United Kingdom (UK) Wealth Management – Market Sizing and Opportunities to 2026
The United Kingdom (UK) remains one of the top five wealth markets in the world in terms of affluent individuals’ onshore liquid assets. The majority of 2020 was clouded by uncertainty around a trade deal with the EU. However, the most detrimental impact on the UK economy and financial markets was COVID-19, which hurt the UK more than most countries.
The UK wealth management market research report analyzes the UK wealth and retail savings and investments markets, including the overall affluent market size. The report also provides an analysis of the factors driving liquid asset growth, including a breakdown, and forecast of total retail savings and investments split by equities, mutual funds, deposits, and bonds.
UK Wealth Management Market Dynamics
2021 was a more prosperous year for affluent individuals. The UK continued to recover off the back of mass vaccinations and the last-minute trade deal with the EU. However, hurdles such as the Omicron variant impacted growth.
In 2020, despite the Coronavirus Crash, the affluent segment’s wealth continued to grow. UK investors are relatively risk-averse, with the wealth market leaning heavily on deposits (particularly at lower wealth tiers). Wealthier investors felt the burn of the crash more than the masses. But unlike the 2008 crash, which occurred later in the year, the Coronavirus Crash came at the end of Q1 2020. This allowed investors to recover from the devastating positions their portfolios were in earlier in the year. As a result, the liquid asset wealth of HNW individuals had witnessed subdued growth by the close of the year.
Key UK Wealth Management Market Asset Bands
The key asset bands in the United Kingdom (UK) wealth management market are the mass market, emerging affluent, mass affluent, and HNW.
Key Segments in Investor Asset Allocation/Holding in the UK Wealth Management Market
Saving accounts, current accounts, Bonds, ETFs, mutual funds, and equity are some of the key segments in investor asset allocation in the UK wealth management market. Among all these, savings accounts dominate holdings across each investor type.
Key UK Wealth Management Market HNW Asset Allocation Classes
The key HNW asset allocation classes in the UK wealth management market are equities, cash and near-cash, bonds, property, alternatives, and commodities. HNW investors in the UK allocate an above-average proportion of their wealth to equities compared to the wider region.
HNW investors continued to invest in equities in their search for higher yields amid the current low-interest rate environment. A desire to achieve diversification across industries and geographies has resulted in greater uptake of fund products within the equity space.
UK Wealth Management Market, by Asset Allocation Classes
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UK Wealth Management Market Overview
| Key Asset Bands | Mass Market, Emerging Affluent, Mass Affluent, and HNW |
| Key Segments (Asset Allocation/Holding) | Saving Account, Current Account, Bonds, ETFs, Mutual Funds, and Equity |
| Key Asset Allocation Classes | Equities, Cash and Near-Cash, Bonds, Property, Alternatives, and Commodities |
Scope
- HNW individuals constituted only 0.82% of the total adult population of the UK in 2021.
- Discretionary mandates dominate the UK HNW wealth market.
- Deposits remain the most popular investment avenue for UK individuals, indicating their preference for safe-haven investment asset classes.
- Bonds continued to form a small proportion (0.5%) of retail investment portfolios in 2021.
Reasons to Buy
- Make strategic decisions using top-level historic and forecast data on the UK wealth industry.
- Identify the most promising client segments by analyzing the penetration of affluent individuals.
- Receive detailed insights into retail liquid asset holdings in the UK
- Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the wealth space.
- See an overview of key digital disruptors in the country’s wealth market.
Key Players
Table of Contents
Frequently Asked Questions
The key asset bands in the UK wealth management market are mass affluent, emerging affluent, mass market, and HNW.
Saving accounts, current accounts, Bonds, ETFs, mutual funds, and equity are some of the key segments in investor asset allocation in the UK wealth management market.
The key HNW asset allocation classes in the UK wealth management market are equities, cash and near-cash, bonds, property, alternatives, and commodities.
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