Retirement planning drives most affluent Taiwanese to invest and inflation is seen as the biggest threat to achieving their goals, an annual survey by Legg Mason Management Taiwan showed yesterday.
The survey showed 79 percent of rich Taiwanese with investable assets of at least US$1.4 million said retirement is the main reason for wealth management, compared with 56 percent in Hong Kong, 71 percent in Singapore and 57 percent in China.
Plans to grow wealth ranks second in terms of importance among Taiwanese investors at 69 percent, followed by a desire to maintain current living standards, at 61 percent, according to the survey.
“The findings fall in line with the nation’s fast-growing population of elderly people and living expenses,” said Rick Chen (陳宏達), local head of the US asset management company.
Around Asia, investors deem inflation as the foremost challenge to their portfolios, the survey found.
Fifty-one percent of Taiwanese respondents viewed inflation as the biggest threat to investment, compared with 56 percent in China, 53 percent in Singapore and 43 percent in Hong Kong, the survey showed.
In general, Taiwanese investors are looking at an average of 9.1 percent in returns, the highest in Asia, though realized gains stood at only 5.5 percent, the survey showed.
However, Taiwanese are more conservative than their global peers, as cash and cash equivalents make up 32 percent of their portfolios, compared with the global average of 27 percent, the survey showed.
Furthermore, 40 percent of Taiwanese investors voiced concern about the nation’s low economic growth, whereas their peers in the region care more about market volatility and wrong investment decisions, the survey showed.
The survey polled 4,320 affluent investors in 20 markets around the world from December last year to January.