The ultra high net worth (UNHW) segment will
continue to grow rapidly in Asia this year, although regulatory
changes are seen as the biggest brake on the wealth industry in
2012, research from Barclays suggests.
Barclays Wealth Management Survey,
2012 surveyed 109 Asian wealth managers from 65 firms across
eight Asian countries at its seventh annual wealth management
conference in Hong Kong on 20 April. These Asia’s wealth managers
have a combined AuM of more than $3trn, it found.
Go deeper with GlobalData
According to the survey, the UNHW segment
makes up 24% of total AuM composition this year, up from 19% in
2011.
The trend is expected to continue with 70%
of wealth managers predicting this segment to increase over the
next two years.
However, adapting to the changing regulatory
environment was cited as the biggest challenge to the industry with
36% rating this very, or extremely difficult.
“This is a trend we are also seeing in other
regions,” Barclays investor solutions head Kevin Burke said. “It is
also encouraging to see that the competitive environment is
returning,” he added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHiring and retaining talent, last year’s
biggest challenge, dropped to third in this year’s poll with 24% of
respondents highlighting it compared with 40% in 2011.
Indonesia outruns India, China wealth
grows
A significant change was that Indonesia is set
to overtake India with the second highest assets under management
(AuM) growth expectation, according to Barclays’ survey
findings.
Indonesia overtook India with 36% respondents
expecting it to grow at a rate of 15% or higher.
Meanwhile, 96% respondents said they expect a
hard landing will be avoided in China this year with 68% expecting
a moderate growth rate of from 6% to 8%.
Around 54% wealth managers expected China’s
AuM growth rate to remain above 15%.
Wealth managers optimistic beyond
Asia
Wealth managers surveyed remained optimistic
looking outside Asia, with most of them indicating a probability of
zero or less than 25% that the EU would break up in the next two
years.
When asked about their recommendations for a
global balanced risk portfolio, most wealth managers recommended
that the weighting towards US equities should increase over the
next six months signaling a more positive outlook for the US
economy.
