Wealthy Singaporean Investors Consider Relocating Family Members: Poll, Invest News & Top Stories


SINGAPORE – According to a report released Tuesday, October 26 by Swiss asset manager Lombard Odier, wealthier Singapore-based investors are considering relocating their family members to the Republic or elsewhere than their peers in the region.

These high net worth investors (HNWIs) are also the most concerned about overheating stocks of any regional investor surveyed, with more than half expecting a market correction.

Lombard Odier spoke to 620 HNW people – defined as those with at least $ 1 million in assets to invest in the region – in Singapore, Hong Kong, Japan, Thailand, Philippines, Indonesia , Taiwan and Australia.

He conducted the study to better understand HNWI’s perception of the current Covid-19 environment, the impact of the crisis on their lives, families and businesses, as well as their thoughts on the post-pandemic future. .

About 60% of these Singapore-based investors have rethought their family’s geographic configuration since Covid-19, according to the survey.

Meanwhile, 41 percent are also planning to relocate, the highest percentage in the markets surveyed.

Lombard Odier managing director for Asia, Vincent Magnenat, said the relocation is usually driven by a desire for the family to be together, especially if some members are studying or living abroad during the pandemic.

The relocation could also mean that overseas children return to Singapore to live with the family based here, he added.

“The trend that we are clearly seeing is that we have a number (of investors) in the region moving to Singapore, with the arrangements it has put in place and the setting up of family offices. This is a major trend that we see in the last few years that has accelerated during this time. “

He noted that the environment, security and the financial ecosystem in hubs like Singapore and Hong Kong are very important to investors right now.

Meanwhile, Singaporean investors are also among the most concerned about overheating stock markets, with 52% expecting a correction.

More than half of those surveyed believe inflation will be higher and more than half also plan to change their portfolio performance, 23% adjusting it up and 28% down.

This likely represents those who wish to continue building their exposure to equities and those who fear a market correction, according to the report.

“In this context, it has never been more important for a Singaporean investor to diversify into a global portfolio than now,” he added.

“The banks’ responsibility is to allow Singaporean investors to access a global offer, in order to be able to ensure this diversification.

Mr. Jean-François Aboulker, Head of Ultra-Net Individual Offer for Asia at Lombard Odier Asia, said: “The results of the study show that amid the unpredictability of the current environment, there is an increase in the divergence of views and needs of HNWIs, and they are increasingly turning to banks for advice, particularly in individual markets.

“The race for net zero also adds more diversity to investment opportunities, while wealth and succession planning remains even more relevant than usual.”

In that vein, 80% of Singaporean investors are also increasingly looking to leverage their banks’ expertise and mandate offering in order to navigate market uncertainty and volatility, according to the report.

But one area where wealthy Singaporean investors are lagging behind is sustainability, according to the report.

Only 49 percent of respondents from Singapore said they believe green investments can deliver higher returns, compared to the regional average of 59 percent.

About a third of respondents said they have already increased sustainability factors in their portfolio, which is the second lowest percentage among countries in the region.

According to the report, only half of those who have not made such portfolio changes intend to do so in the future.

He said: “There is a strong push for sustainable investments in Singapore, which as a financial hub is highly developed in terms of identifying and implementing sustainability issues.

“Therefore, investors are evaluating a bank’s ability to deliver sustainability more as a commodity, (rather than) a must.”

In contrast, investors in countries like Indonesia that do not have such easy access to durable solutions cost more. These countries could also suffer more visible damage from climate change and pollution, making durable solutions highly valued.

“So there is a long way to go for Singaporean investors to increase their belief in sustainability,” the report says.

“At the same time, it presents a unique opportunity for banks to proactively engage with investors, educate and highlight the unique investment opportunity that sustainability represents. “

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