As Asia continues to be a fascinating, complex, and incredibly wealthy region of the world, we are noticing trends emerging in the amount of private wealth in the region and the structuring and allocation of privately held assets among our clients. Ian Rumens, Head of Private Clients – Jersey, discusses some of these below.
The private wealth boom in Asia
Asia’s UHNW population is growing as private wealth in the region increases. The UHNW population in the region grew 7.2% during 2020-2021 to 170,000 and is projected to rise to 225,000 in 2026, according to Knight Frank’s 2022 wealth report. Wealth management is also expected to boom in the coming years: over the past decade, Asia-Pacific’s share of AUM grew 2.4 times faster than North America and 3 times faster than Europe. Data compiled by Accenture, also states that AUM in the region is expected to rise from $15.1 trillion in 2017 to $29.6 trillion in 2025.
Intergenerational transfer of wealth and recalibration
It’s clear for our client base that succession planning, wealth preservation, and transfer remain an important focus.
There’s a well-documented global trend of a great transfer of wealth occurring over the next decade and Asia is no exception to this. For example, Barclays noted last year that 'over the next twenty to thirty years, a record £5.5 trillion is set to be transferred between the generations as either inheritance or gifts'.
Compared to other regions, Asian family offices are relatively young, with the majority in their first or second generations.
We have noticed that these families are recalibrating the way in which they evolve and interact with structures.
Next generation of Asia comes to the forefront
Younger generations in wealthy families in Asia are often Western-educated, tech-hungry, and open-minded about adopting structured approaches to preserving and transferring family wealth.
Our experience with this demographic of clients has shown that these inquisitive research-savvy clients are seeking technological innovation from their wealth manager and offshore service providers. The digital interface is set to be the new battleground in attracting new clients and this is nowhere globally more important than in the increasingly tech-savvy Asian regions.
There are numerous trends coming out of Asia when it comes to private assets, some of which are highlighted above, which make it such an exciting time for Ocorian. Our commitment to the region is spearheaded by our Private Client offering as Asia is an important growth market for us.
From family office and trust services to succession planning for family assets and businesses, Ocorian’s private client team provides a one-stop shop for our valued clients in Asia. Get in touch with a member of our team today to discuss your ambitions in detail, or find more about our private client services.