Greater China wealthy offspring prefer advisers, pick reputable private banks

The next generation of affluent people in Greater China say financial planners are their most preferred source for advice, according to the latest research from Barclays Wealth.

The study found 74% of wealthy offspring in the region said the reason for using financial advisers was to increase their wealth, while 52% expected to obtain more investment ideas. Thirty-nine percent of respondents said using advisers with the aim preventing wealth from eroding and to balance their riskier investments. The research indicated 74% of wealthy offspring in the region said financial advisers, parents and relatives were their most preferred source for advice.

Meanwhile, good local and regional presence, brand reputations were the top criteria when choosing for a private bank of which 91% of respondents agreed. It also found 87% respondents said online banking facilities would be one of the reasons to consider using a private bank.

In contrast, 57% of them said they were least concerned about whether the bank has a long history in business. Forty-five percent also said they were least concerned about the bank’s innovative products.

In addition, most of the next generation of affluent people invested in equities with the study finding 83% purchased stocks, followed by 65% for fixed income and 61% for property and mutual funds respectively. It found almost half of respondents plan to retain their investment in equities and properties in the future.

Peter Brooks, behavioural finance analyst, Asia Pacific at Barclays Wealth, said: “For many next generation leaders in Asia, preparation for future family responsibilities is not simply about managing the finances of the family business, but it is also about taking care of future generations.”

Forty-eight interviews were conducted with wealthy offspring in Hong Kong, Taiwan and China during H2 2010, whose family wealth reached $45m or above.


This article first appeared in Professional Adviser Hong Kong.


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