Asia's great wealth transfer
Implications for the wealth management community
In partnership with
Estimates that as much as $5trn of family-owned assets are to be transitioned to the next generation within a decade.
However, only 4% of Asia's wealth management community surveyed by Jersey Finance and Hubbis believe the industry is ready for this transfer of wealth, while 37% believe the industry is poorly prepared.
to transition in
the next 10 years
of respondent believe the industry is ready
of respondent believe the industry is poorly prepared
of respondents believe that families are getting better organised
respondents believe Asian clients are more willing to engage in succession planning
Reasons to be optimistic
While not one single reply indicated the wealthy and uber-rich clients and families in Asia are truly prepared with regard to their legacy planning, 61% of respondents indicated these families are gradually becoming better organised.
Meanwhile, some seven out of ten respondents stated private clients in Asia are more willing than in the past to engage with the concept and practice of professionalising their legacy and succession planning.
of respondents said clients value wealth preservation and family harmony
of respondents said less than half of their clients have properly organised succession plans
Remarkably well prepared
Getting prepared gradually
No real need to prepare
Rather badly prepared
While 86% of those surveyed said wealth preservation and the maintenance of family harmony are the two key objectives for wealthy families in organising more structured legacy and succession planning, some 77% said less than half of their Asian private clients have properly organised succession planning in place.
of respondents said effective wealth management outcomes result from intergenerational cooperation
Most common hurdles to families introducing successful legacy planning
First generations not willing to relinquish information and control
Family not willing to pay for expert advice
Poor intra-family communication
Lack of time and focus to organise affairs properly
First generations not willing to consider other generations' needs
Generations working together
The survey found that younger generations have a major task in the solution, with some 73% of respondents stating the most effective outcomes for wealth management are achieved when multi-generations work together.
The great wealth transfer
In this short video, discover how wealth management experts in Asia can best prepare themselves for what is being called 'the great wealth transfer'.
Joe Moynihan, chief executive officer, Jersey Finance
The Jersey Finance view
“We know that the younger generations of
Asian wealthy families are very often Western-educated, digital natives, and open-minded
on adopting a more professional structured
approach to family wealth, frequently desiring
to focus on either their new businesses, their lifestyles, or even social impact pursuits.”
“As a result, we know that Asia’s wealth management community and, indeed, the
global wealth management ecosystem, must adapt their products, solutions and services to cater to the needs and expectations of these younger generations.”
Read the full whitepaper
In developing the White Paper and Survey, Jersey Finance and Hubbis conducted two extensive 'virtual', confidential, thought leadership discussions in Singapore and Hong Kong among leading wealth management professionals and experts in Asia to identify appropriate questions and vital issues. They then layered on top of these findings an extensive survey among wealth management experts operating in Asia.
The survey collates replies from experts across the length and breadth of the Asian wealth management community, drawing on their immense experience. In total, the opinions of 145 wealth management professionals and experts were gathered.