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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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Sector Analysis
HNW Asset Allocation Trends
The most striking trend is the surge in alternatives, which constitute an increasingly large share of the typical portfolio as investors seek diversification from traditional investments. We are also seeing rising demand for exchange-traded funds, which thanks to the diversification they provide and their low costs are rapidly growing in popularity. Drawn in by capital appreciation opportunities, investors are forecast to channel more wealth into equities. This trend will be particularly pronounced in Europe, where investors are hoping that loose...
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Sector Analysis
Wealth in China: Sizing the Market Opportunity; Sizing the wealth market in China and its growth potential.
At the end of 2015, of the approximately 1.05 billion adults living in China 3.5% could be considered affluent. Asset growth is expected to be strongest in the $10m+ asset band, which will record a CAGR of 14.1% between 2015 and 2019, compared to a CAGR of 8.8% for mass affluent individuals. Deposits continue to dominate China’s retail investments market, but mutual fund holdings are forecast to grow at the fastest pace over the next five years. Chinese high net...
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Sector Analysis
UK IFAs and their Clients; Identifying the IFA client base and how it can be grown.
Looking forward, growing affluence and an aging population will increase the amount of those seeking advice and bring more potential customers to the IFA target pool. Older clients, particularly those approaching and in retirement, form the current core group of advisor customers. The typical UK IFA client is an older male investor, reflecting the fact that older men tend to be the most affluent demographic group. Consumers who choose professional advice do so in order to receive strategic advice and...
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Sector Analysis
Retail Banking Market Insights: Poland
The current account sector's competitive dynamics are driven by five large banks. The top three providers claim more than half (54%) of main current accounts. Polish consumers tend to choose providers on the basis of branch location and reputational factors Switching rates are low in Poland compared to the global average of 17%. Pull factors prompt consumers to switch providers. Polish savers are cautious, with around 6 in 10 saving to protect themselves against unforeseen events and a third saving...
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Sector Analysis
Mass Affluents in Hong Kong: Attitudes
Mass affluents in Hong Kong hold more products than average, and are significantly more likely to own investments and insurance products than the general population. Providers should consider offering robot-advice investment tools to cost-effectively service their needs. Mass affluents are far more likely to be saving in order to fund a future financial investment. Banks can cater for this by allowing easy switching of funds between deposit and equity accounts and providing customers with a single view of all their...
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