The Asian wealth management landscape

Asia is Julius Baer’s second home market and a powerhouse of global wealth creation. The region’s pool of investable assets held by High Net Worth Individuals (HNWI) is on track to reach USD 14.5 trillion by 2020, representing growth of 160% in the current decade. As a client of Julius Baer, you can benefit from Julius Baer’s specialised focus on Asia through the annual Wealth Report.

This year's Julius Baer Wealth Report: Asia

The sixth annual Wealth Report: Asia shows that on an aggregate basis and in USD terms, the Julius Baer Lifestyle index fell by 1.68%, led by a 8.3% correction in property prices on a regional basis. That said, over half of the items in our basket still posted gains for 2016. This demonstrates that for a broad range of luxury goods and services, High Net Worth Individuals (HNWI) in Asia face rising lifestyle costs that continue to outpace conventional inflation.

The report also features in depth economic outlook assessments for the key economies in Asia, reinforcing Julius Baer’s long held view that the region will remain the key driver of wealth on a global basis.

Living in luxury in Asia: The Julius Baer Lifestyle Index

The Julius Baer Lifestyle Index 2016 compares 21 goods and services across 11 Asian cities, including Hong Kong, Singapore, Shanghai, Mumbai, Taipei, Jakarta, Manila, Seoul, Kuala Lumpur, Bangkok and Tokyo. This year, an additional item has been added to the basket to represent the twin trends of a rising middle class and ageing populations: a high-end skincare product, retailing at over USD 1000 per unit.

Since its launch in 2011, the Julius Baer Lifestyle Index has trended lower, while broadly sustaining the gap over conventional inflation. For 2016, a mixed picture emerges whereby 13 luxury items, such as watch, ladies’ shoes, travel costs and men’s suit, posted gains while eight items, including wine and jewellery managed average single digit drops. These variations are overshadowed by the property market across Asia which is clearly coming off the boil.

Shanghai is once again the most expensive city overall in the 2016 study, while Singapore has overtaken Hong Kong to become the second most expensive city.

Further Information

You are invited to explore the sixth instalment of Julius Baer’s signature research on wealth trends across Asia with the 2016 edition. Your relationship manager will be delighted to provide you with your personal copy (available in English) as well as support when it comes to allocating wealth to this region (subject to local regulatory requirements).