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%.
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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.
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By GlobalDataInternational outlook
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.
