Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026 PDF Free Download
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Copyright @ GlobalData PLC. All rights reserved.
Reproduction of part or all of this contents without permission is prohibited.
Copyright @ GlobalData PLC. All rights reserved.
Reproduction of part or all of this contents without permission is prohibited.
Asia-Pacific Wealth
Management: Market
Sizing and Opportunities
to 2026
This report analyzes Asia-Pacific’s wealth and retail savings and
investments markets. It details overall affluent market size and
provides analysis of the factors driving liquid asset growth across
deposits, mutual funds, equities, and bonds.
May 27, 2022
2
Contents
Executive Summary
3
The Asia
-Pacific Wealth Market
4
Investor Insight
7
Resident Savings and Investments
14
Appendix
20
3
Executive Summary
The number of HNW investors will grow
at a healthy pace over the coming years Deposits will continue to dominate the
retail savings and investments market
HNW investors have the highest offshore
investments compared to other investor classes
The affluent population (including HNW and mass affluent individuals) accounted for nearly 5% of the total adult population in the Asia-Pacific region in 2021e. Despite a
lower share compared to other regions, the segment held 86.8% of the region’s total onshore liquid assets, with mass affluents alone holding more than half. The affluent
segment in the region remained resilient amid the COVID-19 pandemic, growing by 5.3% in 2021e.
The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities compared to emerging affluent and mass
market individuals, who are generally just expanding out of retail deposits.
Asia-Pacific’s retail savings and investments market reached a value of $48.6 trillion in 2021e after recording a compound annual growth rate (CAGR) of 8.6% over 2016–21.
GlobalData forecasts this positive performance to continue with a CAGR of 7.3% over 2022f–26f, with growth predominantly driven by equities and mutual fund holdings.
Asia-Pacific’s affluent segment accounted for
around 5% of the total adult population in
2021e. The segment has almost doubled in
size over the past decade, increasing from
81.6 million people in 2011 to 143.4 million in
2021e. Between 2016 and 2021, liquid wealth
held by affluent investors recorded a CAGR of
8.3%, reflecting the positive performance of
asset classes such as deposits and equities.
Over 2022f–26f, this wealth is expected to
record a CAGR of 7.3%.
Offshore investments remain a core part of the
asset allocation strategy for Asia-Pacific HNW
individuals, with more than 40% of HNW
wealth held outside the country in 2021. An
increased need for diversification due to rising
market volatility and rising local taxes are the
leading drivers for offshore investments. Mass
affluent investors in the region have significant
offshore investments compared to emerging
affluent and mass market investors. An
expectation of better returns as well as access
to better investment opportunities are key
factors encouraging offshore investment.
Retail investors in Asia-Pacific allocate 69.2% of
their liquid assets to deposits. During the crisis,
investors preferred to hold the majority of their
wealth in safe-haven assets such as deposits in
order to avoid significant losses from
investments in riskier asset classes. Equities
remain in second place, accounting for 19.5% of
retail savings and investments in 2021e. This
trend is anticipated to continue. After a stellar
performance in 2020, registering year-on-year
growth of 29.8%, overall retail equity holdings’
growth is expected to slow down over 2022f–
26f.
Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026
The Asia-Pacific Wealth Market
5
Asia-Pacific residents segmented by asset band
The affluent population collectively accounted for almost X% of the region’s adult population in 2021e
Mass affluent: 4.44% HNW: 0.15%
Source: GlobalData’s Wealth Markets Analytics
Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026
Appendix
7
Methodology
Global Wealth Model
The principle mechanism of our Global Wealth Model is to size the wealth market for each country on the basis of knowledge of two key components: the distribution of
liquid assets across the adult population, which is then applied to the size of the total retail savings and investments markets for each country in any given year. The Global
Wealth Model is therefore essentially a set of sub-models, utilizing this same base methodology but adjusted for regional variances in data availability and region-specific
characteristics.
Main sub-model
We have developed a main wealth model consolidating distribution for countries in which detailed wealth and income distribution data is available. This is then applied to
the known size of the retail savings and investments market to establish the size of the HNW, mass affluent, and non-affluent market, which contains both the mass
market and emerging affluent segments.
Country sub-model
For many countries worldwide more limited data on the distribution of income and wealth is available. The country sub-models therefore use the main sub-model as a
reference point. Specifically, the country sub-models take the wealth distribution from the main sub-model as a reference point and skew this data to establish a
distribution of liquid assets for the modeled country. The main sub-model wealth distribution is skewed according to a series of multipliers, such as comparisons of
population, savings, and investment holdings per capita, and Gini indices/income distributions. Once a distribution of liquid assets has been established for the modeled
country, this is then applied to the known size of the retail savings and investments market of that country to produce the wealth numbers.
Forecasting methodology
Our wealth forecasts essentially employ the same base methodology as for our historic wealth figures, except that the data is modeled on the basis of projected values
rather than established historical values. The main sub-model thus serves as a base, with wealth forecasts based on regression analysis of macroeconomic fundamentals,
stock market index, and long- and short-term interest rates against the historic wealth market numbers applied to forecasts of such factors.
8
Secondary sources
•Cornell SC Johnson College of Business (2022) Asia’s Growth Consolidates in 2022, But with Major Risks [accessed May 2022]
•The Business Times (2021) Endowus crosses S$1b in AUM in less than two years of full launch [accessed May 2022]
•The Economic Times (20221) Asian markets rebound from virus-led sell-off [accessed May 2022]
•International Capital Markets Association (2022) The Asian International Bond Markets: Development and Trends [accessed May 2022]
•IMF (2021) Navigating Waves of New Variants [accessed May 2022]
•IMF (2022) Asia Growth Slows on Commodities, Covid and Rising Interest Rates [accessed May 2022]
•World Bank (2022) East Asia and Pacific Economic Recovery Faces Risks from the War in Ukraine, U.S. Monetary Tightening, and China Slowdown [accessed May 2022]
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