This interesting article by Rupert Walker for Fund Selector Asia may be of interest to my partners and clients. The findings of the Swiss bank’s study reveal a big gap between intentions and actions among Apac’s wealthy families.
Here is a section:
Wealth preservation and risk aversion are the main concerns of high net-worth individuals (HNWIs) in the region, according to Lombard Odier’s 2023 Apac HNWIs Study.
“Findings revealed a dichotomy between HNWIs’ intentions and actions across the themes of achieving personal goals, sustainable investing, private assets, and aligning family goals,” according to the wealth manager.
Although 76.1% of the 460 HNWIs (people with at least USD1m of investible assets) in Singapore, Hong Kong, Japan, Thailand, the Philippines, Taiwan, and Australia said the personal goals rank high when approaching their wealth, only a fifth agreed that they have structured their assets to achieve those goals. Similarly, only a fifth of respondents agreed that they have achieved their goals.
Amid market volatility, more than half (56.4%) of Apac HNWIs find it essential to protect their family and ensure that they are well taken care of.
So, for example, regarding sustainable investing, there seems to be more talk than practice among the rich. While 60.9% of respondents said it is essential or aspirational to invest in sustainability, and even more (77%) agreed that incorporating sustainability factors can help deliver superior returns, a mere 18.4% said they “have actively increased or plan to increase the proportion of sustainability investments”.
“Conversations with our clients showed that there is a clear gap between goals and actions. In this volatile market, HNWIs are relooking at their fundamental values that drive their investment needs,” said Francis Liu, CEO, Private Clients Asia at Lombard Odier, in a statement. “Investors are rethinking their approach to risk and asset allocations for diversification and growth.”