A durable private-banking portfolio aligns return targets with liquidity, currency reality, and tolerance for drawdowns. Use this blueprint to structure decisions before the first trade.

1. Start with constraints (not products)

  • Spending currencies next 3–5 years.
  • Max drawdown tolerance (12-month lens).
  • Liquidity buckets: T+1, 3–12 months, 3+ years.
  • Tax and reporting requirements by jurisdiction.

2. Strategic allocation templates (illustrative)

ProfileEquitiesCore BondsCashAlts (PE/RE/HF)Comments
Capital Preservation25%55%10%10%Low drawdown target; focus IG/short duration
Balanced Income40%35%5%20%Mix dividend equities, quality credit, core RE
Growth60%20%5%15%Accept volatility; rebalance strictly
Growth + Alts50%10%5%35%For long horizons and lock-ups accepted
Rebalance when asset class weights breach ±20% of target or at set semi-annual windows.

3. FX policy—decide once, execute routinely

SituationPolicyTooling
Spend in SGD, earn in USDPartial hedge USD→SGD on 3-month forwardsLadder forwards monthly
Multi-currency spendingNatural hedge; hold working balancesTiered FX spreads + batch conversions
USD-centric portfolioReport in USD; opportunistic SGD hedgesCIO view + risk budget

4. Using credit without breaking risk

  • Lombard lines are efficient for short-term liquidity and opportunistic buys.
  • Keep utilization ≤ 30–40% of eligible collateral in normal times.
  • Stress test at −30% equity shock; pre-agree top-up protocols.

5. Alternatives—three guardrails

  1. Keep total illiquid alts ≤ 30–35% of net investable assets.
  2. Stagger commitments over 6–8 quarters to diversify vintage years.
  3. Treat fund fees and carry as separate from your public-market fee budget.

6. Measuring success (after-fee, after-FX)

  • Compare to a blended benchmark that mirrors your strategic allocation.
  • Attribute returns: market beta, active tilts, manager selection, FX.
  • Document decisions; avoid retrospective benchmarking.

7. Governance kit (copy/paste)

  • IPS with objectives, ranges, rebalancing rules, prohibited assets.
  • Quarterly pack: performance vs benchmark, risk, fees paid, FX attribution.
  • Action log: what changed, why, expected horizon to judge success.

Disclaimer: Illustrations are educational and not investment advice. Seek independent professional advice before investing.


private banking portfolio, asset allocation, discretionary mandate, strategic vs tactical, FX hedging, lombard loan, alternatives allocation, risk budgeting

Related FAQs

Browse all FAQs →
Sophia Tan

About the Author

Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen. Read more articles

Disclaimer:The BankOpen Singapore Editorial Team consists of financial analysts, banking industry professionals, and experienced writers. We are dedicated to providing accurate, up-to-date, and practical insights to help readers navigate Singapore’s banking landscape and make informed financial decisions. The information provided in this article is for general informational purposes only and does not constitute financial, investment, or legal advice. Always consult with a qualified professional before making any banking or investment decisions.