Asia’s affluent retain aggressive expectations of returns, and their knowledge of investment products is increasingly sophisticated, according to new research from Scorpio Partnership.
A survey last autumn of the sentiment of 2,700 affluent Asians with an average $1.4m assets in nine markets showed they aimed on average to make $4m in the next 10 years, and to achieve an average annual return of 12%.
Confidence remained high, according to the results of the FuturePriority Report, with 77% saying they were confident they would grow their wealth in the next year.
Despite the ongoing financial turmoil, there was only a very slight dip from the 81% who were upbeat a year earlier.
Confidence in Indonesia and India was especially high, with 98% and 88% respectively saying they had high hopes for this year.
And Indians also had the second-highest money goal for the year of $4.8m, behind the $6m of South Koreans and just ahead of the $4.5m of the Chinese.
Although respondents thought Asia offered the best investment opportunities over the next year and the next five years, Europe and North America also inspired confidence.
About a third said those regions offered excellent investment opportunities over the next year, with the numbers rising significantly over the longer timeframe.
North America was viewed as having excellent investment opportunities by 31% in the next year and 37% in the next five years, while the figures were 33% and 39% respectively for Europe.
Investment and borrowing
Respondents preferred tangible investment options for the next 12 months, such as high interest savings (43% of those surveyed), gold (also 43%) and property (34%).
But the Asian affluent are also fairly diversified and see themselves investing in an average of 3.3 product types in the next 12 months.
They also expect to use an average of 1.6 types of loans, mainly to finance personal use or large assets like property or business.
Although Asian investors have been traditionally seen as more cautious about borrowing, one-third of respondents said it could help them enhance investment returns when used carefully.
Brand, Service and Advice
Asian clients have a strong expectation that their bank will educate them on investments and wealth management strategies, with 90% saying they expected it.
Furthermore, 44% expected to take more financial advice in the future before investing, underlining the growing sophistication of Asian investors.
When asked what made a great customer experience, 72% said brand reputation, 66% staff efficiency and 59% high quality reporting and portfolio reviews. New investment opportunities were chosen by 58% of respondents.
Half of those surveyed predicted they would increase their use of the internet as a tool to make investment choices.