Switzerland Wealth Management – High Net Worth (HNW) Investors

Pages: 32 Published: June 21, 2023 Report Code: GDFS0708CI

Switzerland Wealth Management Report Overview

The Swiss wealth market is very mature compared to other markets across Europe. This is reflected in the demographic makeup of the local HNW community, the majority of whom are approaching or have already reached retirement age. Consequently, wealth preservation strategies will resonate strongly with this segment of the market, and wealth managers need to prepare for a heightened level of possible wealth transfers.

The Switzerland wealth management market report analyzes the investment preferences, service requirements, and portfolio allocation of Switzerland’s HNW investors. The report is based on GlobalData’s proprietary Global Wealth Managers Survey.

Key Investment Preferences ·       Advisory Asset Management

·       Automated Investment Services

·       Discretionary Asset Management

·       Execution-Only Asset Management

Key Reasons for Expatriation ·       Better Lifestyle Conditions

·       Better Opportunities for Expats’ Children

·       Business Start-Ups

·       Job Transfer

·       Political or Economic Instability in The Origin Country

Key Asset Allocation Classes ·       Equity

·       Bonds

·       Cash and Near Cash

·       Real Estate

·       Commodities

·       Alternatives

Enquire & Decide Discover the perfect solution for your business needs. Enquire now and let us help you make an informed decision before making a purchase.

Switzerland Wealth Management Market Dynamics

The proportion of under-50s within the current population of women in Switzerland’s HNW population is growing. Relatively young, female Swiss HNW individuals represent a small but growing market opportunity for wealth managers. This can be attributed to increased efforts to improve gender diversity among senior professionals. Hence, a crucial growth imperative for wealth advisors will be attracting and retaining female customers by creating a winning value proposition.

The vast majority of HNW individuals in Switzerland have accumulated their wealth through earned income. Meanwhile, fewer than one in five have amassed their wealth through entrepreneurship. However, considering the often more complex needs of entrepreneurs, wealth managers that can cater to this segment’s financial needs (both private and business) will find entrepreneurs more lucrative than professionals.

For more insights into the Switzerland wealth management market dynamicsdownload a free report sample

Switzerland Wealth Management Market - Investment Preferences

The key investment preferences in the Switzerland wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management. Execution-only mandates have the highest current demand in Switzerland. They are also forecast to witness the highest increase in demand over the next 12 months, followed by advisory mandates. With many Swiss HNW individuals employed in the financial services industry, investors tend to have good knowledge of capital markets and investment matters.

Discretionary mandates are also set to experience increased demand over the forecast period. That is beneficial for wealth managers as these mandates have a high fee-earning potential. This preference will also help the leading brands, including UBS and Julius Baer, which have targeted growth in these mandates.

Switzerland Wealth Management Market - Reasons for Expatriation for HNW Investors

The drivers of expatriation to Switzerland are better lifestyle conditions, better opportunities for expats’ children, business start-ups, job transfer, and political or economic instability in the origin country, among others. Better lifestyle conditions and better opportunities for expats’ children act as the main expatriation factors. While Switzerland has some challenges in terms of how the expats feel they are regarded by local people, lifestyle quality in the country is extremely high regarding housing, infrastructure, the legal system, and healthcare.

Switzerland Wealth Management Market Analysis by Reasons for Expatriation, 2022 (%)

Switzerland Wealth Management Market Analysis by Reasons for Expatriation, 2022 (%)

For more expatriation reason insights into the Switzerland wealth management marketdownload a free report sample

Switzerland Wealth Management Market - Asset Allocation Classes

The major asset allocation classes for HNW investors in the Switzerland wealth management market include equity, bonds, cash and near-cash, real estate, commodities, and alternatives. Equity funds are in strong demand among Swiss HNW investors. In 2022, higher inflation amid slower growth had wealth managers and investors scrambling to inflation-proof portfolios. Heightened volatility because of macroeconomic and political forces have caused investors to take a more defensive stance. In 2022, Switzerland’s flagship index—the SMI—declined, resulting in HNW investors considering adjusting their exposure to equities in 2023.

Switzerland Wealth Management Market by Asset Allocation Classes, 2022 (%)

Switzerland Wealth Management Market by Asset Allocation Classes, 2022 (%)

For more asset allocation class insights into the Switzerland wealth management marketdownload a free report sample

Switzerland Wealth Management Market Asset Classes Outlook (2022)

  • Equity
  • Bonds
  • Cash and Near Cash
  • Real Estate
  • Commodities
  • Alternatives

Scope

  • Expats constitute 23.2% of the local HNW population. They represent an attractive target market thanks to their more complex service requirements.
  • Robo-advice accounts for just 7.4% of the Swiss HNW portfolio. Robo-advisory services are at a very nascent stage of development in the HNW space in Switzerland, but they are slowly gaining traction.
  • The average Swiss HNW investor offshores 34.8% of their wealth abroad. This proportion is expected to increase over the next 12 months, indicating that many HNW investors are uncertain about the country’s economic recovery.

Key Highlights

  • Expats constitute more than 23% of the local HNW population. They represent an attractive target market thanks to their more complex service requirements.
  • Robo-advice accounts for a little more than 7% of the Swiss HNW portfolio. Robo-advisory services are at a very nascent stage of development in the HNW space in Switzerland, but they are slowly gaining traction.
  • The average Swiss HNW investor offshores 34.8% of their wealth abroad. This proportion is expected to increase over the next 12 months, indicating that many HNW investors are uncertain about the country’s economic recovery.

Reasons to Buy

  • Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
  • Enhance your marketing strategies and capture new clients using insights from our data on HNW investors’ asset management style preferences.
  • Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.

Key Players

UBS
Julius Baer
Credit Suisse
True Wealth
Swissquote

Table of Contents

Demographics

Expats

Investment Style Preferences

Asset Allocation Preferences

Offshore Investment Preferences

Products and Services

Appendix

Frequently Asked Questions

Advisory asset management, automated investment services, discretionary asset management, and execution-only asset management are the various investment services in the Switzerland wealth management market.

Execution-only mandates have the highest demand among other investment preferences in the Switzerland wealth management market.

Better lifestyle conditions and better opportunities for expats’ children are the primary reasons for the expatriation of HNW investors in the Switzerland wealth management market.

Equity is the leading asset class of offshore investment for HNW investors in the Switzerland wealth management market.

$1,295

Can be used by individual purchaser only

$2,590

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about our multi-purchase discounts

reportstore@globaldata.com
Tel +44 (0) 20 7947 2960

Every customer’s requirement is unique. We understand that and can customize the report basis your exact research requirements pertaining to market insights, innovation insights, strategy and planning, and competitive intelligence. You can also avail the option of purchasing stand-alone sections of the report or request for a country specific report.

Testimonial

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods