Advisers are anticipating an average of 12.4% growth on a one-year basis and annualised growth of 13.5% over the next three years.
However, with $84trn trillion set to pass from one generation to the next during the following two decades, they are also feeling the pressure, with nearly half (48%) saying that it poses an existential threat to their business.
Natixis IM surveyed 650 financial professionals across Asia, providing insight into how they are adapting their business to market fluctuations.
The most significant challenge facing Asian advisers is keeping current assets on the book with almost half (49%) increasingly worried they will not retain assets from clients’ spouses or next-generation heirs. Indeed, 40% say that they have already lost significant assets through generational attrition.
As a result, financial advisers are making retention and prospecting a key priority in anticipation of the “great wealth transfer”.
Advisers in Asia report retaining client relationships 72% of the time when a spouse inherits. However, when client’s children inherit, they’re successful less than half of the time (44%).
To help boost retention, eight in ten say they are regularly discussing family wealth planning with clients as well as offering a range of ancillary services including trusts and estate planning (56%) personalised services such as career advice and networking (42%) and consolidating managed accounts (32%).
Yet, despite concerns about wealth transfer and asset retention, nearly half of Asian advisers are not targeting those aged 18–34 (46%). Instead, when it comes to prospecting, seven in ten say they are focused on those between the ages of 35 – 49, while 82% are focused on those between age 50 and 59.
