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Sector Analysis
Wealth in Hong Kong: Sizing the Market Opportunity
The number of affluent investors in Hong Kong grew to 2.4 million in 2015, achieving a lower rate of growth than its long-term average since the financial crisis rocked the market in 2008. Yet Hong Kong remains an attractive market. 40% of the adult population is considered affluent, comparable to markets in the developed West, while growth rates still resemble those found in the East. Growth going forward will be more modest for both affluent investor numbers and assets. But...
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Sector Analysis
Wealth in Poland: Sizing the Market Opportunity
Poland is an emerging economy and has a relatively short history of economic freedom and capital markets. As a result, the retail savings and investments market is very much skewed towards deposits. However, the value of onshore liquid assets held by Polish residents has been growing fast. The HNW population remains tiny, but at the same time is growing its wealth at the fastest pace. With their changing preferences and growing interest in offshore investments, Polish billionaires are a lucrative...
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Sector Analysis
Mass Affluents: Attitudes and Needs in Australia
The Australian mass affluent market offers a large pool of consumers. With a very large asset base, this segment of consumers offers a lot of potential business for providers. The mass affluent segment in Australia tends to be older, with over 75% having combined assets of A$300,000 on average. At the same time this consumer group also tends to be more conservative with their liquidity. Hence this set of consumers are driven by the trust and relationships that are established...
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Sector Analysis
UK Savings 2015: Forecasts and Future Opportunities
Low returns on balances and wages that are under pressure from inflation have made it difficult for UK consumers to grow their savings in recent years. At the same time, a recovery in consumer confidence has prompted a declining propensity to save. Retail deposits are predicted to rise at a CAGR of 4%, to reach £1,484bn by 2019, compared to 8% during 2000-07. Banks will have to use new strategies if they want to significantly grow this source of funding.
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Sector Analysis
Wealth in Germany: Sizing the Market Opportunity ; Sizing the wealth market in Germany and its growth potential.
Rising disposable income, a relatively strong economic outlook, and a healthy stock market performance will all drive growth in the German wealth market. The retail savings and investments market increased by 4.8% in 2015, and is forecast to grow by 4.3% a year to 2019, reflecting the maturity and strength of the sector in Germany. Indeed, compared to many of its European peers, the German economy is in relatively good shape. Domestic consumption is increasing, with record employment, rising wages,...
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Sector Analysis
Wealth in the US: Sizing the Market Opportunity
The US is home to the largest affluent population in the world and hosts a very advanced financial services sector, including the most sophisticated mutual fund and equity markets globally. The large affluent population is financially literate with high retail participation in both equities and mutual funds. US wealth managers thus have a lucrative target market onshore. In the future, growth in the affluent population’s liquid assets will be pronounced compared to other developed economies. At the end of 2015,...
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Sector Analysis
Wealth in the Netherlands: HNW Investors
Typically Dutch HNW individuals come from an entrepreneurial background or are family business owners, while the leading generators of wealth are the IT and financial services industries. While younger than the regional average, most Dutch HNW individuals are over 50, with almost a quarter over 65. Expats form a small proportion of the HNW population (4.1%), with the UK accounting for the largest share. The typical Dutch HNW individual invests heavily into equities, which make up nearly half of the...
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Sector Analysis
Wealth in the Netherlands: Sizing the Market Opportunity
In 2015, 74.1% of the country’s total liquid assets were held by affluent individuals. Total affluent assets are expected to continue to grow over the next five years to reach $530bn by 2019. The proportion of wealth held by affluent individuals is expected to remain stable at around 74%. The savings and investments market is dominated by deposits, which account for over three quarters of the total retail savings and investments market. Mutual funds are second with a 14% share...
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Sector Analysis
Self-Directed Investors: Implications for Wealth Managers; Understanding how self-directed investment affects the wealth management industry.
Globally execution-only mandates constitute 19.1% of total HNW assets held with wealth managers. Although clients in developing economies tend to prefer unadvised services, the US represents the biggest market opportunity in terms of self-invested assets. HNW clients under 35 years old and first-generation entrepreneurs are most likely to self-direct their investments. Price-sensitivity encourages HNW investors to look for alternatives to the services of wealth managers in mature economies, but in developing markets a pure preference to run simple portfolios independently...
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Sector Analysis
Wealth in the UK: Sizing the Market Opportunity; Sizing the wealth market in the UK and its growth potential.
Affluent individuals represent just over a quarter of the UK population but hold 91.7% of the UK’s liquid assets. UK wealth is concentrated mainly in London and the South East, but other regions should grow faster in the near future. 52.2% of UK savings are held in deposits (most of it in instant access accounts), but the solid performance of mutual funds has been attracting inflows to this asset class. Despite holding 12.1% of their investment portfolios in commodities, property,...
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