CEO Derek Young at the opening of ipac in Hong Kong, which was “rightly chosen” for the firm’s regional headquarters

According to Derek Young, CEO of ipac financial planning Hong Kong Ltd, Hong Kong had "a strong attraction" for ipac, one of the most experienced financial planning firms in the region. It has arrived at a time when increasing numbers of investors are seeking advice on how to achieve absolute returns on their investment and plan for their retirement, he said.

"Hong Kong has been rightly chosen as ipac's regional headquarters for Asia," Mr Young said.

"Hong Kong's high level of financial sophistication, its wealthy population and an educated segment of the population that speaks Cantonese, Mandarin and English make it a logical base for ipac's regional centre."

The large concentration of multinational companies (MNCs) in Hong Kong was a further incentive, Mr Young added.

Important strategic move

"Many of ipac's current MNC relationships have operations in Hong Kong and seek a financial planning service for their senior executives similar to arrangements abroad. With the concentration of multinational companies in Hong Kong, the opportunity to develop new MNC relationships is an important strategic initiative for ipac."

Further key factors are Hong Kong's relatively large number of mass affluent people, the growing demand for financial advice in planning for retirement, and the high level of financial sophistication of the local community.

This leads to opportunity for independent, professional financial advice on a pay-for-service basis - not on commission - where solutions are delivered in the clients' best interests to match both their short and long-term goals.

ipac sees Hong Kong increasing substantially as a market in its own right in the coming years, and also as a platform to China, Mr Young said.

"Hong Kong's middle to upper class population (the mass affluent) is defined to have liquid assets on deposit with the banks of between US$100,000 and US$750,000. Today there are approximately 161,000 people in this category. This number is projected to almost double in the next five years to 314,000 as people grow wealthier from Hong Kong's development. (Source: Datamonitor Global Wealth Management Model 2002.)

Growing demand for advice

``In tandem, the demand for financial planning advice is expanding. More and more Hong Kong investors are going through mutual funds as opposed to buying stocks themselves. Placement of some of this investment is influenced by financial planners."

Mr Young added that a survey commissioned by the Hong Kong Investment Association last year found 9.5% of the adult population have bought into mutual funds, compared to 7.8% three years ago and 3.2% in 1997. This increasing trend parallels the experience of many other developed countries including the US, Canada and Australia. "Many people today seek the advice of quality financial planners to help them navigate a path to
their long term financial security," he said.

In the future, Hong Kong will also be an entry point to China for ipac, a firm already represented in eight countries around the world with 30,000 clients and over HK$28 million (US$3.5m) of funds under advice.

In addition to its Hong Kong headquarters, ipac also opened an office in Singapore this year. "The first step for ipac in Asia is to become the pre-eminent financial planner in Hong Kong and Singapore," Mr Young said.

Related link:
ipac www.ipac.com.hk