The population of high-net-worth individuals (HNWIs) in Asia is growing, in terms of numbers and wealth held; it is also evolving as generations today have different needs and interests. To gauge how legacy planning may also be evolving, The Economist Intelligence Unit studied two groups in particular across Hong Kong, mainland China and Singapore—“global citizens” and “business successors”. Research highlighted the following key findings:

Younger HNWIs are increasingly global, living outside home countries for educational, professional or lifestyle reasons, but how much time they spend in different countries, and whether they hold residency and investments in different jurisdictions, has implications that add complexity to legacy planning. Younger generations often wish to take family businesses in new directions, starting new divisions or building philanthropic arms. Family businesses do not need a family member running them in order to survive but they do need a succession plan. How, or even if, extended family are involved in a family business becomes more complicated with each generation, especially as marriages and divorces alter family structures. HNWIs typically look to diversify assets; younger generations tend to seek growth in their legacy planning rather than wealth preservation alone.

Our thanks are due to the following individuals (listed alphabetically by surname) for providing their time and insight:

Download the full report to find out more about high-net-worth individuals' perspectives on legacy planning.

In some instances the impact of this shift will be shaped by local factors, such as demographic changes. In other instances this shift will reflect shared characteristics, as demonstrated by the greater popularity of overseas investing among younger high-net-worth individuals (HNWIs) brought up in an era of globalisation. Whatever the drivers, the landscape of wealth is changing—from local to global, and from one focused on returns to one founded on personal values.

Despite rising economic concerns and a tradition of investor home bias in large parts of the world, the new landscape of wealth appears less interested in borders. According to a survey commissioned by RBC Wealth Management and conducted by The Economist Intelligence Unit (EIU), younger HNWIs are substantially more enthusiastic about foreign investing. The U.S. is a particularly high-profile example of a country where a long-standing preference for investments in local markets appears set to be transformed.

Click the thumbnail below to download the global executive summary. 

Read additional articles from The EIU with detail on the shifting landscape of global wealth in Asia, Canada, the U.S. and UK on RBC's website.

 

 

To better understand the opportunities and challenges in developing a fintech business in seven ASEAN markets, The Economist Intelligence Unit conducted wide-ranging desk research supplemented by seven in-depth interviews with executives in Australia and ASEAN.

Download report and watch video interview to learn more.