Singapore Wealth Management: HNW Investors 2019

Table of Contents

1. EXECUTIVE SUMMARY

• 1.1. Singapore’s wealth market is dominated by foreigners
• 1.2. Key findings
• 1.3. Critical success factors

2. SIZING AND FORECASTING

• 2.1. The proportion of HNW individuals in Singapore will remain relatively static
• 2.2. Over a thirdof Singapore’s liquid assets are held by HNW individuals

3. DEMOGRAPHICS

• 3.1. HNW entrepreneurs are a lucrative target market
  • 3.1.1. The majority of HNW individuals have reached or are approaching retirement age
  • 3.1.2. Earned incomeaccounts for a greater proportion of HNW wealth than entrepreneurship
• 3.2. Financial services and healthcarearethe main (and growing) HNW wealth generators

4. HNW EXPATS

• 4.1. Expats are anabove-average and growing part of the HNW market
  • 4.1.1. Expats constitute over 31% of the local HNW market, which isnotablecompared to even other high-immigration nations
  • 4.1.2. HNW expats from the UK and China represent an attractive target segment
  • 4.1.3. The transient nature of the Singaporean expat market means being able to transfer an onshore relationship to an offshore one is critical
  • 4.1.4. Auxiliary services will be useful in recruiting expats
  • 4.1.5. Job opportunities and lifestyle factors are the biggest drivers for expats

5. HNW INVESTMENT STYLE PREFERENCES

• 5.1. The lack of time and advanced investments drive uptake of advice
  • 5.1.1. Convenient access to sophisticated investments resonates most with Singaporean HNWs
  • 5.1.2. Singaporean HNW investors spread their wealth across 3.7 wealth managers
  • 5.1.3. The largest proportion of HNW wealth is now kept in discretionary mandates
  • 5.1.4. A sophisticated digitalproposition is increasingly important to attract HNW investors
• 5.2. Advisory and discretionaryservicesofferopportunities fortraditional wealth managers
  • 5.2.1. The strongest growth in demand will be for discretionary and advisory asset management
  • 5.2.2. HNW investors self-direct to retain control over their assets

6. HNW ASSET ALLOCATION PREFERENCES

• 6.1. A desire for further diversification will drive uptake of alternatives among HNW investors
  • 6.1.1. Equities dominate the typical HNW portfolio, exposing it to greater volatility
  • 6.1.2. Equities constitute almost a quarter of HNW investors’ managed wealth
  • 6.1.3. Continued strength in bond and cash demand suggests caution rules in Singapore
  • 6.1.4. Investment is driven by expected higher income or risk aversion

7. OFFSHOREINVESTMENT DRIVERS AND MOTIVATORS

• 7.1. HNW offshore holdings are close to par with the wider region
  • 7.1.1. Singaporean HNW investors have been consistently offshoring two fifths of their portfolio
  • 7.1.2. Offshore hubs with major stock markets are the main draw
• 7.2. The aim for better returns offshore is linked to local knowledge
  • 7.2.1. The offshore portfolio is more skewed towards equities

8. HNW PRODUCT AND SERVICE DEMAND

• 8.1. HNW investors show strong demand for all advice and planning services, but financial planning is particularly sought after
  • 8.1.2. Tax planning and social investment represent a growing opportunity
• 8.2. Strong market growth will drive demand for all auxiliary services
  • 8.2.1. Demand for secured investment portfolio lending is forecast to increasethe most, as investors are betting on strong stock market performance
  • 8.2.2. Offering philanthropy services will become more important as the next generation takesover

9. APPENDIX

• 9.1. Abbreviations and acronyms
• 9.2. Definitions
  • 9.2.1. Affluent
  • 9.2.2. HNW
  • 9.2.3. Liquid assets
• 9.3. Methodology
  • 9.3.1. GlobalData’s 2019 Global Wealth Managers Survey
  • 9.3.2. Level of agreement calculation
  • 9.3.3. Service level of demand score
  • 9.3.4. Forecast level of demand calculation
• 9.4. Secondary sources