The number of
rich Asians surpassed North Americans for the first time last year, but
their fortunes shrank slightly and still trailed total wealth on the
other side of the Pacific, Capgemini and RBC Wealth Management said on
Wednesday.
The Asia-Pacific region is now
home to 3.37 million high net worth individuals (HNWI) - people with $1
million or more to invest - compared with 3.35 million in North America
and 3.17 million in Europe, the firms said in a report.
Asia's
wealthy - 54 percent of whom are concentrated in Japan, almost 17
percent in China and more than 5 percent in Australia - saw their total
fortunes slip to $10.7 trillion last year from $10.8 trillion in 2010,
and lag North America's $11.4 trillion.
The
Asia-Pacific Wealth Report, compiled by Capgemini and RBC Wealth
Management, is closely watched by wealth managers, high-end property
agents, luxury goods retailers and other businesses for signs of how and
where the ultra-wealthy are investing and how their fortunes are
faring.
Many of Asia's rich made their millions and billions through family businesses and property.
"We
don't see massive shifting in the allocations of portfolio management,"
Claire Sauvanaud, vice president of Capgemini Financial Services, told a
news conference.
Wealth fell most
significantly last year in Hong Kong (20.1 percent) and India (18
percent) and grew most strongly in Thailand (9.3 percent) and Indonesia
(5.3 percent). Growth was more modest in Japan (2.3 percent) and in
China (1.8 percent).
Weakness in
Europe and other global trends played their part in the slight fall in
total Asian wealth, the report said, but the "region grappled with its
own economic challenges, including inflation, slowing growth and capital
outflows."
"Nevertheless,
Asia-Pacific is expected to continue showing stronger growth than other
regions going forward, and its HNWI population and wealth are likely to
keep expanding," it said.
As part
of that, Asia's rich are looking more to offshore wealth centres close
to home, such as Singapore and Hong Kong, in search of wider access to
products and services, tax advantages and financial confidentiality, the
report said.
Challenges for the
offshore wealth management industry include a scarcity of skilled
talent, lower profitability, and the costs of compliance and
restrictions on services due to higher regulatory scrutiny, it said.
Diversity
of the backgrounds and expectations of rich clients means there is more
demand for tailored products and a greater desire to play an active
role in managing their portfolios, the report added.- Reuters
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Showing posts with label High net worth individual. Show all posts
Showing posts with label High net worth individual. Show all posts
Thursday 20 September 2012
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