High net worth individuals in the Asia Pacific region have a precise understanding of their wealth aspirations. However, these goals have not yet been implemented in their portfolios, according to a Lombard Odier study.

Only around 20 percent of high net worth individuals (HNWI) in APAC have structured their assets to achieve their aspirations, according to a study by Lombard Odier. This dichotomy between intention and actions was found across four broad themes: personal goals, sustainable investing, private assets and alignment with family goals.

«They know exactly what they want to do with their wealth. However, they haven't implemented that in their portfolios,» said Vincent Magnenat, Lombard Odier’s limited partner, Asia regional head and global head of strategic alliance, at a media briefing attended by finews.asia.

Sustainability, Private Assets

On sustainability, nearly 61 percent of respondents think it is «essential or aspirational» to invest in the space. As expected, younger individuals were more receptive with 32 percent of those under 45 years of age calling sustainability essential, compared to 22 percent of those that were older.

However, most remain cautious with only around 18 percent admitting to actively increasing or planning to increase allocations to sustainable investments. 

On private markets, 58 percent of respondents said they were interested in investing in non-listed companies but only 31 percent have integrated such assets into their portfolios. There is also an education gap with only 26 percent claiming to understand how private assets could help achieve their goals. 

Family Goals

And on family goals, 78 percent of respondents said they understood the importance of building a «long-term common vision» and implementing it together. Nonetheless, 53 percent said there is no common wealth being collectively managed while 41 percent said that only informal and occasional family discussions have been held with no real strategy established. One in four said nothing has been done. 

«There is still a very big gap in terms of the ability to come to a common vision. More than 50 percent of [families] are still a work in progress,» said Francis Liu, CEO, private clients Asia at Lombard Odier.

Lombard Odier published its fourth edition of the APAC HNWI study to understand wealth aspirations and priorities in the region. It is based on a survey of over 460 HNWIs in Singapore, Hong Kong, Japan, Thailand, Philippines, Taiwan and Australia.