Wealth in France: Sizing the Market Opportunity 2016; Sizing the wealth market in France and its growth potential.

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Growth in France’s retail savings and investment market will be dampened by a faltering economic recovery and a weaker stock market performance. Economic and political challenges continue to reverberate in the development of the affluent market, with lower growth forecast in both individuals and assets to 2020.

Scope

Verdict Financial’s “Wealth in France: Sizing the Market Opportunity 2016” analyzes the French wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

Specifically the report:

– Sizes the affluent market (both by the number of individuals and the value of their liquid assets) using our proprietary datasets.

– Analyzes which asset classes are favored by French investors and how their preferences impact the growth of the total savings and investments market.

– Examines HNW clients’ attitudes towards non-liquid investments such as property and commodities.

– Identifies key drivers and booking centers for offshore investments.

Reasons to Buy

– Benchmark your share of the French wealth market against the current market size.

– Forecast your future growth prospects using our projections for the market to 2020.

– Identify your most promising client segment by analyzing the penetration of affluent individuals in France.

– Evaluate your HNW proposition by understanding how the French tax system will impact HNW clients.

– Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.

Table of Contents

N/A

Table

EXECUTIVE SUMMARY

France's economic and political challenges continue to dampen market growth

Key findings

Critical success factors

SIZING AND FORECASTING THE FRENCH WEALTH MARKET

The French wealth market will remain concentrated at the top end

Affluent individuals represented 17.5% of the adult population in 2015

French affluent individuals hold over 80% of total liquid assets

DRIVERS OF GROWTH IN THE FRENCH WEALTH MARKET

Retail savings and investments growth will remain subdued as France's economy continues to struggle

Growth in retail savings and investments will remain subdued

Deposits dominate the retail savings and investments market

Deposits will grow steadily over the forecast period

The ECB lowering the main interest rate to 0% has reduced the appeal of deposits

Deposit growth is set to continue, albeit at a slower pace

Equities and mutual funds benefited from relatively strong stock market performance in 2015

The CAC 40 showed signs of recovery in 2015 in spite of continued volatility

Equity and mutual fund growth is strongly linked to the performance of the CAC 40

Retail bond holdings will continue to decline

HNW INVESTMENT PREFERENCES

French HNW individuals hold just over 30% of their portfolios in alternative and illiquid assets

Property investment forms the majority of French HNW illiquid portfolios

Offshore investments are relatively low and are driven by the desire for tax efficiency

French HNWs invest just over 14% of their portfolios offshore

Tax efficiency is the number one motivation for offshore investment

The majority of French HNW offshore wealth is held close to home

France is taking numerous steps to tackle offshore tax evasion

France's complex and heavy tax regime will continue to change

APPENDIX

Abbreviations and acronyms

Supplementary data

Definitions

Affluent

Domicile

DTC

FATCA

HNW

Liquid assets

Mass affluent

Onshore

Residency

TIEAs

Methodology

Verdict Financial's 2016 Global Wealth Managers Survey

Verdict Financial's 2015 Global Wealth Managers Survey

Global Wealth Model methodology

Verdict Financial's Global Retail Investments Analytics methodology

Exchange rates

Bibliography

Further reading

About Verdict Financial

Disclaimer

Figures

Table 1: French income tax rates and thresholds for individuals, 2015

Table 2: Tax surcharges on property gains, 2015

Table 3: French social tax rates, 2015

Table 4: French wealth tax rates, 2015

Table 5: Onshore liquid assets ($m) by asset band, 2011-15

Table 6: Onshore liquid assets ($m) by asset band, 2016-20

Table 7: Adult population (000s) segmented by wealth band, 2011-15

Table 8: Adult population (000s) segmented by wealth band, 2016-20

Table 9: Euro-US dollar exchange rate, December 31, 2014 and December 31, 2015

Frequently asked questions

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