Asian Wealth Managers Expect Industry Rebound
Wednesday, April 21, 2010
Wealth managers in Asia are expecting their revenues to rebound this
year as the region outpaces the rest of the world in economic growth
and investors increase their demand for riskier investments.
According to a survey of Asian wealth managers by Barclays Capital,
61% of respondents forecast revenue growth of above 5% per annum over
the next two years. In the same survey last year, 41% of respondents
held the same view.
Only 2% of those polled expect a decline in revenues in the next two
years.
The survey involved 159 respondents from 58 key wealth management
organizations in Asia including asset managers, insurance companies,
retail banks and private banks
managing USD5bn in client assets. About 70% of the respondents were
situated in Hong Kong and Singapore, while the rest of the poll was
drawn from China, India, Malaysia, South Korea, Taiwan and the
Philippines.
China is being viewed as the most attractive market for wealth
managers, with a majority of the respondents expecting revenue growth
of 25% per year over the next two years.
The number of dollar millionaires in China rose by more than 6% to
about 875,000 last year thanks to strong growth in the Chinese economy,
the latest Hurun Wealth Report shows.
Asia is expected to overtake North America as the world's largest
pool of wealth by 2013. Interestingly, however, the number of
millionaire households (defined as those with USD1m or more in
investable assets) in the United States grew by 16% last year, despite
the US economy contracting by 2.4%.
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