Uncovering how Asia-Pacific’s HNWIs are navigating uncertainty times during the global pandemic

In 2020, the global pandemic crisis transformed our lives, impacting the way we work, live, play and bank. A year later, uncertainty remains prevalent even as the world learns to adapt to the evolving pandemic.

In light of this, Lombard Odier, together with its strategic alliances and close partners in the region, launched a recent study, taking a deeper dive into the changing needs and perspectives HNW families and entrepreneurs in Asia.

The core aim is to understand how investors perceive their environment following two years of the Covid-19 pandemic, the impact the crisis has had on their lives, families and businesses and what they think the post-pandemic future will look like.

The results of this study are distilled in the following whitepaper, The certainty deficit: Navigating unchartered waters.

Methodology

The study was conducted together with Lombard Odier’s network of strategic alliances and close partners across Asia-Pacific.

Conducted between July and September, the study consisted of a set of online questions that covered a wide range of topics including investments, sustainability and family matters.

620 high net worth individuals across Asia-Pacific (based on assets under management and overall wealth) were selected. These participants were domiciled in Australia, Hong Kong, Indonesia, Japan, Singapore, the Philippines, Taiwan, and Thailand.

Key findings

• 44% feel that equity markets are too high and due for a correction, and only 31.4% on average feel that markets will keep rising
• A certain level of nervousness was noted as 1 in 5 respondents acknowledged that they feel lost, with risks that are of most concern to investors almost evenly spread
• 56% of respondents believe that low interest rates are here to stay in the long term, down from 78% in a similar study last year
• 59% of respondents believe sustainability will generate superior returns, compared to 54% of respondents last year
• 72% of respondents are now expecting an accelerated response to climate change, compared to 52% last year
• While 60% of respondents across the eight markets said the crisis has led them to rethink some family related matters, 70% of these same respondents have still not yet implemented any solution for their family set-up
• About 1 in 4 respondents are starting to think about relocation

“The game has changed, and so have the rules. In the midst of uncertainty, we see diverging perspectives and needs between markets, genders, age groups, and profiles of pan-Asia’s wealthy population. One thing is certain – investors are increasingly dependent on their bank for advice and guidance. As a bank that has survived through 225 years and over 40 financial crises, we are that navigator.”

Vincent Magnenat
Limited Partner and Chief Executive Officer, Asia

Jean-François Aboulker, Head of UHNWI Offering, Asia at Lombard Odier, said: “The world economy continues to be disrupted by Covid-19 as many markets remain in a state of increased complexity. It is during such unprecedented times that we must continue to proactively engage, listen, and respond to the needs of our clients and partners to address challenges. Findings from the study show that private banks play a vital role in providing quality advice and expertise to help HNWIs navigate uncertainties.”