Executive summary

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Scope

• An analysis of the Asian wealth market, first from a pan-regional perspective, but also on a country-by-country basis
• Despite paying particular attention to the key markets of China and India, the report also looks at the issues affecting smaller less covered markets like Indonesia, Malaysia and the Philippines
• The latest available data is provided on funds flow and asset allocation
• The report also takes a look at the regulatory environment and the trends for the future

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Key highlights

• While the banking crisis of 2008 was deemed a ‘global event’, it was also perceived very much as a ‘western’ one. The rescue, bail-outs or disappearance of some western banks with wealth management or private banking arms continues to resound. In short, choosing a 'western' provider is much less of a default position than it used to be
• By a very small margin India, not China will experience the largest growth in total millionaire AUM over the next decade, with an estimated increase of over 400 per cent to 2020
• In mainland China, perhaps the most attractive nascent market, 85% of respondents would choose a ‘local’ bank over a ‘foreign’ institution

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Reasons to buy

• This report will allow readers to tap into the growing HNWI market in Asia
• Gain insight into demographics, trends and challenges for the wealth management market across Asia
• Determine how wealthy Asians can be better served
• Understand the regulatory environment
• Recognize the differences between Asian and western markets
• Analyse the importance of brand identity in the wealth management market

Table of contents

Executive Summary

1: Introduction
1.1 Asia-Pacific: The Centre of Global Financial Power
1.2 Asset Allocation: Asians Regain Market Confidence After The Crisis
1.3 Asians Prefer Investing Close to Home
1.4 Fast-growing Asian HNWIs: Great Potential For Wealth Management Firms
1.5 Characteristics of Asia-Pacific HNWIs
1.6 Business Ownership as the Primary Source of HNWI Wealth
1.7 UHNWs Control More Than 25% of the Wealth, But Are Thinly Represented
1.8 HNWI Investment Strategies
1.9 Challenges to Overcome in Capturing the Asia-Pacific Potentials
1.2.1Overcoming the Lack of Expertise and Knowledge to Become Competitive
1.2.2 Income and Margin Pressure
1.2.3 Meeting Client Needs is Key to Higher Levels of Satisfaction in the Wealth Management Industry

2: China
2.1 China’s Booming Wealth Market
2.2 Property: Largest Source of Wealth for China’s Rich
2.3 Country Assets Under Management
2.4 Alternative Assets will gain a Larger Share of the Wealth Management Market over the Next Three Years
2.5 By 2020, Chinese Wealth Almost Five Times Higher than Now

3: Hong Kong
3.1 Hong Kong: Top Choice for International Investments
3.2 No Secret to Hong Kong’s Success
3.3 Capital Investment Entrant Scheme
3.4 Assets Under Management
3.5 Domestic and Foreign Banking Players
3.6 Hong Kong HNWIs Property Investments Expected to Plummet by 2013

4: Taiwan
4.1 The Dawning of the Taiwanese Affluent Market
4.2 Emerging Trends in Taiwan’s Wealth Management Market
4.3 New Entrants in Taiwan’s Wealth Management Industry
4.4 DBS Enters Taiwan’s Financial Management Market
4.5 The Rich in Taiwan - a Nice Place to be

5: South Korea
5.1 South Korea’s HNWI Population and Wealth Market
5.2 South Korean Wealth Management Players
5.3 Looking Ahead: The Future of South Korean Private Banking

6: Singapore
6.1 Economic Overview
6.2 The High HNWI Density of Singapore: 1 out of 30 Individuals is a HNWI
6.3 Sector Comparison
6.4 Financial Sector
6.5 Wealth Market, Size and Growth
6.6 Wealth Allocation
6.7 Assets Under Management
6.8 Investments Made by Asset Class
6.9 Dexterity of Family Offices in Singapore
6.2.1 Outlook and Prevailing Trends in Singapore’s Wealth Management
6.2.2 Offshore Centres
6.2.3 Challenges and Regulations: Factors Affecting Growth and Development of Wealth Management in the Republic
6.2.4 Availability of Tax Exemptions to Trusts and Fund Management Industries
6.2.5 Singapore’s Major Players by AUM

7: Malaysia
7.1 Allocation and Investment of Malaysian High-Net-Worth Population
7.2 Assets under Management
7.3 Trends and Challenges on Malaysia’s Islamic Wealth Finance Market

8: India
8.1 The Wealth Market
8.2 India’s Growing Wealth and the Indian Affluent
8.3 Asset Diversification in India
8.4 Regulatory Trends in Indian Private Banking
8.5 Major Players in Indian Private Banking
8.6 A Key Challenge to India’s Wealth Management Industry

9: Indonesia
9.1 Indonesia’s Wealth Market, Size, and Growth
9.2 Indonesia’s Untapped Middle Class
9.3 Indonesia’s Wealth Diversification
9.4 Assets under Management
9.5 Challenges and Market Regulations in Indonesia’s Wealth Market
9.6 Family Offices in the Future – A Promising Trend

10: Other Asian Wealth Markets – Thailand, the Philippines, Vietnam, Japan
10.1 Thailand and Its HNWI Population
10.2 Thai Assets Under Management: Challenges and Regulations
10.3 The Philippines: Wealth Very Tightly Held
10.4 Wealth Management Status in the Philippines
10.5 Vietnam
10.6 Japan
10.7 Wealth Allocation and Diversification of Japanese HNW

11: The Middle East
11.1 The Wealth Market
11.2 Investor Behaviour and Asset Preferences in the Middle East

List of tables

Table 1.1: Geographic Asset Allocation of Asia-Pacific HNWIs, 2010
Table 2.1: Main Sources of Wealth in China, 2011
Table 2.2: Global Ranking by Total Wealth of Millionaire Households (2011-2020)
Table 2.3: Global Ranking by Total Number of Millionaire Households (2011-2020)
Table 3.1: List of Chinese Billionaires
Table 5.1: Asia ex-Japan Mutual Fund Assets Under Management by Country, 2006–2010 (USD Billion)
Table 5.2: South Korea: Key Wealth Estimates
Table 6.1: Comparison of Economic Growth and Development in Singapore (per quarter, 2010-2011)
Table 6.2: Major Wealth Management Players in Singapore
Table 8.1: Number of Billionaires Around the World
Table 8.2: Expansion in Investable Wealth in India, 2005–2010
Table 8.3: Alternative Assets in India
Table 8.4: Major Regulatory Changes Since 1992
Table 8.5: Key Wealth Management Players in India
Table 8.6: Wealth Management Objectives and Channel Preferences
Table 9.1: Merging Market Millionaires 2011 and Est. 2016
Table 11.1: Assets per Segment, 2010 (USD Billion)

List of figures

Figure 1.1: Percentage Distribution of GDP in Terms of Purchasing Power Parity (PPP) in Asia-Pacific, 2010
Figure 1.2: Real GDP Growth Rate, Global and Asia-Pacific, 2008-2012
Figure 1.3: Asia-Pacific HNWI Population (thousands), 2007-2010 (by Market)
Figure 1.4: Asia-Pacific HNWI Population Per Cent Change in Growth Rate, 2009-2010 (by Market)
Figure 1.5: Asia-Pacific HNWI Wealth (USD Billion), 2007-2010 (by Market)
Figure 1.6: Asia-Pacific HNWI Wealth Per Cent Change in Growth Rate, 2007-2010 (by Market)
Figure 1.7: The Recovering Asia-Pacific Property (Current & Forecast Asia-Pacific Investment Volumes), USD Billion
Figure 1.8: The Evolution of the Singapore Banking System (Number of Institutions)
Figure 1.9: The Volatile Hong Kong Stock Market
Figure 1.10: The Singapore Most Recent Stock Market TrendFigure 2.1: HNWI Annual Population Rates in China, 2007-2010
Figure 2.2: The Number of Millionaires in China, 2009-2011
Figure 2.3: Ultra-High-Net-Worth Individuals 2011: Selected Countries
Figure 2.4: Profession Composition of China HNWIs (%), 2011
Figure 2.5: Soufun Property Price Index
Figure 2.6: Total Individual Investable Assets in China, 2008-2011
Figure 2.7: Diversified Asset Allocation by Chinese HNWIs
Figure 2.8: The Rising Chinese Wealth Management Market Share of Alternative Assets (USD Billion)
Figure 3.1: The Growth of the Wealth Management Sector in Hong Kong
Figure 3.2: Hong Kong with the Fastest Growing HNWI Population in Asia-Pacific
Figure 3.3: Combined Fund Management Businesses (USD Billion)
Figure 3.4: Growth in the Number of Millionaire Households by Wealth Cohort
Figure 4.1: HNWI Population in Taiwan, 2007-2010
Figure 4.2: Total Financial Wealth of Taiwanese HNWIs, 2007-2010
Figure 4.3: Growth in the Number of Taiwanese Millionaire Households by Wealth Tier (2011-2020)
Figure 5.1: Wealth Levels in Asia, 2010
Figure 5.2: Asia ex-Japan Mutual Fund Assets Under Management by Country, 2006–2010 (in USD Billion)
Figure 5.3: Global Ranking by Total Number of Millionaire Households (2011-2020)
Figure 5.4: Global Ranking by Total Wealth Among Millionaire Households (2011–2020)
Figure 6.1: HNWI Wealth Sector Market Attractiveness in Singapore, 2007-2015
Figure 6.2: Assets under Management in Singapore, 2005-2010 (USD Billion)
Figure 6.3: Funds Investment by Asset Class
Figure 6.4: Rates of Wealth Confidence Levels in Various Asian Countries
Figure 7.1: Comparison of 2009 and 2010 Malaysian HNWI Asset Allocation
Figure 7.2: Comparison of Malaysian HNWI Asset Allocation, Luxury Investments, 2009-2010
Figure 7.3: Distribution of Assets in Malaysia (by Asset Class)
Figure 8.1: Growth of Individual Wealth in India
Figure 8.2: Growth of Assets Under Management in India
Figure 8.3: Asset Breakdown of Individual Wealth
Figure 8.4: Asset Breakdown of Individual Wealth in India - Equities, Debt and Alternative Assets (%)
Figure 8.5: Wealth Management Market Share of Organised and Unorganised Sectors
Figure 8.6: HNWI Demographic Distribution by Age Group
Figure 9.1: Comparison of Wealth per Adult between 2000 and 2010 (USD)
Figure 9.2: Indonesian HNWI Population, 2007-2010
Figure 9.3: Urbanisation Trends in Indonesia
Figure 9.4: Percentage Comparison of Indonesian Population Living Below the Poverty Line, 2000-2009
Figure 9.5: Indonesia’s Percentage Distribution of Assets per Class, 2010
Figure 11.1: Evidence of Short Time Horizon Among Middle East Investors
Figure 11.2: Most Preferred Asset Classes in the Middle East
Figure 11.3: Changes in Time Horizon and Risk Appetite
Figure 11.4: Expat Groups in GCC Countries, 2010