Securities brokerage CGS-CIMB Singapore has enabled access to ADDX, a digital securities private market. Accredited investors may now access ADDX offerings on CGS-CIMB. Previously, CGS-CIMB mainly offered traditional securities. ADDX offers access to its listed deals via a plugin to simplify integration. CGS-CIMB was one of the first firms to sing up for the service.
CGS-CIMB is now distributing a suite of deals on ADDX, including private equity, private credit, venture capital, hedge funds, real estate, fixed-income products, and more. The ADDX platform is designed to adapt to wealth managers, catering to their needs.
The service is labeled ADDX Advantage, a feature that was rolled out earlier this year for wealth managers and others. ADDX says its aims to onboard as many as ten wealth managers by the end of next year.
CGS-CIMB Managing Director and Group Head, Strategic Innovation Elgin Ting, stated:
“As part of our mission to provide clients with an extensive suite of financial services, CGS-CIMB is always scouting for new offerings that can add value to our investors’ portfolios. Through our partnership with ADDX, CGS-CIMB’s high-net-worth investors now have access to private markets and opportunities that were historically accessible only to institutional players. We are excited to see the technology and innovation ADDX is bringing to the financial markets and look forward to working with them.”
Oi-Yee Choo, ADDX CEO, explained that returns from a 60/40 portfolio are at an all-time low. ADDX believes that growth in investor awareness for private market products has increased in recent years.
“Globally, private market assets under management are forecast to nearly double, from US $9.3 trillion in 2021 to US $18.3 trillion in 2027. Individual investor allocation to these alternative assets is likely to rise faster than allocation by institutional investors because technology is democratising access for individuals,” said Choo. “Our solution for wealth managers provides maximum flexibility, fulfilling the different needs wealth managers have, while empowering them to help their end-clients build diversified private market portfolios. Serving wealth managers will be a key pillar of growth for us in 2023. Our priority is to optimise the user experience for wealth managers, as well as to increase the breadth and depth of offerings on ADDX.”
Choo said having CGS-CIMB listing their deals is a strong endorsement:
“Since the partnership went live, CGS-CIMB clients have contributed as much as 30% of investment volume for new fixed income issuances. In this economic environment, wealth managers that can offer their clients access to previously out-of-reach investments will have a competitive advantage over their peers.”