Financial adviser training, growth, boosting product offerings and rebuilding client trust are the top areas of focus for wealth management executives across the Asia-Pacific region including Australia, according to new research.
"Adviser training is likely to be one way in which firms try to position themselves to regain client trust and confidence," the Asia-Pacific wealth report released yesterday by Merrill Lynch Global Wealth Management and Capgemini said.
"Among responding executives, 55 per cent said adviser training is among the top three issues requiring resolution in 2009, making it the most frequently chosen imperative."
Approximately 45 per cent of executives are focused on their firm's growth strategy and on boosting product and service offerings.
Only 40 per cent of executives are focused on rebuilding client trust while there is less emphasis on areas including service quality and operational efficiency, risk management and adviser recruitment and retention.
Additionally, the report found the Asia-Pacific's population of high net worth individuals (HNWIs), those with net assets of at least US$1 million excluding their primary residence and consumables, tumbled 14.2 per cent to 2.4 million in 2008.
The combined wealth of the region's HNWIs dropped 22.3 per cent to US$7.4 trillion.
The HNWI population in Australia slipped 23.4 per cent to 129,200 in 2008, ranking the country third behind Japan and China. HNWI wealth in Australia plummeted 30 per cent to US$380 billion.
Asia-Pacific HNWIs increased their asset allocation to simpler and safer investments last year to preserve wealth, the report found.
HNWIs boosted their allocation to cash-based investments to 29 per cent in 2008 from 25 per cent in 2007.
In Australia, 41 per cent of HNWIs' assets were in real estate and 19 per cent were in cash and bank deposits, the report said.
Local HNWIs are projected to boost their allocations to equity markets by 4 per cent and fixed income by 3 per cent in 2010, while their holdings of real estate are expected to fall by 10 per cent, it said.
