Diversifying investments, and increasing liquidity and financial flexibility was ranked in second place (48.1 per cent) and in third place (45.3 per cent) respectively for APAC HNWIs. Meanwhile, 64.2 per cent said that when thinking about transferring wealth between generations, preserving family wealth across generations is the most important objective, followed by maintaining family unity and shared values (52.7 per cent) and empowering the next generation (41.4 per cent).

The study draws on perspectives from over 390 HNWIs in Australia, China, Hong Kong, Japan, Malaysia, Singapore, Taiwan, Thailand and the Philippines, highlighting a series of shifts shaping investment behaviour, family governance and long-term strategies amid a changing investment landscape.

The study shows how it is one thing for HNWIs to have strong opinions in terms of values and investment allocation, and another to communicate these effectively to family members or those about to inherit wealth – and to reach an alignment.

The findings highlight the contradictions and complications that impact decision-making within families and the varying opinions that can blight discussions before they even begin.

The report shows that 28.8 per cent of respondents cite a lack of open communication as a significant challenge to managing family governance, which highlights the difficulties that can prevent alignment. This is where a formal structure and/or professional advice can prove invaluable, with the findings of this report revealing a clear correlation between alignment and governance, the firm said.

For example, a significant 87.5 per cent of respondents who receive professional advice consider their family having some degree of alignment, compared with 57.8 per cent of those who do not receive advice. Meanwhile, 50 per cent of respondents who are not advised believe that the absence of a formal structure is a significant challenge in managing their family governance, compared with 17.2 per cent of advised investors.

Many families wait until a problem arises before structuring their governance, whether it be conflict, close proximity to succession, or other crises. Therefore, it is vital to put a family charter, governance rules (even simple ones as a starting point), and clear roles for family members in place now.

The importance of education, knowledge and structure has perhaps never been more critical than it is today, the firm said. Governance is essential when there is significant wealth in play, a business in the assets, large real estate exposure, and multiple decision-making generations.

The results are very clear: everyone recognises the importance of alignment but a large proportion of families do not talk about it. It is therefore vital to actively organise discussions on wealth vision, intergenerational expectations, and decision-making rules. Alignment cannot be decreed; it must be built, Lombard Odier continued. There is a real contradiction: there is a strong willingness to transfer, both in family businesses and family wealth, but there is a low level of preparation. Therefore, it is important to invest in financial education for the next generation, to promote a gradual exposure to decision-making, and to define concrete roles in wealth management.

Succession is not only about the transfer of assets, but also about passing on the necessary skills and confidence to the next generation, the firm said. The report highlights a massive gap between supported and unsupported families in terms of confidence and concerns.

It is important that APAC HNWIs do not limit advice to just investments. They must include governance, structuring, and family facilitation, while being open to using third parties to unlock sensitive discussions. Good advice not only manages wealth, but also structures it. Many families still seem to view succession as a one-off moment. This is a mistake. It is vital to think about succession over several years, involving gradual planning, regular reviews, and adaptation to family changes. Successful transitions are those that are anticipated, tested, and adjusted over time, the report concludes.