According to the Asia-Pacific Wealth report 2014, the region’s population of HNWI’s grew 17% to 4.3m over the year, while its wealth grew 18% to reach $14.2trn, compared to global average growth rates of 13% and 12% respectively.
The report, compiled by Capgemini and RBC Wealth Management, found that the region’s growth can be pinned down to “high trust and confidence levels” among its HMWIs, which has subsequently lead to a greater focus on wealth growth over preservation.
George Lewis, group head of RBC Wealth Management, said the region’s growth is not expected to slow down: “Asia-Pacific is expected to continue to lead global growth and pass North America as the region with the highest HMWI population by the end of 2014, and the greatest HMWI wealth by 2015.”
Japan and China drove 85% of the region’s growth, with the two countries holding over two thirds of its HNWI population. Japan increased their number of HNWIs by 22% to 2.3m while China increased theirs by 18% to reach 758,000. The two countries also saw the wealth of their HNWIs increase, with Japan’s rising at a rate of 24% to reach $5.5trn and China’s at 20% to reach $3.8trn.
The report also notes that HMWIs in Asia-Pacific are more inclined to seek professional advice and pay for customised services than those throughout the rest of the world, while 97% feel it is “important” to make a positive social impact through responsible investments.
However, despite its apparent prosperity, the region’s wealth manager performance scores increased by just 0.5% in early 2014 to reach 68%, although this compares to an average drop of 5% throughout the rest of the world to 66%.
Digital development
Jean Lassignardie, chief sales and marketing officer at Capgemini, said: “Wealth managers will need to evolve their offerings to meet the changing preferences of Asia-Pacific HNWIs in how they interact with their firms and advisors, including through the development of digital channels.”
Earlier this month, Natwest’s annual Quality of Life index revealed that British expats were looking to Asia for a better quality of life and higher wages.
Both Singapore and China were placed in the top end of the index, with expats citing the areas’ impressive career and educational opportunities as key reasons for their relocation.
Singapore was placed fourth up from seventh in 2013, while China rose six places to come fifth.
