Canada a top choice for Asia’s super rich

Ultra-high-net-worth individuals (UHNWI) in the Philippines and elsewhere in Asia are eyeing Canada as a safe bet for their investments, a new study says.

In addition to Canada, the US, Singapore, and Australia are the top preferred investment destinations of the ultra-wealthy individuals in the Philippines in 2017, said the 12th "Wealth Report" launched in Manila last week.

The report said there will be 260 new ultra-high-net-worth individuals (UHNWI) in the Philippines whose total net assets are $50 million and above by 2022, fueled by the bullish real estate market and the influx of Chinese investments, a survey by a property outfit says.

"That growth is driven mainly by bullish real estate industry, strong macroeconomic fundamental and will be further fueled by the influx of Chinese investments into the Philippines through the Belt and Road Initiative,” Rick Santos, chairman, and CEO of property services provider Santos Knight Frank said.

A total of 541 global wealth advisers and private bankers representing 50,000 clients worldwide participated in the survey.

The Wealth Report incorporated the "Attitudes Survey" which presented issues influencing the wealthy's decision-making process.

Based on the report, 78 percent of Filipinos are exposed to property investments compared to the global average of 56 percent.

In China, 39 percent of the rich's portfolio is dedicated to property investments, while the average is 42 percent in the Philippines, Nicholas Holt, head of research for Knight Frank Asia Pacific, said.

He said 28 percent of Philippine clients are looking to purchase additional domestic residential homes in the next 12 months compared to the 22 percent global average.

Asia has finally overtaken Europe in absolute numbers of ultra-wealthy individuals, the report said.

 While Europe managed a very respectable growth of 10% in the category, matching the global average, its mature market was no match for the dynamism of Asia, which saw a 15% bump in its ranks.

As of the end of 2017, Asia boasted 35,880 ultra-wealthy individuals compared to 35,180 in Europe. All eyes now move hungrily across the Atlantic to North America, which retains the number one spot. But with growth of only 5% from 2016 to 2017, its status as the hub of the ultra-wealthy could be under threat.

Growth within Asia over the next five years is looking very optimistic in both relative and absolute terms, led, as is so often the case, by China, which is forecast to contribute a whopping 47% of the growth of Asia’s nearly 20,000 new ultra-wealthy individuals. Second, behind only Japan’s 9,960 ultra-wealthy individuals in 2017, China, with 8,800 is going to add as many again to its ranks, and then some: with growth of 104% over the next five years, the exclusive club of the ultra-wealthy is set to become considerably less exclusive.

Japan, finally recovering from its Lost Decades, is forecast to grow its ultra-wealthy by a significant 51%, the highest of any large, developed country. In Asia, Japan will contribute 26% of the new ultra-wealthy by 2022.

From an admittedly small base, the Philippines is in a very strong position going forward: after a less than exciting 2016-2017 period, it is now seen as the second-best place to be as far as growth in the ultra-wealthy is concerned: at 84% it is behind only China.

Because of its low base, though, it will only contribute 1% of the region’s overall growth between 2017 and 2022.

In the third position, Indian wealth is expected to charge ahead over the next five years after a solid but slightly disappointing 2017, narrowing in on 5,000 ultra-wealthy individuals, a growth of 71%. Indonesia and Malaysia occupy the 5th and 6th places at 66% and 65% growth, respectively.