The year of the dragon in 2012 will be an exciting and fiery one ahead. Occupying the fifth position in the Chinese Zodiac, the dragon symbolizes dominance and ambition, and is considered the mightiest of the signs. The year of the dragon - especially the water dragon in 2012 - is meant to bring about many opportunities for good fortune. In Chinese element theory, water produces wood, which signifies growth and is the dragon’s natural element.

What does the year of the dragon bring for investors and how can private banks add further value to their clients in the year ahead? 2011 was a year filled with dramatic, market-moving developments and volatility is expected to remain through 2012, as economic conditions remain difficult. It is easy to become obsessed with the latest headlines but investors would do well to remain focused on their long term objectives. Successful investing requires perspective, discipline and stability. I continue to recommend a strategic asset allocation for investors, with the allocation reflecting the markets structure, as well as investors’ particular financial situation, their financial personality, and their long-term expectation regarding investment performance and risk.

The role that private banks play continues to evolve. Besides looking for wealth management advice, clients in Greater China are also increasingly demanding private-investment banking services.

We have seen demand for these services quadrupling over the last year, as the high net worth and ultra high net worth clients in the region become increasingly sophisticated in their investment needs. When we speak of private investment banking, we refer to the entire spectrum of corporate financing capabilities as well as trading and structuring solutions. Many clients are looking for more efficient ways of trading. There has been an increase in client interest in sophisticated trading instruments such as interest rate swaps, cross currency swaps, non-deliverable swaps for clients who wish to hedge against currency and interest rate risk; swaptions for hedging against rate exposure; as well as commodity-linked swaps, to name a few.

High net worth and ultra high net worth clients are also looking for a truly comprehensive proposition, from investment banking capabilities to solutions in credit, derivatives, foreign exchange and trust structuring. Private banks that offer synergies with their investment banking arms can bring their clients much value. At the same time, clients also prize an open architecture platform, where they can get access to best-in-class solutions and exclusive investment opportunities.

In 2012, private banks will need to further demonstrate the strength of their intellectual capital, as clients demand investment ideas and insights in these difficult markets. We are seeing an increased interest in the area of behavioral finance, as clients look towards better understanding their own investing behaviors, especially in times of stress and volatility. Dimensions such as composure and market engagement - in addition to risk tolerance - help reveal how one thinks and feels about wealth and investments.

It will also become increasingly important for banks to assure their clients that they are on solid financial footing. Banks with sound fundamentals and strong financials will be well positioned to capitalize on the opportunities in the current landscape.

The author is Head of North Asia at Barclays Wealth. The views expressed here are entirely his own.