Family Offices – Asia’s New Wealth‑Management Powerhouse
Why the Surge? It’s all about control
Rich Chinese and other Asian elites are craving tighter reins on their fortunes. The result? A whopping jump in private investment vehicles—usually called family offices—sprouting across Hong Kong and Singapore.
Key Figures Striking the Numbers
- Before 2018 there were under 500 family offices in Asia, dwarfed by the thousands that exist in Western markets.
- Asia Pacific boasted 814 billionaires by the end of 2017, a sizable 38 % of the world’s ultra‑rich.
- China alone churned out two new billionaires each week—thanks, in part, to a record‑breaking $27.7 billion raised in Hong Kong IPOs during 2017.
- Private banks estimate a 15 % jump in new family office setups during the first 9 months of this year.
- Global wealth migration is projected at $3.4 trillion over the next 20 years, feeding the demand curve.
Beyond Just Investment Now a Full‑Service Hub
Family offices aren’t just about buying stocks and bonds. They’re evolving into:
- Dispute‑resolution centers.
- Robust succession planners for family‑owned enterprises.
- Personal education & travel concierge services.
Clients now get the comfort of a team comprising bankers, fund managers, lawyers, and tax whizzes—all in one place.
Banking Giants are In Black‑Side Strategies
Global private banks are rolling up their sleeves to ride this wave.
Citi Private Bank
Stephen Campbell says Citi now serves over 1,500 family offices worldwide. “The growth is dramatic,” he notes, adding that a new Hong Kong hire is on the way for its Asia Pacific team.
Credit Suisse
Bernard Fung will launch an Asia‑Pacific family office unit in Hong Kong by Q1 2019, joining its Singapore hub. “North Asian demand is surging,” he asserts.
HSBC Private Bank
Ivan Wong expects offshore Chinese wealth to keep climbing, making family offices a multi‑year trend. “By 2022 we’ll onboard 700 staff—many focused on family office clients,” he explains.
Local Institutions
- Bank of Singapore is bolstering its team with six new hires to support independent asset managers and family offices in Hong Kong.
UBS’s Silence
UBS declined to comment on the shift.
Incentives: The Sweetener Who can resist tax breaks?
Both Hong Kong and Singapore are offering generous perks.
- Singapore’s Monetary Authority reports quadrupled family office numbers from 2015 to 2017, and funds can benefit from a “fund tax exemption scheme” if they meet criteria.
- Hong Kong is unveiling a new structure that promises “more flexibility and choices” for fund setup, including family‑office‑managed funds.
- Other incentives: tax waivers, streamlined registration, and an overall friendly regulatory tone.
What It Means for the Region
The rise of family offices is reshaping how wealth is stewarded in Asia: businesses now stage successors from the hearth, wealth diversification becomes a family affair, and the local economies reel in spill‑over benefits from the infrastructure and jobs created by these sophisticated investment trusts.
As the ultra‑rich connoisseurs usher in a new era of tailored, hands‑on wealth management, the tone of the market is unmistakable: in Hong Kong and Singapore, your money’s home is no longer just a bank account—it’s an entire ecosystem.
