Wealth Management in Japan 2007

Published by: Datamonitor

Published: Aug. 16, 2007 - 39 Pages

Table of Contents

Overview

Catalyst

Summary

Table of Contents

Table of figures

Table of tables

Market overview

After nearly a decade of instability, Japan is showing signs of recovery

Recent GDP growth has improved but remains low

The country's deflation history may be turning around

Interest rates are low, but increasing

The stock market has been increasing

Despite poor economic performance, Japanese households remain net savers

Despite difficult market conditions, Japanese onshore retail liquid assets are growing

Although a shift in asset class is apparent, as Japanese investment in deposits have dropped

Japanese residents have been investing more into equities

Direct bond investment has grown the quickest

Mutual fund investments have been growing fast

Non-liquid assets are an area of interest for investors

National property prices have been on the slide

Japanese equities are on the rise

Hedge funds have become popular

Overnight Index Swaps have emerged in the last year

After declines in population and stagnation in onshore liquid assets, Japan's wealthy population recovered by 2006

There were more than 35 million wealthy individuals in Japan by 2006

Wealthy individuals in Japanese currently hold USD7.7trn in onshore liquid assets

Japan is set for declines in both its wealthy population and the onshore liquid assets they hold

A predicted UK downturn

A predicted US downturn

General

The wealthy Japanese population will not recover its 2007 balance by 2011

Onshore liquid assets will exceed USD8.2trn by 2011, after falling in 2008 and 2009

Data

Competitive Dynamics

Competition in Japanese wealth management is intense, and may increase further if regulations are relaxed

All the largest local banks target wealthy clients, generally with more than JPY100m

The foreign banks give local banks a run for their money

Many of the largest securities companies are owned by the local banks, but current regulation hinders the sharing of information

Wealth Management profiles

Mizuho Holdings Incorporation

The Bank of Tokyo-Mitsubishi UFJ

Sumitomo Mitsui Banking Corporation

Citibank

HSBC

Société Générale

APPENDIX

Definitions

CAGR

HNW

Liquid assets

Retail

Mass affluent

Mass market

Methodology

Global wealth Model

The UK sub model

Global sub model (for all other countries)

Forecasting methodology

Continuous refinement to the understanding of liquid wealth distribution

Datamonitor's wealth numbers compared with other wealth numbers

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Japan's macro-economic factors, 2002-2006

Table 2: Tokyo Stock Exchange, Market Capitalization 1999-2006

Table 3: Japanese onshore retail liquid asset balances in JPY, 2002- 2006

Table 4: Japanese onshore retail liquid asset balances in USD, 2002- 2006

Table 5: Retail Property Prices in Japan, 2002-2007

Table 6: Commercial Property Prices in Japan, 2002-2007

Table 7: Hedge fund growth, 2002-2007

Table 8: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2002-6

Table 9: Number of wealthy individuals segmented by liquid asset band, 2002-6

Table 10: Aggregate onshore liquid assets segmented held by wealthy individuals, by liquid asset band, 2007-11

Table 11: Number of wealthy individuals segmented by liquid asset band, 2007-11

Table 12: Selected foreign wealth brands in Japan, 2007

Table 13: Selected securities firms in Japan, 2007

List of Figures

Figure 1: The Japanese economy is showing signs of improvement

Figure 2: Tokyo Stock Exchange has increased 123%, over the last five years

Figure 3: Japanese onshore liquid retail assets, 2002- 2006

Figure 4: Nation-wide retail property prices have dropped but not in the largest cities of Japan

Figure 5: Japan hedge funds have been growing strongly in the last 5 years

Figure 6: Wealthy individuals in Japan declined in 2004 but recovered by 2006

Figure 7: Aggregate onshore liquid assets held by wealthy individuals stagnated in 2003-4

Figure 8: The number of wealthy Japanese will just recover their 2007 level by 2011

Figure 9: The aggregate onshore liquid assets of wealthy Japanese will start to accumulate again after declines in 2008 and 2009

Abstract

• Presents data from Datamonitor's Global Wealth model on the number of wealthy individuals and their aggregate onshore liquid assets from 2002-11
• Segments the wealth data across 14 liquid asset bands starting at USD60k through USD10m+
• Includes retail S&I data from 2002-6 across 4 liquid asset classes including deposits, mutual funds, equities and bonds
• Highlights the main wealth managers in the market, including both local and foreign players; presents short profiles of some of the main players

• Assess market attractiveness by reviewing size and growth forecasts for the potential wealthy client base through 2011
• Use the detailed liquid asset customer segmentation to analyze your key customer groups
• Assess the threats and opportunities for wealth managers and ascertain who the key competitors are within the industry

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