Key findings from the study: There is a strong link between Asia Pacific’s family offices and their family businesses. Over 80% of family offices are connected to the firm where the money was first made. Asia Pacific family offices have significant assets tied up in core family business holdings and illiquid assets. Asia’s cultural imperative is confidentiality, which affects family offices’ willingness to outsource services. Only 38% of family offices surveyed have written risk policies and guidelines. However, all have responded that they formally manage their banking and custody risk. Hong Kong, Singapore and Australia are the most attractive locations for family offices due to favorable economic, social and tax conditions.

Managing wealth from one generation to the next can be one of the most difficult transitions a family business has to make. In a landmark study, UBS and Campden Wealth explore the role of the family office in Asia. With approximately 1.2 million millionaires, according to industry estimates, Asia has more ultra-high net-worth individuals than ever before. How does this wealth get managed and what is the role of family offices in preserving family wealth? In a bid to understand this, UBS teamed up with wealth management research house, Campden Wealth, to produce Asia’s first survey on family offices. The survey, entitled Growing Towards Maturity: Family Offices in Asia-Pacific Come of Age, explored current perceptions of ultra-high net-worth individuals (UHNWIs) and the growth of family offices in the region. More than 35 offices from across Asia-Pacific participated in the survey, with the level of wealth under management ranging from under US$100 million to over US$1.0 billion. It is estimated that out of the 2,500 family offices worldwide, Asia currently houses just over 100, with the majority based in Europe or the US. The survey found that the rapid growth of the number of UHNWIs in Asia—China alone has the second highest concentration of billionaires in the world—coupled with the upcoming intergenerational transition of assets in the region, points to a boom in the number of new family offices. Speaking about the survey’s findings, Kathryn Shih, CEO of UBS Wealth Management Asia Pacific said, “UBS has a long tradition of working with successful families and their family offices globally. With the immense wealth being created and generational transition in assets and control, we expect to see an increasing number of Asian families wanting to professionalise the way they manage their wealth. Our dedicated Family Advisory Services specialists have seen increasing client interest on topics such as family governance, asset allocation, risk management, global custody and philanthropy. We expect to see growing interest in family offices among wealthy families in the region as a means to structure their families’ wealth for the future. We hope that the perspectives provided by the UBS and Campden study on the evolution of family offices in Asia will provide a useful reference point for families. As the family-office concept matures in Asia, we believe it should contribute to the continued prosperity and sustainability of Asia’s development as the world’s fastest growing region for wealth creation.”   Previous article | Next article