Wealth in the Philippines: HNW Investors 2016 ; Understanding HNW investors and wealth management strategies in the Philippines.

Pages: 38 Published: July 01, 2016 Report Code: VF0029CI

Filipino HNW investors are mainly drawn from affluent families, being owners of successful and longstanding business empires. Newer entrepreneurial and high-earning individuals have begun to reshape the market along more typically Asia Pacific lines, mainly due to the accumulation of wealth and entrepreneurialism among individuals in manufacturing, construction, and retail. The Philippines’ increased identity as a business process outsourcing hub has dramatically changed the country’s expat profile. In general, given the strong economic performance in recent years and a positive outlook off the back of huge new infrastructure investments being made by the new Duterte government, the HNW segment is showing strong risk appetite and generally favors classic investments such as equities and bonds.


• A greater proportion of Filipino wealth comes from family business ownership and entrepreneurism than the rest of Asia Pacific.

• The country’s increased role as a business process outsourcing hub means the HNW expat profile has changed dramatically.

• Broad asset allocation is dominated by high growth equities, and this will remain the case.

• Filipino HNW investors value professional advice but like to maintain control of investment decisions.

• Demand is and will remain strong for pension planning services and margin loans with which to broaden exposure to the stock market.

Reasons to Buy

Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.

Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors’ drivers for seeking investment advice vs. self-directing.

Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.

Develop your service proposition to match the product and service demand expressed by Filipino HNW investors and react proactively to the forecasted change in demand.

Table of Contents


HNW wealth in the Philippines is still very much a family affair, but the landscape is changing

Key findings

Critical success factors


Family business owners account for much of the wealth in the Philippines

A greater proportion of Filipino wealth comes from family business ownership and entrepreneurism than the rest of Asia Pacific

The financial services and property sectors are beginning to feature as a source of HNW wealth

ASEAN membership, strong links with the West, and AEC integration bode well for the HNW Filipino expat market

Low barriers to settling have traditionally been a draw for retirees

The country's increased role as a business process outsourcing hub has meant the HNW expat profile has changed dramatically

The expat market is well-diversified geographically

Regional banks and wealth managers currently have the edge within the Philippine market

Wealth managers need to strengthen their expat offerings if they want to hold on to expat portfolios


Filipino HNW investors value professional advice and control over their investments

Better returns motivate HNW investors to seek professional advice

The largest proportion of HNW wealth is kept in advisory mandates

Despite some increase in financial sophistication, Filipino demand for all mandate types lags behind Asia Pacific

Demand for all asset management will rise, with execution-only recording the greatest increase

HNW investors' desire for control is the main driver of self-investment

Wealth managers should offer a full suite of asset management styles


Broad asset allocation is dominated by high growth equities and bonds

Equities and bonds account for the bulk of the HNW portfolio in the Philippines

Nearly two thirds of Filipino HNW equity allocations are held directly

Bond holdings are well above the regional average and must be watched

Cash and near-cash investments are below the regional average

Property forms a very small part of Filipino HNW investment portfolios

Uptake of commodity and alternative investments is still nascent among Filipino HNW clients, but there are signs of life

The alternative investments market is showing signs of life


Demand is strongest for pension planning

Other planning services are not sought after in the Philippines

Demand for all planning services is forecast to increase over the next two years

Demand for margin loans is on the rise

Filipino HNW investors are open to adding leverage to their portfolio

Demand for both investment property advice and margin loans will see a boost over the next two years


Abbreviations and acronyms



Mass affluent


Liquid assets


Verdict Financial's 2015 Global Wealth Managers Survey


Further reading

About Verdict Financial


List of Tables


List of Figures

Figure 1: The largest proportion of Filipino HNW assets are still held by family business owners

Figure 2: Retail and wholesale dominate as sources of wealth, although the country has become more diversified

Figure 3: The Philippines' HNW expat community are mainly short-term residents

Figure 4: Hong Kong has come to dominate the expat pool in the Philippines

Figure 5: Philam Life's Money Tree Elite is geared towards wealth building, not just preservation

Figure 6: HNW expats residing in the Philippines want to stay in control of their investments

Figure 7: Better returns drive Filipino HNW investors to opt for professionals

Figure 8: Filipino HNW wealth is relatively evenly distributed across mandate types

Figure 9: Local Filipino providers are experiencing low demand across all mandates

Figure 10: All mandates will go from strength to strength over the next two years

Figure 11: Filipino HNW investors' desire for control is what drives them to self-direct

Figure 12: HNW investors are heavily exposed to bonds and equities

Figure 13: Equity has been a leading draw for HNW wealth in the Philippines

Figure 14: Rebounding stocks will drive interest in equities to new highs

Figure 15: Bonds account for almost 50% of the Philippines HNW portfolio

Figure 16: Many wealth managers expect bond demand to increase over the next 12 months

Figure 17: Filipino investors keep cash allocations very low compared to Asia Pacific

Figure 18: The majority of wealth managers expect HNW demand for cash products to decrease

Figure 19: Property does not figure prominently in the Filipino HNW investment portfolio

Figure 20: Capital appreciation and asset diversification fuel HNW demand for property

Figure 21: Pension planning is strongly in demand among Filipino HNW investors

Figure 22: HNW demand for planning services is forecast to increase significantly

Figure 23: Filipinos are showing strong demand for margin loans

Figure 24: Forecasts for investment property advice and margin loan demand are high


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