More than half, or 55 percent, of Singaporean wealthy investors, said they are concerned with wealth creation, compared to almost 70 percent in favor of wealth preservation in Hong Kong.
Singapore and Hong Kong investors take differing approaches when it comes to financial planning, according to a new survey commissioned by wealth management firm Quilter International.
The survey, conducted in January 2020 by Aon among HNWIs with at least $3 million in investible assets, noted that the majority of Singaporean HNW investors hold traditional asset classes such as stocks (95 percent), fixed income assets (86 percent), and real estate (77 percent).
It also noted stark differences between Singapore and Hong Kong HNW investors: the former are more likely to invest in private equity (70 percent) compared to just under half (49 percent) of Hong Kong HNWs. Singapore HNW investors are also twice as likely to hold commodities such as gold and precious metal (63 percent) compared to just 31 percent of Hong Kong HNWs.
Different Environment
Quilter explained the differences as a result of more policies and infrastructures to encourage entrepreneurship in Singapore, and the higher number of entrepreneurs and the lower average age of investors in the city-state, which increases the likelihood of aggressive investment strategies.
«Regardless of wealth strategy, any HNW investor’s portfolio should still reflect their long-term succession planning goals. As these types of investors are typically internationally mobile with assets potentially spread across multiple jurisdictions, financial advice is key to make sure that their portfolios cater to their needs and wants while still mitigating against potential tax liabilities,» Ian Kloss, Singapore CEO, Quilter International, said.
