Table of Contents

Overview 1
Catalyst 1
Summary 1
Methodology 1
Executive Summary 2
The wealth of Singaporean investors suffered at the hands of the global financial crisis 2
HNWs become more defensive at the start of 2009, however as economic conditions continue to improve the expectation is that they will return to real estate investments and equities 2
While personal relationships and increased face to face contact from wealth managers are vital at this time, wealthy clients are also viewing financial stability as a key provider attribute 2
Table of Contents 4
Table of Figures 5
Table of Tables 6
Singapore's Wealth 7
Singapore produced strong growth in the lead up to the financial crisis, however 2008 was a tough time for investors 7
Labor market conditions weakened for Singaporean workers in 2008 7
Entrepreneurs struggled to grow their wealth as business conditions deteriorated in Singapore 8
Events in the global economy sparked selling pressure in the local stock market 9
Singaporean house prices declined for the first time in four years in Q3 2008 10
The wealth data in 2009 11
The Singaporean HNW Investor 12
Singaporean HNWs became more defensive in 2009, reducing their property fund exposure and investing heavily in cash 12
Cash and near cash represent an important asset class for Singaporean HNWs 12
Wealth management service implication: provide clients with regular market commentary and offer forward-looking opinions on the Singaporean and offshore investment markets 14
Innovative example from the US: Pyxis mobile is providing a complete mobile communications interface to allow wealth managers to contact their clients while on the move 14
Singaporean HNWs are expected to increase their investment in real estate funds and reduce their exposure to cash 14
Wealth management service implication: help investors position themselves for the global economic recovery 16
Innovative example from Singapore: SG Private Banking creates global centre of expertise for real estate products 17
Singaporean HNWs have superior knowledge of investments, however client contact is still vitally important 17
HNWs are risk seeking individuals and exhibit higher-than-average knowledge of financial products 17
Wealth management service implication: providers should be focused on furthering their clients' financial education 18
Innovative example from Switzerland: UBS is investing resources in its clients 19
Innovative example from China: Standard Chartered aims to educate second generation wealth holders 19
Singaporean HNWs place high importance on personal relationships when doing business, however they are less demanding for face to face relationship management than the regional average 20
Wealth management service implication: wealth managers need to increase contact with their clients through the most appropriate avenues 21
Innovative example in Singapore: Standard Chartered enhances relationship management access and convenience for its wealthy clients 21
The global downturn has shifted the demands of Singaporean investors 22
Due to uncertainty in the markets, the majority of HNWs want investments that they can easily understand 22
Wealth management service implication: wealth managers must look to develop simple, transparent products to preserve their clients' wealth 24
Innovative global example: Deutsche Bank has been listing innovative exchange traded funds around the world 24
The Singaporean Wealth Manager's View 26
Over the next two years, HNWs will be demanding protected products, advisory asset management and exchange traded funds 26
The majority of HNW clients will be demanding capital protected products and advisory asset management over the next two years 26
Wealth managers expect to focus their resources on foreign currency investments over the next two years 28
While personal relationships are still key in HNWs' choice of wealth managers, they are focusing more on the financial stability of providers in today's market 30
Financial stability is very important to HNWs in Singapore 30
Singaporean wealth managers see personal relationships and technology as their biggest strength 32
Offering financial planning is seen as the best method for increasing share of wallet 34
Financial planning has increased in importance this year 34
Singaporean wealth managers have less frequent contact with their clients compared to the Asia Pacific average 36
Singaporean wealth managers contact their clients over the phone less frequently than their Asia Pacific counterparts 36
Singaporean wealth managers are behind their Asia Pacific counterparts at getting in front of their clients 38
The overall performance of the portfolio and specific news events are what HNWs most want to talk about when they speak to their wealth manager 39
Appendix 41
The drivers of growth in the wealthy population 41
Income growth (combined with inflation, changes in GDP by sector, household savings rates and debt levels) 41
Investment returns (market capitalization, interest rates and bond yields) 41
The following measures are not, in themselves, drivers of wealthy population growth 41
Market capitalization 41
GDP 41
The following measures are not drivers of wealthy population growth except under very restricted circumstances 41
Primary residence value growth 41
Inheritance 42
Methodology 42
Wealth Management Market Leaders Survey 2009 42
Global Wealth Model 42
The UK sub-model 42
Global sub model (for all other countries) 42
Forecasting methodology 43
Continuous refinement to the understanding of liquid wealth distribution 43
Datamonitor's wealth numbers compared with other wealth numbers 43
Bibliography 44
Definitions 44
Asia Pacific 44
Further reading 44
Ask the analyst 45
Datamonitor consulting 45
Disclaimer 45
List of Tables
Table 1: What proportion of your HNWs' portfolios is allocated to the following five asset classes? 13
Table 2: HNWs' portfolio allocation now versus in 2 years' time 16
Table 3: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 18
Table 4: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat low, 3 = somewhat high, 4 = very high) 21
Table 5: What are HNWs demanding today? 24
Table 6: Over the next two years, how much demand do you expect from HNWs for the following product areas? 28
Table 7: What product areas will your wealth management service focus most resources on in the next 2 years? 30
Table 8: What will determine HNWs' choice of wealth management service over the next two years? 32
Table 9: What are your company's biggest strengths and weaknesses today? 34
Table 10: What is the most effective means of increasing share of wallet today? 36
Table 11: On average, how often do your relationship managers speak by phone to each HNW client? 37
Table 12: On average, how often do your relationship managers speak in person to each HNW client? 39
Table 13: When speaking with clients, what do they most want to talk about today? 40
List of Figures
Figure 1: The global financial crisis dramatically impacted on the Singaporean labor market 8
Figure 2: Business confidence suffered in 2008 as global economic conditions impacted on the local market 9
Figure 3: Like most developed economies in the Asia Pacific region, Singapore's stock market declined sharply in 2008 10
Figure 4: The Singaporean property market boom cooled off in 2008 11
Figure 5: The majority of HNW wealth in Singapore is invested in the 'cash or near cash' asset category, with this accounting for 30% of all investments 13
Figure 6: Wealthy Singaporean investors are set to increase their exposure to real estate funds over the next two years 16
Figure 7: HNW investors in Singapore have a higher risk appetite than the average Asia Pacific HNW investor 18
Figure 8: HNW clients in Singapore place more importance on having personal relationships with their wealth manager than the average Asia Pacific HNW investor 20
Figure 9: In Singapore, HNW investors are demanding simple, transparent investments 23
Figure 10: Over the next two years, the greatest demand amongst HNW investors in Singapore will be for capital protected products with 90% of HNW investors demanding this category of product 27
Figure 11: Wealth managers in Singapore will be focusing most of their resources on foreign currency investments over the next two years 29
Figure 12: HNW investors in Singapore will be most influenced by a provider's financial stability when selecting a wealth manager over the next two years 31
Figure 13: Personal relationships were viewed as the greatest strength of Singaporean wealth managers 33
Figure 14: The best way for wealth managers in Singapore to increase share of wallet is to offer financial planning 35
Figure 15: In Singapore the Wealth Management relationship managers speak to clients by phone approximately once a month 37
Figure 16: The vast majority of relationship managers speak to clients in person once a quarter 38
Figure 17: The majority of clients in Singapore want to speak to their wealth manager about performance of their overall portfolio 40