Valuable Resources
Knight Frank’s Lord Andrew Hay was recently in the country to launch The Wealth Report, possibly one of the world’s most comprehensive sources for investment information, writes Marga Manlapig
It is, for all intents and purposes, an annual report with an edge.
The Wealth Report, an annual publication developed and released by the London-based global real-estate consultancy Knight Frank, reflects US$ 1 trillion in private investments in real estate and presents a global perspective on prime property and investment. Since 2007, it has served as a valuable source of information for Knight Frank and its offices worldwide, as well as its client base of hig h net-worth individuals.
Lord Andrew Hay, FRICS (Fellow of the Royal Institute of Chartered Surveyors), a member of Knight Frank’s group executive board and chief backer of The Wealth Report, was in the Philippines to launch the publication in M anila via the firm’s local partner Santos Knight Frank, the country’s commercial real-estate leader which helped pioneer the growth of the BPO industry in the Philippines.
“For us, it’s really exciting,” Hay enthusiastically declares about the launch. “2018 is the first time that we have presented The Wealth Report in the Philippines and I am ex cited to be here to support [Santos Knight Frank Chairman and CEO] Rick Santos and his 1,200-strong staff across 11 different business lines.”
Santos, for his part, feels that the relationship with the global Knight Frank network is one that is well-aligned with his own firm’s long-term goals. In the forefront of the Philippine real-estate industry for 24 years, Santos rebranded in January 2017 in partnership with Knight Frank, cementing further its reputation as an industry leader.
“It’s been fantastic,” Santos enthuses about the working relationship. “With regard to our company and the culture of Knight Frank, it’s been very consistent with all the core values and the vision that we have for the business.” He notes that the mix of tal ent and investment knowledgeability is a good fit for the booming Philippine corporate scene. “[The firm] has been absolutely perfect for the Philippine market and is also perfect for our business model here.” Hay agrees with this and remarks that launching
The Wealth Report in the Philippines shows that the country is an increasingly important market. “It’s one that will be increasingly important over the next 10 years,” he says.
Now on its 12th edition, The Wealth Report has become a valuable resource on the issues regarding the global economy and those who create wealth around the world. Along with explaining the flow of wealth—both private and institutional—across the globe, it also offers insights on the impact of g eopolitical shifts on different economies, along with trends in luxury spending, private investments, and up-to-theminute topics such as Blockchain technology and the growth of the world’s super-rich populations.
“It is informative not just for our clients, but us as well, as it tells us where to position ourselves on their behalf,” Hay says of The Wealth Report.
“It’s a rich piece of research that is, essentially, on the pulse of where wealth is flowing. We receive research from around the world that I find most enlightening and we interpret a lot of that. We predict the trends for the next year; indeed, even for the next 10 years in the 100 most important markets throughout the globe.”
The 2018 issue of The Wealth Report has brought together the latest market intelligence along with particularly sharp insights into a number of issues affecting wealth in the context of the global economy. Interestingly enough, in light of recent events in different regions, one particular issue that will have significant impact on the growth and distribution of global wealth is the inter-generational conflict alluded to by noted British historian and social commentator Niall Ferguson in the article “Reformation 2.0.”
“[Ferguson predicts] that the biggest challenge in the world right now is inter-generational conflict wherein the ageing rich population comes against a young population who can’t afford housing and many other basics,” Hay says about the issue. Based on Ferguson’s analysis, he believes that the number of hig h net-worth individuals is expected to grow exponentially in areas like the Philippines, where nearly 70 per cent of the population is und er the age of 30.
“Between 2016 and 2026, growth of ultra-high net-worth individuals worldwide is predicted to be 43 per cent,” Hay explains. “But where the growth is happening has changed. In Asia, the number of UHNWIs is expected to grow by 91 per cent within that period. This is wher e it’s happening; strategically; [the region] has become very important. I think there will still be a l ot of outbound investments that will be created here in order to either diversify or de- risk.”
Keeping this in mind, Hay is highly optimistic about economic growth in the Philippines, as well as the increase of high net-worth individuals in the country.
“High net-worth individuals in the Philippines— those with assets totalling more than US$ 5 million—are forecast to almost double in number between now and 2022,” he explains. “This is the second-highest level of growth in Asia after China.”
With an affluent class growing in numbers over the next several years, the coming of The Wealth
Report to our shores may be seen as a harbinger of things to come: investments-savvy Filipinos capable of creating wealth and fostering growth in an increasingly progressive nation.