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Endowus Private Wealth Insights:
HNW Investor
Sentiment
2024 Report
Uncover new insights into today's private wealth management industry, as well as the preferences and barriers faced by High-Net-Worth (HNW) investors across Asia’s key financial hubs, Hong Kong and Singapore.
3 in 5
are expecting to strategically expand their private market strategies and hedge funds
1 in 2
selected digital wealth platforms as their preferred mode of investing in private market strategies and hedge funds
43%
cited fragmented investing experience as a barrier to increasing allocations to private market strategies and hedge funds
1 in 3
are concerned with the lack of greater portfolio diversification and not knowing how to achieve this
Introduction
Introduction
The Endowus Private Wealth Insights: HNW Investor Sentiment 2024 report collates the sentiments and perspectives from close to 500* High-Net-Worth (HNW) investors in Hong Kong and Singapore. Our study delves into their preferences and challenges regarding private market investments such as private credit, private equity, private real estate and other financial alternatives like hedge funds.
Findings from the study uncovered an intention to shift more assets into private market strategies and hedge funds, as well as real assets alternatives, as HNW investors demand better returns with less correlation to public markets. However, challenges such as managing their private and public assets across platforms, a lack of transparent, publicly available fund information, and a lack of high-quality products persist.
This report offers valuable insights to investors and the broader private wealth industry alike, highlighting the untapped potential in private market strategies and hedge funds, and the opportunity to focus on improvements across strategies and service quality to better serve the needs of HNW investors.
Findings from the study uncovered an intention to shift more assets into private market strategies and hedge funds, as well as real assets alternatives, as HNW investors demand better returns with less correlation to public markets. However, challenges such as managing their private and public assets across platforms, a lack of transparent, publicly available fund information, and a lack of high-quality products persist.
This report offers valuable insights to investors and the broader private wealth industry alike, highlighting the untapped potential in private market strategies and hedge funds, and the opportunity to focus on improvements across strategies and service quality to better serve the needs of HNW investors.
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*The study was conducted by YouGov Singapore in Q1 2024, surveying 492 HNW individuals across Hong Kong (n=226) and Singapore (n=266). Hong Kong respondents qualified as HNW based on meeting at least one of the following: (1) Annual income of at least HKD 1.8M and above, (2) Personal investable assets of HKD 12M or more, (3) Financial assets of HKD 6M or more. 58% of total respondents (n=285) reported verified professional or accredited investor status across both markets.
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Key Insights From Hong Kong Respondents
3 in 5
are expecting to strategically expand their private market strategies and hedge funds
HNW investors in Hong Kong are seeking greater diversification in their existing portfolios, with private market strategies and hedge funds coming into focus — particularly for the advantage of these asset classes in providing less correlation to public markets, and presumably better returns in the long-term.
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1 in 2
selected digital wealth platforms as their preferred mode of investing in private market strategies and hedge funds
More than half of HNW investors in Hong Kong selected digital platforms as their preferred mode of access for private market strategies and hedge fund investments.
In comparison, less than 30% of the respondents indicated a preference towards using priority and private banking services through a relationship manager, reflecting a burgeoning shift towards self-directedness or self-managed portfolios among HNW investors here.
In comparison, less than 30% of the respondents indicated a preference towards using priority and private banking services through a relationship manager, reflecting a burgeoning shift towards self-directedness or self-managed portfolios among HNW investors here.
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43%
cited fragmented investing experience as a barrier to increasing allocations to private market strategies and hedge funds
Platform fragmentation further complicates the investment process for Hong Kong HNW investors, as public and private market investments are often managed by different wealth managers and on multiple platforms.
This points towards the need for a holistic platform to seamlessly offer a wide array of assets, from traditional markets to the more exclusive private market strategies and hedge funds, so as to streamline and simplify the investing experience.
This points towards the need for a holistic platform to seamlessly offer a wide array of assets, from traditional markets to the more exclusive private market strategies and hedge funds, so as to streamline and simplify the investing experience.
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1 in 3
are concerned with the lack of greater portfolio diversification and not knowing how to achieve this
HNW investors in Hong Kong are prioritising greater diversification in their existing portfolios, with private market strategies and hedge funds as an ideal complement to their public assets. But the intricacies of these alternative asset classes demand specialised knowledge — investors should scrutinise the suitability of any product or fund recommendations, which may be driven by sales commissions, creating a clear conflict of interest.
This underscores the importance of seeking advice that is not ridden with misalignment, but rendered based on the suitability of an investor’s wealth objectives.
This underscores the importance of seeking advice that is not ridden with misalignment, but rendered based on the suitability of an investor’s wealth objectives.
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Download the full report
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Alternatively, email us at privatewealth.hk@endowus.com or schedule an appointment here.
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