Table of Contents
OVERVIEW
- Catalyst
- Summary
- Methodology
EXECUTIVE SUMMARY
- The wealth of Singaporean investors suffered at the hands of the global
financial crisis
- HNWs become more defensive at the start of 2009, however as economic
conditions continue to improve the expectation is that they will return to
real estate investments and equities
- While personal relationships and increased face to face contact from
wealth managers are vital at this time, wealthy clients are also viewing
financial stability as a key provider attribute
SINGAPORE' S WEALTH
- Singapore produced strong growth in the lead up to the financial crisis,
however 2008 was a tough time for investors
- Labor market conditions weakened for Singaporean workers in 2008
- Entrepreneurs struggled to grow their wealth as business conditions
deteriorated in Singapore
- Events in the global economy sparked selling pressure in the local stock
market
- Singaporean house prices declined for the first time in four years in Q3
2008
- The wealth data in 2009
THE SINGAPOREAN HNW INVESTOR
- Singaporean HNWs became more defensive in 2009, reducing their property
fund exposure and investing heavily in cash
- Cash and near cash represent an important asset class for Singaporean
HNWs
- Singaporean HNWs are expected to increase their investment in real
estate funds and reduce their exposure to cash
- Singaporean HNWs have superior knowledge of investments, however client
contact is still vitally important
- HNWs are risk seeking individuals and exhibit higher-than-average
knowledge of financial products
- Singaporean HNWs place high importance on personal relationships when
doing business, however they are less demanding for face to face
relationship management than the regional average
- The global downturn has shifted the demands of Singaporean investors
- Due to uncertainty in the markets, the majority of HNWs want investments
that they can easily understand
THE SINGAPOREAN WEALTH MANAGER' S VIEW
- Over the next two years, HNWs will be demanding protected products,
advisory asset management and exchange traded funds
- The majority of HNW clients will be demanding capital protected products
and advisory asset management over the next two years
- Wealth managers expect to focus their resources on foreign currency
investments over the next two years
- While personal relationships are still key in HNWs' choice of wealth
managers, they are focusing more on the financial stability of providers in
today' s market
- Financial stability is very important to HNWs in Singapore
- Singaporean wealth managers see personal relationships and technology as
their biggest strength
- Offering financial planning is seen as the best method for increasing
share of wallet
- Financial planning has increased in importance this year
- Singaporean wealth managers have less frequent contact with their clients
compared to the Asia Pacific average
- Singaporean wealth managers contact their clients over the phone less
frequently than their Asia Pacific counterparts
- Singaporean wealth managers are behind their Asia Pacific counterparts
at getting in front of their clients
- The overall performance of the portfolio and specific news events are
what HNWs most want to talk about when they speak to their wealth manager
APPENDIX
- The drivers of growth in the wealthy population
- Income growth (combined with inflation, changes in GDP by sector,
household savings rates and debt levels)
- Investment returns (market capitalization, interest rates and bond
yields)
- The following measures are not, in themselves, drivers of wealthy
population growth
- Market capitalization
- GDP
- The following measures are not drivers of wealthy population growth except
under very restricted circumstances
- Primary residence value growth
- Inheritance
- Methodology
- Wealth Management Market Leaders Survey 2009
- Global Wealth Model
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: What proportion of your HNWs' portfolios is allocated to the
following five asset classes?
- Table: HNWs' portfolio allocation now versus in 2 years' time
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: What are HNWs demanding today?
- Table: Over the next two years, how much demand do you expect from HNWs
for the following product areas?
- Table: What product areas will your wealth management service focus most
resources on in the next 2 years?
- Table: What will determine HNWs' choice of wealth management service over
the next two years?
- Table: What are your company' s biggest strengths and weaknesses today?
- Table: What is the most effective means of increasing share of wallet
today?
- Table: On average, how often do your relationship managers speak by phone
to each HNW client?
- Table: On average, how often do your relationship managers speak in person
to each HNW client?
- Table: When speaking with clients, what do they most want to talk about
today?
FIGURES
- Figure: The global financial crisis dramatically impacted on the
Singaporean labor market
- Figure: Business confidence suffered in 2008 as global economic conditions
impacted on the local market
- Figure: Like most developed economies in the Asia Pacific region,
Singapore' s stock market declined sharply in 2008
- Figure: The Singaporean property market boom cooled off in 2008
- Figure: The majority of HNW wealth in Singapore is invested in the ' cash
or near cash' asset category, with this accounting for 30% of all investments
- Figure: Wealthy Singaporean investors are set to increase their exposure
to real estate funds over the next two years
- Figure: HNW investors in Singapore have a higher risk appetite than the
average Asia Pacific HNW investor
- Figure: HNW clients in Singapore place more importance on having personal
relationships with their wealth manager than the average Asia Pacific HNW
investor
- Figure: In Singapore, HNW investors are demanding simple, transparent
investments
- Figure: Over the next two years, the greatest demand amongst HNW investors
in Singapore will be for capital protected products with 90% of HNW investors
demanding this category of product
- Figure: Wealth managers in Singapore will be focusing most of their
resources on foreign currency investments over the next two years
- Figure: HNW investors in Singapore will be most influenced by a provider' s
financial stability when selecting a wealth manager over the next two years
- Figure: Personal relationships were viewed as the greatest strength of
Singaporean wealth managers
- Figure: The best way for wealth managers in Singapore to increase share of
wallet is to offer financial planning
- Figure: In Singapore the Wealth Management relationship managers speak to
clients by phone approximately once a month
- Figure: The vast majority of relationship managers speak to clients in
person once a quarter
- Figure: The majority of clients in Singapore want to speak to their wealth
manager about performance of their overall portfolio
|
Related Report
|
View Cart
