Family offices have gained a share of 5.5 percent in the Asia external asset management market, while the percentage is more than 30 percent in Europe and America, says the chief executive of Raffles Family Office, Kwan Chi-man.
He said that family offices in Europe and US markets are more mature than in Asia. Yet Asia will be catch up swiftly to compete with other markets.
Kwan expected the Asia market share to double in the next five years with the rising number of rich people, and within 10 years it would expand to 15 or 20 percent since Asians' wealth growth will be higher than Europeans'.
Both the Hong Kong and Singapore governments are promoting the external asset management industry. In Singapore, the government is hoping that fund management companies will move back to Singapore instead of registering in offshore jurisdictions.
By 2023, the market share of external asset managers will rise as high as 20 percent from less than five percent now, Hong Kong's Private Wealth Management Association said in a report published with KPMG China this week. Assets under management will hit about US$2 trillion (HK$15.6 trillion) by 2023, and non-banks, boutique advisers and wealth technology firms will win market share from traditional managers, the report added.
In July, the Securities and Futures Commission also released a survey saying that family offices and private trusts contributed 11 percent to the total assets under management for private banking and private wealth management business in December last year.