Wealth in the UK: Sizing the Market Opportunity; Sizing the wealth market in the UK and its growth potential.
All the vital news, analysis, and commentary curated by our industry experts.
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, and alternatives, the UK’s wealthiest individuals show a strong preference towards liquid products. Tax efficiency remains the main driver for high net worth (HNW) individuals opting to offshore wealth.
Wealth in the UK: Sizing the Market Opportunity analyzes the UK's 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 Verdict Financial’s proprietary datasets.
• Analyzes which asset classes are favoured by UK 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 UK wealth market against the current market size.
Forecast your future growth prospects using our projections for the market to 2019.
Identify your most promising client segment by analyzing the penetration of affluent individuals in the UK – both at the country and regional level.
Evaluate your HNW proposition by understanding how the ever-changing UK tax system affects your HNW clients.
Review your offshore strategy by learning about the HNW motivations for offshore investments and their preferred booking centers.
Table of Contents
Growth in the UK wealth market will be moderate
Critical success factors
SIZING AND FORECASTING THE UK WEALTH MARKET
The UK is primarily an onshore market, but has a notable offshore business
Growth in the onshore market is driven by the HNW segment
The UK affluent market remains the fourth largest in the world
Affluent individuals represent
27.7% of the adult population
The affluent population holds
91.7% of retail liquid assets, with the wealthiest set to record the strongest growth
The UK's onshore wealth is concentrated in London and the South East
DRIVERS FOR GROWTH IN THE UK WEALTH MARKET
Retail savings and investments growth is slowing but will remain positive in the future
The total value of savings and investments in the UK will exceed £2.5tn in 2017
Allocations in mutual funds have been increasing
Direct equity holdings will continue to decrease
Retail deposits have outperformed GDP and average nominal wages
Net inflows have been the primary driver for standard deposit growth
Retail bond investments account for only a fraction of UK retail savings, but growth is being aided by low inflation
Uncertainty regarding future stock market performance is restraining equity holdings but has a positive impact on mutual funds
The FTSE 100 is now struggling with growth after posting a new record level
The performance of the stock market has had a direct impact on equities, while mutual funds are an alternative to stock holdings
Mutual funds are relatively well diversified, which shields performance from the vagaries of the stock market
HNW INVESTMENT PREFERENCES
UK HNW individuals show a strong preference for liquid investments
The wealthiest UK individuals are once again turning their attention to hedge funds
UK HNW investors have switched from direct property to funds
In addition to their onshore portfolios, UK HNW individuals hold
23.5% of their wealth offshore
Tax efficiency remains the number one motivation for offshore investment
The Isle of Man is a primary booking center for UK HNW offshore wealth
Abbreviations and acronyms
Verdict Financial's 2015 Global Wealth Managers Survey
Global Wealth Model methodology
UK Retail Savings and Investments Methodology
About Verdict Financial
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