<p>   According to the new The Boston Consulting Group (BCG) report, assets of Singapore and Hong Kong will increase rapidly by 2021. The Asia-Pacific region is developing faster than all again.</p><p>   The Boston Consulting Group report showed that in 2016, world private financial wealth increased by 5.3 percent (in 2015 - by 4.4 percent), amounting to 166.5 trillion US dollars, and primarily this growth occurred against the backdrop of acceleration economic growth and good results obtained in equity markets around the world. Growth was noted in all regions, but the Asia-Pacific proved to be the fastest growing - the volume of private capital in this region increased by 9.5 percent to 38.4 trillion dollars, almost catching up with Western Europe. In Western Europe, growth was small (3.2 percent) due to the situation around the UK exit from the European Union (Brexit). According to the BCG report, by the end of 2017 private wealth in the Asia-Pacific region should increase by more than 10 percent and reach 42.3 trillion dollars. In Western Europe, a very small increase is expected - up to 41.9 trillion US dollars. According to analysts, it is expected that by 2019 the Asia-Pacific region (together with Japan) will bypass the size of private wealth throughout North America.</p><p>   Studies by BCG experts show that in 2016 offshore wealth grew more slowly (3.7 percent) than onshore wealth (5.4 percent). Switzerland, which owns a 24 percent stake, has remained the largest offshore center, but it is expected that this share will decline until 2021. The fastest growing offshore centers in the world today are Singapore and Hong Kong. They have such status because of their reputation preferred accommodation centers for clients in the region, as well as due to expectations of strong growth in the Asia-Pacific region.</p><p>   Singapore's reputation as a safe and stable center will bring the money of Southeast Asia. According to the BCG report, the private wealth ratio here will increase by 8 percent until 2021. In Hong Kong, this figure will increase by 7 percent, and in Switzerland - only 3 percent.</p><p>    At the moment, Switzerland remains the world leader in the field of capital management with assets of 2.4 trillion dollars, which is twice as much as in Singapore. For decades, centers such as Switzerland and Singapore have benefited from political and economic instability elsewhere, prompting wealthy people to transfer their money abroad. The largest Asian centers attract customers from the region, which become richer in tandem with the growth of the economies of these states. "In the eyes of customers, Singapore is independent and secure. His government is very supportive of the capital management industry", - said Mariam Jafar, partner of the consulting group and co-author of the report.</p><p>   It is projected that in the long term expansion will continue, but in the short term it may to some extent slow down the restrictions imposed by China on the outflow of investment.</p><p>    "Offshore centers are out of risk, - says Anna Zakrzewski, BCG partner and co-author of the report - In the situation of political instability in most parts of the world and a tangible uncertainty in the markets, offshore companies have the place to be and will be safe harbors offering a variety of services in the field of private capital management".</p><p>   Also in the BCG study highlights that in subsequent years the wealth of the wealthiest people in the world will grow faster than all other groups. People with conditions over $ 100 million in the period from 2016 to 2021 can count on a 9.1 percent increase in wealth annually, and those whose fortune ranges from 20 to 100 million US dollars can expect 10.2 percent growth. But those whose wealth is less than $ 1 million, growth will be much more modest - only 3.7 percent.</p><p>   In 2016, investors from the Asia-Pacific region were the largest source of offshore wealth - $ 2.9 trillion. In Western Europe, this figure last year was slightly lower - $ 2.6 trillion.</p><p>   It is expected that by the end of 2021 the growth of world private wealth will be 6 percent (compared with 5.3 last year). At that time, as growth in Japan and North America will depend on the effectiveness of existing assets, in the territory of the Asia-Pacific region will increase capital through new savings. And in Western Europe, wealth will grow in equal measure both at the expense of the efficiency of existing assets and at the expense of new ones.</p><p>   As for Russia, it is expected that the volume of private capital in this country by 2021 will grow for 26.6 percent compared to 2016 and thus amount to 1.9 trillion US dollars, while the fastest growth will show savings on deposits and cash. The authors of BCG predict that by 2021 the volume of deposits and cash will grow for 22 percent to $ 1.1 trillion (0.9 trillion in 2016). And the amount of capital that is placed in the shares will remain the same - $ 300 billion. Investments in bonds will increase by 100 billion dollars and will total 400 billion.</p><p>   Annual private equity growth will slow down: if from 2011 to 2015 it grew annually by about 13.7 per cent, from 2016 to 2021 years, the rate will drop to 4.9 per cent each year.</p><p>   According to Max Hauser, partner and managing director of BCG, "despite the expected slowdown in the growth of private wealth in Russia to 5 percent a year, the State remains its main source in Eastern Europe. The young Russian market of private capital management has chances of growth, especially its onshore part. the one who will be able to create a convenient platform for making and implementing investment decisions will benefit and will provide an opportunity to diversify assets in terms of geography and risk. </p><p style="text-align: center;"><em>To receive professional advice regarding the placement of assets in Asia, you can get with our specialists of CASTLE FAMILY OFFICE by writing to us at  <span lang="EN-US"><span face="Calibri" size="3"><strong><a href="mailto:info@castle-familyoffice.sg">info@castle-familyoffice.sg</a></strong></span></span></em></p>