In this first paper in the M&G APAC Wealth Barometer series we explore the network building characteristics and financial literacy of Asia’s wealthiest investors. The report reveals a startling disconnect between the investment knowledge levels that Asia’s HNW individuals think they have and their actual knowledge levels.
- Asia’s wealthy are actively building digital networks. On average, they have 1,826 connections spread across multiple social media sites. The wealthiest investors worth more than USD10 million are the most digitally engaged with 2,243 contacts, more than double the network size of their peers worth less than USD1 million
- The region’s HNWIs know less than they think they do. On average, they give themselves an investment knowledge rating of 6.3 out of 10. Their actual knowledge score is much lower at 4.8.
- Financial literacy in the region is not as high as is often assumed. In a five-question multiple choice survey about some key investment terms, just 8% of investors correctly answered all questions while 78% got a score of fewer than three.
M&G APAC Wealth Barometer
The M&G APAC Wealth Barometer was launched in 2015 to take the temperature of the Asian wealth management market. We considered four research themes that are considered to be vital to wealthy individuals and the way that they develop future decisions on their finances. These four themes are: knowledge, networks, choices, and goals. The key of this research program is to assess the influence of each of these four themes upon a wealthy individual’s approach to investments, engagement with their financial services providers and their association with their wealth on a broader scale.
Read the second paper in the M&G APAC Wealth Barometer series: Chasing Value
Wealth management firms, private banks, asset managers.
This is the first year of running the M&G APAC Wealth Barometer. The report’s findings are based on the views of 1,000 HNWIs from 4 markets: China, Hong Kong, Indonesia and Singapore. They have an average net worth of USD7 million.
This wealth management research was conducted using an online survey. Participants were identified using profiling techniques to determine their likelihood of qualifying as suitable candidates. They were contacted directly by email.
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