Hong Kong SFC 2020 Report: Asset and Wealth Management in Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has released the 2020 Report on Asset and Wealth Management Activities in Hong Kong in July 2021. What is the total AUM in Hong Kong in 2020? How is the Asset Management, Private Banking and Private Wealth Management industry doing? Where are the clients from? How are the assets allocated?
Below is the full summary of the report:
Overview
In 2020, the total Asset & Wealth Management AUM in Hong Kong is at $4.49 trillion (HKD 34.931 trillion), growing 25% Year-on-Year (YOY). 942 firms reported conducting asset management, fund advisory, private banking and private wealth management business or trust services in Hong Kong. The total headcount in asset and wealth management is 48,006. 60% are in sales & marketing and 40% are in asset management & related support functions. (AUM ~ Assets under Management)
The Private Banking & Private Wealth Management AUM is at $1.46 trillion (HKD 11.316 trillion, +25% YOY) and Asset Management & Fund Advisory AUM is at $3.09 trillion (HKD 24.038 trillion, +20% YOY). Assets under Trust AUM is at $576 billion (HKD 4.480 trillion, +17% YOY)
Key Summary:
- Asset and Wealth Mgmt AUM: $4.49 trillion (HKD 34.93 trillion) +21% YOY
- Private Banking & Private Wealth Mgmt AUM: $1.46 trillion (HKD 11.31 trillion) +25% YOY
- Asset Management and Fund Advisory AUM: $3.09 trillion (HKD 24.03 trillion) +20% YOY
- Assets under Trust AUM: $576 billion (HKD 4.48 trillion) +17% YOY
- No. of Headcount in Asset and Wealth Management: 48,006
- Hong Kong Investors contributed to 36% of AUM ($4.49 trillion)
- Non-Hong Kong Investors contributed to 64% of AUM ($4.49 trillion)
More
- No. of Headcount in Asset and Wealth Management: 48,006
- No. of firms: 942 (2019: 818)
- Licensed corporations: 830 (2019: 704)
- Registered institutions: 47 (2019: 46)
- Insurance companies: 39 (2019: 41)
- Trustees: 26 (2019: 27)
Private Banking & Private Wealth Mgmt:
- AUM: $1.46 trillion (HKD 11.31 trillion) +25% YOY
- Professional Investors: 96% ($1.4 trillion)
- Non-Professional / Retail Investors: 4% ($58.4 billion)
- Corporations / financial institutions / funds: 44% ($643 billion, HKD 5.01 trillion)
- Individuals: 25% ($368 billion, HKD 2.86 trillion)
- Family offices and private trusts: 18% ($262 billion, HKD 2.03 trillion)
- Institutional / Corporates / Others: 8% ($104 billion, HKD 813 billion)
- Charities: 1% ($14.4 billion, HKD 112 billion)
Asset Management and Fund Advisory:
- AUM: $3.09 trillion (HKD 24.03 trillion) +20% YOY
- Professional Investors: 72% ($2.2 trillion, HKD 17.1 trillion)
- Non-Professional / Retail Investors: 28% ($857 billion, HKD 6.66 trillion)
- Corporations / financial institutions / funds: 47% ($1.43 trillion, HKD 11.1 trillion)
- Governments / sovereign wealth / central banks: 12% ($367 billion, HKD 2.85 trillion)
- Institutional / Corporates / Others: 5% ($153 billion, HKD 1.19 trillion)
- Individuals: 5% ($153 billion, HKD 1.19 trillion)
- Family offices and private trusts: 2% ($61.2 billion, HKD 476 billion)
- Charities: 1% ($30.6 billion, HKD 238 billion)
Registered institution is an authorized financial institution (typically banks) which conducts regulated activity under the Hong Kong Securities and Futures Ordinance (SFO). Licensed corporation, that is not an authorized financial institution, is granted a licence to conduct regulated activities under the Hong Kong Securities and Futures Ordinance (SFO). The Hong Kong Securities and Futures Ordinance (SFO) regulates the Hong Kong securities and futures industry.
Exchange Rate: USDHKD 7.77, YOY ~ Year-on-Year
#1 Asset & Wealth Management Sector: $4.49 Trillion AUM
In 2020, the total Asset & Wealth Management AUM is at $4.49 trillion (HKD 34.93 trillion), growing 25% Year-on-Year (YOY). Hong Kong Investors contributed to 36% of AUM and non-Hong Kong Investors contributed to 64% of AUM. 942 firms reported conducting asset management, fund advisory, private banking and private wealth management business or trust services. (Assets under Management).
In 2020, the total headcount in asset and wealth management is 48,006. 60% are in sales & marketing and 40% are in asset management & related support functions.
A) Asset & Wealth Management Source of AUM: $4.32 trillion (HKD 33.59 trillion)^
- Hong Kong Investors: 36%
- Mainland China: 10%
- Asia-Pacific (ex-China): 13%
- North America: 22%
- Europe: 11%
- Others: 8%
Hong Kong Investors contributed to 36% of AUM and non-Hong Kong Investors contributed to 64% of AUM. (^Exclude REITs and assets held under trusts attributable to non-Licensed corporations and non-Registered institutions.)
B) No. of Firms: 942
In 2020, 942 firms reported conducting asset management, fund advisory, private banking and private wealth management business or trust services. (Assets under Management). These included 830 (2019: 704) licensed corporations, 47 (2019: 46) registered institutions, 39 (2019: 41) insurance companies and 26 (2019: 27) trustees.
- No. of firms: 942 (2019: 818)
- Licensed corporations: 830 (2019: 704)
- Registered institutions: 47 (2019: 46)
- Insurance companies: 39 (2019: 41)
- Trustees: 26 (2019: 27)
In 2020, the total headcount in asset and wealth management is 48,006. 60% are in sales & marketing and 40% are in asset management & related support functions.
- Total headcount in asset and wealth management: 48,006
- Sales & marketing: 60%
- Asset management & related support functions: 40%
#2 Private Banking & Private Wealth Management Sector: $1.46 Trillion AUM
In 2020, the total Private Banking & Private Wealth Management AUM is at $1.46 trillion (HKD11.316 trillion), growing 25% Year-on-Year (YOY). Hong Kong clients contributed to 48% of AUM and non-Hong Kong clients contributed to 52% of AUM. 96% ($1.4 trillion) of Private Bank & Private Wealth AUM came from Professionals Investors. 4% ($58.4 billion) came from Non-Professional / Retail Investors.
In 2020, the total number of staff engaged in the private banking and private wealth management business was 8,084, of which 2,819 were Private Wealth Management Relevant Practitioners.
- Private Banking & Private Wealth Mgmt AUM: $1.46 trillion (HKD 11.31 trillion) +25%
- Registered Institutions (Private Bank, Private Wealth): 77% ($8.689 trillion)
- Licensed Corporation (Private Bank, Private Wealth): 10% $1.105 trillion
- Registered Institutions (Asset Management): 11% $1.296 trillion
- Licensed Corporation (Asset Management): 2% $226 billion
A) Private Bank & Private Wealth Source of $1.46 trillion AUM by Region:
- Hong Kong: 48%
- China: 16%
- APAC (Excludes China): 17%
- Europe: 5%
- North America: 4%
- Others: 10%
Hong Kong clients contributed to 48% of AUM and non-Hong Kong clients contributed to 52% of AUM.
B) Private Bank & Private Wealth Client Type:
- Professional Investors: 96% ($1.4 trillion)
- Non-Professional / Retail Investors: 4% ($58.4 billion)
In 2020, 96% ($1.4 trillion) of Private Bank & Private Wealth AUM came from Professionals Investors. 4% ($58.4 billion) came from Non-Professional / Retail Investors.
C) Professional Investors Breakdown: 96% ($1.4 trillion)
- Corporations / financial institutions / funds: 44% ($643 billion, HKD 5.01 trillion)
- Individuals: 25% ($368 billion, HKD 2.86 trillion)
- Family offices and private trusts: 18% ($262 billion, HKD 2.03 trillion)
- Institutional / Corporates / Others: 8% ($104 billion, HKD 813 billion)
- Charities: 1% ($14.4 billion, HKD 112 billion)
D) Asset Allocation – $1.46 trillion:
- Listed Equities: $716 billion (HKD 5.57 trillion)
- Cash & Deposits: $193 billion (HKD 1.50 trillion)
- Private Funds: $160 billion (HKD 1.24 trillion)
- Bonds: $129 billion (HKD 1 trillion)
- Public Funds: $98.1 billion (HKD 763 billion)
- Managed Accounts: $48.2 billion (HKD 375 billion)
- Others: $109 billion (HKD 853 billion)
E) Geographic Allocation of Assets – $1.46 trillion:
- Hong Kong: 34% ($490 billion, HKD 3.81 trillion)
- Mainland China: $10% ($151 billion, HKD 1.17 trillion)
- North America: 25% ($359 billion, HKD 2.79 trillion)
- Europe: 13% $187 billion (HKD 1.45 trillion)
- APAC (Excludes China): 7% ($102 billion, HKD 797 billion)
- Japan: 1% ($21.7 billion, HKD 169 billion)
- Others: 10% ($142 billion, $1.10 trillion)
F) Total headcount in Private Banking & Private Wealth Mgmt: 8,084
In 2020, the total number of staff engaged in the private banking and private wealth management business was 8,084, of which 2,819 were Private Wealth Management Relevant Practitioners.
- 8,084, of which 2,819 were Private Wealth Management Relevant Practitioners
#3 Asset Management and Fund Advisory: $3.09 trillion AUM
In 2020, the total Asset Management and Fund Advisory AUM is at $3.09 trillion (HKD 24.03 trillion), growing 20% Year-on-Year (YOY). There are 1,878 licensed corporations and 13,074 licensed individuals in Asset Management.
72% of AUM are from Professional Investors ($2.2 trillion, HKD 17.1 trillion) and 28% are from Non-Professional / Retail Investors.
The asset management and fund advisory business carried out by licensed corporations, registered institutions and insurance companies. Fund advisory business mainly comprises institutional fund advisory services provided from Hong Kong by fund managers to overseas management firms.
- Licensed Corporations – Asset Management: $2.42 billion (HKD 18.8 trillion, 79%)
- Licensed Corporations – Fund Advisory: $285 billion (HKD 2.22 trillion, 9%)
- Registered Institution – Asset Management: $198 billion (HKD 1.54 trillion, 6%)
- Insurance Companies – Asset Management: $150 billion (HKD 1.171 trillion, 5%)
- Licensed Corporations – REITS: $30.6 billion (HKD 238 billion, 1%)
- No. Of Licensed Corporations – Asset Management: 1,878
- No. Of Licensed Individuals – Asset Management: 13,074
A) Asset Management & Fund Advisory Client Breakdown $3.09 trillion AUM:
- Professional Investors: 72% ($2.2 trillion, HKD 17.1 trillion)
- Non-Professional / Retail Investors: 28% ($857 billion, HKD 6.66 trillion)
B) Professional Investors Breakdown – $2.2 trillion (72%):
- Corporations / financial institutions / funds: 47% ($1.43 trillion, HKD 11.1 trillion)
- Governments / sovereign wealth / central banks: 12% ($367 billion, HKD 2.85 trillion)
- Institutional / Corporates / Others: 5% ($153 billion, HKD 1.19 trillion)
- Individuals: 5% ($153 billion, HKD 1.19 trillion)
- Family offices and private trusts: 2% ($61.2 billion, HKD 476 billion)
- Charities: 1% ($30.6 billion, HKD 238 billion)
C) Asset Management and Fund Advisory Product Breakdown:
- Public Funds: 38% ($1.16 trillion, HKD 9.04 trillion)
- Managed Accounts: 31% ($948 billion, HKD 7.37 trillion)
- Private Funds: 16% ($489 billion, HKD 3.8 trillion)
- Pension Funds (Includes MPF, ORSO): 7% ($214 billion, HKD 1.66 trillion)
- Others: 8% ($244 billion, HKD 1.9 trillion)
MPF ~ Mandatory Provident Fund is Hong Kong retirement fund
ORSO ~ Occupational Retirement Schemes Ordinance is a voluntary retirement scheme in Hong Kong by an employer to its employees regardless of where the company is established or where the employee is based.
D) Location of Management of $2.77 trillion AUM (HKD 21.5 trillion) ^
- Managed in Hong Kong: 58% ($1.57 trillion, HKD 12.4 trillion)
- Delegated to other Offices: 42% ($1.17 trillion, HKD 9.16 trillion)
^ Excludes fund advisory business and REITs.
E) Geographic Allocation of Assets Managed in Hong Kong ($1.57 trillion, HKD 12.4 trillion):
- Hong Kong: 25% ($406 billion, HKD 3.15 trillion)
- Mainland China: 21% ($337 billion, HKD 2.62 trillion)
- North America: 17% ($270 billion, HKD 2.1 trillion)
- APAC (Ex-China): 13% ($210 billion, HKD 1.63 trillion)
- Europe: 13% ($204 billion, HKD 1.59 trillion)
- Japan: 5% ($75.5 billion, HKD 587 billion)
- Others: 6% ($92.8 billion, HKD 722 billion)
F) Asset Allocation of Assets Managed in Hong Kong ($1.57 trillion, HKD 12.4 trillion):
- Equities: 54% ($858 billion, $6.67 trillion)
- Bonds: 30% ($471 billion, HKD 3.66 trillion)
- Collective Investment Scheme: 8% ($134 billion, HKD 1.04 trillion)
- Cash & Money Markets: 4% ($69.5 billion, HKD 541 billion)
- Others: 4% ($63.2 billion, HKD 492 billion)
#4 Assets under Trust: $576 billion AUM
In 2020, the Assets held under Trust AUM in Hong Kong is at $576 billion (HKD 4.48 trillion), growing 17% Year-on-Year (YOY).
A) Assets under Trust by Client Type:
- Public funds: 30% ($170 billion, HKD 1.32 trillion)
- Pension funds (including MPF and ORSO): 37% ($212 billion, HKD $1.64 trillion)
Others (including family offices and private trusts, charities, and other corporates): 27% ($160 billion, $1.24 trillion) - Governments / sovereign wealth / central banks: 6% ($33.5 billion, $261 billion)
B) Investment Allocation by Region:
- Hong Kong 34% ($196 billion, HKD 1.52 trillion)
- North America: 29% ($166 billion, HKD 1.29 trillion)
- Mainland China: 17% ($96.9 billion, HKD 754 billion)
- Europe: 7% ($39.7 billion, HKD 309 billion)
- APAC (Excludes China): 5% ($32.8 billion, HKD 255 billion)
- Japan: 2% ($10.9 billion, HKD 85 billion)
- Others: 6% ($32.6 billion, HKD 254 billion)
View the full report by The Hong Kong Securities and Futures Commission (SFC): 2020 Report on Asset and Wealth Management Activities in Hong Kong
About Securities and Futures Commission (HK)
The Securities and Futures Commission (SFC) is an independent statutory body set up in 1989 to regulate Hong Kong’s securities and futures markets.
We derive our investigative, remedial and disciplinary powers from the Securities and Futures Ordinance (SFO) and subsidiary legislation. Operationally independent of the Government of the Hong Kong Special Administrative Region, we are funded mainly by transaction levies and licensing fees.
Visit: Hong Kong Securities and Futures Commission
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