A study by ABN Amro Private Bank and European business school Insead reveals a growing difference of opinion between the older generation of wealthy Asian individuals and their children on how to manage the family business - with profound consequences for the professionals who manage familial wealth.
The study of 33 rich families in Hong Kong, India, Indonesia, Malaysia, Singapore and Taiwan has found an 'inter-generational' conflict in how the two generations view wealth management.
The report reveals that the younger generation's more aggressive management style and growth plans for the family business, usually cultivated at elite business schools in the west, and their more individualistic approach, is at odds with the more conservative attitude of the older generation.
Younger family members are eager to grow family wealth, whereas the older generation is more focused on its preservation.
About 85 per cent of the respondents from the younger segment regard diversification as a key strategy to growing wealth, whereas their parents view the practice as risky.
They also emphasise the need for professional management, with 30 per cent of respondents keen to involve professionals in the running of the family business. Many also view the family firm as a burden as well as a blessing, as it restricts them in their choice of career.
