Citigroup’s Asia family office clients poised to grow 25% in 2023
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The momentum builds off a strong 2022 when the bank saw client numbers increase by around 50 per cent year-on-year in Asia.
PHOTO: REUTERS
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HONG KONG – Citigroup’s Asia family office business expects a 25 per cent increase in clients this year as Singapore and Hong Kong vie to attract more wealth.
The momentum builds off a strong 2022 when the bank saw client numbers rise by around 50 per cent year on year in Asia from a modest base in the preceding year, said Ms Faye Ong. She is responsible for the family office and philanthropic advisory services in Asia for Citi Private Bank.
Global banks have been beefing up family office arms in Asia, as demand continues to surge among rich Asians wanting to set up private investment vehicles and plan for business succession.
Citi in 2020 turned its Asia family office service into a full-fledged unit combining advisory, family governance, legacy planning, philanthropy, investment and deal-making capabilities for ultra-wealthy clients.
Ms Ong joined the team in 2021 alongside a string of senior and mid-level hires.
“We have seen great interest from China, Hong Kong, the Philippines, India and Indonesia in settling their family offices here (Hong Kong),” she said.
There is also growing interest from Middle Eastern clients, she added.
Hong Kong in March announced measures to attract family offices
Hundreds of discussions are taking place with existing and new clients, Ms Ong said, adding that some customers, who already have a presence in Hong Kong, are considering the registration of formal family office vehicles in the city.
Other markets within Asia are also growing well, she noted.
The central bank in Singapore, Hong Kong’s rival Asian wealth hub, in July revised its tax regime for family offices, to boost the local job and equity markets as well as incentivising green investments.
“The landscape in Singapore is evolving. There is scale and Singapore is becoming more discerning about the type of family offices it wants to attract,” Ms Ong said.
The number of single-family offices in Singapore grew to 1,100 at the end of last year from 400 in 2020,
The increase in the number of affluent and high-net-worth investors in Asia has eclipsed that of peers in other regions, and that growth is likely to continue through 2026 and beyond, according to an Accenture report released last week. REUTERS
