Wealth Management in Singapore 2011

Introduction

Singapore has taken its place as one of the leading wealth management centers of the world, making it key market for any major player. The domestic market, though small, is characterized by rapid growth in HNW clients and their AUM. Its highly competitive nature makes an in-depth understanding of the local market dynamics, competitive landscape and client needs critical for success.

Features and benefits

* Build your customer targeting strategy using in-depth HNW demographics and needs analysis based on Datamonitor's annual Global Wealth Manager Survey
* Assess your competition through detailed profiles of notable players, including the customer targeting, marketing and product strategies they employ.
* Size your potential client base using Datamonitor's proprietary data, presenting the number of affluent individuals by liquid asset band to 2014.

Highlights

Growth in the value of the assets held onshore by HNW Singaporeans is forecast to be strong over the next four years. Much of the growth in asset values will be underpinned by the global economic recovery and the enduring strength of the regional economy.
The HNW market in Singapore is dominated by male entrepreneurs or business owners aged 31–50, in contrast to the wider Asia Pacific region which has a more evenly distributed age and gender profile. In terms of life stages these individuals are also very likely to be coping with the demands of family and at-home children.
The market in Singapore has become crowded as foreign banks from elsewhere in Asia as well as further afield in Europe and North America seek to use the country as a base from which to gain exposure to Asian growth and rising affluence.

Your key questions answered

* What strategies are my competition employing to win and keep affluent clients?
* What is the potential market for a private banking or mass affluent proposition in Singapore?
* What are the most effective acquisition techniques that I should use to build up my client base?
* What products and services will have the strongest client demand going forward?
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Executive Summary
The Singapore HNW wealth market is racing ahead, fueled by strong local and regional economies
There are more than 25,000 high net worth individuals in Singapore
HNW Singaporeans will see their wealth grow by an average of 15% each year from 2010 to 2014
Strong real GDP growth in Singapore and around the region has fueled the rising affluence
Affluent Singaporeans are concentrated among middle-aged male entrepreneurs
Singaporean HNW individuals have the most wealth invested in equities and corporate debt, making them fully exposed to any improvements in the global economy
Looking forward two years, strong demand for advisory asset management is expected from HNW clients
The wealth market in Singapore contains most of the leading players from around the world as well strong local banks
The Singapore wealth management market is predominantly asset management-led offshore and bank-led onshore
Many leading private wealth managers already have a presence in the city and are upgrading their operations
Being able to offer exposure to the Chinese yuan has become a key competitive advantage for wealth managers
OVERVIEW
Catalyst
Summary
Methodology
SIZING AND FORECASTING THE AFFLUENT MARKET IN SINGAPORE
Introduction
Key macroeconomic data for Singapore
Macroeconomic trends and performance
GDP
Inflation
Long-term and short-term interest rates
Stock market capitalization
Income distribution
Regulation of wealth management in Singapore
Key institutions and players
Recent legislation and regulatory changes
Sizing the onshore affluent population
The number of affluent individuals has grown at an impressive rate since the credit crunch
Value of affluent assets in Singapore
Forecasting the onshore affluent market in Singapore
The number of affluent individuals will rise steadily, supported by a buoyant economy
The projected value of assets will grow throughout the forecast period
The offshore market of Singapore is many times the size of its onshore counterpart
The offshore market in Singapore is attractive for many wealthy investors from around the world
Offshore AUM are sourced primarily from neighboring countries, making a regional network an asset
HIGH NET WORTH CUSTOMERS IN SINGAPORE
Most Singaporean HNWs are middle-aged male entrepreneurs
Most HNW individuals in Singapore are in the prime earning years of their life
Women account for only a minor proportion of HNWs in Singapore
The bulk of HNWs have amassed their fortunes through entrepreneurship
Singaporean HNWs typically invest in cash and equities
Wealth managers in Singapore will need to work at getting clients out of cash and into broad asset class terms
Detailed asset class analysis shows that Singaporean HNWs have the most wealth invested in equities
Within two years, equities will see the biggest positive reallocation in Singapore HNW portfolios, so it is critical that managers are able to give their clients cheap and efficient exposure to global stock markets
There is a high demand for financial planning among Singaporean HNWs, but credit cards are set to become increasingly important
HNWs in Singapore have access to many services not commonly offered elsewhere in the region
Singapore HNWs currently have a strong appetite for execution-only services, but advisory asset management will grow
Looking forward two years, strong demand for advisory asset management is expected
Developing a plan and a clear picture of a client's finances will be very much in demand among HNWs
Singapore HNWs are financially sophisticated and tend to stick with their wealth partners
HNW clients in Singapore are more open to offshore investments than their peers across the region
A high premium is placed on personal relationships, making face-to-face meetings important
New entrants to the Singapore market can buy a client base by poaching more established banks' talent
Singaporean HNWs tend to spread their wealth among multiple managers
Many Singapore wealth managers will be responsible for only 10% of a client's AUM but can obtain up to 50%
Customer referrals are the most effective means of customer acquisition
Wealth managers need to remember that what works in the rest of Asia Pacific does not necessarily fly in Singapore
COMPETITOR DEVELOPMENTS IN SINGAPORE WEALTH MANAGEMENT
The business models of Singapore wealth managers are mixed
The Singapore wealth management market is predominantly asset management-led offshore, and bank-led onshore
The leading retail banks in the country generally compete in the Singapore onshore market as well
Competitor trends
Significant competitor developments
All wealth managers in Singapore have been scrambling to offer Chinese yuan renminbi products
Key competitors in Singapore wealth management
Competitor overview
Competitor profiles
Citibank
DBS
OCBC/Bank of Singapore
Standard Chartered
UOB
APPENDIX
Supplementary data
Definitions
High net worth (HNW)
Liquid assets
Mass affluent
Measures of growth
Onshore
Methodology
Overall methodology
Global Wealth Model
Global Wealth Managers Survey 2011
Selected bibliography
[Missing title]
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
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