A sian markets represent five of the 10 fastest-growing high-net-worth individual populations in the world, as highlighted in the recently released 2008 World Wealth Report, commissioned by investment bank Merrill Lynch and consulting firm Capgemini. This growth comes from established markets such as Indonesia, Hong Kong and Singapore and relatively new growth areas such as the mainland, India and South Korea.
Historically, Asian investors have not been open to the advice and products offered by wealth management specialists, but this new class of wealthy individuals is becoming increasingly sophisticated in its wealth management approach, explained Shera Lee, executive director, senior private banker and team head, Citi Private Bank.
'These rising affluent and high-net-worth classes are looking for opportunities and advice on how to grow their personal and business wealth and are growing more comfortable, as compared to previous years, in assigning the wealth management responsibility to a trusted private bank,' she said.
The development of the wealth management and financial planning industry in the region is also being driven by an ageing population. 'Hong Kong has one of the world's highest [average] life expectancies and this triggers people to think about what they should be doing in terms of managing their own wealth,' said Bruno Lee Kam-wing, head of wealth management, personal financial services Hong Kong, HSBC.
In addition, people's expectations of who was going to take care of their post retirement expenses have changed, and this was having a positive impact on the industry, he said. '[Traditionally] people would rely on their family to support them, but this generation expects to take care of themselves after their retirement,' he said.
In recent months the falling global markets have also created an opportunity for financial planners.
'In the past, people [in Asia] have tended to rely on their friends and family for investment tips. But the trend as the market becomes more volatile is for people to look for more professional advice,' said Mr Lee. While this need has been greeted warmly by the profession, it also brings extra burdens and pressures on financial advisers. 'Given this environment, it is not easy to explain to customers that whatever decisions they make, they might only be able to see the results after some time. The market is really testing people's patience,' said Mr Lee.