AT BNP Paribas Private Bank in Asia, the No. 1 task of chief executive Michel Longhini, 41, is to take care of lots of money for the bank's well-heeled group of clients.
The irony is that his job keeps him so busy that he has no time to manage his own investments. That is why he delegates the management of his investments to professional money managers.
He said: 'My top priority is that my family is protected in case something happens to me. This means there must be sufficient funds to pay for education and lifestyle needs. On top of that, I invest in more risky markets to maximise the returns.
'I don't have the time to trade actively. Nor am I authorised to do because of the nature of my job.'
In an interview with The Sunday Times, Mr Longhini recalled that his interest in financial markets was sparked during his days at a business school in France. This included a stint with BNP in Hong Kong in 1987 during the second last year of his studies.
Mr Longhini, who is married with three children aged eight to 14, believes it is important to impart some money management skills to the next generation while they are still young. 'I try to give to my children an understanding of what it means to make money and to spend it,' he said.
His own money-savvy habits were inculcated from the age of 15 when he had to manage his own budget while at boarding school in France.
An avid runner for the past decade, he participated twice in the New York City Marathon, in 2000 and 2001.
Mr Longhini has been based in Singapore since 2003.
Q Are you a risk-averse or an aggressive investor?
A The answer is both. The core part of my investment portfolio is managed rather conservatively. This portion is meant for living, family and retirement needs. On top of that, I try to invest more aggressively in sectors and ideas that I like.
The core portion is invested in real estate and low-risk assets like bonds, life insurance and absolute return target funds, where the target is to get 8 per cent to 10 per cent returns with 4 per cent volatility. The objective is to generate about 6 per cent to 10 per cent returns per year for the core assets.
For the more aggressive component of my investments, I go for private equity funds as well as stocks. I am largely invested in European equities and over the last three years, the returns have been 20 per cent a year.
My core component accounts for 70 per cent while the aggressive portion makes up the balance.
Q What about insurance planning?
A In Asia, people use trusts as tools to hold the assets in order to manage succession. In Europe, particularly in France and Italy, life insurance is the way to manage personal assets.
It is unit- or investment-linked so that is where I hold my core investment portfolio.
As for health insurance, the health system in France covers this completely.
Q Any other investments?
A I have four properties, in France and Italy, which I purchased or inherited in the last 10 to 15 years. They are all rented out or family-occupied.
They include my home in Paris.
The property market has been very strong in Europe, particularly in France, in the last five years. Over the last eight to 10 years, the value of my properties has risen over 50 per cent.
I regularly buy wine directly in France. I have a few thousand bottles of wine in a cellar at my parents' home in Burgundy. But I don't intend to trade in wine. Value is not something I look at. Instead, I look at the quality and the pleasure.
Q Moneywise, what were your growing-up years like?
A I have two brothers. I've been involved in managing my own budget since I was 15 when I was at boarding school in France.
I was on my own and it helped me learn how to manage my money well.
I started working during vacations when I was 16 and ever since, I have paid for my own holidays with the money earned. I also worked for a short period in Canada selling antiques, during my vacations.
Q How did you get interested in investing?
A I've been interested in studying and analysing markets since I was a business school student in the 1980s.
New markets were being created then in Europe, the equivalent of the Sesdaq in Singapore.
Later, I took up an internship at BNP in Hong Kong in 1987 when I was 21, which further fuelled my interest in investment and the financial markets.
Q What has been a bad investment?
A I've made bad investments a few times.
You buy a bottle of wine, keep it for, say, 15 years, and when you open it, you realise it's corked or tainted.
Q Your best investment to date?
A A good investment is one that combines passion and return. A good example is the 18th-century clock from my region of origin in Italy that I managed to buy about three years ago, for 10,000 euros (S$21,000).
I had searched hard for the clock and went on to restore it to its original condition. Later, I realised it was a good investment when another buyer offered to pay three to four times what I paid. I didn't sell it.
Q What are your retirement goals?
A I've achieved financial independence and that gives me the freedom to work on projects I enjoy and with people I like.
'Planning retirement' means planning to stop being active but that is not how I want to live my life... I certainly don't intend to work till I'm 65, but I do intend to be active in personal, professional or philanthropic projects much longer than that.
I'm likely to retire in France and Italy.
Q And your home now is...?
A I live near the Singapore Botanic Gardens in a three-storey 5,000 sq ft house.
