HONG KONG: J.P. Morgan Asset Management Investor Survery reveals gap between grand aspirations and harsh reality

Oct 08, 2012

Simplified Chinese | Traditional Chinese

Hong Kong, 8 October 2012: To better understand the financial needs of Hong Kong investors, J.P. Morgan Asset Management conducted a survey to find out more about their investment behaviour. The survey revealed that the post-80s group have grand aspirations for their future but face the harshest reality, resulting from insufficient funds and lack of investment knowledge.

Mr. Leo Cheung, Head of Direct Business at J.P. Morgan Asset Management, says the findings of those aged 20 to 29 stand out among all age groups. "They set the most aggressive goals for wealth growth and retirement planning. They hope to become millionaires by the age of 33 and retire at 55, both of which are the most aggressive goals amongst all respondents."

The post-80s group also differ from the other age groups in terms of investment purpose. Buying property is a top priority for them, with 58% wishing to use their savings and investments to buy an apartment. The percentage of respondents wishing to spend on travelling and education is also significantly higher than other age groups. Although retirement is considered of less significance by the post-80s group, they believe that about HK$6 million is needed to guarantee a carefree retirement life – similar to other age groups.

"Despite their optimistic attitude, the post-80s group face the widest gap between goals and reality," says Mr. Cheung. One-fourth (24%) of the respondents aged between 20 to 29 save and invest less than HK$2,000 per month to prepare for retirement. Almost half (47%) do not save or invest regularly. As a result, 59% of them are worried about their life after retirement.

Lack of sufficient funds and financial knowledge were identified as the major obstacles to invest more. Over half (52%) cite insufficient money to invest while 43% cite lack of understanding about investment. The survey also shows that the majority of the group tried to find out about different investment opportunities, but either found it hard to comprehend or lacked the knowledge to evaluate which products best suit their financial needs.

The survey also questioned respondents about their preferred channels for investment and financial information and it was no surprise that the Internet is an indispensible medium for the post-80s group, with 70% using online channels as their trading platform and 83% sourcing financial information.

Mr. Terry Pan, Managing Director and Head of Hong Kong Business at J.P. Morgan Asset Management, believes the first step to successful financial planning is a full understanding of one's own financial needs and risk tolerance. "As the survey has shown, people have different priorities for their financial needs at different stages in their life. Because time horizons, liquidity needs and financial situations all vary, risk tolerance is also different. So know yourself first and then you can set investment goals and strategies that best suit you."

Another important thing to note is investment discipline. "Once you have developed a long-term financial goal, you need to adhere to a well defined investment discipline," says Mr. Pan. "Most individuals have a great deal of anxiety about their finances. But discipline, be it to invest a certain portion of your salary every month or to stay invested over the long term, is always the most reliable way to meet your goals."

J.P. Morgan Asset Management has been providing professional financial planning services directly to Hong Kong investors since 1987. Its investment centre in Jardine House, Central is celebrating its 25th anniversary this year whilst the centre in Kwun Tong was established in 2010. With its success and continued commitment to investor education, the firm will continue to focus on understanding client needs and to provide them with first class advisory services and investment solutions.

Ipsos, an independent market research company, was commissioned to conduct the online survey by J.P. Morgan Asset Management in May 2012. The online survey covered a sample size of 1610 respondents aged from 20 to 59. By utilizing the survey findings, J.P. Morgan aims to tailor-make investment solutions and better help Hong Kong investors to grow their wealth by offering financial advisory and fund investment services at its two investment centres.

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For further information please contact

Daniel Chui
Head of Investor Communications
Telephone: (852) 2800 2874
Email: daniel.wc.chui@jpmorgan.com

Harriet Ngan
Internal & Media Communications
Telephone: (852) 2800 2776
Email: harriet.hy.ngan@jpmorgan.com


Issued by JPMorgan Funds (Asia) Limited

Notes to Editors

J.P. Morgan Asset Management ("JPMAM") is the brand name of J.P. Morgan Chase & Co's asset management companies, including JPMorgan Funds (Asia) Limited.

J.P. Morgan Asset Management is a global asset management leader providing world-class investment solutions to clients. With over US$1.3 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at 30 June 2012) and offices in 41 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.

Commitment to Hong Kong

JPMAM's investment management business in Asia has remained headquartered in Hong Kong for more than four decades and today has over 500 employees based in this location. JPMAM is one of the largest local investment managers in Hong Kong with over US$73 billion (30 June 2012) of funds managed across the Asia Pacific region.

As part of a major global investment group, we are committed to providing specialist teams with the resources needed to deliver successful products and performance to our clients. The Hong Kong-based Pacific Regional Group, together with the local presence of the Global Portfolios Group, Global Multi Asset Group and Global Fixed Income Groups, forms the core of JPMAM's investment management operations. In addition to the knowledge and experience of our individual investment professionals, the stability of the team has enabled JPMAM to develop strong relationships with local clients.


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