Distinguished guests, good afternoon. Welcome to Noah's 2024 Corporate Open Day. I'm the host from the IR team of Noah. Lily, welcome. Today with us, we have the management, investors, analysts, media, and commentators, also the clients' representatives. Thanks for your support. Before the start of the event, I'd like to remind you some of the event will be conducted in English or Chinese. If you can't understand either of the English, please raise up your hands. We will bring you the simultaneous interpretation headset. For those on the webcast, you can choose your preferred language channel.
2024 Corporate Open Day. Now, just a quick heads-up before the event. Most part of today's discussion will be in Chinese. So if you need the simultaneous translation in English, please raise your hand and let our staff know, and for those listening through the webcast, you will have the option to choose either the English or Chinese channel.
[Foreign language] Now, let me introduce you to the agenda of the day. We have three roundtable discussions about the wealth management demand of the Chinese-speaking high-net-worth clients, our competitiveness, and our service. After the roundtable discussion, we will move to the Q&A session. You can reserve any question of your interest to the management team. At the very end, we have arranged a cocktail reception, and you can feel free to mingle and exchange with each other in the relaxing ambiance. To show our courtesy and our appreciation for your support, we've prepared you a souvenir. But let us know before you go at the reception. We will contain some forward-looking statements, but it's all will eventually be confirmed by the disclosed documents. Before the official start, let me give you a few words about the company.
We are the preferred wealth management platform for Chinese customers, providing asset and wealth management as a one-stop solution provider. We are also the first company of this kind to be listed in both Hong Kong and the U.S. We have over 400 registered customers. Among them, there are over 10,000 allocated over CNY 1 million. We provide the service in the major cities in China, Hong Kong, Singapore, the U.S., and Japan. In total, we have allocated over CNY 1 trillion assets through Gopher and Olive Asset Management. The AUM surpasses CNY 150 billion, including self-management agent products. The AUA surpassed CNY 240 billion. We are 21 years old and witnessed the growth from zero to prosperity of the wealth management industry in China. In 2003, we got started, and in 2010, we got listed in New York Stock Exchange, and two years later, we got listed in Hong Kong.
In 2012, we entered Hong Kong. In 2017 and 2019, we entered the US and Singapore. So we have 12 years of international experience. The Chinese enterprises and entrepreneurs are navigating the overseas market as the pioneer. We're helping them to navigate the great potentials and opportunities at the overseas market. We set up the insurance team in Los Angeles, in California, primary product center, and Japanese office. We have researched the possibility to set up the office in Canada and Australia and serve the local Chinese clients. This year, we are trying to connect well with the international wealth management industry. Ark, as the major brand, it is the customer interface. It is the synonym of traditional wealth management interface. We have the subsidiary brands Olive and Glory for asset and wealth management. The three roundtable discussions will be about those brands, respectively.
Last week, we just disclosed the quarter three financial statement. Overseas performance is really stunning, and the net revenue and the transaction amount surpasses 50% of the whole, and the transaction of the PE is over 250. Insurance is also very impressive. We have 170,000 customers at the overseas registered. Core client is over 1,550. The asset manager at the overseas is over 146. AUA at the offshore is accounting 60%, accounting total 25.4% of the AUA. We have two clean, healthy, strong, resilient balance sheets. The first one is the AUA balance sheet. From day one of our company, we don't keep the asset pool, no leverage, and we have 120 compliance. We are quite visionary. As early as 2016, we issued the residential real estate RMB asset and the credit RMB asset. Without those two kinds of assets, our AUA is rather clean.
That helps us to move forward easily in the overseas market. The second asset balance sheet is our own. We have sufficient cash and zero debt. That's why we can be confident and strong in moving forward at the international stage. In recent years, we improved the return to investors and shareholders. In 2022, it was the first distribution of the dividend, and then it's moved up to 50% of the adjusted net profit, and in that year, we have 50% non-GAAP net profit as a special dividend, the total exceeding CNY 1 billion. In 2024, except from the regular dividend, we added CNY 50 million buyback program. That is our commitment to the shareholders. We have the strong capacity to go abroad, and we have the commitment to help the customer to navigate the international market.
In the process, we will find out the demand of the customer and give better service to our customers. What are the competitive advantages of Noah? With those questions in mind, let's move to the first roundtable discussion on the wealth management demand for the Chinese customer at the overseas market. Let's invite the panelists of the first roundtable discussion. They are Ms. Wang Jingbo, Co-Founder and Chairwoman; Ms. Yin Zhe, Co-Founder, Director and CEO; Mr. Pan Qing, CFO and CEO of Ark Hong Kong; Ms. Gu Yijun, deputy general manager of Ark Global Wealth Management. In the meantime, let's invite the global capital markets person in charge and the IR senior manager, Ms. Xi Zibai, to moderate the session.
Thanks very much, Lily, for your introduction of the company.
I believe it gives a very clear and brief introduction to someone who might not be very familiar with the company. First and foremost, I'd like to express my gratitude to the analysts, media friends, investors, and our clients. You know, when we were designing the agenda, we had a lot of discussions on what to be covered and how to cover. That's why we invite all the management team of the company to give you the three roundtable discussions and let you know our ideas on the three major brands and how we will move forward. I hope through the three roundtable discussion, we will give you the updates on the company and give you more details and more food for thought. Probably you have learned that from the video at the beginning of the event.
We have updated our brands in the overseas market: Ark Private Wealth, Olive Asset Management. It is the asset management and the Glory Family Heritage. That is the comprehensive heritage program. I'd like to start with Mr. Pan as the pioneer of the upgrading campaign and give us the ideas behind this kind of movement.
Thanks, media friends and institutional investors attending this meeting. Today marks a very private event with investors and media friends as an exclusive occasion. I have been carrying on the idea of the two founders, so I'd like to start with my answer, but open for more additions from Ms. Wang and Mr. Yin. This is an upgrading of our brand. It is our commitment of the global strategy as the listed company and the group. They are unchanged. Ark and Glory are wholly owned subsidiaries of our group.
They are consistent with the ideas, the mission of the group. You know, the story and the name originated from the Bible. It represents a lot of the wisdom. This boat is designed to go against the changes and challenges from the flooding, but we've been making the preparation 3,000 years ahead of the time. So we like this kind of the forward-looking and long-term view. You know, Noah, as an architect, and he saved 2,000 animals and human beings. So that's showcasing our mission. That is to be centered around customers and offer our value, helping them move forward.
So apart from the main brand, Noah, Ark is the main overseas wealth management interface and our interface with the clients directly. And as you know, in the Ark, when the flood really approaches us, then the audience wants to go on the deck and to see how the flood is moving forward. And then they will send the doves outside to check out the flooding level. So olive trees represent hopes and the future. So Olive really is embedded with our philosophy of the future wealth growth. As to Glory, it is more like a rainbow after the flood recedes. We hope that the Glory can give more this glory and victory to our clients, particularly overseas clients. That's why we named these three brands like this. This is our brand family. Well, there's a super logo.
While internally, we often said this is kind of an evolution logo, but actually, it looks like a seller. So this is kind of a super logo in our family icon, and it's still in the same umbrella of Noah family. We hope that these sub-brands that we have launched could receive recognition and support from our investors and analyst friends and media friends. Mr. Wang, please. Welcome to open your account in our company. We'll provide the best-of-class service to you. As you may know, we are dedicated to providing service to the high-net-worth individuals, particularly the Mandarin-speaking individuals. We used to focus on the Chinese families located, particularly based in mainland China. After the pandemic, we have seen this trend of globalization of these families going global.
So with their footprint going global, we have our plans in expanding our footprint globally as well. And we have built a team of 400 overseas advisor teams. And we have the client persona profile investigation. And we have investigated the client structure of those new emerging Mandarin-speaking investors and some of the mature immigrants overseas. So I would like to give the floor to Mr. Wang to give us an overview, your insight on our clientele.
Oh, I see a friend from Korea. You are the Korea advisor. Last year, you have raised a very excellent question. I think it was really good. I'm going to make a better response today. I think it's kind of a new effort or new step for us to go global. I'm not trying to go back to the business models of 2020 or 2021.
So now, if we want to benchmark against 2023, when we want to build a whole global strategy, then we need to understand the true underlying needs of our clientele. So that is why we need to make it ahead of schedule. So based on investigation, our main dominating clients are those immigrants or potential immigrants of the Chinese families and Chinese high net worth individuals because we understand better their underlying philosophy, their lifestyle, and their thinking. But the weighting factor of the above-mentioned weighting factor is getting smaller and smaller. So after the pandemic, we have seen this trend that many of the Chinese families have already moved to overseas countries, and now they have settled down with their children going to school, and then they want to start a new business in the overseas market.
They have already moved to the overseas market, and we need to build a localized team to support the service. Our domestic team couldn't support that needs anymore. That is why we would like to build a global service team. We found the mature or the old migrants; they have earned their first bucket of gold in China decades ago, and they try to migrate to other countries. We have done the investigation in Germany and France. They are very distinctive when they want to move abroad. They just build their hotel or bed and breakfast in hotels, or they just buy property. They would like to invest in various or diversify financial services to tackle with the currency or the interest risks.
We have discovered that many of the clients of ours, they would like to fly to Singapore, fly to Hong Kong to talk with us, to understand what we can do to them. These clientele can build connections to us. Of course, we want to develop an innovative system to get into their circle. We need to build a novel connection with, for example, the Wenzhou Chamber of Commerce, for example. The question is if we are capable enough or if we are prepared enough to provide services to those immigrants. While Noah had been in some troubles in China, we should avoid that kind of troubles or being cheated in a scheme overseas. We need to optimize the opportunities that we can grasp in the overseas market with better poised capabilities. The first is our product lines.
We need to build more competitive product lines and portfolio lines to provide better services to those emerging immigrants and also the already immigrants, while we need to solve the visa, work visa application, and their children's application and their identity planning, for example, and maybe we need to also cover the insurance planning and also some of the elderly migrants who have a bigger pie of the asset pool, and they can endure a higher level of risk, so all in all, we need to have an optimized philosophy or mindset of navigating the portfolio line, so we used to focus on our package in China, which used to be our core capability, has always been our core capability, but also is potentially being an Achilles heel for the future. That is why we would like to build our overseas capability, including hiring the localized RM team.
We need to hire more undergraduate students, fresh graduates who can have a learning curve in our group since they graduated. I have a saying that here. It's a blue ocean for us to see the wealth management of the global Mandarin-speaking high net worth individuals. This is a blue ocean. They're representing the new money, but we don't know who will be the winning provider. While Noah always has been the most favored player, we want to be the most favored player, and that is our ultimate goal. Ms. Wang is always very humble and very direct, straightforward. Well, I'm not quite humble. I'm just too straightforward, perhaps. Now let's move to the new emerging Mandarin-speaking migrants. We have iterated our structure, and we have some split-offs of our business sectors. Let me give the floor to Mr. Yin to share with us more on details.
You know, we always, like Ms. Wang mentioned, we have seen this trend of different shifts to different markets. We need to see the shift of our clients' behavior and their preferences. We need to always keep abreast and keep relevant with their dynamics. And against this macro global environment, we found that more and more Chinese families and high net worth individuals are more inclined to have strategic allocation of their assets. They pay more emphasis on this, particularly the entrepreneurial clients. It's kind of an important part of their total asset allocation. And that's what we can do. It's quite a fluctuating environment in China in recent years. And against this backdrop, we want to provide very solid and stable returns to our investors and to our clients. That is why we need to build a strategic planning in advance.
That is why we have launched this plan of releasing biannual CIO reports every half a year. We would like to upgrade and update our CIO reports with optimized strategies released and shared with our clients and with more diversified options and investment portfolios. We have this whole structure and guidance in place to navigate our asset allocation for our clients. Like Ms. Wang mentioned, the core is the capacity building for us in the overseas market in the future. We need to move fast and move as early as possible. We need to build our network in the overseas market. The core is whether we are capable enough to provide a service to our overseas clients. That is the biggest part of our work here. That is why we have built different and various BUs, business units overseas.
We used to only have Gopher Asset Management to have global allocation, but now we have built three independent BUs, Ark, Olive, and Glory for the overseas markets. First is the Olive. That is more focused on the asset management. In the recent years, we have built our in-house platform or ecosystem we have built internally to manage our assets and wealth. We have this well-connected network with our investment partners. A few years back, we have deployment in Hong Kong, and in 2016, we have deployment in the U.S. Since 2019 and since the pandemic, we have already started to aim for the highlands of the overseas market. The first thing we did is to build a platform for the overseas market. We would like to kind of adapt our internal in-house ecosystem to the overseas market.
So last year, including this year, as you know, the U.S. market is the most significant market in the global asset allocation. So we have this product center localized, and it's in just its infancy. [Foreign language]. But you know, we have equipped the center with very high-quality management covering both the primary, the secondary, the PE, and market. Later on, we will have the dedicated roundtable on those services. Because of the very capable personnel, we give sufficient preparation and build up the readiness for the customer and offer them sufficient offerings of products for selection. Glory, I'd like to see a few words on that. It's designed to offer global solutions for household, familyhood, and lifestyle. Previously, it was providing the insurance service domestically, but now we rebrand ourselves to provide the household facilitations in all aspects for those personnel moving to the overseas market or places.
They require the very comprehensive services related to their life, their education, their finance management. So we provide the very comprehensive service that will cover every aspect of their demand. And we are building up this kind of the strength and capacity to do a good job. Speaking about the specific business, we set it up as an online platform, which is catered for the Chinese-speaking or Chinese clients at the overseas. You know, Chinese people are very keen to apps on their cell phone. It's a part of their life already, which is also true for those in the overseas market. So the Ark is the app we developed that delivers our product. It is the technology platform with a lot of investment on R&D, and also that brings us to be closer with the customer by offering the online service.
I believe in the future, it will provide more support and release more capacity in serving the client. I might spend a bit more time. Operation and overseas capacity in those regards are just the basics. But what we want to highlight is that first is the transparency of investment. Let the customer know what they have invested. Second, the comprehensiveness of this, whether we can offer the customer the comprehensive allocation of portfolio in a single glance. That's why at this moment, for every client, we offer them support from the big data perspective, consolidate all their investment data. They can get the access of their allocation of investment with Noah at every piece, at every corner of Noah, so they can get everything at the single place, and we can even offer the underlying insight from this data consolidation.
I don't dare to say that we are the pioneer in this regard, but as we hear from the customer, we are comparatively the best one compared with other Chinese banks. So that is the authentic customer's feedback. It's very trustworthy. Whether it's good or not, just set up the account with us and have a try. You will see how brilliant it is. So the door is open to you. Set up the account on Ark and Olive and also Glory, and all of those services are available for you. I think the secondary, the big shareholders at the secondary market, they actually started to approach us with our Thailand team, and they keep trying different services we provided at the international expansion. We are making the best out of the strengths from the domestic market, but I believe there are certain barriers, certain challenges.
First, we need to be adaptive to the different customers, different cultures, different markets, and we need to adapt our talent team, our management to make us to be a part of the ecosystem. It requires rather long time of endeavor. Probably I'm a bit rational. I'm not that optimistic. The second generation of those customers, they are speaking English. They have international visions. Like my children, probably they don't need the service provider like us. They get the information from the English media. So that's why I feel it's a bit nervous. I don't think the system is really advanced yet. So we don't have the English interface yet that could cater to the demand of the second generation of our clients. So we are not yet the best. We can serve the old money or the aged people, rich-aged people.
But for the young people, they are growing up in those families. Probably they don't have the decision-making power at this moment, but I'm quite nervous. I have a concern on this kind of emerging trend. So I'd like to reserve my surprise yet, and it keeps me awake at the night because my son won't purchase any financial products from my website, from my app. Why? Because they think this kind of app, Noah's products, are quite outdated, and it belongs to the grandpa and the father's generation. That's why the technology team in the future will be relocated to the overseas market. Now they are based in Shanghai and Shenzhen. In the first step, it will be relocated to at least Malaysia to set the international steps. We have 10 years to go to improve our capacity. That's why, on the contrary of Ms. Wang, I'm really confident.
So I think the share price is affordable enough. Though it's dropping, but we are buying back. That is the bottom opportunity to buy. You can really find out Ms. Wang's confidence on the buyback campaign. Now, I think I found from many customers and clients, Hong Kong is one of the important stops in the international journey of our clients. That's why I'd like to invite Mr. Pan. Mr. Pan is also the CEO of Ark, and Mr. Gu is in charge of the Hong Kong office. Mr. Gu is also in charge of the wealth management of both Hong Kong and Singapore, also the sales of the wealth management products in those places. I'd like to open the floor for two of them and let them give us some insight, some local insights from Hong Kong. Hong Kong office contains Ark, Olive, and Glory.
So we have a couple of the floors in this building. That's why the office is serving the functions of the three brands, and Yijun is mainly serving for the wealth management.
Dear investors, media, and partners, good afternoon. I'm Gu Yijun. I'm a bit nervous, actually, to speak here because this is my first corporate open day. Though our company just set up the annual event for our core client in Hong Kong, but as what has been mentioned by Mr. Pan, this is my first year to relocate from Hangzhou to Singapore, and then I moved to Hong Kong. Though I have been working in this industry for over 30 years, and I've been in this company over 10 years, but I'm still pretty new for the overseas business, and I'm also developing myself on the overseas business.
I'm leading the Ark team in Hong Kong with over 115 team members on Ark. The major target that is to build the products and accumulate the client base. We have over 7,000 clients from the international market. They are mainly transferred from the mainland market, but we need to build more channels. Through our efforts in the past two years, we built up our RM team in the Hong Kong office. Locally, we have 12 years of experience, but this RM team has only been here for two years. For those, over 100 of them are licensed financial practitioners. Though I'm still pretty new to Hong Kong, I get a huge benefit from the local policies, like the immigration schemes, high-quality talents. I joined the immigration course through those immigration schemes of the Hong Kong government.
I think some of the staff of Noah, they are representing the profile of our potential client base. I joined in the quality immigration scheme in Hong Kong as early as the policy launched. So we have various means that open the doors to some of our customers to relocate in Hong Kong. That boosted us, the confidence. Second, the education system here is really resilient. There are five universities among the top 100, and more people pursue the further education or pursue the basic education for the second generation in Hong Kong. So they get in Hong Kong through the education tracks or education channels. Third, I think Hong Kong's freedom gives a boost of confidence, and the tax scheme and the stamp duty removal for purchasing properties are also boosting the confidence for the customer in mainland China.
The Ark team is mainly responsible for the transferred business from mainland China, but our more important task is to go abroad. Most of our customers are doing the overseas importing and exporting businesses. Some of them have set up their overseas account in Hong Kong and asset management account way earlier than us. So we have a good client base in the Tier 1 cities. We have the team. They are serving them, and we need to do a good job in serving the new demand from them at the overseas market. That's why we are working closely with the private bank, both in Hong Kong and in many other places. In the recruitment process, a third of us come from the mainland who are seasoned managers. Second, a third of them come from the private bank. Locally, they have been serving private bank customers with profound experience.
And then we also recruit the fresh graduates from the top 100 universities of the world so we can transfer the sound practices from the senior team members, so this kind of the mix give us the very nice strengths and play out the different very nice strengths of different kinds of the talents. The immigration scheme and the immigration are the emerging things in Hong Kong. That's why we need to focus on those immigrants, and people have been asked what will be the top task for Ark next year. I think the top priority for us is to enhance the comprehensive capacity as a private bank and serve the Chinese-speaking customer in a better way. We are a part of the client base. We represent the profiles of the customer base.
We have sound experience in managing the personal wealth in the past 20 years, and we accumulated both the lessons and the sound practices. That's why we can step out the concrete actions in the international market, and we need to cater and serve better our customers in the asset allocation of the international market. This kind of the job is the top priority and also one of the biggest challenges for me in the next one or two years. That's why I really want your support, media friends, investors, and analysts. Though we are very committed on the overseas development, and even me, at the rather late stage of my career, I'm still committed and determined to go for the international market. I'm determined to be a part of Hong Kong, to be deeply rooted in Hong Kong.
I just rent my house in Hong Kong, and I hope I can spend the rest of my career here. My husband just visited me, and will visit me in Hong Kong from time to time to give me the best mentality to stay here.
I would like to show my support to her. I'm very confident. I have belief in her, and she used to be the CEO in Zhejiang, encompassing Wenzhou, Hangzhou, as you know, are the most important trading centers in China. Since 2019, Noah was trapped in a fraud trouble, and our clients showed doubts on us, but Ms. Gu navigated this trouble by showcasing a double-digit growth in our returns and to our clients. As long as Ms. Gu Yijun is here, we have faith in her business.
We are here serving the most sensitive and most relevant customer base from Zhejiang. They have presence and coverage in Singapore, Hong Kong, and Europe. They have global coverage, and they have global expertise. Ms. Gu is our big black horse account in the U.S. From the perspective of the Hong Kong office, Yijun touched upon the interface with clients. The reason that we have this distinctive connection with our clients in Noah is because we are very similar, or we share the mindset with our clients. We are very close-knit, and many of our clients are entrepreneurs, private entrepreneurs in China. If we couldn't keep relevant with those entrepreneurs going global, then how could we better serve their needs? Last year, that is why last year we moved from Shanghai to Hong Kong office.
I think the first priority for us is that we need to be ready and poised to serve the needs of our clients with the capabilities needed. Going global, like moving from mainland China to Hong Kong, is the first step or the semi-step of going global to them, and it's a buffer zone or a stepping stone for them, and they are still looking out for overseas opportunities. Our office in Hong Kong was founded, and for around 12 years now. Now we have this mature structure built up in operation. In the future, we're going to have offices in Singapore, U.S., and booking centers or real estate headquarters in those regions. Our capabilities built in Hong Kong could be replicable in those other markets.
Whether it's our Ark talents or Ark capabilities of service or infrastructure experience, these capabilities can all be learned or outsourced, replicable in other markets. Well, when our clients go global, they need to adapt to different environments, but Noah Wealth Management has always been the backbone to support their growing global strategy. We look forward to more comments from our team, from other team members. Yes, we have done a lot of investigation in our Chinese markets, and we would like to share this insight with you, particularly our global coverage. Can we move to the map? Well, go back to Mr. Pan. We have done investigation and research in markets like in Japan, Singapore, and onwards Australia. Can you share with us your mindset and underlying philosophy of developing your international strategy?
Eileen is more familiar with this, and she was here last year, and she shared with us why we had fluctuations of our performance. We used to have offices in Australia and Canada, but back then, our strategy used to be relatively more optimistic or too optimistic. We would make the first move of securing all of the licenses necessary, and our operation capabilities lagged behind, and today we would like to develop a deeper insight in the market in the first place. As you see, the market size in mainland China is around three million households, while the same personnel profile in the overseas market is nearly 500,000, so in total, it's around 50 million. It's a big scale, while a lot of the wealth management companies used to prioritize those migrants who are undergoing this journey of going global.
But we would like to also cover the clientele that already have roots settled in the overseas market. And we have built the Ark Japan office in Australia in the future. So based from the market size and the marketing strategy, we expect that our investors, friends, and media friends could have a better understanding of our globalized strategy, our international strategy. For example, like in Canada, as a good example here, you are actually a Canadian resident, right? Yeah. And then you come back, and you will do this questionnaire or investigation on the Canadian residents, particularly the Mandarin-speaking Chinese in Canada. So they are more well, I would say it's more spoiled, but we could provide more all-around development to them. And those service providers are the main banks, and those smaller banks and the smaller partners can have quick expansion. Well, I won't be too optimistic.
This is not more forward-looking comments. Well, actually, I'm a resident in Canada. I sat down with like 20 or 30 potential clients in Canada, and also I visited some potential competitors, some regulators, and peers in Canada. So throughout my investigation, I found a lot of the clients are old clients, established clients. And we have this 12 hours of time gap. And for the past few years, we have lost a connection with them. That is why I just went outside and introduced in detail our strategy, our go global strategy, and our product portfolio upgrading strategy. And in the end, I found this underlying need or demand from them. In Canada, the dominating players are the five major banks, but these banks won't provide any alternative asset allocation to their clients.
Particularly in the private banking, they would just provide like mutual fund asset and some of the stock or structured assets, but we are more specialized in PE, VC, hedge fund assets, primary and secondary assets. All of your alternative assets are already now covered. We have a full coverage compared with those local service providers, but of course, we need to make greater strides in expansion of our clientele coverage in overseas markets, so these underserved, high-net-worth individuals in Canada and overseas markets should get into our clientele portfolio. I had already done some investigation of the top players, and we interviewed the CEOs of them, and they could serve those Mandarin-speaking clients, and I think this CEO just told me that they are less competitive with Noah Wealth Management if Noah really entered their market, but they have established clientele for many years now.
So maybe we can discover any opportunities that we can cooperate with them and tap into that market. So those non-Mandarin-speaking markets in Canada, we still find a great room to maneuver and to explore this clientele of the high-net-worth Mandarin-speaking investors. And we think we can keep relevant with them with more offering of our alternative asset portfolios. So this is the reality that we have witnessed. Well, I would like to ask, do you like the name of Olive? Well, some friends love that name. Well, we used to name ourselves as Gopher. Well, Gopher is also in the story of Ark. And then it's kind of a Gopher is kind of a small tree, and Olive right now represents a canopy tree. So I hope that represents our expectation.
And we're going to open the Q&A session after the three panels, but maybe we still can leave some room and time for a couple of questions here now. But if there's no question, we can just move all the questions to the Q&A session. And then we can have free discussions at the cocktail party as well. And we have QR codes for you to raise your questions. Thank you. Thank you for sharing. It's a long and bumpy road. It's going to be a bumpy and long road to go global. I expect that our endeavor can be reflected in the high performance in the future. And let's move on to the second panel to discuss our insights on the client demand from the management team. And we have our moderator, CEO Mr. Li Hong from Olive International. And we have speakers, Mr. Ying Hao from Olive Asset Management, CEO Chen Tian Song from Olive New York, and also a managing partner of Olive Partners Management, Mr. Ye Gang, and also, Mr. Wang Fuxing from Olive International, and Mr. [Deng Zilo], the director from the Olive Structured Products. Jeff, the floor is yours.
Thank you. Thank you for being here at the open day. The last panel is conducted in Chinese, and this panel is going to be conducted in English because our products are majority-oriented to overseas markets, and our working language is more of English. I'm Jeff, based in Hong Kong.
I'm running the so-called investment product solutions for Olive. So as the previous panel says, our strength is really in the so-called product solution. But if you look at the products, we focus a lot in the investment, alternative investment solutions.
That's what we feel we differentiate ourselves from our competitors. Today, you see people sitting here, they have each one of them is focusing almost on each sector or each asset classes in the alternative investment. Then before I ask every one of them to explain their strategy, let me give people a little bit, give you guys a little bit of update on how we performed last year. If you look at the chart from 2023, I mean, now this is only to the end of November, so it's not the full year picture. We see a tremendous growth in our private market, right? Andy will talk a little bit more on that, how we achieved such a good result. Then if you look at the hedge fund, also it's one of the alternative investment solutions, it's very rapid growth as well.
So of course, the total AUM is probably still not really meeting our target, what we hope, but we see the growth, we see the potential. So the potential is really there. And then at the same time, the structured product is something relatively new we introduced last year and also this year. 2023 is almost all the structured product is the so-called guaranteed return type of structured product. And this year, we actually opened it up to a little bit more different kind. So we also recently introduced the FCN as well. So he will talk a little bit more on that. And then this growth, look at the private market, we see the private credit is a main driver. So as we know, in the past several years, there's a lot of demand on the private credit side.
This is something we capture the opportunity a lot earlier than our competitors. That's something we would like to highlight. Venture capital doing good, also the real estate. Roy will talk more about that. In the hedge fund side, we see the demand on the so-called diversifier kind of strategy in the portfolio. The CTA or the trend following is something that we feel our clients will be interested in, and also they will need to diversify from the equity exposure. Equity, long and short, given that strong performance in the market, and then we see the strong demand as well. One thing we have done is slightly different compared to before. We emphasize on the total solution or the so-called portfolio approach.
Instead of selling single product or single strategy or certain hot and kind of products, we actually look at the whole portfolio from our clients' asset base. So if a client, well, this is actually an example. It's not really, it's not a real portfolio for our clients, but it's an example. So if our clients have this kind of investable assets, we separate into two asset classes. One is really low-risk assets. So those are the highly liquid, low-risk assets. And then the other one is a kind of risk assets. So it could be liquid and could be also illiquid products. So with this kind of solution, we see the client will balance, well balanced with their liquidity, right? So if the client needs liquidity, you have a highly liquid portion.
And then also for the longer trend, if they identify the trend of AI or the other, and then you actually can invest in the long term. So then you see we have good allocations on the so-called illiquid private market side. And then the liquid alpha or the liquid alternatives. So we have the hedge funds and also the other that generates the alpha to our clients. So overall, we create a very balanced solution for our clients. It's not just chasing for the beta. We have the beta product. We also have a lot of alpha. So then at the end, as our leadership just mentioned, our clients' wealth, I mean, their goal is really obtain or achieve a long-term compound return. So the compound return, as we all know, managing the risk, managing the drawdown is very important.
So the alpha actually gives them a very steady kind of return stream. So that is really something when we talk to our clients, even though they invest $1 million, $2 million, $3 million, $10 million. So we all talk about we approach using this portfolio kind of solution. And then in terms of if people ask us, how do you select the products, right? So there's so many different kinds of products, different kinds of strategies in the market. So what is your principle? So we have something we call it the principle for the product onboarding and selection. So the number one is we want our product shelf to be fully covered. So we have all the asset classes. We have all the strategies. So that's the number one, very important for our clients to achieve their long-term investment goal.
And then the second one is we need to have the product that can offer strategic value to the clients. So the asset allocation point of view, they need to have some sort of something everybody will need to put in their portfolio. Number three will be the brand. So when we identify our partners, right? So we have so many really top-notch partners in the world. The brand, the history, the AUM are very important. So that's when we are not just selecting a high performance, a very short period, short history kind of product producer. So then the brand is important.
And number four is when we see this opportunity in the market, and also we see the huge uncertainties under the Trump 2.0, and then we have to identify the relative and the good related strategy to put on the product shelf so that this one can kind of resist on the turbulence in the market. The fifth one, the last one is we develop a very tight relationship with the fund managers. So this one shows when the CIOs, they come to our company and then share the insights, and also the head of the strategies came over to our company to share the insights. And also we include our clients and also all our business partners to kind of listen and participate. So that's kind of build up a long-term relationship and hopefully with some sort of exclusivity as well.
So we will be ahead of our competitors kind of leading in the product offering. So that is pretty much my part. So I would love to answer the questions if you have, but maybe before that, let's go through this round and then deep dive in each asset classes, and then we can explain that in more detail.
Good afternoon. My name is Andy. Myself, Roy, and Byron, so we're the partners at our global private solutions. So private market, essentially, just to give you a broad overview, is a $15 trillion market, which consists of four major asset classes. We have private equity, we have private credit, and real estate and infrastructure. Noah has been known for private market allocation for our clients for 20 years.
If you look at our current AUM overseas in U.S. dollars, 80% of our AUM is on private side, is on private market. We're talking about a few thousand active clients every year. Jeff just showed. This year, we're going to push around $1 billion assets allocated for our clients across different asset classes and different strategies. Our main goal for the three of us on the private market, so we've been telling this to our clients, our main goal is very simple. Our main goal is to make money for our clients. That's one. Second is make visible money for our clients, which means we manage our downside risk and we achieve returns that are close to our expectations. We constantly study the market and monitor our products' performance.
When the trends change, when the markets change, we'll give our clients timely notice, if we will, so they can start putting their money or start allocating their money differently, moving their money around different products or getting into new products or coming out of their existing portfolio. These are the two goals. To achieve these two goals, we have communicated to our clients. They need to, and we're doing the same thing. They need to have three fundamental principles. Number one, especially in today's market, highly uncertain. Principle number one, you need to be diversified. Jeff touched on that. You need to diversify across different markets, different asset classes, different strategies, and different managers. Second is you need to pay close attention to underlying assets.
Historically, a lot of our clients, individual investors, so they tend to believe in good brands to the point of superstition. So they trust everything a good brand does. But in reality, even good managers, they can have bad products. So obviously, you need to work with good brands. They need to have a good track record. But now we're asking our clients to ask one more question. So before you invest in a product, ask yourself, what this product actually holds? What underlying assets are we actually investing? Because fundamentally, the underlying assets are the things that are generating return for you. So that's number two principle. And the third principle is stick to the leaders. Because in the future, strong tend to get stronger. I'll give you a sense.
So this year, top 10, not 10%, top 10 managers globally raised about 40% of all the capital that's raised today or this year. So that's how concentrated this market is. So you need to stick to leaders. But back to the second principle, even leaders, you still need to go through their product mix and pick what I call the flagship products. So this year, we're very proud. Overall private market, given the high interest rate, this year has been very slow for private market globally. The latest statistics, so this year, across all different asset classes, private market overall fundraising declined by 5% year over year. But we are, well, touch the wood, we're still not at the year-end yet, but so we're looking at about 50% growth year over year for our line of business. So we're proud of that.
This year, so I want to talk a little bit about this product selection. So this year, we did 15 different products across all different asset classes and strategies, 15 different products. And this year, about 1,000 customers allocated their capital within these 15 different products. But to give you a sense of why I'm growing a lot of gray hair, so I talk about the overall market is $15 trillion. There are about 40,000 different managers and 120,000 different products. So out of 120,000, this year, we did 15. And last year, we did 14. So really, in Chinese, we call it [Foreign language] . Really, you're picking one good one out of 10,000 candidates. So we follow that just now, the spider web approach. And we also have this three-step approach, which I can explain later.
But that's the scale of the database that we have, 120,000 products that are all in our database. And we're really strict. So our bar of putting one thing on our product shelf is very high. You can talk to a lot of global names, global managers. They chase me every day and say, "Hey, can you please consider our product?" So the thing I say very often is, "Thank you. You're good, but you're not good enough."
Well, actually, I would like to ask you a question.
Yeah, sure. Right?
So if you look at the private credit, I think we are quite successful ahead of market, right? So share that with our investors. How did you identify this kind of asset class, and how did you engage the relationship with the top tier players?
Right. So this question actually can entail a very long answer.
I'll give you a sense. I joined Noah in September 2022. It's my third year. The first day I joined the firm, the first message I delivered to our clients is, "Please get out of real estate and get in credit." Okay? Because why are you not offended? Well, Roy, I agree. No, no, no. Roy's business line is different. His strategy is different. What I mean by that, I'm just kidding. I mean, the Roy entity is very unique. And it has different assets and different strategies. What I mean by getting out of real estate is getting out of real estate assets that are yield-generating. Because rates are going higher, valuation cannot hold. Valuation comes down, and your return will be hit. I'll give you an example. Blackstone has two flagship products.
One is BREIT, so Blackstone's flagship real estate investment trust. The other one is what I brought online in September 2022, which is the direct lending, the credit, their flagship credit strategy. Last year, this year is not finished, so we can't say. Last year, BREIT, the real estate investment trust, generated a return of 0% for our clients. The credit product generated 13.2% net for our clients. Sector rotation, given different market environments, is real. That's why our team is really staying on high alert every day to monitor the market changes. To dig a little bit further, I want to report to you guys that our two products on credit, one is Blackstone, the other one is Ares. They're number one and number two in direct lending strategy.
So these are very stable and well-proven, has been 20 years plus years track record. So well-proven strategy and good managers. Going forward, we still want to do more things in credit because the inflation and rates are staying high. So we want to continue helping our clients allocate in credit asset class. But we're moving away from direct lending. So next year and the year after, my major thesis, I gave my current product line a score out of 160. So we're okay, but we're not exciting enough, and we're not unique enough yet. So today, panel, we're going to talk about how we differentiate from our competitors who are big names, the big name private banks. How we differentiate is so from my product line perspective, we want to dig deeper.
So outside of plain vanilla direct lending strategy, we're looking at a few dimensions to try to be more creative and innovative. Obviously, our bar stays high. One is geography. So we're looking at Europe. We're looking at Japan, trying to find value opportunities there. And second is we're going up and down the capital structure. So we've been doing senior lending. So what about mezzanine? What about junior? Overall structured credit, is there an opportunity there? And we're going after different types of underlying assets. So direct lending is corporate lending. So your underlying assets are corporate cash flow. But what about aircraft leasing? What about real assets? What about portfolio financing? What about life insurance? The credit market is very complicated.
So in terms of asset class, strategy, geography, we're looking ways to bring our customers more chances to generate risk-adjusted return and chances to diversify their portfolio and manage their risk.
Very good. So basically, you develop these insights from really top down. Well, we have our own research team. And also, bottoms up, you connect with a lot of market players. You're getting all this kind of information. So you identify the opportunities in certain areas, like private credit, for example. And also, when you select the products, you have a pretty big database. And then you look at each individual asset classes and strategy, and then you develop your quantitative approach and qualitative due diligence, right? So you basically not just identify the opportunity, but you also identify the best player, right?
And then you work with the team to kind of promote this good idea to our investors.
Right. So maybe let me spend 30 more seconds on this before I don't want other guests to get bored. Yeah. So, I'm very excited about that. So I have a three-step approach. So on a macro level, so remember I talked about four asset classes: equity, credit, real estate, and infrastructure. So on the macro level, we identify in today's environment which asset class I like. And then the mid-level is within the asset class, there are different dimensions. There are different strategies, different geographies, different underlying assets. What specific subsector do I like? And then on a micro level, within that subsector, there are dozens and dozens of different managers. So what manager do I like?
So I have this sector mapping that for pretty much every sector, mainstream sectors, we map top 30 global managers from their size to AUM from their historical return perspective. And then we identify those top performers, and then we'll go into deep diligence. We interview their team. We look at their invested projects. We study their terms. So everything. We have a scorecard that has six major categories with 30-something different scoring items. So we sum them up. If a score is north of 80, that's something that we'll dig deeper. So it's a lot of work. And our clients only see 15 different names every year. But behind the scenes, there's a lot of work going on. Yeah. Very comprehensive, very detailed. I think, Andy, if you ask him for another two hours, he probably will spend more.
Next question, I should go to Roy, our U.S. real estate CEO. Share with people about your strategy as well. I mean, how come you did so well and always attract lots of audience to your panel? Well, I feel like this is like a beauty contest, right? We're trying to tell people how pretty we are, how smart, how beautiful.
Well, Roy Chen. I'm with Olive. I joined Gopher in 2017. I was at Olive as U.S. real estate investment partner. And we're based in New York, and we focus on commercial real estate investment in the U.S. Real estate is obviously a very significant asset class. It's about $25 trillion-$30 trillion asset value. And almost all major institutional investors, family offices have a component of commercial real estate from anywhere from 15%-35% or 50%. It is a very significant asset class.
So, our team in New York, in the U.S., focuses on specific needs in the U.S. It is a highly sophisticated market. To survive, to thrive, and to have a long-term sustainable future, you've got to have a certain focus and expertise. So we tend to focus on the most resilient asset class, which is multifamily, which means rental housing. The reason is that I've been in the U.S. for over 20 years in real estate. Over my 20-year career, I acquired office, hotel. I also analyzed or industrial shopping mall and whatnot. So over $5 billion worth of asset value. Over the years, we see institutional capital shift from, for instance, 20 years ago, from shopping mall to warehouse distribution center and recently from office to rental housing.
The trend is that the capital gives premium pricing on resilient assets, meaning that an asset that can weather a lot of economic downside and ups and downs. It's also my experience. Over the years, I look back. The most profitable or the asset class that I have invested so far that provided me with the best return is multifamily. It's just by my experience. That's why we're lucky in 2018 when we started to build our real estate. We focused on multifamily. We also focused on multifamily development, which is on upper streams. What we do is we work with sophisticated local developers. We buy land. We build. We create value. Then we sell. We lease up, create a cash-flowing asset, and then we sell to institutional buyers. So far, we almost sold each one of our developed projects to institutional buyers.
So it's created a business model. The key thing is to create a business model that is sustainable. You can duplicate it. So almost every other project looks very similar, almost like cookie cutter. So we can do that sustainably. And we can do now we are fund four. We just closed our fund one and sold fund one. And we're on our fund four. And we will have a fund five, six, seven. I jokingly tell our investors, "So before I retire, I can keep doing this for 25 years." So this is very important for our investors too. So you're not getting into so we're not an opportunistic investment strategy. And we're also not as smart as Jeff to beat the market. We can't beat the market. Only Jeff can beat the market. So I'm still trying. Yeah. So we do fundamental investments.
We create this asset class that is very valuable to institutional buyers as an investment product, and the downside is because rental multifamily in the U.S., the fallback is we can always keep it as operating cash-flowing property to weather the time. If you look at the history of 20, 25 years, or 30 years, every U.S. downturn is about two years, and 18 months to 24 months. So including financial crisis 2008, the actual downturn is 24 months, and then started taking off, so you want to have a long-term value, long-term resilient asset that can weather a certain economic downturn, so we can't predict, right? So that's very important. Also, I want to give our investor suggestion that when you invest in the U.S., construct a long-term view, so I think you always hear a lot of us and also other professional investment professionals in the U.S.
I think the most frequent phrase you hear is long-term view, long-term view. So let's not focus this year. Let's not focus next month, and the majority of U.S. money, majority of U.S. money, whether it's family office or institutional money, majority of the money is investing in a long-term sustainable strategy, not focused on timing of the market. So I always hear from investors, always ask me a question, "Is it a good time to invest?" I always tell them there is no good time, bad time, but you look at long-term, you always want to stay in the course. So you make money sometimes more, sometimes less, but you construct your investment strategy so you have a compounding return. That's the most important probably investment strategy to create value.
And also, especially when you are 40, 50, or 60 years old, at that time, you look at your investment strategy not for two years, for three years. But average U.S. family office, the horizon they're looking at is 40-50 years. So really to create a wealth transfer strategy to the next generation. So just my yeah. So very good. So actually, this is really in line with our goal to service our client as well, right? Because their wealth is really long-term. They want to pass the wealth to the next generation, another next generation. So in this strategy, we look at 30-40 years, kind of very long horizon. And then Andy's investment horizon is probably about less than 10 years, right? Three years to 10 years kind of range.
And also, later Brian will talk about your strategy on the VC, capturing really the super trend. So I think for Roy, you just mentioned that you're kind of lucky that you invest in the multifamily. And I think. Totally. Well, you said it's lucky, but at the same time, we feel that it's also really your skill. You probably identify this as good. Why did you not choose the commercial real estate? And then so to us, I think the Chinese are also kind of very interested in investing in real estate anyway, right? So they're the biggest buyer. So that's in line with our when the company selects you, when you select the company and you select the right asset classes, that's quite a match. Right. I think sometimes you need luck, to be honest with you. Absolutely. Yeah.
But I think luck doesn't come from thin air, right? So before I joined Gopher at that time, now it's Olive. Before I joined Gopher, I was actually investing a lot of money into multifamily. So I see this asset class, the character in a capital market when we sell, and also the resilience through the different times. So it applies to me that I want to focus on something that in 20 years, it's still working. It's not like in two years, it no longer works. So at that time, actually, office is also very attractive. But because of our skills, we're not a $5 billion fund. Thankfully, actually, if you have a $5 billion fund, you may focus a lot on office, then today you're running into trouble. So sometimes the bigger is not necessarily the good thing.
So, because our skill is relatively small, so we can't do beyond one asset class. Let's focus on one asset class. So it's really a calculated decision that that's what fits us. But then with COVID, and office is absolutely out of favor. So if you look at the cap rates, office is 1%. And rental housing is like 50%. Out of $90 billion asset value, the rental housing is 50%, office is 1%. So that tells you that institutional buyers pretty much do not want to touch office anymore. It used to be one of the major, very, very major asset classes. So things do change, like shopping mall before, right? So but shopping mall, now I heard that it's becoming apartment. People are living in the shopping mall. Yes. So shopping mall, when I started business 20 years ago, shopping mall is very attractive.
A lot of large institutional insurance money, pension fund, they all hold a lot of shopping malls. And then at that time, Amazon is selling DVD. So nobody cares about Amazon. It's a DVD distributor. So now from DVD to books to now to obviously a big yeah. So Amazon really changed the U.S. real estate from a shopping mall to warehouse distribution. So you see the trend, right? But in the end of the day, we are pretty sure that people are going to live somewhere. So they can't live in air, right? They can't live in a Bitcoin, right? So they have to have a land and a building structure. So we think that's probably going to maybe one day they live in Mars. Yes. Well, we built a fund in Mars. A Mars multifamily fund, so.
So that's why the thesis is you want to do something that your underlying asset has long-term horizons. So we feel very good about it. And even though the high interest rate environment impacts our value short-term, because we know when you have a high interest rate, they always come back. So I tell you our experience, the U.S. cycle, if there is an economic cycle, it's usually 24 months. So then they flip. So that's why we ask our investors to construct a long-term view. Don't be confused by six months, even 18 months economic downturn. Good. Good. Good. So you are in a very traditional old school class. School. Let's go old-fashioned. Right. Very old-fashioned. Old-fashioned. Not as sexy as enough, but let's go to nothing sexy. And we like the pack. We're making money. Yeah. That's more important. Hopefully. Yeah. All right. Let's move to Byron. Yeah.
You are the sexiest one. Yeah. That's a sexy one. That's a sexy girl. That's a sexy girl. Can you pass over the remote controller now? What's that? Oh, yeah. Sure. Yeah. Yeah. Yeah. Yeah. Talk about venture capital, right? No need. Yeah. The most sexy part of our business, right? So yeah, this business has been changed, actually, since COVID. I will share a little bit to you today. But venture capital business, right, is core business of our firm. It has been our DNA. Ever since our chair lady and our CEO built this firm two decades ago, right? This is our DNA. This is our core. But we talk about the U.S., right? So I'm leading the U.S., all the U.S. operations, right? So team-based in Silicon Valley. And ever since everybody using ChatGPT, right? So this wave of revolution started in 2021, right? ChatGPT 3.5 released.
But artificial intelligence has been developed over 70 years, right? So suddenly, it started to commercialize, right? And AI has been becoming a big trend across the world, right? Especially in the United States. So AI is a groundbreaking invention, I would say, in human history, right? So coupled with this favorable political trend, plus I see the rapid adoption rates, right? So our team has built a very strong pipeline for next year in the venture capital industry, co-investment opportunity with very high-profile deals, right? Plus some crypto Web3 startups. We're also looking at it, and we're doing a lot of research on that, right? We haven't released any crypto or Web3-related product yet. But we will soon. We will soon, right? Talking about our team, right? So U.S. team is a little bit different because we hire the team local, right?
The team are all educated in the U.S. They have average over 10 years experience in local, in the States, in investment banking, in venture capital, and a lot of top asset management firms across the world. And because of the team, right, we've been on the ground for the past eight to nine years. And the team has cultivated a very extensive network in venture capital ecosystem and entrepreneurial communities in the Silicon Valley, in Boston, in New York, in LA. So because of this team, it allowed us to gain access to the top managers in the venture world, right? So I want to share with you about our playbook for venture investing, right? So the playbook of our venture investing currently in this market is about to get access. So access to what, right? People are asking. Andy mentioned a little bit, like top 1%. Yeah.
How many venture firms actively do fundraising this year? It's 500. It's about 5,000 venture firms in the United States, but we only look at really the top 1%. The 30, 40 VC firms is in our list. Those are the managers we want to gain access, right? People were asking, "Why is the situation like this?" Right? And if you look at PitchBook, if you look at the Preqin, right, the database, people are talking top quartile, but now it's not top quartile anymore. It's like top 1%, even less, right? So it was largely due to, based on our analysis, right, it's largely due to the persistence of the performance of those top managers, right? So people jokingly saying, "Oh, right now the VC business is about getting access. It's called access classes," right? So nobody wants to invest on those like mediocre VC firms anymore, right?
So for our challenge is getting the access to those. Actually, one question. I mean, sometimes when you analyze the performance, right, so the past performance usually was not really a good indicator or the factors for the future performance. So when you mentioned about the top 1%, and then it's very hard to get access, I think you have that relationship, that's great. But also mention a little bit about how do you kind of ensure these things, this performance? Yeah. This is a very good question, right? So in our dictionary, right, the top 1%, it's very different from the database from PitchBook, from the pre-cleaning. It's very different. So our database has been built for over a decade, right? So data has been accumulated for over a decade. And like 10 people on the ground, right, across the United States, what we do every day, right?
Every day we have a meeting with managers. We monitor every partner within the firm, where they go, which deal they get, right? Every day we work with the engineer in the Silicon Valley to see what they like, which firm they like, right? Particularly those continuously successful entrepreneurs, right? When they start a new business, they're looking for a partner. I'm talking about money partners, right? So which partner do they pick? This changes quarter over quarter, right? It's not like static data database. So that's the groundwork. It's very detailed, tedious work every day we do on the ground, right? Can I just add one more thing to your question?
So if you talk to institutional investors, a lot of them will tell you, "How do you try to figure out which ones can keep performing, at least to their historical standard?" So remember three words when you evaluate a manager. One is understandability. Do you understand their strategy? So if somebody tells you a crazy story or a not-so-clear strategy about what they're doing, run away. And second is predictability. So you study the market and you study their playbook. You study their strategy and their team. Figure out, is their strategy, is their core strength, is their team a good fit for where you see the world is going or the sector is going? And the third is repeatability. Can their performance repeat? Meaning, is their strategy consistent? Is their team stable? Is their market going through some changes?
Remember the three words when you're trying to figure out if a manager can keep delivering in the next 10 years what they have been delivering in the past. Yeah. Yeah. I totally agree with Andy. In addition, I'd like to report here to the audience. Olive Partners Management, which is Olive U.S.' first registered IA, the fund manager firm. In the past 12 months, we have already launched three flagship VC funds. The total AUM is about over $150 million. We're currently preparing the fourth one. Next year, as I just said earlier, we have a very strong pipeline for those brand name, very hard-to-access managers, and offer this product to our clients. Besides that, we have also built our co-investment vehicle to access those very high-profile, very hard-to-get top deals in the market, right?
I couldn't share with you more detail, but once you become our client, you'll know. Well, that really shows our unique strengths, right? So I think with the two direct investment team, right, Roy invests in the real estate, and then you invest in the early stage, either company or venture funds through the fund of funds. I think that shows our real investment capability. And I would like to move that forward a little bit more to the liquid side, right? So we can see these three gentlemen are more kind of responsible for the more illiquid and private market. And then the other two is because our client also needs liquidity. So you cannot maybe Andy, once our clients do invest their only $100 into your private fund. But I think the $100 needs to break down into smaller pieces and then maybe $20 to the liquid alternative.
So Frank, so you tell us. Sure. Thank you, Dave. My name is Frank Wang. I'm a Deputy CEO of Olive. I'm in the public market. All the guys, handsome guys on my right side, they are on the private side. I'm on the public side, which is much more sexy, right? Today, in the last panel, our chairwoman and our CEO emphasized that our strength is a product. Hedge fund is one of the key asset classes on our platform. As you know, in developed countries, hedge fund has been a very attractive asset class. It's fully for the institutional client. It offers relatively high returns with very good liquidity and manages very well. But for our client, primarily all those high net worth individuals, right, the hedge fund has been relatively new and unfamiliar.
So that's why we are coming to bring this appealing asset to our platform. By doing so, we enable our client to have access to all those appealing asset classes for their portfolio asset allocation. That's the reason why I devote all my life, Olive Asset Management, to hedge fund. So in the past one and a half years, since Jeff and I, we joined Olive Asset Management, once we tried to focus on all those top asset management. In the past one and a half years, we were able to bring over dozens of globally top-ranked asset management. Here, I want to give you an overview of what we have, some of the strategies we have on the platform. As you know, hedge fund, one of the benefits, they offer a variety of investment strategies, right?
So for our client, whatever you want, you can always find the ones which can meet your specific risk tolerance profile. And here, on the market neutral side, we work with Morgan Stanley. We have Morgan Stanley Omni fund. And for the market strategy, we have Point72, Sculptor, Graham Capital, Man Group. And for global macro, we feature Brevan Howard. Long-short side, we have Wellington, Coatue, Point72, AQR, and Himalaya. And for the quant side, AQR Helix is one of the key offerings we have. It's very strong performance. Fixed income side, we work with PIMCO. And we even offer crypto assets. And when clients come to our platform, we have the BTC ETFs. We have the Brevan Howard Digital for the hedge fund. So as you know, yesterday, Bitcoin has passed $100,000, which is a milestone.
And Olive, winner, early on, we were able to bring this asset class to our platform, give the access to our client. And again, in the past one year, we made huge progress on the product side. And we were able to target this top $15 billion hedge fund club. And we have covered half of them. And the one highlight on this table, either they have the product on our platform or they are in the DD process with us. And my goal is next one year, I'm going to cover the rest and either cover all those and onboard all those remaining half of the top $15 billion club hedge fund. Again, all the funds we select and bring to our platform have consistently shown stronger performance.
What I show here on this chart is this orange color basically is a performance for 2024, this year, end of September, end of year 2023. The gray bars basically show the benchmark in the same period. As you can see, the orange color, which is the fund performance, most of them outperformed all the benchmark, consistently outperformed benchmark in the past two years. That has been validated, the high quality of the fund we bring to our platform and we offer to our clients. And in the past one year, also the hedge fund business in Olive Asset Management has a tremendous growth. As of this November, the capital we raised is already 2.5x of what we raised in 2024. And for the private investing, we also tripled.
Hedge fund has been one of the focus asset classes for Olive, and the growth is very strong. I expect this momentum will continue. Our mission remains very clear. We want to offer the right product at the right time to the right clients. That's what we do here. Okay. Thank you so much. The reason we pick hedge fund is because most of our clients have the equity exposure, right? So equity exposure, especially China equity exposure. We would need something which is uncorrelated with the equity market, right? So either it's a low correlation, negative correlation, and also liquid as well. That's why we focus on the global hedge funds. Global hedge fund has so many strategies, so many players. At the same time, how do we pick the top tier, top one? That becomes difficult.
For example, some of that is actually healthy access issue. They have a very limited capacity, right? I don't want to give the name. I mean, you know the top tiers, I mean, Citadel, Millennium, Point72. It's very hard to access. Very good fund, but they cannot access to it. So the question is, for this type of players, Frank, do you have any plan to access to it? And what's your view? Yes. One of our goals is to try to get all those hard-to-access assets, the fund managers, the strength to our platform. Right now, currently, we have a few strengths. We are one of the, if not the only one, but one of the few players in this market. We were able to get access when other companies do not have. Both Jeff and I, we work in the U.S. for years.
Actually, I work in the U.S., in New York City, for 18 years. I used to work for Citigroup hedge fund unit, and Jeff used to work for Goldman Sachs. So we both started in the hedge fund business. So through our network, through our access, and with all our Ark distribution channel, the influence in the Asia market, we were able to consistently talk to all those fund managers, and we were able to get access to those hard-to-access asset class. And our goal continues, we will try to get all those hard-to-access assets to our platform. So when you join our platform, you get access to all those asset classes. Yeah. Okay. Thank you. So one thing I would like to add is, in the past several years, lots of alternative managers have tried to expand or get into the so-called wealth channel, right?
They're no longer just taking the institutional money, but also work with the wealth manager to actually take the high net worth individuals' money. Noah is actually in a very unique position because we kind of represent the largest investor base in the Chinese high net worth. That's why we are able to develop the relationship with the top managers. For example, AQR's and also Wellington Management, right? Wellington Management's vice chairman actually visited here, had a very good conversation to develop the longer-term relationship. Even AQR's Cliff Asness came over here to have a talk with us, a dialogue, and then to our investors as well. I would say we should leverage this kind of opportunities and also our resources. We will. Hopefully, we can actually get access to the more difficult access, the fund managers. Yeah. True.
We will continue to do that, to build our stronger product line for the Olive Winner. Okay. Thank you. So last one, let's go to Sherlock. When I went, okay, you always think about some sort of English detective family. Okay. Holmes' son. James Bond or Sherlock. Okay. So explain to us, structured product is a very popular product offered by private banks. Why do we need to offer this kind of product to our clients? Where are our unique kind of advantage on that? Yeah. All right.
Hi, everyone. My name is Sherlock Tang, and I'm the head of structured products at Olive Asset Management. Actually, if you look at structured products, this is one of the promising businesses in private banks. One of the reasons is structured products, actually, if you look at the underlyings, it spans across equities, credit, currency, interest rates, etc.
It can actually span quite a lot of asset classes. And then besides that, if you look at stocks or indexes, commodities, credits, this is also some of the sectors that structured products have a lot of underlying assets actually linked to it. So if I give you the business overview for 2024, actually, in view of the high interest rate environment, we actually rolled out eight different principal protected structures, which you can look at the charts such as the PBM booster, some of the bullish autocall structured, the auto callable notes, and also the linear style callable, digital coupon notes, and also some of the quantitative investment strategies. These are some of the structures that in 2023 that we do not have. Because like in Noah, we started this business, it's actually quite new, back in April 2023.
But then going forward, we actually think this is actually a promising business. And for all of these eight different structures, we actually link it to stocks and indexes, commodities, and also the interest rates, currency, etc., which we think it actually offers quite a lot of product diversity to our clients. And besides that, I want to add that in 2024, we added seven different issuers, which includes some of the big bulge bracket banks, talking about Goldman Sachs, Morgan Stanley, JP Morgan, BNP Paribas, Crédit Agricole, and also DBS. So with all of these seven international banks, it actually helps to increase our product offerings and also make our products more competitive compared to other companies. Okay. So for 2024, let me give you a financial overview of the 2024 structured products business.
Actually, if you look at the commission per trade, the average commission per trade has increased by about two times in 2024 compared to 2023 because we sold more high-margin products. So to give you an example, in 2023, the average annualized commission rate is 0.47%, which increased to 0.92% in 2024. So this is talking about a twofold. And the total commission amount has increased by 56% year over year. So going forward, we also stick with this kind of regime. And then we also think that in terms of the annualized commission rate, it's also kind of towards the high end of a 1% level, even more. So for some of the popular products that sold this year is bullish autocall, minimum coupon guaranteed autocall, which we actually sold a lot.
For example, in April and also in May, we sold quite a lot of Tesla, Nvidia, minimum coupon structured, talking about 3.5% or 4%. And one thing, you sold it to our Chairlady; she was not happy. It wasn't in one month. But besides this minimum coupon guaranteed [structured], if you look at the bullish structured, we actually have products that if the bullish structured, there's a tail level. So after the stock rises above the tail level, you will get a 5.5% annual coupon. So this 5.5%, if compared to an annual deposit rate in U.S. dollars, it's talking about just 4%. So at least we get a tail coupon; there's 5.5%. It's even more than you put in a bank. And it is also 100% principal protected.
So for our clients, because they are more conservative, for our Chinese clients, they are quite interested in this kind of products, and they are able to, every day, they can just sleep comfortably and then instead of looking at the products, but then it's also as a way to help them to invest in the stocks that they like. Okay, and right, so just want to answer a question, what are our competitive edges, so in 2025, as Jeff just touched upon, we will board the FCN, which is the fixed coupon notes products. This is one of the products that private banks actually sell quite a lot these days, and it's one of the most popular products. If you look at the sales volume in Morgan Stanley's example, they sold 36% out of the total non-principal protected product sales volume in first half 2024.
This kind of products, one of the good things is the tenor is actually, you can say about three months, six months, quite a short tenor. Even if tailed, investors can actually get back their money quite quickly and also the coupon quite quickly. Also as an opportunity for the investors to buy the stocks at a lower price. This is one of the products that we just rolled out this week in December. Our clients are actually quite interested, even in our [Foreign language]. Yep, yep. I mean, the atmosphere is like. You kind of stay very late at night. A lot of people kind of crowded in your sections, so listening. One thing I would like to add, actually, our kind of unique value propositions and also the strengths is, you think about this, a lot of our clients are really entrepreneurs, right?
So they have a lot of views in their own industry. And also a lot of their products is kind of linked with the global market, right? So they know even the global name, right? Talk about Apple, for example. If you look at supply chain, many components kind of build in China, right? So for this kind of entrepreneur, they know what's going on, how the stock will perform, meaning people have their own view, their view on certain stocks up or down in the next six months, next 12 months. So with this kind of view, the structured product is actually a very good structure to offer the investors to realize their view, right? So if you have a long view, you think the stock will go up, but within a certain range, they can design the product for you.
If they think the stock is too bad, the value is too high, the valuation is too high, it will go down. They can design another product for you. So highly customized with the view. And then that's one important advantage that the other one is our client comes to us for one-stop shop. So they come to here, and then they look for almost all the solutions. Of course, we can find the structured product from the private bank. But at the same time, if they already have the money here, they have the account open here, they can actually choose all kinds of products they would like to just come to our place. So structured product is actually a very important addition to our alternative investment products. Right. Okay. Also. I think we are time's up. But okay, last word.
Yeah, last word I wanted to touch base on is before we partnered with Goldman Sachs, which we launched the Goldman Sachs Cross Asset Low Beta Index. And this is one of the indexes that they only sell to the institutional investors before. But we are the only company, the only wealth management company that is able to sell to our high net worth investors. So these are some of the key products that actually are only offered by us. Other companies, they don't have it. And this is more exclusive kind of pricing. Yeah. Thank you.
So last word, I remember last year, Eileen, actually, Eileen, right? You got Eileen, right? So we had a long and good conversation. At the end of the conversation, you showed me a book written by Victor Haghani, who was my partner a long time ago, right?
And then the book name is called The Missing Billionaires. And then I read it. So the key part for this book is actually talking about how the wealth should be built. People should look at compound return. That's number one, right? So compound return is low volatility, manageable. But it's more important is about sizing. Sizing your investment is probably even more than picking the right asset in some cases. So if you look at this, what we are building right now is actually to offer a more comprehensive, more diversified solution to our clients. The goal is actually to lower the volatility of their wealth so that they can actually carry this comfortably in the long run to achieve the compound return. So that's pretty much our theme here. Thank you so much. Thank you.
[Foreign language] Thanks very much for your insight and discussion on the strategy.
And we found out the kind of the conflict in potential between different products and strategies. For people on site, we will have a 10-minute tea break. You can enjoy the tea outside of the venue. Let's come back at 4:25 P.M. 25 minutes past 4:00, let's gather together here. We will join together for another roundtable about the comprehensive service capacity. Let's see you guys in 10 minutes. [Foreign language] Dear guests, please be seated. We're going to commence the second session soon. Hello hello hello hello [Foreign language] Dear guests, we're going to start soon. Please be seated. [Foreign language] Glory [Foreign language] Jeff [Foreign language] Dear guests, we're going to start soon with the third panel. Please be seated. [Foreign language] Dear guests, please be seated. We're going to begin soon. Apart from assets, investment assets, we have also insurance options available.
We're going to begin with a panel three. Ms. Gao Yang, CEO, Glory Family Heritage, to be the moderator for today's panel three. We have speakers: Clement Ting, Head of Glory Overseas Insurance Business; Ken Ting, Head of Glory Trust Business; Joanne Wang, Head of Glory Global Life Business; Ivy Zhang, General Manager of Financial Department and Head of Tax; Michael Chen, General Manager of Glory Family Heritage. Please be seated. Good afternoon. I'm Gao Yang. It's not my first open day, but I represent the department of HR, finance, and operation. Last year, I joined the Glory Family Heritage BU. Why do we, how is Glory born, and how we offer this section? I think insurance or family heritage could provide as the safety net. The safety net is the bottom of the pyramid that we mentioned in the above two panels. It includes insurance, identity planning, and global lifestyle.
We also have representatives of the tax department to share with more insights on that part. A lot of the clients have their taxation considerations, so we could integrate the taxation considerations into our product offerings. What we do is long-term planning, long-term investment. We would like to provide this long-term platform and services to our client. From the point of digitalization and insurance, we can provide these long-term services to the clients with a comprehensive product portfolio. It's not just a product offering, but more of a solution provider. Originally, we have secured the license of insurance brokerage in 2008 in China. This business was born in 2008. In 2011, we have secured the license of insurance brokerage in Hong Kong. The Ark Glory Family Heritage was just built in Hong Kong. Then we went global.
Now we have an office in Singapore. So the overall global lifestyle package was based in Singapore. And in 2019, we have secured the license of insurance brokerage in Singapore. And in 2023, we resumed our insurance brokerage in the U.S. market. So our insurance coverage includes North America. And we have the office and service center in Los Angeles. And this starts since this year. We're going to have updated planning. Apart from Hong Kong, we will have a channel network in other parts of the world. And Mr. Ting will give us more insight on our expansion of operations and innovative practices in other parts of the world. So now we have global insurance, overseas trust, global lifestyle, and go global strategy for enterprises. So we have expanded the coverage from 2B and 2C. And this is a very diversified platform to our clients.
Next, we would like to give the floor to Clint Ting, head of the Glory Overseas Insurance Business, to give us an update on our strategy and planning on the insurance, and particularly the performance we have achieved over the past few years. Thank you. I would like to introduce you to the Glory Insurance Business in overseas markets. We covered Hong Kong, Singapore, U.S., and Bermuda with different product lines offered to our clients. And also, it covers different insurance companies, whether like the [SEMA] and those very prestigious insurance companies in Hong Kong, and also those partners in Singapore, Da Dong Fang, for example, Hong Li, Manulife , and those large partners, and Lincoln Next Life in the U.S., and some of the partners in Bermuda.
As in the insurance market, we have, like for example, in Singapore, U.S., and Bermuda, we have IUM assets, IUM options, and those are most coveted and popular products. While in insurance, in Hong Kong, in these four markets, the insured premium coverage is at a high level right now, and in Hong Kong, we can cover 95% and 98% in the U.S. As you can see, our client coverage and footprint in different countries, we had a good performance, and in Hong Kong, the premium coverage in Hong Kong amounted to HKD 2.23 billion and $600 million in U.S. in U.S.A. We have deployed different strategies in these other three regions. Now we are also tech-enabled. We can provide the tech-enabled experience and delivery to our clients. We are the first digitalized provider of the insurance products in Hong Kong.
While in 2024, we have been awarded two digitized insurance awards in Hong Kong. That really signifies our capability to provide digital insurance service to our clients. With two years of consultation and endeavor, we have been able to provide the integrated service system to our clients. The clients can just sign their signature in the policy form in our platform, and then the policy form could be transmitted to the insurance company directly. Like we have built this platform integrated with Aon and other prestigious insurance companies in Hong Kong, and same practices will be replicated in Singapore, U.S., and Bermuda. Our tech team is very highly capable, and they are an innovative team. While in partnership with different insurance companies, including Hong Kong, we have issued 3D insurance options.
This is, this has laid a good foundation, and we expect to build a network and expand our network in Singapore and U.S. I have a question. While this year, like the Hong Kong Insurance Authority has released a couple of regulatory policies, and it involves several, like, penalty policies on certain practices, and what kind of characters do you think are the most competitive in our company to provide a quality service? The penalty that you mentioned, are more oriented to the high premium commission. But in Noah, we are service-oriented. We don't have any, like, commission distributed to our clients. And the comprehensive capabilities that we boast of are really one of the distinctive advantages. We can provide diversified options, including the planning and the allocation, and also the portfolio that we can provide.
And also, we can cover the planning of the identity and heritage. So we can not only provide the insurance planning, but also cover other parts of the demand, like overseas trust, overseas insurance, and identity planning. We believe, like now, we are working to expand other channels in Hong Kong, and we have received massive recognition from our partners in Hong Kong. And these qualities and capabilities could be channeled to their own high net worth individuals or clients. I have another question for you. Now, a lot of enterprises want to go global. Once they want to go global, then there are a lot of B2B demands, like the critical illness insurance and life insurance. While in Hong Kong, for the top institutions, those top institutions are our partners too.
Like, whether the clients of the enterprises, while their bosses or the high-net-worth individuals, they would like to have insurance planning comprehensively. While the insurance in Hong Kong is beyond the insurance product, while we can provide a backup plan, plan B for entrepreneurial clients, while the FWD has the FWD insurance private, so it's kind of a multi-trust that we can earn. In Bermuda, it's quite compliant and can be isolated with their liability and insurance, so for enterprises going global, after they go global, they will have a concern, like for their medical insurance. Because like if you are a Chinese entrepreneur, you want to move to Dubai and other places in the world, they will have a concern of like high-quality medical insurance. How could they secure the high-quality medical insurance at other places?
To be honest, probably they don't know much about the insurance and the available products. That's why we are working closely with most of, most of the insurance companies on the market, especially with FWD. Next year, we will have a tailor-made high-end medical insurance package for our clients only. Thanks very much, Clement. I apologize for the Mandarin of Clement. If possible, we can speak English with him. Jiajia, it's your turn. Could you give us some ideas about the global lifestyle, how to make the arrangement and planning in this regard, also the development of the company in this part of the business? I'm Joon An, responsible for global lifestyle. This should be my first participation of the corporate open day. In the past eight years, we have been doing the identity arrangement for the high-net-worth individuals.
In the past two years, something new has been embarked. Like Ms. Gao Yang mentioned, that we relocated the whole team to the overseas places in Singapore, Hong Kong, and Europe. Even some of them are in the U.S. Regarding our business, one of the major businesses is the identity planning, which is designed for the high net individuals. For themselves, they want the freedom of traveling as a benefit and the privilege of getting education. They'd like their kids to have the education in the U.S. and U.K. This is what we have been doing in the next eight years. In the past two years, specifically, as the representative of Chinese companies, you know, we offer the representative typical services for the enterprises going abroad.
One of the basic steps for those companies going abroad should be the setup of the local company and application of the visa for the staff. These are the derivative businesses from our original identity planning business. You know, all of our work can be consisted with two parts. First, we should get a deep understanding of the demand of the Chinese customers, and we offer the required services, and then we need to be highly professional at the local places and help the customer to deliver the service required. The third business is more related to the deeper level. That is the property purchase at the overseas place and the education access for their kids at the foreign places. They are the essential demand.
No matter for whatever reasons, the education access, the property purchasing could be a part of the crucial part of the global lifestyle or the international lifestyle. All of those key, all of those businesses could come back to facilitate the major business development of Noah. You know, no matter corporate clients or the individual clients, you know, this part of the business gives us the connection and opens the door for the customer to get into our company. Then we can contact with the customer in more dimensions and build up the loyalties. So when we know that lots of the entrepreneurs and enterprises build up their business at the overseas places in one hand, we found the incremental demand. Our business will definitely seize the opportunity of this kind of the trend. And this part of the business will definitely help the going global strategy of the company.
We are trying our best to make the best out of the supplementary role. Like Ms. Wang mentioned at the very early beginning, that's to service the Chinese Mandarin-speaking community. That means to serve those Chinese people who have been in the overseas places for two decades or who plan to go abroad or who have just landed in the foreign land. They are pretty new here. You mean you are asking those who are already at the overseas places. If you're specifically referring to those who just landed, but you're pretty new to the new places at the foreign places.
First of all, look, if you are pretty new to a foreign place like Hong Kong or any other foreign countries, you will definitely face a lot of the challenges. If we have an on-ground local team who could help you on every aspect of your life, like setting up the bank account and paying the bills for the oil, the gas, and the electricity. Probably you think they are quite straightforward, but that might be a challenge for the newcomers, and we also expand our service for the staff who just relocated to the new places. Our service also includes getting access to education for their kids. All of those kinds of demand require the team who are familiar with both the local knowledge and the customs of the Chinese.
For those who have been living overseas for decades, you know, we have the team in Hong Kong, in Singapore, also in the European countries to serve those who have been living in the foreign places for many years. As Ms. Wang mentioned, they are still quite keen on the investment of properties. You know, we are the experts in this regard. We have the expert investment team serving the Chinese people in Singapore. And we figured out their demand to invest in property in Japan, in Dubai. So in those regards, since we have the dedicated team at those targeted places, we could do a better job than others and serve them in a better way than others. That is true, that is very great.
I think the slide is also showing you the advantages of our business. I know there are lots of companies in the market, outside of the company, who could offer the similar services. Now I want to draw your attention to the uniqueness of our service in this regard and what kind of risk control measures are in place. We don't regard this kind of service as one-off, how to make it sustainable. I'd like to. I think this is related to the mission of our company. Our company is deeply rooted in the Noah group. All the investment strategy, investment decisions are related to the company, are related to our company in many layers, in many aspects. You know, we offer the comprehensive service like the taxation planning, insurance, and trusteeship, also the identity planning in the selection of the products.
Let me put it in a simple way that EB-5 is one of the channels for our customers to get the U.S. identity. You know, we have the team of [ROI], and they are based in the United States. You know, in 2019, we worked together with the team of [ROI] on the EB-5 immigration, and that product was actually delivered, and the risk control part of that product was actually done by the team of [ROI], so you can see that from the very beginning, we made the very good foundation of the composition of the products, which differentiates our products with others. You know, we have the very comprehensive team, and we have the investment team in-house and risk control team in-house. They can help us with their professionalism and expertise on the risk and on the quality of the products.
Let's move to the microphone to Tim, to Tim. Let's talk about the overseas trust. You know, Glory Trust has established in 2014, where we set it up, the team in both Hong Kong and Singapore. Now, I think you have been helping the family trust for over 500 families. How to make our trust different from others? I'm Ken, I'm responsible for the trust and the corporate services. Glory Trust, as a brand, has been in the market for over 10 years. We set it up in Hong Kong as early as 2014, and in 2019, we set it up in Singapore. We got the lessons from the two places. In addition, we have special branches dedicated to corporate services, specializing in setting up onshore and offshore companies.
The nature of trust is a legal framework, which might be different from other businesses offered by the group. I think the trust, but the trust service is complementing with other kinds of the service, like insurance and investment. We can connect well with the trust, and those products can be a part of the trust design or the trust package. As you see, we have been doing the trust service for over 500 families. They are mainly the successful entrepreneurs, business owners. When they go abroad, we help them to provide different services. Some of them are dedicated for families. Some of others are dedicated to the employees. That includes the incentives for staff before and after IPOs. Let me be specific about the competitive edge and our portfolio of products.
Compared with other trust service providers, like the bank-backed service providers, we can be flexible, and our rate is more competitive. So more importantly, we don't have the dragging force of the banks. You know, for those bank-backed service providers, they almost look at the trust issue from the banking perspective. But you know, we are specialized in the trust design, and we have the corporate secretary, the solicitors, and the investors. We can understand the compliance issue of the trust in a better perspective, and we can judge the reasonableness and the sustainability in a unique perspective because of this mix of the talents. We have done some very important measures, that is, the referral list. We have our list of service providers, like law firms and the investment institutions. They give us customers. They expand our customer base.
They are also helping the customer demand together with us. I agree with you. In addition to the family trust and estate trust, we have connected with insurance in many dimensions and products. This year, insurance products are closely connected with trust. They are eventually meant to protect something. Trust is the structure. Insurance is a guarantee. If you buy an insurance package, a policy, the policy, the beneficiary will get a huge amount of the money at once. But if you don't want to do so, you'd rather to put it in the trust, and the trust management team will do the investment smartly and intelligently and distribute the returns upon the request. There are a lot of the updates on the taxation and the legal issues of the trust, and would you like to give us some new ideas?
After that, I'd like to pass the floor to [Zhang Wei] for the latest of the rules and laws, like it is the BVI. BVI in 2023 that requires every trust company to provide the financial reports and statements to the local agents. As I mentioned, that we are closely connected with the accounting firm and the legal firms. And so we can set it up, the structure in a coordinated manner and submit them to the authorities on time.
Good afternoon. Let me introduce myself. I'm [Zhang Wei]. I've been in this business for 20 years. For the first decade, I worked in big accounting companies. And then the second decade was working in Noah, majorly engaged in taxation.
The reason I'm here today is I gradually realized that tax is one of the major concerns, and most important parts, particularly in regards of the compliance when enterprises go global. So tax is not an independent BU, but tax is the most important integral part in every BU. And we always advocate client-focused strategy. And tax is on one of the top list, of considerations for clients. As you may know, that tax is unavoidable, but one of the painstaking parts and also very complex. So I think I try to explain this, with the two triangles. We need to have these following considerations when you want to incorporate tax in the product line. The first is the structure. So whether it is individual, or family, or enterprise. And family is an integral part of our clientele, but mostly, neglected.
Individuals are, you know, the identity for IR taxation is one of the major concerns for the going global individuals. There is compliance, policies, regulations, individual can be covered by different jurisdictions. The taxation needs to be submitted individually in some places of the world. There are a lot of regulations concerned in the process. That is frequently asked by our clients. In recent years, laws and regulations are particularly in terms of information exchange is also one of the major concerns. When enterprises go global, then it will involve the cross-border taxation planning. We need to be compliant with the local tax regulations. At the same time, we need to reasonably design their taxation structure to this enterprise. For this enterprise with the controlling stakes, they need to also be compliant with the local regulations.
And as to families, as for individual or enterprise, there are some of the main concerns that could be shared for the family clients as well. So for families, the distinctive feature is the comprehensive, like, family protection or the segregation of family enterprise risk and the intergenerational inheritance plans and some of the special identity planning. So all of the taxation can be found in those planning strategies. And we need to take into consideration of the geopolitical as well. And in China, enterprises or entrepreneurs pay more attention to the policy dynamics or the changes, policy trends. For example, in the adoption of the big data, the taxation risk management could be the significant part. And we need to do the taxation risk management plan ahead of the tax.
We need to get more customers used to the practice of taxation risk checks regularly so that we can regulate or adapt our taxation plan, period by period. In overseas markets, we found it's quite common to be seen. In overseas markets, in every new market that we enter, we have an opening plan. We need to get a better understanding of the local taxation policies as quickly as possible. We need to adapt our own characteristic features of our business to the local taxation policies. We need to single out all of these major considerations. We need to work with the local law firms to facilitate our taxation planning as well. The thing I would like to highlight is, like, for our high net worth clients, when they go global, they don't know much about the local regulatory environment.
So we can be the facilitating role as well. When I just joined EY Accounting firm, we would help our client get to know better about the local policy. I think the role of us facilitating their going global or penetrating a new market is could be very significant. So for those 100-year established enterprise, they will pay close attention to the taxation consideration. So when Chinese companies want to go global to overseas market, this taxation issue is really on the top of the top list of the concerns to them. So apart from the geopolitical consideration, we should pay heed to the associated transaction compliance or the cross-border, you know, the tax treaty considerations. So all of these factors need to be weighed in.
And then in planning our taxation, we need to highlight that when facing the needs of the core clients, we need to clarify that this is not an instant solution. So you need to get a better understanding of your own structure and the local policy. So the process will be implemented step by step, and it takes time. So whether it's family, individual, enterprise, there will be upgraded or updated needs, period by period. So we need to adapt our taxation plan according to the changes of their own needs. And then we could have the special arrangement to their updated needs. So in this panel, I think another highlighted item could be that one of the highlighted issues is taxation that will come up in every topic that we cover.
I think it could be, you know, weaved, very integrated and weaved internally with every investment plan. IB John has been working those big four companies. When we try to seek our partners of the accounting firms, we have expertise to find out the best options. Then the final speaker of this panel, Michael Chen. Michael Chen is a very experienced professional in asset management, wealth management in Noah. This year, Michael Chen joined our team, and he really was, he really is an enabling key part of our team. Please.
I've joined the Open Day for many years now. I used to join the Open Day in the foreign markets. This year, I'm here in Hong Kong. This is kind of a new part for the Open Day here in Hong Kong.
For a lot of us are analysts, right, investors in this room. In this BU, in this independent BU, the incremental growth came from the insurance. And some of the inventory, like, contribution were really from the commission fee or other channels of the income. I have eight policies for myself, five from the overseas market, three is medical insurance, two is like life insurance, and another is life insurance in overseas market. It's like a low-frequency product. The key part for us is to acquire new clients. Maybe it's not appropriate to acquire new client teams through our RM. We have built a team of commission-only agents. In the expansion of Ark, this is quite a key strategy for us. You know, there are around 100,000 professional agents in Hong Kong.
Why did they choose you? Why don't you join those big insurance companies in Hong Kong? Because we don't offer the basic salary. Well, I think I had this all-night discussions with another specialist banker who is over 60 years and is very experienced in this field. And he really pays attention to the Hong Kong identity. And he has the Hong Kong identity, and he wants to like persuade his relatives and friends to come to Hong Kong and get the Hong Kong identity. And then that we can help those network to get the Hong Kong identity, plan the identity, and have the asset management. So he has this philosophy of being beneficial to others, be benevolent. So why I took this example, the reason is that he's a very successful entrepreneur. He's highly educated, and he joined us as an agent.
The core element of ours is to incubate a talent system. He's a very successful entrepreneur already. After his retirement, he still wants to contribute to the society. After retirement, he like would like to build his own network of friends in Hong Kong and also make his own share of contribution. This is really consistent with the ecosystem we need. We need a big talent team. The distinctive feature that we boast is like this morning we just had a conversation with a [Napa baby] and he's also one of our team members of the global agents. We are very capable of singling out those high-quality agents. I think this platform that we built is really helpful to help those emerging talents or retired talents to launch their second degree second career.
For some, like, they need to get the training to understand the underlying logics of the investment. But these are high-quality talents. They are swift learners. They are quick learners. Our team is getting bigger and bigger over the past year. This team member can really learn a lot from the activities that we organized. They can have a better understanding of insurance and also investment as well. We also expect that the team members, they can build their own brands. Like, we have this track record in Singapore and USA. Some of the agents, they are KOLs online. They can build their own branding. For the first batch of agents, 80% of the contracted brokers are high-quality professional talents in Hong Kong. We're going to build this network in Singapore and other overseas markets as well.
And the entrepreneur that I mentioned, over 60 years old, he's more senior, but the average age of our talent is 35 years. And they all have well-educated, holding a master's degree or higher. And they really pay attention to the overall capabilities and the, you know, what the platform can offer to them. And they would like to, like, they're, they're reluctant to be insurance agents. They want to use this platform to launch their second career. Of course, this is kind of a high-profile process that I made on this deck. And we recruited them. We have them trained, and then they can build their own business and build their own branding in the same time. And we would like to do expansion as well. Glory is kind of a provider of one-stop and comprehensive solutions. We can provide the solution offerings.
You know, what we want to offer is a platform to our brokers, but also partner networks that we can have. We are serving financial institutions, professional institutions, like where John Wayne has been working. Also, those who are the other partners or in the peer industry, like the consulting firm. For the licensed financial institutions, we have been working with many of them. The trusts we're working with are actually recommended by the IBAN. After getting IPO, the IBAN will help, will recommend us to do the trust fund. The financial institution would like to expand their business to Singapore, and we can seize this opportunity. Second, the big accounting firm and the law firms can recommend the very good leads of clients.
I've been working with someone who has been working in the Big Four accounting firm before, and one of his previous managers and clients would like to do the trust. Thus, the consulting team, they are providing the advisory work for the entrepreneurs on the heritage and passing down the family wealth. They can get us in if needed. You know, we benchmark ourselves to UBS and other top-notch investors. But for many others, they actually draw the reference from us. We want to empower ourselves, enrich ourselves, and upgrade our operation management and marketing on the ecosystem, which are quite inspirational for others. You know, one of the private bankers that I've been speaking with this morning, they haven't done any trust business at all, but their client has the demand of going to the offshore market. You know, the information system is also interesting.
You know, you are working in the investment banking sectors, and the information across the legal service financial institutions should be integrated. So the information could be flowed freely and get connected here. We are working with a law firm that's researching on the package that includes the trust, insurance, and donation. So, you know, among the insurance is the major driver. The major driver should be driven by the accumulation of new customers and how to expand the traffic flow and footfalls. Probably, we will recruit a huge amount of the dealers and agents with no guaranteed salary as the bottom salary, but give them the full incentives. And that is how our business would like to develop. Glory set it up more channels to connect with the outside world to also reply to the demand of the insurance and the heritage demand.
Quantai is also the editor-in-chief of one of the magazines and reports of our company. I think in your upcoming report on the Chinese economy and business insight, are you going to connect your report with the wealth heritage? I think it's pretty certain that the huge uncertainty has been settled down. That is the U.S. election. Donald Trump is getting re-elected. I'd rather not speak about the overall economy because I know you know much better than me. But for the global strategy, I think we are helping the customer based on their demand. That's why I think the speakers in this roundtable and the plenaries for the previous roundtables are focusing both at the emerging topics, but also as well as the risk controls. There are two kinds of the security of the interest of our customers. The first is the account security.
Second is the information security. To go abroad, every client, they need to set up a bank account at the foreign countries. So, for example, for some securities brokers, they require the individuals to have sufficient income from the overseas place and the bank account before getting on board on their customer. They also require the consistency, the security, and the certainty. The life insurance and the Singapore's privilege are both reflecting those three points. So, in this June, we reflected this pyramid that has been referred to by the previous speech of the Ms. Wang, our CEO. Most of the customers, they said an insufficient allocation of the safety buffer there. And the U.S. customers said 24% of their assets, whereas Chinese customers said it's much less than that. So, what is the essential demand of our customer?
In the first three to five years, our clients, they are very hesitant. They are very panicked. They don't know what to move forward. You know, like me, I've been just in Hong Kong for a couple, for one year. And after this year, I settled down. I just renewed my rental contract. So, it takes some time to build up this kind of the clientele. Glory has been developing for a considerable amount of the time, though it's rather short, just two years. We found a lot of the area to improve. And you can find our improvement in the management structure, the empowerment of the technology, and also the product portfolio. We set much more ambitious targets for 2025, which requires continuous efforts from our team. Like Ms. Wang mentioned, that's committed to be a startup company and carry out the entrepreneurship.
Last but not least, let me show us the dashboard, which is also available at the 33rd floor at the entrance of the company. This dashboard is also encouraging you and reminding us, reminding us the quality, the client, and our target. Thank you very much. Thank you very much for your insight of the roundtable. Now, let's move to the Q&A session. Ms. Gao, would you like to stay on the stage and let's invite Wang Jingbo and the CEO, Mr. Yin Zhe, and Hong Kong CEO, Mr. Pan Qing, and also Melo Xi, who are in charge of the Hong Kong business. I believe all of my colleagues, they are all very good speakers. Thanks very much for the marvelous speech and the panel discussions. This is the much-awaited Q&A session.
I've collected some questions from the online webcast, and Arlene has collected some questions from the on-site attendance. Shall we start with Arlene's question? I'm sorry, you know, though I passed my notes, but I don't really want to be one, I don't want to be sharp through raising up questions. Don't misunderstand me. I just want to get more information through Q&A. In your presentation, you mentioned about Munger, Mr. Munger, who has been a veteran and a seasoned investor because this industry requires the loyalty of the customer base. Like Ms. Munger mentioned, that Noah is as conservative as what Munger desires to. If we give the opportunity of investment to Munger, I think there might be two concerns for Munger.
One is the ROE and ROE in the recent two years of Noah compared with other wealth management companies of the world was still rather low. You know, I understand that the company could issue a lot of the currency and they are deep pocketed. That's why you have the 50% of the dividend or asset pay, 50% of the shareholder returns and the payout ratio. In this way, that will drop down the ROE further because you are burning the money, though you are deep pocketed. So, what is your target ROE? And what is your outlook on the dividend and the buyback of shares? And how could you relate those questions together? The second question or second concern would be the growth potential. The revenue of the company started from 2019 has been really stagnant.
The core client base hasn't grown much from 2022. If I bring those two questions to Mr. Munger, I guess probably those two questions would be asked by Mr. Munger. I think the Chinese issue, there is the immigration motivation in China, which has been reflected by some of the clients. But I think your competitive advantage is still in mainland China. I think the management team had made very good decisions before, like the establishment of Gopher, and keep the cash flow and capital flow free, never do cash flow, and the education for the customers on the PE, VC strategies. But when you come to a new arena competing with the international customers and companies, do you still keep this kind of the competitive edge? All the management team are relocated to Hong Kong.
If I am based in Hong Kong as a client, but I don't have any plan to go abroad, I might feel frustrated because my RM and the whole management team are both relocated to the overseas places. So, if something happens and everything turns to be positive in the mainland China, the capital in the mainland China started to show the brighter future, would you think that China would come back to the mainland by that time? You might spend a big time in the overseas market, and how would you like to deal with that? And thanks very much for relating those questions with what, with the thoughts of Mr. Munger.
I think ROE should be one of the parameters of the performance for any listed companies, you know, but it should not be the only parameters because Berkshire has had much more cash flows than us. There is the principle that is to save the money as much as we can and to ensure the ratio, the margin, and also to get the larger leverage if we can. In this way, we can make larger revenue with more profit. We won't have any loans to bear interest, but the next step for us is to make larger revenue and to distribute more profits of development and profits. You know, we could optimize our expenditure, but in the short term, expanding to the overseas market is expensive. It's not cheap at all.
Every headcount, if we relocate to Hong Kong, we will pay two times higher to Singapore, three times higher. But we don't want to be stingy in this part in recruiting talents because we need those talents. In recent years, we've done a lot of the reductions of the headcount, like in the middle and the back office, but we secure sufficient headcount at the front office. For distribution of the profit, starting from 2025, we have the 20% stable dividend payout and the repurchase and buyback to secure the ROE in the healthy condition. But there is the precondition that is strategically the development is resourceful for us and the balance sheet is robust enough to support the development. As a wealth manager, we are not backed by the government.
We need a strong, clean, resilient balance sheet to give a comfort of the clients they can then trust our company and to work with us in the long term. Yes, I agree. Well, I've been working in the financial industry for over 30 years, and I've been like working in this company for 20 years. So, the wealth management industry, we are very close to capital. As long as you keep consistent with your principle, then you are in a good position to have return, have good return, and earn money. The reason we keep standing, I think, part of the reason is that other competitors, they just exited the game and they failed in the game. We could keep standing. Part of the reason is we are conservative. We are very prudent.
I think we are a long-term thinker, and we don't like to aim for the short-term goals. As you said, the stagnation of the revenue in 2019. I mean, the stagnation of the growth rates. I also asked myself the same question. Without the fraud happening in 2019, we would, like, fail or be dead because we have learned lessons from this fraud in 2019. Maybe like in 2019, it's kind of a peak year for a lot of other players. I think that is the kind of a peak level. It's more than stagnation, and that is kind of a bottom, and we have bottomed out. We are like recovering and climbing step by step. We were too optimistic at that time.
I think almost of the Chinese think too highly of them, and they neglected the bubble at that time. So, in hindsight, we have zero concern about the potential return of the wealth assets we have, as long as we are holding tightly to our principle of risk management and asset management. We are very confident and have faith in the solid and robust return on our asset. The ROE is very healthy, and even beyond my expectation. Please forgive me. I think it's beyond my expectation. As you, as you said, it's kind of a cash, cash cow. It's, it's very robust. I don't think we are in a position to exit the Chinese market. It's just we emphasize going global. We want to expand our coverage.
We want to, like, invest in China, and we have acquired a building in China, and we have established our client center, operation center in China. A lot of you have visited our, you know, offices and headquarters in Shanghai, but that doesn't mean that we are moving. We are based in China, and we have seen this robust growth of the Chinese business. We have enough faith, and we don't think that we're going to tumble, even if the Chinese market rockets. In the primary market in China, we have invested around CNY 6 billion. As long as we are in a position qualified to do acquisition and do investment, we're in a healthy position.
I saw a lot of the emails, like some companies went public, and some companies are ready to go public, and some of the potential M&A projects. So, I received a lot of these emails, and that really means that we have good investment projects in hand, and we have kind of CNY 50 billion in our asset pool. So, the majority of our projects are very profitable. One project has a return around 70%. So, Noah is never investor-oriented, sorry, but we are client-oriented. You know, if our clients really become poor, then we are dead. As long as our clients have assets in hand, then we have the foundation to keep standing and flourish.
I will, of course, safeguard the interests of our shareholders, and we will pay the dividend and do repurchase to, you know, protect the interests of our shareholders. I was kind of persuaded by that. As long as the, like, stock price is low enough, then we could do the repurchase. I really like Mr. Munger and Buffett, and we, so, the sugar there can be deadly in a long period of time, but we still want to pay out to give the sweets to our investors. Like, we keep paying the dividends to our investors as our gesture of return. Mr. Ying, while we haven't covered much about the Chinese market yet. In China, we are not abandoning, we're not never abandoning the Chinese market. It's never our intention. It's always there.
Because maybe, like our Olive team spoke English, maybe we give an impression that we're focusing on the international market. No, we are just keeping abreast of the dynamics of the international environment, like, and Zhengxin is focused on, like, mutual funds and the secondary market, and we can try out all of the strategies to diversify the product portfolio, investment portfolio for our clients. You kow, RMB is a part, is one tool or one part of our strategies. Once our clients understand that they can have more options in the international market, then that's the opportunity for us to provide relative service. And Glory is our office, our sector of the insurance part, including global lifestyle and elderly care and insurance and trust. And it's kind of a rigid demand. And we have our asset management team in China, primarily in the primary market.
Our investment team now has become the after-investment team, paying heed to our inventory assets performance. Like in China, we have around CNY 90 billion. In RMB, in PE VC, it's around CNY 90 billion. The DPI in total is around 0.5%. So, half of those has been paid back to our clients. We have a large, solid foundation of the domestic team. As Olive team mentioned, like, how do we select best-of-class options from five dimensions? I think we are the leading player in the fundraising fund. Tech-wise, it's quite universal across different players. But plus, we have a global insight. We have a global outlook. We can have a clear insight and understanding of the international market right now. Helen from UBS, the financial analyst from UBS.
Thank you. Like Mr. Wang mentioned, at the bottom price, Noah will repurchase the stock, but how do you define the bottom price? This is my first question. For the first nine months this year, we have outstanding performance for the overseas business, but moving forward, if we're going to prioritize or highlight the overseas market, do you think you have any legacy of experience that could be replicated and sustained in those markets? Do you foresee any challenges moving forward? Thank you for your three questions. The first one is, where's the bottom price? Well, for us, we are in the bottom right now. It's not fairly valued. It's still not to the level of equity or other multiples. It's still in a bottom level. How do we, like, fairly value?
I think if we see the exclusion of ADR influence, I think that is when we can, like, decide this bottom out level. The second question is, do you have any legacy or track record experience that could be replicated to the overseas market? The third question is, do you foresee any challenges?
About the challenges, I would like to go back to the year in 2002, 2003, when I just founded this company. When I founded this company, I was 33, and now I'm 53. I was very aggressive and ambitious. And maybe today I'm not so energized as previous years, and I will keep telling myself I need to keep exercising, like, I will get up at 6:00 A.M. or 7:00 A.M., and I'll do exercise, workout.
My husband, like, always said to me, "Well, you're so energized, and you are very disciplined." I think the thing for me is that I need to keep healthy to sustain my work. So, I believe I'm even, like, healthier or in a better shape or, condition than many, younger generation are from. Anyway, we need to work hard, and I think my condition is pretty good. I still have dreams, and I still have ambitions. And, our aim is to build a century-old enterprise. Now we're only 20 years old. So, we need to still take a longer view, longer-term view, and aim for longer-term view. And this is a really good challenge to keep devoted and keep committed, committed. And, about the track record experience, well, I'm also a client of UBS.
I'm a client of almost all of the private banks because in that way, I can learn a lot from them. Like, I want to learn how they market, how they introduce their products, how do they, like, market their structured products, and what elements are really beneficial or could be replicated in my company. So, those experience are, like, what are the experience that could be replicable to go global? What do you mean? What do you mean? Like, successful experience. For example, like, the inheritance that we have built or legacy that we have built in China. Sorry, I'm kind of, it's almost dinner time. You know, I have a very healthy timetable. I just mentioned that I worked out in a gym, a Singapore brand. It's a 24-hour gym, and the service is good.
Some of the competitors couldn't provide the 24/7 service. Some of the private banks, like, the clients, you know, have their own limited slots of availability to talk with you. What we can do is to provide full availability of our staff and our talents to our clients. We need to be, like, 100% committed to our clients. But maybe this model is not sustainable. It may not adapt to the local culture, maybe in, like, Hong Kong, Singapore, USA, like during the Christmas festival or other, like, weekends. Then they don't want to work for you. They don't want to work in the office and serve the clients anymore. But it's kind of a different culture in China. Like, we have different online systems. We have Taobao, like JD.com in China.
In Singapore, I can tell them it takes you, like, two months to get your products delivered in Singapore. You need to slow down your pace to become a local citizen with a local mindset because you are used to the quick delivery in China, but you're not so used to the delivery time in Singapore. You need to be resilient and patient to get adapted to the local culture as well. Of course, I love UBS. I think among all the private banks, UBS is really prominent in many regards. You're one of the top players. A lot of my capital are, you know, in UBS, not even in Noah. I would try to learn the best practices from them.
I always tell them that, you can compete with my wealth management account, both in Hong Kong, Singapore, and many other places. I think the Singapore team is building up. I have one asset manager in Hong Kong, but he's performing quite good, but not yet the best. I think in Noah, there will be very challenging to be able to serve, Ms. Wong because some of them have been disqualified because of their so-so performance. Any other questions? I see one hand up here at the back.
[Interested Asia]. So, I want to follow up with more questions on, you know, Noah's thoughts on, GP relationship for next year. You guys have invested in some of the top performing managers in China and U.S. and globally. So, what's the thought for next year? Are you guys planning to keep the current numbers of GP relationships, or you guys are thinking to expand more? And, you know, like, what's the factors of driving this decision? Yeah, like, or, and if it's possible to share, you know, it would be great if you guys can share more on, like, what are the focus next year when it comes to the PE, VC side. Yeah.
[Foreign language] May I reply you in Mandarin, you know, we are really closely connected with GP. Why? Why is the case? First of all, GP, you know, when we were working mainly in the mainland China, we were the largest investment. We were the largest fund of funds in terms of the volume, and we issued the largest amount of PE VC in the mainland China as well. Now we shifted to our major market, you know, fund of funds.
We don't do much fund of the fund, but we still maintain really positive connections with GPs. At one summit and one event like today, one institutional investor shared with me a picture and let me know that I found four, five people participated in this event who was previously working in Gopher. That's why we trained. That's a definitely shows that we trained the talent for this industry and shows our connection with GP. Why is it like that? It is related to our comprehensive service and the selection process. Another point I'd like to make that both in the mainland and the offshore market, PE VC institutes expect more proportion and more penetration to the high-net-worth individuals. They share this kind of the thoughts. And we know the language. We have the know-how of the high-net-worth market.
You know, Andy has been speaking a lot about it, and Andy has been supported by a team, by a group of the people that reflects the deep knowledge of us. We are working closely with GP because GP thinks that we know them well. We know how the GP VC are working. Every year, by certain times, they will issue new fund, and they want some partner fund of the fund who can understand them well and work with them. That's why we can work closely with them, and we have the loyalty with the GPs. Second, we have our selection process. We are not just investing all kinds of the fund. No, it's not. If the fund is something that we cannot understand, we will not do that. Like Andy has mentioned that even Blackstone is a very big name.
We just select the best strategy under the Blackstone at the best time. So, we don't just invest them because of their name. We connect them with GP well, but we select with scrutiny. And then we can perform well as the role of gatekeeper for our customers. So, we only serve and offer something to our customer after screening on behalf of the subcustomer. Let me share with you one case or one example, you know, in the roadshow at our first listing campaign in 2010 in New York Stock Exchange. You know, at that time, we were selected by the fund manager, and in the end, we asked the fund manager three questions. First, what is your principle of investment? Second, under this principle of investment, how much would you like to commit for if I want to give the score from 1 - 0?
What do you, what is your understanding about wealth? The most of the answer were that those questions were not easy to answer. When it comes, because it's related to the higher level of the philosophy of investment, being able to ask this kind of the question is showing our multidimensional connections with the GP. We have different pipelines, different good pipelines, and sufficient reservations in the pipeline. We have the ahead of the time planning. I'd like to add a bit more. I'm not sure if I understand your question. Correct me if I'm wrong. I think we are related to GP and working with GP. You know, more importantly, we, our mutual corporation could be beneficial with each other. First, as the LP for them, I will pay there. Second, they will offer the good returns for our clients, so it's highly market-driven.
Every GP will be aged sooner or later when the founder retired or there are some spin-offs, the GP started to decay, and so we need to cover as many GPs as possible, and we need to monitor the market trends, and some of them might not be suitable for the time, so we will get rid of them when it's needed. I think the GP industry is facing lots of challenges in both the U.S. and China. The secondary markets are really booming. As long as you buy something related to the index, it is definitely good. That's why you will find a lot of withdrawal of the GPs in both markets, China and the United States. There are a lot of single GPs. They are rather small, but investing at the initial stage, it takes a longer time of withdrawing.
We will help them to select what kind of the customer they are willing to invest for them. You know, United States, they don't have the IPO window, time window. I think if you give the recommendation to the customer and the investment to the NASDAQ indexed products will be the always true or the go-to option. So, what will be the future? Or I think there is one point I want to mention. You know, we will not fall in love with any single sector forever. You know, we were associated with the real estate in the sector and the industry. At the peak time, we have the very good returns. But when it comes to the wrong timing, and I think it is something not suitable for us, we will simply say no to them and get rid of them.
Though we have the strong emotional ground in a strong ground of cooperation, I will forget about it. I will just focus on the benefits and the returns. I will care about the cultivation of the relationships with the customer instead of the GP. For example, my good friends, Sun Hongbin and Evergrande, Xu Jiayin. You know, even we come across with them here and there from time to time, but I don't really have the kind of the genuine emotional connection with them. You know, it is everything is kind of based on the ground of the mutual benefits. You know, to do, to be, you know, we are always looking for something new and for the future. I think the best opportunity is always the future. So, I always put the benefits above the relations. Thanks very much for this opportunity. I'm Liu.
I'm a fund from Hong Kong, based in Hong Kong. Many years ago, it has been mentioned that risk control is the core of the financial industry. It has been witnessed that you attached great importance on this regard. And I want to ask, how do you implement this kind of awareness to the frontline staff, including RMs? Very good question. I'm not sure whether it is absolutely true or not. First, our products are concentrated in certain areas. We have been working in both the mainland and the overseas markets. Even though we have the regular meeting on the risk control, on every afternoon of Monday, we don't authorize some lower-level management on looking at the financial issue by themselves.
Probably I don't have much knowledge on the ETF and the risk and the EB-5 personally, but I still want to, want to bring those topics to our risk control meetings because we don't like to neglect any details, any tiny things. You know, compliance and risk control has been attached to a lot of the importance. So, every detail issues will not be, will not be streamlined to the lower level of the management. It always, it should always bring to the board of the risk control meeting. For the foreign banks, when they are doing the allocation of assets, they are always submissive to the decision, to the preference of the customers. But Noah is different. You know, we believe most of the customers, they don't know as much as we are in terms of the financial products.
As a result, at a certain time when we think something is good, we influence the decision of the customer and the risk and the asset managers. If we made a mistake, that is very risky. I'm afraid of that, but we respect our own knowledge because the financial products are really risky. So, it won't be a supermarket model like the foreign banks they are doing. You know, they are just simply leave all the decisions to the customer themselves. No, this is not how we do the things. You know, we will not simply follow the rest of the people, no, the customer. We will let them listen to us. Like Elon Musk said, that 95% of the industry are not operated by professionals. You know, I shared my professional ideas to Mr.
Pan Qing, and then we have, you know, then I have the, you know, and every of the management team are learning languages on Duolingo, and we experienced the products and learn language and then invest the shares of the Duolingo. You know, all of those things that we have invested, we have the first and personal experience and associations with those products. Peter from JP Morgan, it's your turn. Thank you very much. Thanks for the chance of raising up this question. Peter from JP Morgan. The first question is about the insurance for Mr. Gao. For Gao, I want to ask about the competitive landscape of insurance. What are the changes and how do you like to deal with those changes? Second, it's about the overseas market expansion. You set it up, the RM teams in both Hong Kong and Singapore.
As you mentioned earlier, those RM teams are mainly serving the customers' demands transferred from the Mainland China. Based on your observation, what will be the size of this kind of the transferred demand? When this kind of the demand will be used up, by what time you will be forced to figure out the demand locally in those places? Third, I think, as you mentioned earlier, most of the customers are actually the business owners, entrepreneurs. They made their own business successful. You have been serving them in the past one or two decades and with very sound records. So, you also mentioned that you want to serve well for the second generation of those business owners and make them embrace the service of Noah. So, in the mid and long term, are you going to consider to expand and cover this kind of the client base?
What is your strategy and source in this regard? About the insurance. In Hong Kong, it's a very competitive market. It's most competitive here. And our insurance strategies include that we don't work with exclusively selected insurance companies. Like we have over 10 partners of insurance companies in Hong Kong and other networks in Singapore and the USA. And about the product customized between us, that is also the key part. So, this product is customized to Noah, and it's only available on Noah's platform. And another thing is our connection with a trust, for example, the Bermuda insurance and Trust Plus Insurance package could be sold to Japanese markets and some particular individuals. So, based on special needs, we're going to customize our product offerings. And also, we see that a lot of the potential clients are not just individuals. They also represent the enterprises.
Like, for example, medical insurance and the like senior dividend insurance and like overseas medical insurance. And so, based on connection with the mainland China, we have seen that the second generation or younger generation of the high net worth families are going global, but their parents are based in China. So, we could provide this global insurance options, but the dividends or the benefits could be delivered in China. And also, we have seen some of the regulatory policies released, covering like limits of the benefits and also the premium recognition that would be capped around 50%. I think it's a good, good environment that could be built for Noah because Noah is long-term, has the long-term mindset. Like, they, we have a very high retention rate, around 97 or 98% of the retention rate in the insurance, which is the highest level.
We have built this loyalty with our clients because we are not a sole insurance product offer provider. We're more of a comprehensive solution package provider. So, this serves with our long-term view. I just, you know, ate something. I kind of feel my energy backed up. I think we have run into challenges of insurance today. The key part is competitive. Like, it's about the non-standard policy. So, a lot of the graduates in Hong Kong, they are Chinese residents, but it's really hard for them to find a job. So, they had no choice but to become an agent of insurance in Hong Kong. So, it's like, there's a lot of high commission incentive from other insurance companies trying to attract those high-level talents, but that's not what we do.
Even with the qualification, we don't do cash pooling because it's a bad habit because, and we found some of the bad habits inherited or migrated from mainland China to Hong Kong. And a lot of this, really, failing culture in, of Chinese cheating other Chinese. So, well, even as an individual, it takes 10 years of me to fulfill the premiums of this policy for as long as 10 years. And even I couldn't guarantee that this staff can work sustainably for 10 years in my company. How could we provide a sustainable service to our clients? So, I think as a long-term committed brand, we need to stay close to our goal and principle. So, we need to provide the safety net.
We cannot just provide this high commission incentive, by, you know, just assigning our this high responsibility work to those fresh graduates. We don't do that. This policy scale that we have is not as large as the overseas investment per capita. Well, we can find a sticking point. We need to train our staff. If the staff or the brokers couldn't meet our principles, like you couldn't tell the story of our long-term view to our clients, then you are not qualified because we need to tell our clients where our long-term view and the challenges exist and we are in the process of tackling those challenges. Like, of course, differentiation is one part of the puzzle. It's just we don't want to be sales-oriented. We want to be client-oriented with a long-term view.
The second question is about how do we serve better the domestic clients? You mean the how, how do we complete the transfer of domestic clients through RM? Well, we are getting started to setting up branches in overseas markets, and we still see the supply-demand gap for the high net worth Mandarin-speaking individuals' overseas market, and that is based on investigations in Canada, USA, Europe, and Singapore, etc. So we have a large pool of Mandarin-speaking individuals, but they have their needs unmet. This is a blue ocean, as we mentioned, but while this is a promising market, everyone wants to go to get their share of pie, but it requires your capability, preparation. And what we can do is to start deploying in those cities, in those markets. Of course, we have our own internal plan.
By 2025, we have a goal of like, overseas coverage of our BP. We have already embarked on this journey. For the first part, as you mentioned, we need to be capable enough to, you know, take on the Chinese individuals or Chinese clients, those transferred clients. Like we had just held the annual conference of the Black Card clients. Of course, the participants or attendance is not up to our expectations, but we're going to have another annual conference in China. For the annual conferences, we didn't even have like enough chairs or enough tables for group discussions. We are on this way to meet their demands, and we only have 146 service centers. That is not enough. We're trying to explore how do we effectively provide a service. Of course, it takes some time.
It takes step-by-step incremental accumulation. We are like, well, in Hong Kong and domestic markets, we are hiring the local professionals. In addition, we are exploring how we develop an effective long-term strategy and plan in cultivating these local professionals from scratch because they should become and grow to be your core contributor or core staff in the future based on the trainings that you give them. Like Gu Yijun and other staff, we have deployed them in those overseas markets to build those local teams from scratch. So, over time, we're going to see this turning point, and we will report the updates quarterly, of course.
Thank you. I think I was here, I was there with you 10 years ago in Shanghai, and I'm happy to reconnect with you after 10 years.
Noah Wealth Management has gone through major changes. I have a couple of questions. I have witnessed this strong talent pool. While in the U.S. and overseas market, why do they choose you? And why do you choose them? Can you explain a little bit? Do you have any incentives, or do you have any appraisal system to single out simply the best of class talent? Yeah, I'll let you know more about that. The second question. Why did you invest in property in Shanghai? Because the current price that you paid, based on the current price, will you repeat the practice in Shanghai in the future?
The third question is, in the next three years, you have an expansion plan and capital expansion in the overseas market by around a margin, by a factor of three, and the sales team will expand by a factor of two or three too. Do you think that what are the, what are the drivers for that potential, and are you ready? How do you, like, build your readiness for the future? You just mentioned you don't touch the non-standard fixed income, and as far as I know, a lot of the other players, they are heavily involved in the non-standard credit. So, how do you control the risk? As far as I know, in China, mainland China, the portfolio is limited, but of course, it's much a bigger market of the product portfolio in the overseas market.
In that regard, how do you control the risk? And then, about the house view, who will decide, who will make the decision, who is the core decision maker? How do you balance out the house view? Is it sustainable enough, or is it correct enough? I think I need you to repeat the question for me. Why do we buy property in Shanghai? Because it's in our favor. It's quite promising. For the last 20 years, we always rent our, you know, premises, but I think, in the latest year, we think we can't continue just expanding without our premises. And as we mentioned, we exited the residential real estate, based on our in-depth knowledge, and we found this bottom price at that moment, around CNY 20,000 per square meter.
We thought that was a good price, so we bought it. But then, in hindsight, maybe that is still not the bottom price. But while today we are very happy with the property. Well, it's in a best location ever. It's close to any of the transportation hubs. And Shanghai is like our new headquarters designed by Norman Foster, same designer with Apple's headquarters. So, we really love the office building. Of course, it's not kind of a bottom price. The price still went down, but we have bought it. You got accepted. Well, the performance is still satisfactory, you know, in Hongqiao. It's a huge building. And our occupancy rate is as high as 95%.
It's really good, and it could save us some tax expenses, and we can set up a lot of the service centers in our premises, and it's a good location for us to get connected physically with our customers. It's an M plus value-added role.
Your first question was really about the issue that you find the new recruitment; they have international backgrounds, they are very excellent. Why do you think it is appealing for you? It is appealing, you are appealing to them. They are over 35, you know; it is rather difficult for this age range to find a new job. That offers the basis to be selective. But it's also a part of the destiny.
Like Jeff Li, we have known each other for quite a long time, and Jeff at that time, who cannot find an ideal job, and I'm really in need of a position, so we made it. So, we don't have a one-size-fits-all standard, you know, but, you know, it's kind of the joke, you know, don't let the joke to have the access to that part of my statement. So, you know, it was the joke, you know. You know, human resources, that is the area we have invested a lot. We want to recruit the seasoned professional who are, who with the very, who balance the visions, probably not from the ICOEs, but not completely international background, and he knows the different, the person knows different markets.
Yesterday, I interviewed a Caucasian candidate, and Andy said that if you work in Noah Wealth, don't you look for the best pay. If you are still ambitious on your career, I think that probably don't let that person hear this. It's a joke. Sorry, it's a joke, you know. We have a very clear human resources policy. First, we have 23-class layers of management. We have M track and P track for different kinds of talents. We have another strategy that is one pay is designed for one position. So, the pay is associated with the different level of the position, and any movement and adjustment of the pay should be correlated to the level and the weight of the position, and the final year bonus should be permitted by the remuneration committee.
It is 25% of the total salary based on the performance. We have the share incentives, though, you know, the share price is rather low after 2019, the COVID-19, and this kind of the market situation. For those who remain with us, they should be the die-hard fighters with our company, and we have the brotherhood and the long-term commitment with each other in the company. So, I hope at the bottom price of the, at the bottom share price, it is good for them. They will, they will hold their shares, and they won't sell their shares. We will continue to give the share as the incentive, and they will carry on to work for us. You know, the management holds a large portion of the shares. If we carry on like this, we will start to build a time-honored or century-honored company.
Let me share with you my experience. I joined in this company at the age of 40. Previously, I was working in the auditing industry. I was an auditor. I thought the auditing job would be replaced by AI, and I was quite conservative before joining in the financial industry. There were a couple of points that supported my decision to join in Noah Wealth. First of all, Noah Wealth is a really unique Chinese concept share company. I feel of the, you know, company will be good. It's like Noah Wealth, 100% of the business are included in the balance sheet, and the founder does not have any extra businesses. You know, that's why I'm very committed to this company, and this is the only way to make the company sustainable. Because of that, I introduced Andy to get on board as well.
And while in the end, probably you are not aware of this, I was working in Deloitte in the United States. I believe in the future, we can gradually build up the partnership, and we got the, respect, we got the recognition, and, probably you might get the best pay at the moment, but when we have some long-term incentives of shares, I think the financial return is also good. It is, it is important for us. You know, I've been working in Noah Wealth for seven years. Why? I still, feel delighted to do the annual events for the core clients and building up our branding campaigns. When I contact with our customers, I found it is very lucky for me to join in this kind of the client base. They have various experiences, different wisdom.
You know, we have a thing that, at the front line, you will definitely find the unique wisdom of human beings. Working at the front line will get you the opportunity to witness those kind of the wisdom and the partner, this kind of the partnership, will be something really promising. 20 years for the financial industry is rather short. If in the long term, we are just at the beginning. If we can make it and get there, what we are doing now will be hugely beneficial to us. You know, so I think I can ask more people, even my next generation to join in. Now it is $8.7 billion. The gross target is over $20 billion revenue, with the driver mainly from the sales. Do you think we are ready to make it?
Another question associated with that is the private credit, whether they are non-standard and how to control the risk of them.
Probably I'm running out of my energy and the blood sugar to keep this event running. You know, we are not in the shortage of the customers. We have 17,000 customers who have the transaction with us, but we have a very limited number of the managers. So, every RM is serving a big number of the customers. So, just now you mentioned about the transfer demand. You know, we got the license in the overseas market for our domestic RMs. They don't have the license, so they can only refer to the RM at the foreign countries. For the RM in our company, they don't need to find out of their customer at this stage.
You know, therefore, I think for the average referral, we give the RM kind of the cash incentives, like 50% of the commission, stuff like that, to make them more incentivized, incentivized to make it. You know, I have a requirement that make every of your customers know the name of your RM, and if you just make this small step possible, it is a big success because at this stage, we have to admit that the customers, they don't have very good understanding about our company. You know, he shared with me that he can only contact the RM based in Nanjing, not in Singapore. You know, I let them know that we have the RM in Singapore, actually, but the customer, this VIP customer, they don't know that.
If we make the best out of the 17,200 RM customers, we have the same size of the customers based in the U.S., in Hong Kong, and in Japan. If we can make the best out of this base, I think $20 or $30 as the revenue will not be a problem for us. You know, I never studied how deep the pockets are for our customers in the past 40 decades. In the past four decades, the reform and opening up made a lot of the fortunes for our customers. They have really deep pockets that can be deeper than ever you can imagine. So, I never studied on this. I just offer the best and the most suitable products for them, and when it comes, they will definitely buy from us. Private credit is different from the non-standard products in the mainland.
Regarding in addition to the capital pool and the underlying, let me take this question. Though my energy level is rather low, we are proactive in managing the product. I think we are investors in nature. In the overseas market, in addition to those mature products and strategies, we need to be selective for other products and strategies. We are looking for the big names, the big managers. If the Blackstone bankrupts because we follow the big names, and I can really commit my mistakes, but I think the possibility is really low. Like Andy said, that we are not yet the best of the best. That's why we have a great number of the people researching on the equities, the products.
You know, we purchase different databases, and we want to get the assets of different insights and to know the words behind the information behind the data. In the mainland, we have over 40 researchers. They are researching the funds and the micro, the macro economy. They are our access of information and our eyes to look at the unique, and subtle messages. And we ask them to come up with us their ideas, and we consolidate our, views. Three to four years ago, we started to concentrate on Japan. There are different sectors, there are different industries, and we get the comprehensive understanding on the share price trends of different shares. You know, at the beginning of the pandemic, we started to pay attention to [YPP], because we found this kind of the reference and inspiration from our study of Japan, and we started to sort.
Pinduoduo would be promising way ahead of the time. You know, those researchers were graduated from the Mathematics and Physics Department of the PKU or Tsinghua. So, they are under the supervision of [Lao Fas], who are researching on the market and the data. With this strong research capacity, they can offer us a lot of the insight. I think when there is the opportunity, I can introduce you guys with this, super guide. You know, we have our unique understanding of the GP. We've been doing fund and fund for rather long. For any fund who'd like to join with us, they have to let us know their track record. That's why we got the unique access of the data for those who did a good or bad job on the investment and their valuation.
We have a different set of data that tells a different story and offers the unique insight for us. My energy and blood sugar is running to the bottom low, so I probably cannot carry on further. I think it's rather time to wrap up the event, and we can move outside of the venue and enjoy the cocktail reception. Thanks very much to the management team.
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