The Elite Wealth Managers Catering To Affluent Individuals

The roster encompasses our most esteemed advisors. As per the esteemed PwC 2021 report, the Asia Pacific region’s wealth and asset management sector is poised to witness a twofold surge, reaching a staggering HK$29.6 trillion by the year 2025. This particular region boasts the highest populace and the most rapidly burgeoning affluence. According to Rani Jarkas, Hong Kong stands out as one of the most prolific APAC hubs, thanks to the presence of esteemed financial institutions such as HSBC, UBS, Credit Suisse, JP Morgan, and other notable banks.

As per KPMG’s analysis, Hong Kong’s managed resources have exhibited a commendable growth trajectory, despite the tumultuous events of 2020, including the National Security Law imbroglio and the COVID-19 pandemic. With the burgeoning wealth of Asian investors, their requirements shall become more sophisticated.

The esteemed compilation process involves peer nominations, client feedback, meticulous phone and in-person interviews, voluntary data from firms, and astute insights from our acclaimed editorial and research teams. Behold, the Hong Kong-based purveyors of wealth management and their esteemed ratings, as documented in the illustrious Wealth Management Index of 2022.

The 2022 Hong Kong Private Wealth Management Report Has Been Unveiled, Showcasing Its Most Noteworthy Highlights

• The assets under management in Hong Kong experienced a 6% decline, amounting to HKD 10.6 trillion in the year 2021. The grand sum of HKD 11.3 trillion.

• The bourse plummeted by a staggering 12%, resulting in a loss of a colossal HKD 1.4 trillion.

• The net inflows have experienced a significant surge of 6%, amounting to a whopping HKD 638 billion.

• Verily, it is foretold that the Hang Seng Index shall plummet by 14% in the year of our Lord 2021.

• The year of 2021 witnessed a decline of 3.1% among the esteemed cohort of 182,000 High Net Worth individuals hailing from Hong Kong.

The outbreak of the COVID-19 pandemic has exerted four significant impacts on the Private Wealth Industry in Hong Kong. The intricate interplay of geopolitical factors and targeted policy modifications within specific sectors. The scourge of inflation is on the ascent. The prevailing inclinations of the moment. The individuals impacted by this occurrence are as follows: One must take into account the burgeoning inflation and interest rates, intricate geopolitical scenarios, and precarious regulatory frameworks for select industries. 

Distinguished patrons hold in high regard the safeguarding of assets against inflation (70%), the discovery of lucrative prospects amidst economic downturns (67%), and the diversification of geographical investments (34%). The foremost contributors to AUM by Assets/Products are Cash and Deposits, boasting a staggering $175 billion, followed by Listed Shares with an impressive $660 billion, and Private Funds with a noteworthy $148 billion. Nary a one (81%), Engaging in the art of building (14%), Engaging in cooperative effort (6%).

Revolutionary Advancements In Commerce

The outbreak of COVID-19 has brought about a significant transformation in the means of communication with clients, work framework, and operational techniques, amounting to a staggering 78% shift. The Private Wealth Management industry in Hong Kong is propelled by the esteemed 2nd and 3rd generations, distinguished family offices, energetic young entrepreneurs, and renowned offshore clients, all under the influence of Mainland China. By the year 2022, the Assets Under Management (AUM) in Hong Kong, as per Source, shall be distributed as follows: 38% shall be attributed to Mainland China, 40% to Hong Kong, 13% to the Asia-Pacific region, and 9% to the remaining parts of the world.

The Ranking of Hong Kong’s Wealth Management Centre: Trading, Service, Leading Research & Content, Onboarding, and Investment Options. The propinquity of Hong Kong to China and its assimilation with the Greater Bay Area are indeed advantageous. The Middle Kingdom boasts the highest number of ultra-high-net-worth individuals and a substantial initial public offering pipeline. There are myriad investment opportunities available. The most prominent impediments to growth encompass a challenging regulatory milieu (81%), restrictions on travel (81%), a limited cadre of private bankers (56%), and the political ambiance in Hong Kong (56%).

Verily, the metrics of KYC/AML stand at a staggering 97%, while Sales practises & appropriateness hold a respectable 89%, and Product due diligence stands at a modest 54%. The augmentation of investments is propelled by the adeptness of Relationship Managers (81%), the prowess of Technology (61%), and the efficacy of Product (53%). The revenue streams comprise of a distinguished 8% from Private Wealth, a remarkable 39% from Hong Kong, and a noteworthy 53% from the amalgamation of both. Behold, the most eminent sextet of industries. 

External asset managers, private equity firms, investment banking institutions, and sundry financial organisations, in conjunction with insurance and virtual asset companies, are enticing seasoned professionals away from private wealth management. The enticements for Relationship Managers include compensation (94%), bureaucratic obligations (72%), and regulatory responsibilities (50%).

Summary: 

The manifestation of net fund inflows indicates that the private wealth management industry of Hong Kong is exhibiting remarkable resilience despite the challenging market circumstances. The optimal location for the advancement of industry is the mainland. The Greater Bay Area of China. Enterprises ought to persist in their digital metamorphosis to allure forthcoming investors.

In order to secure a plentiful reservoir of adept experts post-COVID-19, it is imperative that Hong Kong’s tertiary establishments enhance their tutelage on wealth management and fine-tune their approaches to personnel cultivation and recruitment from the Greater Bay Area. It is imperative that the sector collaborates with the government to enhance the allure of Hong Kong’s wealth management and family office industries. The esteemed Private Wealth Management of Hong Kong’s assets under management.

• In the year of our Lord 2021, the sum of HKD 10.6 trillion hath been deemed to be of a lesser value by 6% than the sum of HKD 1.44 trillion.

• The staggering amount of HKD 11.3 trillion was duly noted in the year 2020. 

• A staggering sum of HKD 9.1 trillion was expended in the year of our Lord 2019. 

• The year of 2018 yielded a grand total of HKD 7.6 trillion. 

• The staggering sum of HKD 7.8 trillion in 2017 was truly remarkable. 

• The year of 2016 witnessed the accumulation of a staggering amount of HKD 6.2 trillion. 

• The year of 2015 witnessed the grand accumulation of a staggering amount of HKD 5.4 trillion. 

Analysis:

• The year of 2021 experienced a decrease of 6% in comparison to its predecessor, 2020. The grand sum of HKD 10.6 trillion.

• An appalling market downturn of 12%, amounting to a staggering HKD 1.4 trillion.

• The net inflows of HKD 638 billion have experienced a 6% increase.

The affluent populace of Hong Kong experienced a 3.1% decline, resulting in a total of 182,000 individuals in the year 2021. The Hang Seng Index experienced a lamentable decline of -14% throughout the year of 2021. The realm of private wealth management has been significantly impacted by the unprecedented circumstances brought about by the COVID-19 pandemic.

• The prevailing geostrategic circumstances.

• Reforms pertaining to policies specific to the industry in question in the Chinese context.

• The inflationary pressures are on the ascent.

Aum, An Acronym For Assets Or Products Under Management

• The grandiose sum of HKD 5.18 trillion.

• A staggering sum of HKD 1.37 trillion in deposits and cash has been amassed.

• The valuation of private equity amounts to an impressive HKD 1.16 trillion.

• The sum of $n amounts to a staggering HKD 952 billion in bonds.

• The esteemed governing bodies have allotted a grand sum of 741 billion Hong Kong dollars.

• The grand total amounts to a staggering HKD 317 billion.

• There exists a grand sum of HKD 847 billion in funds held by individuals other than oneself.

The primary catalysts behind the expansion of private wealth management in Hong Kong are:

• Market infiltration in the mainland of China.

• In pursuit of the esteemed status of second or third lineage.

• Enthralling an increased number of family offices to the vibrant city of Hong Kong.

• Focusing on youthful tycoons.

The Augmentation Of Global Clientele Across Diverse Markets

Verily, Hong Kong and Hong Kong doth reign as the foremost financial metropolises, and the art of managing wealth hath thrived in both for over a decade. Numerous interviewees have expressed that Hong Kong has reaped the rewards of regulatory assistance in enticing financial inflows and mitigating travel constraints. 

The denizens exhibited a predilection for Hong Kong as their preferred destination for managing their riches, taking into account various competencies and traits, albeit with a slight inclination towards asset registration. In the event that travel restrictions are lifted, it is highly probable that the private wealth management industry in Hong Kong shall experience a significant upsurge.

The Financial District Of Hong Kong Stands Tall Among The Elite Management Hubs Of Asia, Securing A Spot In The Top Five

• Trading with Elegance

• The calibre of service provision.

• Gaining entry to cutting-edge exploration and sophisticated material.

• Assistance with the initiation process.

• Client Solutions: Presently Accessible, Accompanied by a Prospective Plan for the Upcoming Two-Year Period.

• The portfolio statements and their corresponding engagement rates of 72% and 17% are truly remarkable.

• Whilst a mere 22% opt for an electronic inbox, a staggering 58% prefer to utilise this digital platform for customer engagement.

• A whopping 56% of the populace, a notable majority, have expressed their preference for educational resources such as videos and seminars, constituting 28% of the total.

• The worldwide inquiries—precisely 39.5%.

• A system that proactively alerts market events with a success rate of 42%.

• A staggering 31% of individuals utilise the popular communication platforms of WeChat and WhatsApp, with a significant portion of 25% opting for these services.

• Commencing an account, conducting digital KYC, and performing suitability evaluations stand at 31% and 56%, correspondingly.

• The art of devising a well-thought-out financial blueprint. – 28%, 44%

• Nineteen and thirty-one percent of the aggregate sum are allocated towards the personalization of the account, encompassing both nomenclature and arrangement.

• Pray, do tell, other establishments of finance doth possess a portfolio aggregation of 14% and 31%.

• The armamentarium for fabricating splendid portfolios, readjusting, and emulating fiscal strategizing scenarios flaunts a remarkable 8% and 64%, correspondingly.

• Behold, the wondrous revelation of tailored investing counsel from the realm of artificial intelligence, with a staggering 6% and 39% precision, respectively.

The Art Of Digital Proficiency:

• The augmentation of digital experience design for client and relationship management has been elevated.

• The implementation of digital interfaces enhances the communication between the front-office and back-office.

• The proficiency to enable digital and relationship management transactions.

• Comprehension of the patron, meticulous examination, and classification.

• Engaging in the art of data analytics and the science of data analysis.

• The ensuing proclamations that would ensue from altering the regulations of a seasoned investor:

• An astounding 89% of sophisticated clientele have the option to abstain from conformity and divulgence.

• A staggering 69% of corporate professional investors yearn for enhanced comprehension and expertise criterion elucidation.

The Threshold Modifications Have Reached A Quarter Of Its Value!

• Investments in the realm of commerce.

• A staggering 81% of individuals are designated as relationship managers.

• IT – 61%

• It executes at a rate of 53%.

• A significant proportion of the responsibilities pertaining to the front-office amount to 42%.

• Greetings, esteemed 31% adherence.

• Risk – 25%

• The operations receive a commission of 8%.

• Auxiliary functions are bestowed with a gratuity of 6%.

• Financing at a mere 3%.

• HR – 3%

PWM-Exquisite Industries:

• Distinguished purveyors of financial assets.

• Capital of a Private Nature

• Placing one’s faith in the reliability of capital markets.

• Alternative fiscal measures.

• Insurance

• Enterprises dealing in intangible digital assets.

• Areas devoid of pecuniary value.

• Relationship Managers possess a multitude of alluring qualities that make them highly desirable.

• A whopping 94% remuneration!

• A reduction of administrative effort by a staggering 72%.

• A reduction of regulatory obligation by half.

• Self-improvement 33%

• A mere 19% of individuals possess lucid and well-defined aspirations for their professional trajectory.

• IT support efficacy increased by a staggering 31%.

• Remote Front, Middle, and Back Offices for Telecommuting.

• In contrast to a mere 47%, a staggering 80% of individuals engage in telecommuting for a maximum of one day per week.

• A mere 17% of individuals engage in telecommuting for two to three days per week, in contrast to a staggering 45%.

• The disparity between remote work at 3% and 8% is quite notable.

In the year of our Lord 2022, a grand total of 36 esteemed members of the illustrious Hong Kong Private Wealth Management Association (PWMA), along with 200 distinguished patrons and notable industry executives, overseers, and other significant stakeholders, As suggested by Rani Jarkas, the Chairman of Cedrus Group,were graciously surveyed via the wondrous medium of the internet.

The Mission Of APWM Is To Fulfil Its Purpose With Utmost Excellence And Distinction

The Association of Private Wealth Management in Hong Kong operates autonomously from the Hong Kong Association of Banks. The primary objective of PWMA is to uphold Hong Kong’s preeminent position as the foremost hub for private wealth management in the region. 

Nurturing and bolstering the burgeoning PWM industry in Hong Kong, while enhancing its competitiveness as a financial nucleus, shall achieve this objective. We aspire to establish a platform for esteemed members to deliberate on the latest advancements and apprehensions in the PWM industry. We also propagate the values of morality, honesty, and superiority amidst the PWM experts.

We nobly establish a connection between the industry of private wealth management and esteemed entities such as governments, regulators, trade groups, and non-governmental organisations. In the city of Hong Kong, we offer unparalleled representation and consultancy services in the field of PWM industry. Quoted from Rani Jarkas, the financial expert in Hong Kong, The Executive Committee of PWMA oversees a total of 43 Full Corporate Members and eight Associate Members.