Expat Survey

By James Lindsay

I saw an ad the other day for an online survey about the resources available to expats for managing their money while living in Shanghai. The name of the company escapes me now, but it was one of the faux-stately names like Windsor Bowles or Bishop Knight or Ramsbottom Smythe. Or one of the names reaching for the skies: Pinnacle or Spire (surely, Con-spire?). Or one of the aggrandising we’re-as-big-as-the-world names: International Wealth Management or Global Finance. I’m just waiting for Jedi Finance, and then I’ll really know who to trust.

Anyway, whatever its name is, this group of personal finance experts has decided that what they really need is knowledge of your experience. Of course, your contact details are the furthest thing from their inquisitive minds. It’s a bit like a first date where the man shows a huge interest in what you think and what you feel – and has not a jot of interest, not one single solitary thought, about the end of the night when he’s going to try to get his rich reward for being so gentlemanly. I’d like to think I’m massively wrong to be sceptical. It would be so heartening to think that these market researchers are looking for rich veins of information for helping to tailor their services to the real, thus far unearthed, needs of Shanghai expats. We will see if their services morph on consideration of the freshly farmed data. But that’s for later.

For now, I want to say that I’m not sure the intrepid opinion explorers need to bother. I could have told them the choice cuts of personal thoughts about expat personal finance. To start, here’s a few quotes from an ex-financial advisor’s work with prospective clients in Shanghai: “I’ve never met a financial advisor I liked” (Mr Tell-It-Like-It-Is, 10 seconds after meeting him); “I’ve got one financial advisor already, but they say you should diversify, so I’m open to hearing what you’ve got to say” (Ms Keeping-My-Options-Open); “I’m really looking for pre-IPO investments or maybe buying direct into African gold fields. Can you help me with that?” (Mr Way-Out-Of-My-League); “I’m pretty lonely in Shanghai, maybe after I sign these documents, we could go out for a drink?” (Miss Mixed-Up-Priorities).

But what about the people the IFAs never get in front of? They’re the great untapped source. How can you appeal to the thousands of expats who wouldn’t meet with a cold-calling salesman if the meeting came with no-obligation Kobe steak and Ciroc Ultra Premium? Well, for starters, how about stopping cold calling? How about doing some marketing other than buying lists of names from poor Chinese HR office workers and maitre d’s and upscale launderette managers? Next, how about getting qualified? Take yourselves seriously and go and pay for a course to learn about the help you can give. Get rich afterwards. Third: don’t get rich quick. When you’re really honest with yourself that you don’t know anything special about investing, then you should ask yourself, what right do I have to expect the six-figures-after-tax annual commissions that I was promised in the recruitment process? The simple fact is this: whatever your track record, if you were a hot shot investor, you wouldn’t be servicing the mass affluent expat market in Shanghai; that’s not derogatory about you or about the market, it’s a simple economic fact. Money management is a noble profession. But you should expect to build to big(-ish) money by building a client base over a number of years. Think of it like this: you haven’t trained like a doctor; you’re not skilled like a sports star; so don’t expect stellar remuneration before establishing yourself.

But please, please, please: if there was one thing: ditch commission and start charging transparent fees. Stop your reliance on commissions from old fashioned unit-linked products and start serving your clients, in place of the colossal insurance companies who make so much from your sales skills. Serve your clients; serve us. Tell us the price, loud and proud and promise you’ll only ever take money from us, your clients. I hope that’s the message that will come across loud and clear about the money management resources available to expats in Shanghai.

James is the editor of ‘eg’, the online money magazine for expats in Shanghai. Email him at [email protected] to learn more about making the most out of your money.