This page contains a Flash digital edition of a book.
WEALTH REPORT


Chastened by the crisis


High net worth individuals (HNWIs) in the Asia-Pacific region, including Australia, weathered the global financial crisis rather better than their counterparts in other regions, and can look forward to solid growth in their portfolios in the near future. But they have been chastened by their experience of the crisis, and are demanding more value-added and more transparent advice from wealth management firms.


might have predicted just a year before”, but that “they are demanding more value-added advice and investment options that properly align with their risk profiles and investment goals”. The report notes that wealth management firms “could lose HNW clients if they cannot provide them with access to a more comprehensive and relevant offering that truly aligns with their individual risk and asset allocation priorities, regardless of whether the products are sourced from in house or from third parties”.


T


Recouping their losses The number of Asia-Pacific HNWIs – broadly those with liquid assets exceeding $US1 million – grew by 26 per cent to three million in 2009, exceeding the 2007 pre-GFC figure of 2.8 million. This followed a 14 per cent fall in 2008. Their combined wealth increased by 31 per cent, more than erasing their 2008 losses. Hong Kong, India and Taiwan experienced the strongest wealth gains, although in Hong Kong’s case this was insufficient to offset 2008’s losses in the wake of plunging asset prices. Hong Kong and India saw the largest increases in HNWI populations, though in both cases following sharp 2008 declines.


14 FAMILY OFFICE: ASIA TOMORROW


he 2010 Asia-Pacific Wealth Report from Capgemini and Merrill Lynch finds that “2009 saw a resurgence in the number and wealth of Asia-Pacific HNWIs that few


Australia experienced above regional average


growth in both HNWI numbers (34 per cent) and wealth (37 per cent). Interestingly, a substantially lower proportion


(24 per cent) of the Asia-Pacific region’s total HNWI wealth is held by the ultra-rich (those with liquid assets above $30 million) than is the case globally (35 per cent). Over half (52 per cent) of the region’s HNWI wealth is held by the “mass affluent” ($1 million to $5 million), as against 43 per cent globally.


A sound economic environment The Asia-Pacific region rebounded strongly from the GFC, with most emerging and newly industrialized countries experiencing real GDP growth in 2009 exceeding five per cent, and in some cases (China, India, Taiwan and Singapore) approaching 10 per cent. Industrialized countries (Australia, New Zealand and Japan) grew more slowly (below 3 per cent), although Australia did have the distinction of experiencing real GDP growth (albeit


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148