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 report shows that the cost of luxury living, as measured by the Julius Baer Lifestyle Index, rose by 1.42% on an aggregate basis in USD terms, compared to a 1.68% contraction in 2016. This upward trajectory of the index points to sustained demand for luxury goods and services in Asia. According to this year’s report, Hong Kong displaces Shanghai as the most expensive city, while Kuala Lumpur is the most competitive.

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 2017 compares 22 goods and services across 11 Asian cities, including Hong Kong, Singapore, Shanghai, Mumbai, Taipei, Jakarta, Manila, Seoul, Kuala Lumpur, Bangkok and Tokyo. The 2017 report has added fine dining to the index for the first time to reflect the growing propensity for HNWIs to spend on experiences.

A number of trends underpin this year’s price movements. The first is the return of consumer confidence in China, the largest consumer of luxury goods in the world. The Julius Baer Lifestyle Index in Shanghai rose by 1.9% in local currency terms, reversing last year’s 7% drop. Secondly, Chinese consumers make more of their luxury purchases locally than overseas. This ‘reshoring’ trend has been spurred by a weaker Chinese yuan, ‘harmonisation’ of global prices by luxury brands and reduction of import taxes on some goods.

Further Information

You are invited to explore the seventh instalment of Julius Baer’s signature research on wealth trends across Asia with the 2017 edition. Your relationship manager will be delighted to provide you with your personal copy as well as support when it comes to allocating wealth to this region (subject to local regulatory requirements).