Wealth Management in Singapore 2009
Datamonitor
October 20, 2009 SKU: DFMN2483385
|
|
Countries covered: Singapore
Introduction
The global economic crisis has had a major effect on Singapore's onshore wealthy population, potentially causing them to lose faith in their wealth managers. To keep clients, wealth managers need to know what this lucrative customer wants from them, in terms of products, services and interaction.
Scope- HNW demographic and attitudinal attributes based on our Wealth Management Market Leaders Survey 2009
- Extensive primary research from 17 wealth management companies highlights their strategies for revenue growth, acquiring and keeping clients
Highlights
For the wealthy population living in Singapore, 2008 was a particularly tough period to bear. Business owners faced weak operating conditions, the equity market fell and properties lost value. After the first nine months of 2009,global economies are starting to appear more stabilized and a growing expectation of recovery is starting to emerge.
Datamonitor believes that Singaporean HNWs will return to risky assets over the short-term as economic conditions improve and investment assets increase in value.
Clients in Singapore have superior financial product knowledge compared to their Asia Pacific counterparts, however they struggled to fully understand how market conditions impacted on their portfolio. This presents an opportunity for wealth managers to add some real value to their offering by providing educational services for clients if needed.
Reasons to Purchase- Understand the HNW population's investments by sector and geography, appetite for risk, and reasons for choosing/leaving their wealth service
- Assess the threats and opportunities for wealth managers by understanding how peers are planning to grow revenues, acquire and keep clients
|
- 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
- Table of Contents
- Table of Figures
- Table of Tables
- 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
- Wealth management service implication: provide clients with regular market commentary and offer forward-looking opinions on the Singaporean and offshore investment markets
- Innovative example from the US: Pyxis mobile is providing a complete mobile communications interface to allow wealth managers to contact their clients while on the move
- Singaporean HNWs are expected to increase their investment in real estate funds and reduce their exposure to cash
- Wealth management service implication: help investors position themselves for the global economic recovery
- Innovative example from Singapore: SG Private Banking creates global centre of expertise for real estate products
- 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
- Wealth management service implication: providers should be focused on furthering their clients' financial education
- Innovative example from Switzerland: UBS is investing resources in its clients
- Innovative example from China: Standard Chartered aims to educate second generation wealth holders
- 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
- Wealth management service implication: wealth managers need to increase contact with their clients through the most appropriate avenues
- Innovative example in Singapore: Standard Chartered enhances relationship management access and convenience for its wealthy clients
- 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
- Wealth management service implication: wealth managers must look to develop simple, transparent products to preserve their clients' wealth
- Innovative global example: Deutsche Bank has been listing innovative exchange traded funds around the world
- 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
- The UK sub-model
- Global sub model (for all other countries)
- Forecasting methodology
- Continuous refinement to the understanding of liquid wealth distribution
- Datamonitor's wealth numbers compared with other wealth numbers
- Bibliography
- Definitions
- Asia Pacific
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: What proportion of your HNWs' portfolios is allocated to the following five asset classes?
- Table 2: HNWs' portfolio allocation now versus in 2 years' time
- Table 3: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high)
- Table 4: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high)
- Table 5: What are HNWs demanding today?
- Table 6: Over the next two years, how much demand do you expect from HNWs for the following product areas?
- Table 7: What product areas will your wealth management service focus most resources on in the next 2 years?
- Table 8: What will determine HNWs' choice of wealth management service over the next two years?
- Table 9: What are your company's biggest strengths and weaknesses today?
- Table 10: What is the most effective means of increasing share of wallet today?
- Table 11: On average, how often do your relationship managers speak by phone to each HNW client?
- Table 12: On average, how often do your relationship managers speak in person to each HNW client?
- Table 13: When speaking with clients, what do they most want to talk about today?
- List of Figures
- Figure 1: The global financial crisis dramatically impacted on the Singaporean labor market
- Figure 2: Business confidence suffered in 2008 as global economic conditions impacted on the local market
- Figure 3: Like most developed economies in the Asia Pacific region, Singapore's stock market declined sharply in 2008
- Figure 4: The Singaporean property market boom cooled off in 2008
- Figure 5: 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 6: Wealthy Singaporean investors are set to increase their exposure to real estate funds over the next two years
- Figure 7: HNW investors in Singapore have a higher risk appetite than the average Asia Pacific HNW investor
- Figure 8: HNW clients in Singapore place more importance on having personal relationships with their wealth manager than the average Asia Pacific HNW investor
- Figure 9: In Singapore, HNW investors are demanding simple, transparent investments
- Figure 10: 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 11: Wealth managers in Singapore will be focusing most of their resources on foreign currency investments over the next two years
- Figure 12: 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 13: Personal relationships were viewed as the greatest strength of Singaporean wealth managers
- Figure 14: The best way for wealth managers in Singapore to increase share of wallet is to offer financial planning
- Figure 15: In Singapore the Wealth Management relationship managers speak to clients by phone approximately once a month
- Figure 16: The vast majority of relationship managers speak to clients in person once a quarter
- Figure 17: The majority of clients in Singapore want to speak to their wealth manager about performance of their overall portfolio
More Singapore Wealth Management Reports
HNWI Asset Allocation in Singapore to 2015 by
WealthInsight
Synopsis This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in Singapore. This report provides detailed figures on ...
High Net Worth Trends in Singapore to 2015 by
WealthInsight
Synopsis This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in Singapore. It provides market size and forecasts ...
Challenges and Opportunities for the Wealth Sector in Singapore by
WealthInsight
Synopsis This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in Singapore. Summary This report is a thorough analysis ...
Ultra HNWIs in Singapore to 2015 by
WealthInsight
Synopsis This report is the result of WealthInsight’s extensive research covering the UHNWI population and Wealth Management industry in Singapore. It provides market size and forecasts ...
Singapore - The Future of HNWIs to 2015: Emerging Global Capital of the Wealth Sector by
WealthInsight
Synopsis
This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in Singapore. It provides market size and ...
See all reports like this >>
More Singapore Reports
D&B Country RiskLine Report: Singapore by
Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...
D&B Country Report: Singapore by
Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...
Singapore: Country Profile by
MarketLine
INTRODUCTION This report provides a detailed analysis on Singapore, providing an overview of its political, economic and business environment, represented both textually and in graph and ...
2007 Singapore Industry & Market Outlook report by
Barnes Reports
The 2007 Singapore Industry & Market Outlook report is the leading annual publication that describes over 100 major industries in Singapore and 500+ minor industries ...
Singapore (Full Report) by
Intellectual Property Exchange
Technology Competitive Intelligence Report: Singapore, a highly developed and successful free market economy, enjoys a remarkably open and corruption-free environment, stable prices, and one of ...
See all reports like this >>
Share this report
Other tasks Related Markets Wealth Management Reports Free Alert Me service Receive bi-weekly email alerts on new market research Sign Up Today!
|
