Significant Proportion of HNWI Assets Eludes Wealth Management Firms
Our findings on HNWI behaviors and preferences are derived from the Global HNW Insights Survey, the industry’s largest and most in-depth examination of high net worth individuals. Now in its third year, it queried more than 5,200 HNWIs, including nearly 1,700 from Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, and Singapore, to better understand the evolving nature of HNWI allocation throughout the region.
- The wealth management industry has earned a greater amount of HNWI trust in Asia-Pacific (excl. Japan) compared to last year, but it has not succeeded in capturing a majority of HNWI assets. The region’s HNWIs are more likely to keep their wealth in cash or a retail bank account than hold it with a wealth manager.
- Demographics may only hasten the tide of HNWI assets being allocated outside the wealth management industry. Asia-Pacific (excl. Japan) HNWIs under-40 place only 19.3% of their assets with their primary wealth manager, compared to 23.5% for those over-60.
- Of all the wealth services, Asia-Pacific (excl. Japan) HNWIs place the highest value on investment management. While investment management services are vitally important to serving the region’s HNWIs, they must be coupled with financial planning capabilities to fully meet the expectations of this demanding clientele.
Breakdown of HNWI Investable Wealth across Entities and Accounts (by Age), Q1 2016
Note: Question asked: “How does your investable wealth breakdown across entities and accounts?”; Chart numbers may not add up to 100% due to rounding; Real estate is included as a part of Other
Source: Asia-Pacific Wealth Report 2016; Global HNW Insights Survey 2016, Capgemini