South Africa – The Future of HNWIs to 2016: The Rise of African Wealth

Synopsis

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

Summary

South Africa has the highest number of HNWIs in Africa. In addition to providing a comprehensive and robust background of the local 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 local HNWIs and UHNWIs. The report then couches these findings in an analysis of the local Wealth Management and Private Banking sector, and the opportunities therein.

Scope

The report features:

• Independent market sizing of South African HNWIs across five wealth bands
• HNWI volume, wealth and allocation trends from 2007 to 2011
• HNWI volume, wealth and allocation forecasts to 2016
• HNWI and UHNWI asset allocations across 13 asset classes
• Number of UHNWIs in each city
• City wise breakdowns of UHNWI volumes and volume growth from 2007 to 2011, as well as 2016 forecasts
• Number of wealth managers in each city
• City wise ratings of wealth management saturation and potential
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in South Africa
• Size of local wealth management industry
• Largest private banks in South Africa by AuM
• 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 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.
• Detailed information on UHNWIs in each major city.

Key Highlights

• South Africa has the highest number of HNWIs in Africa. As of 2011, there were over 44,700 HNWIs in South Africa, with a combined wealth of US$188 billion, accounting for roughly 27% of South Africa’s total individual wealth (US$740 billion).
• The total number of HNWIs in South Africa increased by 17.9% during the review period (2007–2011), while HNWI wealth rose by 15.2%.
• The wealth of HNWIs in South Africa was positively influenced by a strong local property market, high savings rates and a significant appreciation of the South African rand against the US dollar over the review period.
• WealthInsight’s research shows that over 20% of South African HNWI wealth is held offshore. Most of this wealth is held in the UK, Switzerland and the Channel Islands.