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Asia-Pacific's High Net Worth Individuals Increasingly Turning
to Region's Offshore Wealth Centers
Asia-Pacific Wealth Report 2012 Finds Talent Gap Biggest
Hurdle to Regional Expansion by Wealth Management Firms
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Asia-Pacific Wealth Report 2012
Singapore, Hong Kong, Paris, September 19, 2012 -
Asia-Pacific offshore wealth centers, led by Hong Kong and
Singapore, are becoming increasingly favored destinations
by high net worth individuals (HNWIs1)
finds the Asia-Pacific Wealth Report 2012, released today
by Capgemini and RBC Wealth Management.
The past few years have presented a major growth opportunity
for Asia-Pacific offshore centers as the region has seen its
HNWI population increase to 3.37 million in 2011, making it
home to the largest HNWI population in the world. The Asia-Pacific
Wealth Report 2012 finds that this increase in population
has helped contribute to the growth of Singapore and Hong
Kong as centers of offshore wealth. These centers are attractive
to Asia-Pacific HNWIs because of their proximity, cultural
and linguistic alignment, proactive and transparent regulatory
authorities, and the access they provide to investments in
developing but highly regulated Asian markets such as India
and China. However, the biggest driver for the growth of these
offshore centers is the diversification of country risk prevalent
in many markets in Asia-Pacific.
"At present, the perceived benefits offered by Singapore
overall slightly outweigh those of Hong Kong, but the authorities
in Hong Kong are taking steps to bridge any gaps. Firms have
a significant opportunity to leverage the benefits both offshore
centers offer HNWIs," said Jean Lassignardie, Corporate
Vice President, Head of Sales and Marketing, Capgemini Global
Financial Services. "To be successful long term and satisfy
all stakeholders, be they clients, regulators or the businesses
themselves, firms need to continue their open dialogue with
regulators to better anticipate and implement changes in regulatory
requirements and drive market developments."
1HNWI are
defined as those having investable assets of US$1 million
or more, excluding primary residence, collectibles, consumables
and consumer durables. HNWIs are categorized into three wealth
bands; US$1 million to US$5 million in investable assets (so-called
"millionaires next door"); those with US$5 million
to US$30 million (so-called "mid-tier millionaires");
and those with US$30 million or more ("Ultra-HNWIs).
Shortage of Skilled Talent Remains Biggest Challenge
As offshore wealth centers in Asia-Pacific grow, wealth
management firms face a number of challenges in order effectively
to meet client needs. A scarcity of skilled talent is identified
by the report as the most pressing issue for firms operating
in the region, highlighting that a shortage of experienced
wealth managers could undermine the capability of firms to
effectively serve large numbers of clients. The report also
shows that firms need to invest in additional training to
maintain relevance with and demonstrate value to clients in
order to attract additional assets.
"Clients often prefer to invest in markets closer to
home, making Singapore and Hong Kong naturally attractive
centers for those in the Asia-Pacific region," said George
Lewis, Group Head, RBC Wealth Management. "However, HNWIs
have a variety of locations around the globe where they can
book their assets. While Singapore and Hong Kong have the
advantage of proximity, their future growth as offshore wealth
centers will be dependent on their ability to offer full service
wealth management advice and service underpinned by a transparent
and compliant regulatory environment."
Ingredients for Growth: Local Markets and Core Competencies
In order to thrive in Asia-Pacific offshore wealth centers,
the report finds that wealth management firms will need to
be deliberate in their decision-making about how best to establish
and expand their presence in these markets. It will be important
for firms to focus on and invest in several key areas, including
advisory, legal and fiduciary expertise, product offerings,
risk and compliance measures, and IT infrastructure. At the
same time, as wealth management firms plot a path to growth
in Asia-Pacific offshore centers, they will need to leverage
the strengths of the jurisdictions in which they are operating,
while making sure not to compromise their own core competencies.
The Asia-Pacific Wealth Report 2012
The Asia-Pacific Wealth Report, now in its seventh year, is
a product of Capgemini and RBC Wealth Management working to
better understand the needs of the high net worth marketplace.
Accounting for 91.5 percent of the region's gross domestic
product, the report focuses on 10 core countries and territories:
Australia, China, Hong Kong, India, Indonesia, Thailand, Japan,
Singapore, South Korea, and Taiwan. To download the full report,
please visit www.capgemini.com/apwr12
About Capgemini
With around 120,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology
and outsourcing services. The Group reported 2011 global revenues
of
EUR 9.7 billion. Together with its clients, Capgemini creates
and delivers business and technology solutions that fit their
needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working,
the Collaborative Business ExperienceTM, and draws on Rightshore®,
its worldwide delivery model. Learn more about us at www.capgemini.com.
About Capgemini's Financial Services
Global Business Unit
Capgemini's Global Financial Services Business Unit brings
deep industry experience, innovative service offerings and
next generation global delivery to serve the financial services
industry. With a network of 21,000 professionals serving over
900 clients worldwide, Capgemini collaborates with leading
banks, insurers and capital market companies to deliver business
and IT solutions and thought leadership which create tangible
value.
Visit us at: www.capgemini.com/financialservices
Rightshore® is a trademark belonging
to Capgemini
About RBC Wealth Management
RBC
Wealth Management is one of the world's top 10 largest
wealth managers*. RBC Wealth Management directly serves affluent,
high-net-worth and ultra high net worth clients in Canada,
the United States, Latin America, Europe, the Middle East,
Africa and Asia with a full suite of banking, investment,
trust and other wealth management solutions. The business
also provides asset management products and services directly
and through RBC and third-party distributors to institutional
and individual clients, through its RBC Global Asset Management
business (which includes BlueBay Asset Management). RBC Wealth
Management has more than C$562 billion of assets under administration,
more than C$324 billion of assets under management and approximately
4,300 financial consultants, advisors, private bankers and
trust officers.
About RBC
Royal
Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name RBC. We are Canada's largest
bank as measured by assets and market capitalization, and
are among the largest banks in the world, based on market
capitalization. We are one of North America's leading diversified
financial services companies, and provide personal and commercial
banking, wealth management services, insurance, corporate
and investment banking and investor services on a global basis.
We employ approximately 80,000 full- and part-time employees
who serve more than 15 million personal, business, public
sector and institutional clients through offices in Canada,
the U.S. and 51 other countries. For more information, please
visit rbc.com.
*Scorpio Partnership Global Private Banking KPI Benchmark
2012. In the United States, securities are offered through
RBC Wealth Management, a division of RBC Capital Markets,
LLC, a wholly owned subsidiary of Royal Bank of Canada. Member
NYSE/FINRA/SIPC.
RBC Wealth Management Contacts:
Claire Holland,
(North America), +1 416 974 2239
Paul French (EMEA),
+44 (0) 20 7002 2013
Capgemini contacts:
Stephen Bosk,
(North America), Weber Shandwick for Capgemini, +1 212 445
8491
Marta Saez (EMEA),
Weber Shandwick for Capgemini
+44 20 7067 0524
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