Wealth in Indonesia: HNW Investors 2017

2017-06-09
Price :
Published : Jun-2017
No. of Pages : 46

Wealth in Indonesia: HNW Investors 2017

Summary

HNW investors of Indonesia have predominately accumulated their wealth through business interests, with property and manufacturing key wealth generators. Investors show strong demand for advisory mandates, but a significant proportion of wealth remains unmanaged. Defensive investments dominate the average portfolio, and while this is not expected to change we do forecast a decrease in demand for cash, while demand for fixed income is expected to rise. Tax planning is most sought after, but demand for pension and financial planning is on the rise.

Critical success factors in HNW Investors market
- Capitalize on the untapped potential: A large pot of Indonesian HNW wealth remains unmanaged. An excellent track record, a wide range of financial products, and a focus on the convenience aspect of professional advice will be key to seizing this opportunity.
- Match the growing demand for tax planning: Indonesia’s tax amnesty is driving demand for tax planning in the country. Wealth managers lacking in-house expertise should consider partnerships.
- Build up a strong corporate offering: A significant proportion of HNW wealth continues to be self-directed; with the main reason being the noteworthy proportion of investments is non-financial assets, such as HNW investors’ own business ventures. Wealth managers with a strong corporate offering will be able to get their hands on these assets.

Key points to note –
- Indonesian HNW individuals tend to be older than their regional peers.
- The expat opportunity is less developed than in Asia Pacific, but wealth managers reaching out to HNW expats from South Korea or Singapore will find them to be a lucrative target market.
- The country’s HNW investors engage multiple wealth management firms, which is symptomatic of a relatively underdeveloped and risk-averse wealth market.
- A lack of expertise and time are the top drivers for Indonesian HNW investors to seek professional advice, while non-financial investments are the main reason they self-direct.
- HNW demand for equity, fixed income, and alternatives is forecast to rise over the next 12 months, while demand for cash and near-cash products is expected to decrease.
- A multi-service strategy – encompassing tax, financial, and pension planning – is becoming increasingly important as demand for these services is on the rise.

The report “Wealth in Indonesia: HNW Investors 2017″ analyzes the investment preferences and portfolio allocation of Indonesian HNW investors.

Specifically the report provides the following –
- Profiles the average Indonesian HNW investor in terms of their demographics and analyzes the expat opportunity in Indonesia.
- Analyzes which wealth management mandates are preferred among Indonesian HNW investors and how demand will develop looking forward.
- Examines the allocation of Indonesian HNW investors’ portfolios into different asset classes and how this is expected to develop in the future.
- Analyzes product and service demand among Indonesian HNW investors.

Company mentioned in this report: Bank International Indonesia

Scope

- Indonesian HNW individuals tend to be older than their regional peers.
- The expat opportunity is less developed than in Asia Pacific, but wealth managers reaching out to HNW expats from South Korea or Singapore will find them to be a lucrative target market.
- The country’s HNW investors engage multiple wealth management firms, which is symptomatic of a relatively underdeveloped and risk-averse wealth market.
- A lack of expertise and time are the top drivers for Indonesian HNW investors to seek professional advice, while non-financial investments are the main reason they self-direct.
- HNW demand for equity, fixed income, and alternatives is forecast to rise over the next 12 months, while demand for cash and near-cash products is expected to decrease.
- A multi-service strategy – encompassing tax, financial, and pension planning – is becoming increasingly important as demand for these services is on the rise.

Reasons to buy

- Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
- Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors’ drivers for seeking investment advice vs self-directing.
- Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.
- Develop your proposition to match the product and service demand expressed by Indonesian HNW investors and react proactively to forecasted changes in demand.

Filed in: Banking & Finance, Wealth Management
Publisher : GlobalData
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