- CLSA report suggests strong growth in Asian HNWIs
- China a major driver, Indonesia tipped for highest rate of growth
- Industries creating positive economic value to benefit

By Chris Shaw

With the Asian region growing strongly so too is the number of high net worth individuals according to a report by CLSA Asia-Pacific Markets. The report, "Fat cats in fast lanes: Surge in high net worth individuals", suggests from 1.2 million high net worth individuals (HNWIs) in Asia in 2010 this number should increase to 2.8 million by 2015.

HNWIs are defined as those with investable assets of US$1 million or more, excluding their first homes.

In coming years China should account for the largest increase in wealth for the region, CLSA expecting the Chinese will make up 60% of the increase in HNWIs wealth over the next five years. Indonesia will have the highest HNWI growth at 25%, ahead of China at 22%.

Drivers of increased wealth in CLSA's view are explained by three factors ? an increase in savings as a result of economic growth, return on assets from yield and gains in capital values. Stronger exchange rates through Asia will also add to purchasing power for internationally priced goods according to CLSA.

In the view of CLSA, this increase in HNWIs will allow businesses that create positive economic value with a durable competitive advantage to outperform. CLSA suggests likely sectors to benefit include asset management, autos, consumer, healthcare, leisure and property.

There are risks to this outlook, with CLSA seeing a key risk as an unexpected US dollar rally. This reflects the fact projections are more sensitive to currency markets and GDP growth than equity market returns, as the rich in Asia generally have more of their wealth in property than in equities.