SINGAPORE, Sept 19 (Reuters) - The number of rich Asians
surpassed North Americans for the first time last year, but
their fortunes shrank slightly and still trailed total wealth on
the other side of the Pacific, Capgemini and RBC Wealth
Management said on Wednesday.
The Asia-Pacific region is now home to 3.37 million high net
worth individuals (HNWI) - people with $1 million or more to
invest - compared with 3.35 million in North America and 3.17
million in Europe, the firms said in a report.
Asia's wealthy - 54 percent of whom are concentrated in
Japan, almost 17 percent in China and more than 5 percent in
Australia - saw their total fortunes slip to $10.7 trillion last
year from $10.8 trillion in 2010, and lag North America's $11.4
trillion.
The Asia-Pacific Wealth Report, compiled by Capgemini and
RBC Wealth Management, is closely watched by wealth managers,
high-end property agents, luxury goods retailers and other
businesses for signs of how and where the ultra-wealthy are
investing and how their fortunes are faring.
Many of Asia's rich made their millions and billions through
family businesses and property.
"We don't see massive shifting in the allocations of
portfolio management," Claire Sauvanaud, vice president of
Capgemini Financial Services, told a news conference.
Wealth fell most significantly last year in Hong Kong (20.1
percent) and India (18 percent) and grew most strongly in
Thailand (9.3 percent) and Indonesia (5.3 percent). Growth was
more modest in Japan (2.3 percent) and in China (1.8 percent).
Weakness in Europe and other global trends played their part
in the slight fall in total Asian wealth, the report said, but
the "region grappled with its own economic challenges, including
inflation, slowing growth and capital outflows."
"Nevertheless, Asia-Pacific is expected to continue showing
stronger growth than other regions going forward, and its HNWI
population and wealth are likely to keep expanding," it said.
As part of that, Asia's rich are looking more to offshore
wealth centres close to home, such as Singapore and Hong Kong,
in search of wider access to products and services, tax
advantages and financial confidentiality, the report said.
Challenges for the offshore wealth management industry
include a scarcity of skilled talent, lower profitability, and
the costs of compliance and restrictions on services due to
higher regulatory scrutiny, it said.
Diversity of the backgrounds and expectations of rich
clients means there is more demand for tailored products and a
greater desire to play an active role in managing their
portfolios, the report added.