Interview with: Roger King,
Professor, Director, Tanoto Centre
for Asian Family Business and
Entrepreneurship Studies, HK
...
The Investment Network –
marcus evans Summits group
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Culturally Sensitve Private Wealth Management - Interview: Roger King, Professor, Director, Tanoto Centre for Asian Family Business and Entrepreneurship Studies, HK University of Science & Technology, Private Wealth Management APAC Summit

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An interview with Roger King who is the Professor and Director at the Tanoto Centre for Asian Family Business and Entrepreneurship Studies, HK University of Science & Technology and also a speaker at the marcus evans Private Wealth Management APAC Summit 2013, discusses being sensitive to cultural differences when managing private wealth.

Join the 2014 Summit along with leading regional family offices and wealth advisors and international fund managers and consultants an intimate environment for a focused discussion of key new drivers shaping wealth preservation and investment strategy.

For more information contact: emailus@marcusevans.com

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Culturally Sensitve Private Wealth Management - Interview: Roger King, Professor, Director, Tanoto Centre for Asian Family Business and Entrepreneurship Studies, HK University of Science & Technology, Private Wealth Management APAC Summit

  1. 1. Interview with: Roger King, Professor, Director, Tanoto Centre for Asian Family Business and Entrepreneurship Studies, HK University of Science & Technology “Different cultures have different expectations. The Chinese have a saying that private wealth does not last beyond three generations. The question is why? To break this three generation curse, we need to identify and understand the unique aspects of each culture and learn from each other,” says Roger King, Professor, Director, Tanoto Centre for Asian Family Business and Entrepreneurship Studies, HK University of Science & Technology. A speaker at the marcus evans Private Wealth Management APAC Summit 2013, in Macao, Asia Pacific, 28 - 30 October, King discusses why cultural sensitivity is critical in private wealth management for understanding how decisions are made. Why must private wealth managers be very sensitive to cultural differences? Many of us do not expect wealth to last beyond three generations for different reasons, but I believe we must look at each culture differently and consider whether adjustments are possible to break that three generation curse. Would you say the Chinese are more “cursed” than others in the region? Most wealth in China is retained in the family business structure. Why do Japanese family businesses last for centuries whereas Chinese ones do not? Firstly, the political system in Japan has been reasonably stable over centuries, whereas the Chinese and Indians have been colonised by other cultures. When there is no stability, people do not make long-term commitments or investments and are ready to leave the country if the regime changes. A second key difference is the inheritance system. In Japan a single person inherits the entire estate, known as Primogeniture. In Chinese culture, the male descendants share the wealth almost equally. It is easy to see how wealth can get dissipated in a few generations. In addition, in the old days it was quite common for Chinese men to have multiple wives giving rise to many more descendants. This is a stark contrast to primogeniture. How do these cultural differences impact wealth management? Many of the wealthy individuals in China became millionaires or billionaires in a very short period of time within the past 20 years. Private wealth only came about in the 1990s, so most are now transitioning from the first to the second generation. As it is all relatively new, the next generation is lacking a value system that would help sustain that wealth. Many of them do not have the notion of continuity. They do not feel secure. One of their most desired asset is an American passport or green card, so they can leave if something happens in China. That is a challenge for us. Most of their wealth is due to business success, so they think they know how to manage it by themselves and do not accept advice. History has taught them not to trust anyone from outside their clan or family, so why would they trust someone else to manage their wealth? The younger generation is often educated abroad, but when they return with a more Western management style or thinking process, which have their pluses and minuses, they create a cultural clash within the family itself. Asians tend to do things collectively, as a family unity. Western culture is more individualistic. On the other side, organisations are much more structured in the West and family wealth is often separated from the family business wealth. Having a single pool of resources is very common in Asia, but it is very dangerous. If the business fails, everything goes down the drain. Any final comments? Wealth managers who are familiar with the local culture take these differences into consideration, but others need to be sensitive to these differences to understand how decisions are made within the family structure. If they go against the grain of how tradition operates, their level of success is going to be diminished significantly. In Asia people tend to do things collectively Culturally Sensitive Private Wealth Management
  2. 2. The Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional t r e n d s a n d b r e a k t h r o u g h innovations. Please note that the Summit is a closed business event and the number of participants strictly limited. About the Private Wealth Management APAC Summit 2013 This unique forum will take place at The Venetian Macao Resort Hotel, Macao, Asia Pacific, 28 - 30 October 2013. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on wealth preservation, wealth structuring, sustainable long-term investment strategy and strengthening the family office model. www.pwmsummit.com Contact Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division Tel: + 357 22 849 313 Email: press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.com About marcus evans Summits marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, case studies, roundtables and one-to-one business meetings. For more information, please visit: www.marcusevans.com Upcoming Events APAC Investments Summit - www.apacinvestmentssummit.com European Pensions & Investments Summit - www.epi-summit.com Private Wealth Management Summit (North America) - www.privatewealthsummit.com To view the web version of this interview, please click here: www.pwmsummit.com/RogerKing

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