainty which is expected going forward for the world markets. Regardless of the market conditions, I would advise investors to look at their current portfolios. A typical 60/40 model of stocks and bonds has not worked for a couple of years and I can go on a limb to say that this asset mix is effectively dead. You have to look at other asset classes such as alternatives and incorporate it into the portfolio mix. Furthermore, potential investors should always prioritize value and fundamentals over market whims. It is essential to have a clear investment strategy, grounded in thorough research and understanding of one’s risk appetite. I want to emphasize again on the importance of transparency, accountability, and integrity. We advise our clients to be informed, to ask questions, and to ensure they understand the rationale behind every investment decision. Diversification, staying informed, and partnering with a trusted asset management firm that aligns with your values and goals are crucial in navigating market complexities and safeguarding and growing your wealth.

What would be the USP of your offerings?

OAM’s unique selling proposition lies in our ethos, experience, and commitment to our clients. While many asset management firms may offer similar services, we pride ourselves on our client-centric approach, prioritizing their returns over our profits and managing the risk of the investments in a very systematic way. Our transparency, accountability, and integrity also sets us apart. We not only provide tailored investment solutions, such as incorporating unique assets like artwork into portfolios, but also emphasize controlling fees to ensure our clients get the best value. For us, diversification is key. Investments that fall under the umbrella of value are all open game. Furthermore, our global presence, particularly our collaborative relationship with Octave Holdings & Investments in the US, allows us to tap into exclusive investment opportunities, giving our clients an edge in the market.

What are your plans over the next few years?

Our vision for the next few years is expansive and ambitious. Presently, OAM aims to manage assets under management (AUM) exceeding $500 million by 2024 and operate across seven different markets, positioning itself as a prominent player in the burgeoning Middle Eastern investor segment. While we have already established a strong foothold in the UAE, catering to UNHWIs, our aspirations don’t stop there. We aim to grow substantially on a global scale, targeting diverse clientele from regions like Germany, Turkey, China, South Africa, and the GCC, among others. To achieve this, we plan to introduce a wider array of solutions, leveraging our partnership with Octave Holdings & Investments and tapping into their vast resources, including their significant real estate portfolio in the US and Canada. Guided by our unwavering commitment to transparency, accountability, and integrity, we are poised to redefine the narrative in the asset management industry and set new benchmarks for excellence.