Hong Kong has emerged as the top market globally for discretionary portfolio management (DPM), according to a survey conducted by Avaloq. The survey, which included 3,000 investors across six European and Asian markets, found that 61% of investors in Hong Kong utilized DPM services, surpassing Switzerland and Singapore with 59% and 53% respectively. The survey also revealed that equities were the most favored asset class in Hong Kong, preferred by 64% of investors. Similarly, in Singapore, equities were the top choice among 55% of investors [b292b34b].
A new survey of high net worth individuals (HNWs) in Hong Kong and Singapore reveals differences in how they choose to access private market assets and hedge funds. In Hong Kong, HNW investors are more likely to use digital platforms for private market investments, while in Singapore, private bank relationship managers are slightly more popular. The study also found that HNW investors in Singapore prioritize better investment returns, while those in Hong Kong focus on portfolio diversification and succession planning. Both markets show optimism about the 2024 economic outlook, with Singapore investors demonstrating a slightly higher risk appetite. The survey was conducted by YouGov Singapore from February to March 2024 [36b68ce6].
The findings of this survey highlight the growing popularity of DPM services in Hong Kong and the preference for equities as an investment option. The city's robust financial infrastructure and investor-friendly regulations have contributed to its position as a leading market for DPM. With a wide range of investment opportunities and a strong track record, Hong Kong continues to attract investors seeking professional portfolio management services [b292b34b].
It is worth noting that DPM services offer investors the benefit of professional expertise and personalized investment strategies. By delegating investment decisions to experienced portfolio managers, investors can potentially achieve better risk-adjusted returns and diversify their portfolios. This trend towards DPM reflects the increasing demand for tailored investment solutions and the desire for a more hands-off approach to managing investments [b292b34b].
The survey also sheds light on the popularity of equities as an asset class in both Hong Kong and Singapore. This preference for equities may be driven by the potential for higher returns and long-term growth. However, it is important for investors to carefully assess their risk tolerance and investment objectives before allocating a significant portion of their portfolio to equities. Diversification across different asset classes and regular portfolio reviews are key elements of a well-rounded investment strategy [b292b34b].
The survey reveals that HNW investors in Singapore prioritize better investment returns, while those in Hong Kong focus on portfolio diversification and succession planning. This difference in investment preferences may be influenced by various factors, including market conditions, regulatory environment, and investor sentiment. The survey also highlights the optimism about the 2024 economic outlook in both markets, with Singapore investors demonstrating a slightly higher risk appetite. These insights provide valuable information for financial institutions and wealth managers in tailoring their services to meet the specific needs and preferences of HNW individuals in Hong Kong and Singapore [36b68ce6].
In conclusion, Hong Kong's position as the top market for discretionary portfolio management underscores its appeal as a global financial hub. The survey conducted by Avaloq highlights the growing demand for DPM services in the region and the preference for equities as an investment option. The new survey of HNWs in Hong Kong and Singapore reveals differences in investment platform usage, with HNW investors in Hong Kong favoring digital platforms for private market investments, while those in Singapore rely more on private bank relationship managers. These insights provide valuable information for financial institutions and wealth managers in tailoring their services to meet the specific needs and preferences of HNW individuals in both markets [b292b34b] [36b68ce6].