Asia’s wealthy turn cautious in 2019 as market still volatile
KUCHING: Sixty-three per cent of global respondents said the wealth of their ultra-high-net-worth individual (UHNWI) clients increased during 2018, according to the Attitudes Survey launched in the Knight Frank Wealth Report.
Just over 20 per cent reported no change, while 16 per cent said it had fallen. The survey is based on global responses provided by 600 private bankers and wealth advisers who between them manage over US$ 3 trillion of wealth for UHNWI clients.
In Asia, the numbers showed a slightly more subdued growth, with 58 per cent reporting an increase, 23 per cent recording a fall and 18 per cent who said there had been no change.
UHNWIs in Australia saw the highest rise in wealth in 2018 according to their advisers, with 93 per cent of survey respondents reporting an increase in their clients’ fortunes. More than half of the Malaysian respondents (59 per cent) cited an increase in client wealth.
Malaysia wealth advisers were optimistic, with 78 per cent of them expecting their clients’ wealth to grow in 2019, although they expect continued market volatility to pose potential challenges to wealth creation and wealth protection.
In Malaysia, wealth managers are significantly more optimistic about their clients’ prospect for growing and preserving wealth in 2019 as compared to 2018.
According to the Attitudes Survey, 22 per cent of wealth managers felt that the political and economic environment within the country would make it easier for clients to create and protect wealth in 2019, as opposed to merely 11 per cent in 2018.
This places Malaysia to be
It is interesting to know that wealth managers in Malaysia felt that the 2019 political and economic environment within the country will make it easier for the UHNWI to create and protect wealth.
almost on par with India and Philippines, which are the topperforming markets in Asia.
“It is interesting to know that wealth managers in Malaysia felt that the 2019 political and economic environment within the country will make it easier for the UHNWI to create and protect wealth.
“This has to be associated with the change of Malaysia government since May 2018, and the confidence among UHNWI in the present government,” Knight Frank Malaysia managing director Sarkunan Subramaniam said.
Commenting on the current investment environment, UOB Malaysia’s head of Private Bank Dill Choo Chooi Lin said that despite slowing global growth, opportunities across equity and fixed income asset classes remain but investors need to stay vigilant and to rebalance their investment portfolios to help manage risk.
“In the first quarter of 2019, global equities rebounded by 10 per cent, recovering most of their losses from the fourth quarter of 2018. Meanwhile, the clarity from the US Federal Reserve (US Fed) on taking a pause to rate increases raises the attractiveness of fixed income investments,” Choo said.
“However, with markedly slower global economic growth and a challenging corporate business environment, investors should be discerning in their security selection and ensure a thorough understanding of the portfolio companies, including the factors that influence their longterm growth such as asset quality, earning and revenue growth and its ability to outperform industry peers. Turn to Page B2, Col 4
Sarkunan Subramaniam, Knight Frank Malaysia managing director