Benson Shum, VP Capgemini China Market Sizing Economic Review - - PowerPoint PPT Presentation

Benson Shum, VP Capgemini China

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Market Sizing Economic Review Asset Allocation Spotlight

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Market Sizing

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Executive Summary

Note: HNWIs hold at least US$1 million in financial assets excluding collectibles, consumables, consumer durables and primary residences Ultra-HNWIs hold at least US$30 million in financial assets excluding collectibles, consumables, consumer durables and primary residences

• In 2008, Asia-Pacific (APAC) High net worth individual (HNWI) population and wealth dropped

below 2006 levels:

• Asia-Pacific’s HNWI population declined 14.2% from 2007 levels, and HNWI wealth declined

22.3%

• Hong Kong suffered by far the most severe percentage drop in its HNWI population (down 61.3%)

as well as HNWI wealth (down 65.4%)

• Asia-Pacific Ultra-HNWI (UHNWI) population (down 29.6%) and wealth (down 35.1%) fell more

compared to the global decline in UHNWI population (down 24.6%) and wealth (down 24.0%)

• In 2008, Asia-Pacific HNWI Population and Wealth is Still Concentrated:
• Japan, China and Australia still accounted for over three quarters (77.4%) of Asia-Pacific’s HNWI

population, up slightly from 2007 (74.9%)

• Asia-Pacific HNWI wealth remains concentrated with Japan and China commanding over 65% of

the HNWI wealth

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in collaboration with 1,484 1,517 1,366 343 413 364 157 169 129 99 118 105 20 117 149 138 84 123 100 78 61 68 58 71 66 42 44 36 88 96 37 24 19

500 1,000 1,500 2,000 2,500 3,000 2006 2007 2008 Number of HNWIs ('000s)

Other Countries Indonesia Hong Kong Thailand Taiwan Singapore India South Korea Australia China Japan Total 2.4 m Total 2.8 m Total 2.6 m

• 61.3%
• 4.5%
• 18.0%
• 21.6%
• 31.6%
• 11.0%
• 11.8%
• 9.9%
• 23.4%

Number of Asia-Pacific HNWIs by Market (‘000s), 2006-2008

• 7.4%
• 20.4%

Annual Change 2007 - 2008

In 2008, the number of HNWIs in Asia-Pacific dropped 14.2% to 2.4m, lower than the 2006 HNWI population

Note: All chart numbers are rounded Source: Capgemini Lorenz curve analysis, 2009

Hong Kong (-61.3%) and India (-31.6%) witnessed the largest declines in HNWI population in the Asia-Pacific region.

Growth (2006-07): 8.7% Growth (2007-08): -14.2%

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2,000 4,000 6,000 8,000 10,000 2006 2007 2008 HNWI Financial Wealth (US$ billions)

Other Countries Indonesia Taiwan Hong Kong Thailand Singapore South Korea India Australia China Japan Total US$8.4T

• 24.8%
• 65.4%
• 15.6%
• 29.4%
• 13.4%
• 29.0%
• 20.7%
• 16.7%
• 29.7%

Asia-Pacific HNWI Financial Wealth by country (US$ billions), 2006-2008

• 16.9%
• 27.1%

Annual Change 2007 - 2008

Asia-Pacific HNWI wealth followed a similar pattern and fell below 2006 levels as it eroded by 22.3% to $7.4T

Total US$9.5T Total US$7.4T

Hong Kong (-65.4%), Australia (-29.7%), and Singapore (-29.4%) were the three countries in Asia-Pacific that witnessed the largest erosions of wealth.

Growth (2007-08): -22.3% Growth (2006-07): 12.5%

Note: All chart numbers are rounded Source: Capgemini Lorenz curve analysis, 2009

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In 2008, Japan, China and Australia still accounted for over three quarters (77.4%) of Asia-Pacific’s HNWI population

Note: Due to model upgrades, the number of HNWI’s for each market has been updated slightly for 2007 Source: Capgemini Lorenz curve analysis, 2009

In 2008, HNWI population in India dropped below South Korea’s HNWI population, while Hong Kong’s HNWI population dropped below that in Thailand.

HNWI Population by Country (‘000s), 2008

Number of HNWIs (‘000s) Japan accounts for 56.8% of the Asia-Pacific HNWI population (54.1% in 2007) 77.4% of total Asia-Pacific HNWI population (74.9% in 2007) 169 118 123 78 71 44 96 24 129 105 84 61 58 42 37 19 413 1,517 1,366 364 400 800 1,200 1,600 Japan China Australia South Korea India Singapore Taiwan Thailand Hong Kong Indonesia 2007 2008

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Economic Review

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Executive Summary

• The Asia-Pacific region was not spared from the effects of the global financial crisis. The trade

and financial flows have inextricably integrated the Asia-Pacific region into the world economy and the region began to suffer as the financial crisis progressed.

• The key drivers of wealth were hit hard by the crisis. GDP growth slowed down across the Asia-

Pacific region in 2008, and private consumption dropped across the region as consumer confidence waned in late-2008. Market capitalization sank around 50% and housing prices also dropped across the region.

• Asia-focused investments suffered significant losses in 2008 and investors moved to safer
• alternatives. Asia-focused hedge funds lost 21% of their value in 2008, which resulted in closure of

large number of funds. Uncertainty in the global economy boosted demand for gold in a flight to safety by investors.

• The region is likely to recover faster than the global economy. Stronger-than-average growth in

emerging Asian economies, notably China and India, is likely to lessen the effects of the global economic crisis on the region in 2009.

• Domestic-demand growth is expected to accelerate the pace of the recovery. The region is

expected to focus on domestic-demand growth by implementing various measures to stimulate domestic consumption, lessen the region’s reliance on exports and accelerate the pace of recovery.

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Growth Slowed Down Across Asia Pacific in 2008, and Even Contracted in Some Countries in Industrialized Asia

Source: Economist Intelligence Unit, Aug 2009 Note a : Composition of “Emerging Asia”, “Newly Industrialized Economies” and “Industrialized Asia” is as per International Monetary Fund definitions

Emerging Asia was a large contributor of growth for the Asia Pacific Region in 2008, which was mainly driven by China and India. Real GDP Growth Rates (%) 2007-2009F

13.0 9.1 6.3 4.9 5.1 6.4 5.7 7.8 4.0 3.1 2.4 9.0 6.0 6.1 2.6 2.2 2.5 0.1 1.2 2.1

• 1.0
• 0.7

8.0 5.5 2.6

• 4.5
• 4.4
• 5.4
• 6.5
• 8.6
• 0.4
• 2.1
• 6.8
• 10
• 5

5 10 15 China India Indonesia Thailand South Korea Hong Kong Taiwan Singapore Australia New Zealand Japan 2007 2008 2009F Newly Industrialized Economiesa Emerging Asiaa Industrialized Asiaa (%)

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The Global Crisis Hit Asia-Pacific Hard, with Market Capitalization Dropping by an Average of 48.6% for the Region, in 2008

118.4 291.0 34.5 52.4 40.3 54.8 6.0 40.6 18.5 11.6

• 6.1
• 64.1
• 60.3
• 58.1
• 53.3
• 50.9
• 49.9
• 49.0
• 47.7
• 46.6
• 46.3
• 28.1
• 100

100 200 300 India China South Korea Indonesia Singapore Hong Kong New Zealand Thailand Australia Taiwan Japan 2006-07 2007-08

In 2008, India and China suffered large drop in Market Capitalization at 64.1% and 60.3% respectively, eroding significant amount of wealth.

(%)

Source: World Federation of Exchanges, June 2009

Market Capitalization - Change Rates (%) 2006-2007, 2007-2008

The Asia-Pacific region witnessed an average growth

• f 50.4% in market

capitalization in 2007 The Asia-Pacific region witnessed an average drop of 48.6% in market capitalization in 2008

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Asia Pacific Region is Likely to Experience Lesser Contraction Compared to the World Economy in 2009

Growth in Emerging Asia is likely to lessen the effect of global economic crisis on the region in 2009, and will emerge as a key driver of growth in 2010.

• 2.7
• 0.9

8.0 5.5 2.6

• 4.5
• 5.4
• 8.6
• 6.5
• 4.4
• 6.8
• 0.4
• 2.1

1.6 3.5 8.0 6.3 3.4 1.9 2.6 1.3 0.6 0.5 1.0 0.8 0.7

• 10
• 5

5 10

World Asia and Australasia China India Indonesia Thailand Hong Kong Singapore Taiw an South Korea Japan Australia New Zealand 2009F 2010F

Real GDP Growth (%), 2009F-2010F

Newly Industrialized Economiesa Emerging Asiaa Industrialized Asiaa %

Source: Economist Intelligence Unit, Aug 2009 Note a : Composition of “Emerging Asia”, “Newly Industrialized Economies” and “Industrialized Asia” is as per International Monetary Fund definitions

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Asset Allocation

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• “Flight to safety” to cash like assets amidst uncertain market conditions:
• High Net-worth Individuals (HNWI) allocation to cash-based investments increased by 4

percentage point from 25% in 2007 to 29% in 2008

• Regionally, Taiwan had the highest allocation to Cash/Deposits at 41% of total HNWI portfolio
• Opportunistic Shift Back to Real Estate Investment:
• Allocation to real estate investment increased by 2 percentage points from 2007, totaling 22%
• f overall Asia-Pacific (APAC) HNWI portfolios
• Residential real estateb allocation comprised 55% of total real estate investment, with second

highest allocation to commercial (26%)

• Regionally, Australia had the highest allocation to Real Estate at 41% of total HNWI portfolio
• HNWIs Retreat to Home-Region and Domestic Investment:
• All countries in Asia-Pacific increased their domestic investment in 2008 (67%) from 2007

(53%)

• HNWIs in Asia-Pacific ex. Japan prefer China as the top Asia-Pacific market to invest while

their peers in Japan prefer to invest domestically

Executive Summary

• a. Calculated using 2008 Capgemini Lorenz Curve analysis and 2008 Global Asset Allocation figures

b Excluding primary residence

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31% 33% 25% 28% 21% 27% 29% 30% 14% 17% 21% 20% 24% 14% 18% 15% 10% 9% 7% 7%

0% 25% 50% 75% 100% 2006 2007 2008 2010F

In 2008, Asia-Pacific HNWIs shifted part of their financial assets from Equities and Alternative Investments to Cash / Deposits

HNWI ASSET ALLOCATION - OVERALL

Breakdown of HNWI Financial Assets, Global and Asia-Pacific (%), 2006 to 2010F

a Includes: Structured products, hedge funds, derivatives, foreign currency, commodities, private equity, venture capital. b Includes: Commercial Real Estate, REITs, Residential Real Estate (excluding primary residence), Undeveloped Property, Farmland and Other.

Note: Totals for the chart do not add to 100% due to rounding Source: March 2007, April 2008 , March 2009 Capgemini/ Merrill Lynch FA survey

Equities Fixed Income Cash / Deposits Real Estate b Alternative Investments a

By 2010, Asia-Pacific HNWI allocation to Equity and Fixed Income is forecasted to increase, while Real Estate is forecasted to decrease as HNWIs seek to strike a balance in their portfolio amidst signs of market recovery.

24% 26% 23% 25% 15% 21% 20% 22% 24% 25% 29% 30% 29% 20% 22% 16% 8% 8% 6% 6%

0% 25% 50% 75% 100% 2006 2007 2008 2010F

Global Asia-Pacific

Equities Fixed Income Cash / Deposits Real Estate b Alternative Investments a

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Across the Asia-Pacific region, HNWIs preferred to hold a high proportion

• f cash, with the exception of Australia, India, and South Korea

HNWI ASSET ALLOCATION – BY MARKETS

Key Points

• HNWIs in Taiwan had the highest

allocations to Cash like assets:

– HNWIs sought refuge in more conservative investment vehicles due to market uncertainties

• HNWIs in Indonesia, Singapore, China and

Hong Kong preferred Cash/Deposits :

– As Asia-Pacific stock markets plummeted, HNWIs retrenched to “safer” assets

• HNWIs in Australia preferred Real Estate:

– Australian Residential Real estate market recorded a modest 3.3% (nominal) drop in value in 2008 compared to the volatile equity markets

• HNWIs in India had the highest allocation

to equities despite the heavy fall in the local equities market:

– Although HNWIs in India reduced the exposure to Equities in 2008, traditionally it is a favored asset

• n back of strong growth in recent years

25% 29% 21% 32% 22% 18% 22% 13% 17% 10% 15% 20% 21% 16% 24% 14% 20% 22% 19% 30% 30% 13% 34% 30% 33% 23% 41% 41% 18% 24% 25% 18% 22% 24% 38% 15% 5% 8% 5% 8% 9% 6% 7% 6% 4%

0% 25% 50% 75% 100% Australia China Hong Kong India Indonesia Japan Singapore South Korea Taiwan

Breakdown of Asia-Pacific HNWI Financial Assets by Market(%), 2008

Fixed Income Equities Cash / Deposits Real Estate b Alternative Investments a

a Includes: Structured products, hedge funds, derivatives, foreign currency, commodities, private equity, venture capital. b Includes: Commercial Real Estate, REITs, Residential Real Estate (excluding primary residence), Undeveloped Property, Farmland and Other.

Note: Totals for the chart do not add to 100% due to rounding Source: March 2009 Capgemini/ Merrill Lynch FA survey; ; Global Property Guide: HPI average of 8 capital cities (Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin, Canberra), 2007-08 annual growth

HNWIs in Australia allocated the lowest percentage to more liquid assets (29%) in the region.

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In 2008, Asia-Pacific HNWIs continued to favor Home region investments, despite world’s second largest drop in market capitalization

Breakdown of Asia-Pacific HNWI Geographic Asset Allocation (%), 2006 - 2010F

HNWI ASSET ALLOCATION – REGIONAL INVESTMENT

Note: Totals for the chart do not add to 100% due to rounding Source: March 2007, April 2008, March 2009 Capgemini/ Merrill Lynch FA survey

50% 62% 27% 20% 14% 11% 4% 4% 1% 1% 67% 53% 17% 26% 10% 12% 3% 6% 1% 2% 4% 1% 1% 1%

0% 25% 50% 75% 100% 2006 2007 2008 2010F North America Europe Asia-Pacific Middle East Latin America Africa

Key Points

• HNWIs are likely to tentatively

increase allocation to mature markets in search of stable returns:

– Allocation to North America is expected to increase 3% while allocation to Asia- Pacific is expected to decrease 5% from 2008 to 2010

• Allocation to all other regions are

expected to remain stable as HNWIs tentatively regain appetite for risk during market recovery:

• HNWIs are hesitant to alter geographic

diversification over the next few years as they focus on getting “back to basics” during market recovery

Forecasts indicate that HNWI investments in domestic and regional Asia-Pacific markets are likely to slightly erode by 2010.

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HNWIs from Japan have the most diversified geographic distribution

• f their investments while HNWIs from India and China have the least

HNWI ASSET ALLOCATION – REGIONAL INVESTMENT

Breakdown of Asia-Pacific HNWI Geographic Asset Allocation by Market (%), 2008

Note: Totals for the chart do not add to 100% due to rounding Source: March 2007, April 2008, March 2009 Capgemini/ Merrill Lynch FA survey

77% 86% 65% 55% 76% 75% 74% 13% 6% 18% 26% 10% 12% 13% 8% 4% 11% 13% 9% 10% 4% 3% 4% 3% 7% 3% 71% 83% 14% 5% 7% 7% 1% 1% 2% 3% 3% 2% 1% 2% 3% 1% 1% 1% 1% 1% 1% 1% 4% 1%

0% 25% 50% 75% 100% Australia China Hong Kong India Indonesia Japan Singapore South Korea Taiwan North America Europe Asia-Pacific Middle East Latin America Africa

Amidst uncertain market conditions, Asia-Pacific HNWIs chose to invest in more familiar territory and preferred their home region markets.

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Spotlight

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Spotlight Overview

• The Asia-Pacific Wealth Management Industry has long been considered a nascent market

with positive socio-political factors enabling significant growth over the past five years

• However, the global financial crisis created a ripple effect on the Asia-Pacific Market,

resulting in a more challenging environment for WM firms:

• The competitive landscape changed as many clients shifted their assets towards regional and

local firms

• Overall client trust was negatively impacted and many Asia-Pacific advisors did not have

enough experience to effectively deal with the crisis

• Challenges relating to business and operating models are among the key concerns for Asia-

Pacific wealth management executives

• Leading firms are planning for long-term growth by enhancing their business models to

tap into the Asia-Pacific market potential, while positioning themselves better for future unforeseen crises:

• Advisor training and initiatives to regain client trust are the focus of 2009 and going forward
• Firms are focused on strengthening their client base and wealth management capabilities to

increase their overall share of wallet

• Offering transparent and innovative products, as well as providing client-focused advisory

services, will be critical success factors for WM firms to effectively cater to the HNWI market

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Singapore and Hong Kong remain the WM hubs for Asia Pacific region and international and regional firms are focusing to grow in the key markets segments.

Source: (a) Capgemini Analysis, 2009; (b) Company Annual Reports, 2007-08 Note: (1) The size of the bubble shows the market size for that country on the basis of wealth, (2) WM firms are ranked based on reach across markets and number of offices

THE CHANGING COMPETITIVE LANDSCAPE

Phillippines Australia Hong Kong Singapore Thailand India China Korea Indonesia Malaysia Taiw an Japan 15 30 45 60 20 40 60 80 100 120

Number of Cities Number of Firms

Asia Pacific Wealth Management Landscape (2008)

Segment B. Key Markets Segment A. WM Hubs Segment C. Emerging Markets

Asia Pacific average number of cities: 35.4 Asia Pacific average number of firms: 22.5 100 $Bn 2000 $Bn HNWI Wealth

• Key offshore booking

center hubs

• Most wealth management

firms have offices in these markets (each office was counted as a city since these markets are geographically contained city-states)

• Key markets do not have as many banks

as the WM Hubs

• Apart from Japan, all the countries in this

segment are geographically large and need offices in various cities to cater to their clients

Our analysis has identified three distinct market segments in the Asia Pacific wealth management competitive landscape

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Wealth Management firms across the markets in the Asia-Pacific region experienced challenges as a result of the financial crisis

Past 5 Years Post Crisis Key Trends

• Heavy inflow of new market

entrants and boutiques

• Increased interest in international

firms with strong wealth management capabilities

• Intense Competition prevailed

with aggressive marketing efforts and extensive hiring of FAs. The cost of doing business peaked

• Clients in Asia-Pacific preferred to

diversify their investments across several firms The crisis presented a new set of challenges for both type of firms

• International Firms: Overall loss of

brand value and assets. Facing margin pressures, most firms postponed growth plans.

• Regional and Local Firms: Were

able to use this situation as an

• pportunity to gain market share.
• Clients moved assets to these

firms in a “flight to safety”.

• However, sustaining this

scenario might be a challenge for these firms on the long run.

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Maintaining Client Trust and Retention is the by far greatest challenge faced by WM firms in Asia-Pacific as a result of the financial crisis

Improving customer experience, re-steering asset allocation towards high margin products, and handling overall liquidity pressures are areas executives see as major challenges.

Top Two Challenges faced by Asia-Pacific WM Firms (%), 2008-09

Source: (a) Capgemini Analysis, 2009

Rebuilding client trust and deepening the client relationship is key to retain clients and rebound in the market Having the right skill set and talent to cater to HNWI clients is an area that has huge gaps in the Asia-Pacific market While regulatory directives did not register as a major Top 2 priority, 45% of executives did rank regulatory directives as the 3rd highest priority Sustaining revenues while satisfying clients with more transparent products is a tough balance to achieve 5% 5% 10% 15% 15% 25% 45% 85%

0% 20% 40% 60% 80% 100%

Regulatory Directives Provider Diversification Liquidity Pressures Asset Allocation into low margin products Customer Experience Capabilities Profitability - AUM/Revenues Financial Advisor Capabilities Maintaining Client Trust / Client Retention

TOP CHALLENGES

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Advisor Training and Client Trust emerged amongst the top focus areas for WM firms in Asia-Pacific to address in the immediate future

Top Areas of Focus for Asia-Pacific WM Executivesa (%), 2009

% of Respondents 15% 15% 25% 30% 30% 40% 45% 45% 55% 20 40 60 Advisor Recruitment & Retention Risk Management Client Segmentation & Marketing Advisor Enablement Service Quality & Operational Efficiency Client Trust Product & Service Offerings Growth Strategy Advisor Training

Source: Capgemini Research 2009 Note a : Based on Capgemini Survey of 20 WM Executives in the Asia-Pacific Region conducted during Jul-Aug 2009 Qus Asked: What are the Top 3 Issues you are most focused on resolving in 2009?

CLIENT NEEDS AND ADVISOR MODEL

There was a clear lack of skilled advisors with wealth management related talent and experience in the market Heavy poaching of financial advisors due to stiff competition led to firms focusing on recruiting and retention efforts The sales-oriented model that was followed had a low level of client involvement /contact, which further impacted client trust and confidence when the crisis hit the market Considerable gaps existed in enabling advisors with the right tools and technologies

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In 2008, over 40% of Asia-Pacific Advisors surveyed witnessed significant client attrition

Commentary

• We identified two key findings related to

client attrition - Client Service Model and Age/Experience of Advisor:

Client Service Model:

• Of those FA’s that lost clients, 63% were from a

individual model vs. 37% from a team-based model

Age/Experience:

• Younger advisors lost more clients than the older

advisors

• Advisors in Asia Pacific region were less

experienced to handle the economic turmoil:

• Advisors often lacked in knowledge, skills and

experience of operating in a downturn

• The situation worsened due to the Individual model of

client servicing

• Average age of experience for the region was 9.7

years vs. 13.3 years as the global average

Note: FA Q 42_4):To what extent do you agree/disagree with the following statements around your current base of clients - Volatility in the markets has led to a significant attrition of clients Source: Capgemini/ Merrill Lynch FA survey, March 2009

Advisors were not mature enough to handle the intense market conditions. A team-based client service model and advisor age/experience is critical to prevent Client attrition.

42% 0% 25% 50% 75% 100% Advisors that lost clients % of Respondents

Client Attrition for Advisors in Asia-Pacific, 2008

63% 37% Advisors that lost clients

Individual Team-based

62% 38% Advisors that lost clients

< 41 Years 41+ Years

Breakup of Advisors in Asia-Pacific that lost clients by Age, 2008 Breakup of Advisors in Asia-Pacific that lost clients by Client Service Model, 2008

CLIENT NEEDS AND ADVISOR MODEL

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Advisor enablement and technologies are the strength of international firms; while regional firms have access to a robust client network

Client Reporting (online and statements) is the area where international firms and regional firms are ranked almost equally strong, especially in larger markets.

Source: (a) Capgemini Analysis, 2009

3.8 3.7 3.6 3.7 3.6 3.5 3.2 2.3 2.3 2.7 3.2 2.5 2.8 3.1 3.4 3.5 4.1 4.3

1 2 3 4 5 Advisory Desktop and RM Tools Information Technology Advisory Services Products and Services Risk and Due Diligence Processes Client Reporting Brand Value Branch Presence Access to Retail Client Base

Wealth Management Firm Competencies (Average Ranking 1 low -5 high scale), 2009 International Firms Regional/Local Firms

ALIGNING BUSINESS AND OPERATING MODELS FOR SUCCESS

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The Wealth Management Industry in Asia-Pacific is expected to increase in Size, Sophistication and Population in the next 5 years

Source: Capgemini Research 2009

WM Industry WM Firms Clients The future outlook for the WM Industry is positive

• The Asia-Pacific market is projected

to expand in the near future and the economic outlook is promising, which is expected to prove positive for the industry

• Competition is expected to intensify

and the Asia-Pacific WM Industry is likely to witness more consolidation

• International firms have a strong

likelihood to gain back the confidence of the clients in Asia- Pacific region

• Regional/ Local firms are expected

to strengthen their product/service capabilities to retain their client base

… with firms gearing up to exploit this opportunity …

• Post-crisis firms have been investing in

building the client relationship

• With margins squeezed, firms are

planning on improving business and

• perational efficiency

…and to win over clients who have become more discerning

• Clients are likely to demand new products

which are simple and more transparent

• They are also expected to demand better

service in terms of investment advise and communication

• Going forward, clients are likely to return back

to diversifying to more than one firm

ACHIEVING GROWTH AND PATH FORWARD

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Long term organic growth can be achieved in the Asia-Pacific WM Industry by addressing four critical success factors

WM Firms which effectively address these critical success factors will gain competitive advantage in retaining and attracting Asia-Pacific HNWIs

ACHIEVING GROWTH AND PATH FORWARD

ACHIEVING LONG- TERM AND ORGANIC GROWTH IN THE ASIA-PACIFIC MARKET

Offering a more effective product mix:

• Developing transparent products that

are more market-compatible

• Creation of innovative and margin

friendly products that meet client needs and address risk Targeting new Markets and Segments:

• Entering new markets and countries

that have growth potential in the future (e.g. China, India)

• Craft a clear client segmentation

approach for servicing HNWI clients Enhancing Client Advisory Services:

• Moving away from the transaction-

based model to achieve a more advisory focused client service model

• Implementing a more team-based

service model to mitigate risk and provide clients access to experts Aligning Practice Models to changing market needs:

• Enhancing business models to

increase client base and generate AUMs for the firm

• Have an effective cost model in place

that helps drive revenues

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Full report is available at

http://www.capgemini.com/insights-and- resources/by-publication/asiapacific-wealth- report-2009--english-version

My Contact : benson.shum@gapgemini.com

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Thank-You !