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Wealth in Hong Kong: HNW Customers

Wealth in Hong Kong: HNW Customers

Summary

Wealth in Hong Kong: HNW Customers analyzes the profile of HNW individuals in the country, from their investments to product demand to sources of wealth. This report is based on our 2014 Global Wealth Managers Survey. The results of the survey are accompanied by best practice case studies on how to target HNW individuals in Hong Kong.

Synopsis

  • Understand the major sources of HNW wealth in Hong Kong and the industries from which it has been amassed.
  • Interpret the investment portfolios of HNW individuals in Hong Kong through detailed asset allocation analysis.
  • Evaluate product and service demand among HNW individuals in Hong Kong from discretionary asset management to art advisory and philanthropy.
  • Analyze the best method to capture new HNW clients in Hong Kong and how best to maintain communication during the client relationship.
Reasons To Buy
  • How do HNW individuals in Hong Kong amass their wealth?
  • What investments make up an average HNW investment portfolio in Hong Kong?
  • Which wealth management products and services are in demand in Hong Kong?
  • How often do wealth managers in Hong Kong contact their clients through email, social media, and face-to-face meetings?
  • How do HNW individuals in Hong Kong compare to their global peers?
Key Highlights

HNW investors in Hong Kong have amassed wealth mainly through business ownership, but earned income plays a larger role than elsewhere in Asia Pacific. The most prominent industries from which HNW investors have amassed wealth are manufacturing, financial services and hospitality. Expats represent a large proportion of the resident HNW population.

The HNW portfolio invests heavily into corporate bonds, deposits and equities. When it comes to most asset classes, investors prefer direct investments as opposed to funds, barring equities. Equities will be the clear winner in HNW portfolios over the next two years, benefiting the most from a modest rotation out of bonds and commodities.

HNW investors have growing demand for all asset management services, but their reluctance to relinquish control means that advisory asset management prevails in the market. Financial planning and pension advice are also in high demand. In particular, the latter should be part of every providers's offering, as it is not well served by competitors.


  • Executive Summary
    • The HNW market in Hong Kong is well diversified and attractive in its own right
    • Key findings
    • Critical success factors
  • Introduction
    • Wealth in Hong Kong: HNW Customers is part of a two-part series
    • The majority of data is drawn from our 2014 Global Wealth Managers Survey
  • Profiling HNW Consumers in Hong Kong
    • Entrepreneurs represent an important segment of Hong Kong's HNW market
      • In a diversified market, first-generation entrepreneurs and family business owners still need particular attention
      • HNW individuals have built their fortunes through manufacturing and the financial services industry
    • Wealth managers should be prepared to cater to the distinct needs of Hong Kong's large expat community
      • HNW expats represent a lucrative target market in Hong Kong
  • Understanding Asset Allocation Trends Among HNW Individuals in Hong Kong
    • HNW individuals' well-diversified portfolios make them an attractive target segment
      • HNW individuals in Hong Kong have above-average exposure to fixed income and equities
      • The majority of HNW individuals' assets are held directly as opposed to in funds
      • HNW individuals in Hong Kong hold a well-diversified portfolio
      • Equities will be the clear winner in Hong Kong investors' portfolios
    • Product and Service Demand Among HNW Individuals in Hong Kong
    • Wealth managers in Hong Kong should involve their HNW clients in the investment process
      • Wealth managers should lead with advisory asset management services
      • Looking forward, demand for advisory investment services is expected to show the strongest growth
    • Planning services
      • Finnacial and retirement plannning should be an integral part of a wealth manager's offering
      • With the exception of tax planning, demand for all planning services is forecast to increase
      • Wealth managers able to provide pension advice can address client demand more effectively
    • Credit products
      • Wealth managers will have no problem highlighting the role leverage can play in an investment portfolio
      • HNW demand for credit in Hong Kong will moderate
      • HNW individuals taking on leverage to fund their investments represent an opportunity to expand the earning assets pool
    • Art advisory and philanthropy
      • HNW individuals show moderate demand for art advisory services, but they represent more of an opportunity than elsewhere in the region
      • Demand for philanthropy assistance is forecast to grow, albeit from a low base
      • Art investments are regarded as an addition to traditional asset classes
    • Insurance
      • Insurance demand is low in Hong Kong
      • Underinsurance for life insurance will reduce as demand rises robustly over the next two years
  • Customer Acquisition and Communication
    • A relationship manager's own contacts are crucial for client acquisition in Hong Kong
      • Wealth managers in Hong Kong are dependent on their existing client base for new business
    • Client communication
      • Effective telephone skills are critical for servicing the HNW in Hong Kong
      • Wealth managers' use of social media is less advanced in Hong Kong than the rest of Asia Pacific
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Affluent
      • HNW
      • Liquid assets
      • Mass affluent
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
    • Bibliography
    • Further reading

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