RANI JARKAS

The Top Wealth Managers For Wealthy Individuals

The list contains our most highly regarded consultants from Rani Jarkas. Asia Pacific wealth and asset management will double to HK$29.6 trillion by 2025, according to the PwC 2021 report. The region has the most inhabitants and the highest rate of personal wealth growth. Large banks such as HSBC, UBS, Credit Suisse, JP Morgan, and others make Hong Kong one of the most productive APAC centres.

KPMG reports that Hong Kong’s managed resources have increased despite the rioting over the National Security Law in 2020 and the COVID-19 pandemic. As Asian investors become more prosperous, their requirements will evolve. Wealth managers serve HNW clients with investable assets of at least HK$1 million and UHNW clients with at least HK$30 million.

We annually rank the top private client advisers and service providers for HNW and UHNW clients. Peer nominations, client feedback, in-depth phone and in-person interviews, data voluntarily provided by firms, and insightful information from Rani Jarkas esteemed editorial and research teams constitute the prestigious compilation process. 

Wealth Managers And Ratings From The Wealth Management Index 2022

• In 2021, Hong Kong AUM decreased by 6% to HKD 10.6 trillion. 11.3 trillion Hong Kong dollars in total.

• The market lost HKD 1.4 trillion, or 12%.

• The net inflows increased by 6% to HK$638 billion.

• The Hang Seng Index will decline 14% in 2021.

• In 2021, there were 182,000 fewer Hong Kong High Net Worth individuals, a 3.1% decrease.

The COVID-19 pandemic has four significant consequences for the Hong Kong Private Wealth Industry. Changes in geopolitics and sector-specific policies. Inflation is on the rise. Current fashions. Affected Customers: Certain industries must consider rising inflation and interest rates, complex geopolitics, and insecure regulatory environments. 

Prioritised by esteemed clients are inflation protection (70%), discovering profitable opportunities during economic downturns (67%), and geographic diversification (34%). Cash and Deposits ($175 billion), Listed Shares ($660 billion), and Private Funds ($148 billion) dominate AUM by Assets/Products. None (81%), building (14%), and cooperation (6%).

Commercial Innovations:

The COVID-19 epidemic altered client communication channels, organisational structures, and operational procedures by 78%. Mainland China drives the Hong-Kong Private Wealth Management sector, the esteemed 2nd and 3rd generations, distinguished family offices in Hong-Kong, vibrant vitezents, renowned offshore clients. Hong Kong’s AUM by Source in 2022 will consist of 38% Mainland China, 40% Hong Kong, 13% APAC, and 9% the rest of the globe.

Ranking of Hong Kong’s Wealth Management Centre: Trading, Service, Leading Research & Content, Onboarding, and Investment Options. The proximity of Hong Kong to China and its integration with the Greater Bay Area are both advantageous. China has the greatest number of ultra-high-net-worth individuals and a robust pipeline of IPOs. Numerous investment options. A stringent regulatory environment (81%), travel restrictions (81%), a limited pool of private bankers (56%) and Hong Kong’s political climate (56%) are the greatest growth obstacles.

KYC/AML (97%), Sales Practices and appropriateness (89%), and Product Due Diligence (54%) are the three most important aspects of compliance. Relationship Managers (81%), Technology (60%), and Product (53%) enhance investments. 39% from Hong Kong, 8% from Private Wealth, and 53% from both. Top six industries External asset managers, private equity firms, investment banking institutions, and other financial institutions, as well as insurance and virtual asset companies, are attracting seasoned employees away from private wealth management. Relationship Managers are drawn to compensation (94%), administrative burden (72%), and regulatory obligation (50%).

In Summary: 

Net fund inflows demonstrate the resilience of Hong Kong’s private wealth management sector despite challenging market conditions. Industrial growth is greatest in Mainland. Greater Bay Area, China. To attract future investors, businesses must maintain their digital transformation efforts.

Hong Kong’s tertiary institutions must improve wealth management education and refine personnel development and recruitment strategies from the Greater Bay Area to ensure a sufficient pool of competent professionals after COVID-19. The sector must collaborate with the government to increase the attractiveness of wealth management and family offices in Hong Kong. 

Private Wealth Management’s Assets Under Management In Hong Kong

• HKD 10.6 trillion was 6% less valuable than HKD 1.44 trillion in 2021.

• HKD 11.3 trillion was recorded in 2020. 

• In 2019, HKD 9.1 trillion was spent. 

• The value of 2018 was HKD 7.6 trillion. 

• The 7.8 trillion HKD in 2017 was astounding. 

• In 2016, HKD 6.2 trillion was amassed. 

• HKD 5.4 trillion were collected in 2015. 

The Analysis:

• 2020 was 6% more expensive than 2021. Totaling 10,6 trillion Hong Kong dollars.

• A market decline of 12 percent, totaling HKD 1.4 trillion.

• Inflows of HKD 638 billion increased by 6%.

• In 2021, Hong Kong’s high-net-worth population decreased by 3.1% to 182,000. In 2021, the Hang Seng Index declined by -14%.

• COVID-19 has had a significant impact on wealth management.

• Geostrategic circumstances

• Chinese industry-specific policy reforms.

• Inflation is on the rise.

AUM: Assets Or Products Administered

• (5,18 quadrillion)

• 1.37 trillion HKD in deposits and currency on hand.

• The value of private equity is HKD 1.16 trillion.

• $n is 952 billion Hong Kong dollars worth of bonds.

• The government has allocated 741 billion Hong Kong dollars.

• (317 billion HKD)

• Other individuals control HKD 847 billion in assets.

The Primary Growth Drivers For Private Wealth Management Industry Are

• China’s mainland commercial expansion.

• attempting to establish a second or third lineage.

• attracting more family offices to Hong Kong’s thriving economy.

• Concentrating on youthful business titans.

• Expanding international customer base in numerous markets.

“Hong Kong and Hong Kong are the leading financial metropolises, and wealth management has flourished in both for more than a decade.” According to numerous interviewees, Hong Kong has benefited from regulatory assistance in attracting financial inflows and alleviating travel restrictions. Participants  favored Hong Kong for wealth administration across a variety of abilities and characteristics, with a minor preference for asset registration. If travel restrictions are abolished, the private wealth management industry in Hong Kong may flourish.

Hong Kong’s Financial Is Among The Top 5 Management Centers In Asia

• Elegant Commerce

• Service excellence.

• Gaining access to cutting-edge research and content.

• Onboarding assistance.

• Available Client Solutions, with a Future Roadmap for the Next Biennium.

• The engagement rates of portfolio statements, 72%, and 17% are astounding.

• 58% use this digital platform for consumer interaction, compared to 22% who use an electronic mailbox.

• 56%, with 28% for educational resources such as videos and seminars.

• Half of global investigations, 39%.

• A 42% proactive alerting system for market events.

• 31% and 25% respectively use WeChat and WhatsApp.

• Account creation, digital KYC, and suitability tests account for 31% and 56%, respectively.

• Strategic budgeting preparation. – 28%, 44%
• 19% and 31% of the total cost is allocated to account customization, which includes name and layout.

• Other financial institutions have portfolio aggregation rates of 14% and 31%.

• 8% and 64% of the arsenal is dedicated to constructing spectacular portfolios, rebalancing, and simulating financial planning scenarios, respectively.

• 6% to 39% of personalized investment advice is provided by artificial intelligence.

Digital Abilities:

• The design of digital client and relationship manager experiences has increased.

• Digital interfaces enhance communication between the front and back offices.

• Facilitation of digital and RM transactions.

• Client comprehension, exhaustive research, and classification.

• Data analytics and data science practices.

Modifications To The Rules Of An Experienced Investor By Rani Jarkas:

• An astounding 89% of upscale customers can opt out of appropriateness and disclosure.

• 69% of corporate professional investors desire enhanced interpretation of knowledge and experience criteria.

• 25% threshold adjustments!

• Industrial Investments:

• 81% of the population are relationship administrators.

• IT – 61%

• It performs 53% as expected.

• 42 percent of front-office tasks.

• Dear, 31% conformity.

• Risk – 25%

• Operations receive 8% of the budget.

• The auxiliaries receive 6%.

• Financing of 3%.

• HR – 3%

PWM-Alluring Sectors:

• External portfolio administrators

• Private Equity

• relies on the capital markets.

• Budgetary alternatives

• Insurance coverage

• Companies with digital intangible assets.

• Non-financial domains

Relationship Managers Are Appealing Due To The Following Factors:

• 94% remuneration!

• 72% fewer administrative tasks.

• 50% fewer regulatory requirements.

• Personal improvement 33%

• 19% have defined career objectives.

• 31% greater efficiency in IT support.

• Front, Middle, and Back Offices at Home.

• Contrary to 47%, 80% of individuals labor remotely 0-1 days per week.

• Compared to 45%, 17% telecommutes two to three days per week.

• Work from home 3% vs. 8%

Online surveys were conducted in 2022 with 36 out of 42 renowned members of the Hong Kong Private Wealth Management Association (PWMA), 200 prominent patrons, and prominent industry executives, overseers, and other significant stakeholders.

APWM’s Purpose

The Hong Kong Association of Banks is separate from the Hong Kong Association of Private Wealth Management. PWMA’s primary objective is to establish Hong Kong as the foremost private wealth management center in the region. This will be achieved by fostering and supporting Hong Kong’s PWM sector’s development and competitiveness as a financial hub. We intend to establish a forum in which members can discuss PWM sector developments and concerns. We also promote excellence, ethics, and integrity among PWM professionals.

We connect the private wealth management industry with reputable entities such as governments, regulators, and trade groups. We offer unparalleled PWM industry representation and consulting in Hong Kong. The 12-member Executive Committee of the PWMA governs 43 Full Corporate Members and 8 Associate Members.