Germany - The Future of HNWIs to 2016: Wealth in the Powerhouse of Europe

Synopsis

This report is the result of WealthInsight’s extensive research covering the HNWI population and wealth management industry in Germany. It provides market sizing and forecasts of the HNWI and UHNWI populations. The report leverages WealthInsight’s HNWI Database, to provide key demographic breakdowns such as region and city specific data.

Summary

Germany has the fourth largest number of HNWIs in the world behind the US, Japan and China. In addition to providing a comprehensive and robust background of the German economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation, this report provides robust projections of the volume, wealth and asset allocation of German HNWIs and UHNWIs. The report then couches these findings in an analysis of the Germany’s Wealth Management and Private Banking sector, and the opportunities therein.

Scope

The report features:

• Independent market sizing of German HNWIs
• Most up to date and thorough analysis of the demographic breakdown of Germany’s HNWIs
• Volume, wealth and allocation trends from 2007 to 2011
• Volume, wealth and allocation forecasts to 2016
• Number of UHNWIs in each city
• City and sector wise breakdowns of UHNWI volumes and volume growth from 2007 to 2011, as well as 2016 forecasts
• City wise ratings of wealth management potential
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in Germany
• Detailed wealth management and family office information
• Insights into the drivers of HNWI wealth

Reasons To Buy

• The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the Database comprises up to one hundred data points on over 100,000 HNWIs from around the world. It also includes profiles on major private banks, wealth managers and family offices in each country. With the Database as the foundation for our research and analysis, we are able to obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2016.
• Information on sources of wealth for HNWIs in each major city, by industry and other measures.

Key Highlights

• Germany has the fourth highest number of HNWIs in the world after the US, Japan and China. As of 2011, there are just over 1.2 million HNWIs in Germany, with a combined wealth of almost US$4 trillion, accounting for roughly 36% of Germany’s total wealth.
• The total number of HNWIs in Germany declined by 8.4% over the review period (2007 to 2011), while HNWI wealth dropped by 12.5%.
• Over the forecast period, HNWI volumes will increase by 16.5% at a CAGR of 3.1% to reach just over 1.4 million individuals in 2016. The total wealth of Germany’s HNWIs is forecast to grow by 20% and at a CAGR of 3.8% in the years to 2016.
• In 2011, equities are the largest asset class for HNWIs in Germany, accounting for over 20% of total HNWI assets, followed by real estate, business interests, fixed income, alternatives and cash.
• Germany has the third highest number of UHNWIs in the world, behind the US and Japan. There are over 11,000 Ultra HNWIs in Germany, with an average wealth of over US$115 million per person and a combined wealth of more than US$1 trillion.
• Frankfurt is home to the largest portion of Germany’s UHNWIs. This is above Paris, but still well below London. There are also sizable German UHNWI populations in Munich, Hamburg, Düsseldorf, Berlin and Stuttgart.
• Among Germany’s top ten cities, Munich and Essen were the top performing cities for UHNWIs over the review period (2007-2011).
• The wealth management sector in Germany is well developed and had AuM of over US$1 trillion as of year-end 2011. This is almost 28% of the total wealth of Germany’s HNWIs, a ratio that is well above the global average of 20%. German HNWIs account for around 57% of the total AuM of Germany’s wealth management sector, meaning that 16% of total German HNWI wealth is managed by the German wealth management sector.