BNP Paribas WM: Asian FOs Lead in Succession Planning
Contrary to popular belief, Asian family offices are ahead of their regional peers when it comes to succession planning, according to a report by BNP Paribas Wealth Management.
Nearly two-thirds (65 percent) of Asia Pacific family offices have a succession plan in place, according to a report by BNP Paribas Wealth Management and Campden Wealth. The region was the leader, ahead of North America (55 percent) and Europe (47 percent). For those in APAC that have yet to formalize their succession plans, primary challenges include the next generation being viewed as insufficiently qualified (44 percent) or too young (38 percent).
«The fact that APAC family offices now lead the world in structured succession planning is a testament to their thoughtful approach to governance,» commented Arnaud Tellier, BNP Paribas Wealth Management’s APAC CEO.
«Rather than simply copying global models, Asian families are carefully adapting governance structures to reflect their unique pace, values, and vision. This ability to blend global best practices with deep-rooted cultural heritage positions them distinctly in the global landscape. Asian families are not only writing their own playbook rooted in tradition, but also firmly establishing themselves as future global leaders in wealth stewardship.»
Top Responsible Investor and Philanthropist
The region is also a leader in other areas such as responsible investing and philanthropy.
55 percent of APAC family offices have integrated ESG and impact-focused strategies, compared to 51 percent in Europe and 27 percent in North America. In philanthropy, Asia was the top in making donations, as claimed by three-quarters of respondents, with the global average at 67 percent.
Asset Allocation
In terms of investments, APAC family offices allocated just over half to their own region, around one-third in North America and more than 10 percent in Europe. 32 percent cited diversification as their immediate investment priority with 44 percent achieving this through hedge funds, commodities and gold (44 percent) as well as private market investments (40 percent).
The report was based on a survey of 360 family offices worldwide, including 76 from APAC.
