Turkiye Wealth Management – High Net Worth (HNW) Investors
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Turkiye Wealth Management Report Overview
The Turkish HNW population is predominantly male, accounting for more than 86% of such individuals. Despite this gender disparity, female HNW individuals represent an increasingly attractive target market for wealth advisors willing to cater to their specific needs with tailored products and services. Levels of female entrepreneurship are particularly low in Turkiye. To improve the representation of female entrepreneurs and women-led startups in the country, the BinYaprak Women Entrepreneur Mentoring Program was launched in November 2023 by Turkish bank Akbank and TurkishWIN, a networking site for Turkish women. This program offers individual mentoring and networking opportunities for women entrepreneurs to help them grow their businesses.
The Turkiye wealth management report analyzes the investment preferences, service requirements, and portfolio allocations of Turkiye HNW investors. The report is based on GlobalData’s annual Global Wealth Managers Survey.
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| Key Investment Preferences |
· Advisory Asset Management
· Automated Investment Services · Discretionary Asset Management · Execution-Only Asset Management |
| Key Reasons for Expatriation |
· Business Interest
· Tax Efficiencies · Local Currency Volatility · Local Political Instability · Local Economic Instability |
| Key Asset Allocation Classes | · Equities
· Bonds · Cash and Near-Cash Products · Real Estate · Commodities · Alternatives |
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Turkiye Wealth Management Market - Investment Preferences
The key investment preferences in the Turkiye wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management. In Turkiye, there is high current demand for execution-only mandates and automated investment services. This suggests that Turkish HNW investors are becoming more sophisticated. However, the largest proportion of wealth managers believe demand for advisory mandates will experience the highest increase in the next 12 months. This can partly be attributed to increasing volatility in the market, which leads investors to expect greater involvement.
Turkiye Wealth Management Market Analysis by Investment Preferences, 2023
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Turkiye Wealth Management Market - Asset Allocation Classes
Cash and near-cash products accounted for the highest Turkiye wealth management market share in 2023
The major asset allocation classes for HNW investors in the Turkiye wealth management market include equities, bonds, cash and near cash products, real estate, commodities, and alternatives. Turkish HNWs allocated a significant percentage of onshore wealth to cash and near-cash investments in 2023. This is attributed to persistently high inflation, tightening monetary policy, slower economic growth, and the ongoing Russia/Ukraine conflict that created significant uncertainty.
Turkiye Wealth Management Market by Asset Allocation Classes, 2023 (%)
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Turkiye Wealth Management Market – HNW Offshore Investment Preferences
Business interests are the leading HNW offshore investment driver in Turkiye
Turkish HNW investors hold over a third of their wealth in offshore investments. Turkish HNW individuals invest offshore for various reasons, primarily driven by business interests abroad and tax efficiencies. Turkiye’s strategic location as a gateway between Europe and Asia has established it as a significant hub for manufacturing and distribution. Tax efficiency is the second most important driver for offshore investments. Sound onshore tax advice can help mitigate investors’ desire to channel wealth offshore, while also creating an opportunity to earn fees from clients’ offshored assets.
Turkiye Wealth Management Market Analysis by HNW Offshore Investment Drivers, 2023 (%)
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Segments Covered in the Report
Turkiye Wealth Management Asset Allocation Classes Outlook (2023)
- Equities
- Bonds
- Cash and Near-Cash Products
- Real Estate
- Commodities
- Alternatives
Scope
- This report sizes the opportunity within Turkiye’s wealth market and analyzes the investment preferences, service requirements, and portfolio allocations of the country’s HNW investors.
- The report is based on GlobalData’s annual Global Wealth Managers Survey.
Reasons to Buy
- Understand the Turkiye HNW wealth market, including the investment preferences of HNW individuals.
- Develop and enhance your client targeting strategies using our data on HNW demographics and sources of wealth.
- Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.
Table of Contents
Frequently asked questions
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What are the key investment preferences in the Turkiye wealth management market?
The key investment preferences in the Turkiye wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management.
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What was the leading driver for HNW offshore investments in the Turkiye wealth management market in 2023?
Business interests were the leading HNW offshore investment drivers in the Turkiye wealth management market in 2023.
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Which was the leading asset allocation class for HNW investors in the Turkiye wealth management market in 2023?
Cash and near-cash products accounted for the highest Turkiye wealth management market share in 2023.
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