Caesar Sengupta, Co-Founder and CEO of Arta Finance

Edward Chiang, Co-Founder and Head of Product

Introduction

1. I am delighted to join Arta’s launch event. Arta has decided to jointly headquarter in the US and in Singapore, reflecting the growing opportunities for wealth management in Asia through Singapore.

2. Companies such as Arta help people to grow, steward and give wealth. They provide accessibility to people that may not have access to private banks so they can build up their wealth, sustain it and even give back to create positive impact in our society. 

GROW: Singapore is capturing Asia’s growth and distributing it

3. We have an opportunity to grow wealth in Asia, because the soil in Asia is fertile. Asia’s prospects are bright, and growth momentum remains strong. APAC is expected to grow by 4.9% in 2025, faster than any other part of the world.

4. Singapore is an excellent place to grow wealth, and we are capturing this growth as a strategic gateway to Asia. We are a trusted financial centre and a destination for asset and wealth management.

a. Asset Under Management (AUM) growth last year was driven by net inflows across traditional and alternative assets, as well as in wealth management and many other activities.

b. Wealth management AUM grew more than 8% in 2023, continuing the growth trend of the past few years. Its 5-year compounded annual growth rate (CAGR) came up to about 10%.

5. This will grow further as BCG projects offshore wealth in Singapore to increase 8.5% per annum between 2023 to 2028, faster than other global wealth centres.

6. With Asia’s wealth ecosystem experiencing strong growth, we have an opportunity to channel capital to fuel growth, drive innovation and create quality jobs.

a. New growth companies across our region will have greater financing needs, especially in high growth sectors such as technology or renewable energy.

b. At the same time, global investors have more options to diversify and invest in Asia.

7. WealthTech solutions can play a useful role by offering simpler and more efficient access to a broader range of investment solutions, targeting a wider reach. Such solutions are not just for ultra-high-net-worth individuals, but for the mass and emerging affluent segments as well.

8. As a “digital family office”, Arta is well-placed and well-positioned to grow wealth in Asia, through personalised financial products and services catering to broader groups of wealth segments.

STEWARD: Preserving Long-term Financial Well-being

9. Beyond growing wealth, we must also steward wealth. Wealth can mean different things to each of us. For some, it means to be financially secure or to retire early, while for others, it is the ability to invest in high risk - high return assets. In all cases, wealth is measured not just by how much wealth we have, but by how much we can grow and preserve it over the years.

10. Many WealthTech firms understand that the needs of individuals are too varied for “cookie-cutter” solutions. Individuals benefit from personalised advice as they invest and manage their risks in the long term.

11. WealthTech firms can provide clients with more advanced portfolio optimisation and investment strategies for them to make more effective decisions in wealth planning.

12. Arta goes further by creating a community of clients and investors embarking on their wealth-building journey, so they can share their wealth of experience and knowledge, and learn from fund managers as well.

13. We do not just grow wealth; we must sustain it through careful, long-term management of assets. What is created today becomes a lasting foundation that can benefit future generations.

14. The Singapore Government has grown our nation’s wealth, our reserves, over decades of careful stewardship. The Government spends 50% of our net investment returns and keeps the other 50% as our reserves. This is our Net Investment Return Contribution (NIRC). NIRC accounts for 20% of government revenue, and around 3.5% of GDP. NIRC takes the burden off Singapore taxpayers.

15. Wealth management is thus important and can help steward the wealth that we have grown, and build financial strength and resilience. This is particularly important during crises, like when we tapped our national reserves during the COVID-19 pandemic and the Global Financial Crisis in 2008.

16. Our reserves gave us confidence, and gave others confidence in us. We had the financial muscle to do everything we needed to do, without getting heavily into debt. Wealth management is thus important – to nations, to organisations, to individuals.

17. Our wealth management tools and products must therefore be nimble, so we can adapt our strategies even when we are faced with uncertainties and challenges.

18. It is important for all of us to diversify our risk to get better returns and gain exposure to more investment opportunities. Alternative investments, outside traditional spheres such as stocks, bonds and commodities, can provide fresh opportunities to enhance portfolio resilience. Private markets have grown significantly, with AUM across private market asset classes estimated to reach US$30 trillion by early 2030s. 

19. Private market AUM in Singapore has also grown. Singapore’s private equity and venture capital AUM grew at a 24.6% CAGR to more than $650 billion, from 2018 to 2023.

20. Arta’s suite of investment products are timely and opens this market to clients, by providing them with access to various asset classes, including venture capital and private equity, so clients have more options to achieve a diversified and resilient portfolio. 

GIVE: Achieving Financial Goals aligned with Values

21.  Having grown wealth and stewarded wealth, we must look at giving wealth. In our personal health, we consider all aspects of our well-being such as our physical health, and now increasingly, our mental health. Beyond growing our assets, we must look holistically at wealth management and integrate financial planning with broader social and philanthropic objectives.

22. Wealth managers can identify investments that can align with a deeper purpose, such as ESG investing and philanthropic endeavours, to drive social impact alongside financial growth. WealthTech catalyses such investments.

23. High-net-worth individuals and families want to build a legacy that extends beyond financial gains and wealth accumulation. The Monetary Authority of Singapore (MAS) has thus developed several initiatives to support this endeavour.

a. First, we are deepening the pool of professionals here with expertise in philanthropic advisory. MAS and the Institute of Banking and Finance launched the Philanthropy Advisory Technical Skills and Competencies in 2021 to guide and train the next generation of professionals.

b. Second, to grow our philanthropy community, MAS partnered the Wealth Management Institute and the Private Banking Industry Group to launch the Impact Philanthropy Partnership.

c. Third, MAS introduced tax incentives to encourage local and overseas donations. MAS is also catalysing the growth of various tools and structures, such as Donor Advised Funds to make it easier to give.

24. Thank you, Arta, for partnering Temasek Trust on Co-Axis, a capital marketplace that connects more than 100 high-impact projects from 40 countries with funders to speed up and scale impact. Arta’s clients will gain access to opportunities on Co-Axis, including eight philanthropic strategies, backed by Temasek Trust.

25. Having a holistic approach towards wealth management ensures that clients can support worthwhile causes aligned to their values without compromising on their financial well-being.

In Closing

26. It is important for us to remember what we are doing, why we are doing what we are doing, and whom we are doing it for.

27. We have a responsibility to our people and our planet, to grow wealth and resources, to steward wealth and resources, and to bequeath (grow) wealth and resources to the next generation.

28. Companies like Arta and the broader ecosystem of FinTech, WealthTech firms and our financial services sector, will continue to work with us and grow in Singapore to achieve these goals. 

29. The Singapore Government and my teams at the Economic Development Board and MAS will continue to welcome and partner a growing community of global founders like Caesar and ventures like Arta Finance to tap on our local ecosystem, to conceive, build and scale their businesses from Singapore for global markets. We continue to welcome interested founders to join us in this endeavour in Singapore.

30. I wish Arta Finance and their partners great success ahead.

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