Market Research Logo

The Global Wealth Market in 2017

The Global Wealth Market in 2017

Summary

Global wealth market is on a continuous growth path. Worldwide liquid onshore assets will exceed $100tn by the end of 2017. However, the market is not homogenous: rates and reasons for growth differ between affluent segments, the level of economic development in any given nation, and local conditions. This means that understanding not just the actual size of a market, but also all of the above factors is crucial for wealth managers expanding to new countries and developing client targeting strategies.

At the end of 2016, worldwide liquid assets held onshore by affluent individuals (those with assets exceeding $50,000) totaled $92.4tn. 2017 will see 5.4% growth, adding another $5.3tn to the global affluent wealth market. Although combined, the mass affluent and HNW segments represent only 7% of the global population, their assets currently account for almost 95% of global liquid wealth. Most assets are in the hands of mass affluent individuals, which is the largest market in terms of liquid assets.

Critical success factors

  • Understand the needs of different affluent segments - Competitors, even if focused on HNW clients, must not ignore the fact that the majority of the population remains mass affluent. This customer segment is likely to become HNW in the future - either by growing their wealth, or through inheritance. Hence, building engagement with this segment is essential.
  • Understand the regional context - Regional markets differ significantly from one another. Local asset distribution, investment preferences, and economic situations should be analyzed in depth before opening new offices and advising clients on their offshore wealth.
  • Choose investment products carefully - Advisors need to be aware of the characteristics of each single market as well as the international regulatory environment, in order to market the best products to their clients.
The Global Wealth Market in 2017 report analyzes the global wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

Specifically, this report provides the following -
  • Sizes the affluent market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.
  • Analyzes which asset classes are favored by global 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.
Scope
  • The wealthiest individuals grow their assets faster than the rest of the population, with the $10m+ segment forecast to experience the highest growth rate in the coming years.
  • Despite increasing capital market volatility, investors’ appetite for equities will continue to grow faster than other asset classes.
  • Inequality in wealth distribution is clearly seen in emerging markets in particular, where nearly 96% of liquid assets are held by just over 3% of the population.
  • The US is and will remain by far the biggest wealth market in the world. Asia Pacific economies will lead the growth of liquid asset pots in developing markets.
  • The Swiss remain the wealthiest in terms of value of savings per individual, but as growth is slowing down in Western Europe in general by 2021, the US will lead the way.
Reasons to buy
  • Benchmark your share of the global wealth market against the current market size.
  • Forecast your future growth prospects using our projections for the market to 2021.
  • Identify your most promising client segment by analyzing the penetration of affluent individuals globally.
  • Review your offshore strategy by identifying HNW motivations for offshore investments and their preferred booking centers.


  • Executive Summary
    • Different local factors drive the growth of the global wealth market
    • Key findings
    • Critical success factors
  • Sizing and Forecasting the Global Wealth Market
    • The global wealth market is on a continuous growth path
      • Globally, the affluent market is worth more than $92tn
        • Table figure 1: HNW global onshore liquid assets have been growing steadily
      • HNW individuals will hold more than $51tn in liquid assets by the end of 2021
        • Table Global total liquid assets ($bn), end of year 2014-21f
      • The global affluent population totals 310 million individuals and continues to grow
        • Table Global number of affluent individuals (thousands), end of year 2014-21f
      • The wealthiest will grow their assets at an even faster rate
        • Table figure 2: The $10m+ segment is set to experience the highest growth over the next few years
    • Global retail savings and investment trends
      • Steady growth for equities and mutual fund holdings, but on a slowing trend
        • Table figure 3: Deposits make up for almost 50% of global investors' holdings
        • Table Global total retail savings and investments, end of year 2014-21f
      • Bond holdings have been decreasing
      • For HNW individuals, less liquid asset classes play an important role
        • Table figure 4: HNW investors hold over 15% of their portfolios in alternative asset classes
        • Table figure 5: North Americans' risk aversion will drive non-liquid investments
    • Retail savings and investments geographical analysis
      • Attitudes towards deposits differ clearly between mature and emerging markets
        • Table figure 6: Central and Eastern European markets rely the most on deposit allocations
        • Table Top 10 countries in terms of deposit allocations (%) as of 2016, with results for 2011 and projections for 2021
        • Table figure 7: Mature market average deposit holdings are below the global midpoint
        • Table Top 10 developed countries in terms of deposit allocations (%) as of 2016, with results for 2011
      • US investors hold over three times more equities and mutual funds than the developing markets average
        • Table figure 8: Developing markets still have relatively low allocations in equities and funds
        • Table Top 10 countries in terms of equities and mutual funds allocations (aggregate %) as of 2016, with results for 2011 and projections for 2021
      • Bond holdings are significantly affected by yields
        • Table figure 9: Bond allocations differ only slightly across different regions
        • Table Top 10 countries in terms of bonds allocations (%) as of 2016, with results for 2011 and projections for 2021
    • Offshore holdings represent a significant proportion of global wealth
      • Table Retail non-resident savings and investments in selected markets ($bn), 2016
      • Globally, HNW investors hold almost 15% of their wealth offshore
        • Table figure 10: UAE residents offshore over half of their wealth
      • Motivations for offshoring wealth differ by country
        • Table figure 11: Geographic diversification is the most important driver of offshore investments
  • Regional Wealth Markets Growth Analysis
    • Global wealth is distributed unequally
      • HNW individuals hold a third of global wealth
        • Table figure 12: The wealthiest 8% of the global population hold almost 92% of the world's liquid assets
      • The mass affluent segment is more important in developed markets
        • Table figure 13: Mass affluent individuals represent over 30% of the population in developed markets
      • Inequality in wealth distribution is higher in frontier markets
        • Table figure 14: In frontier markets, most wealth is in the hands of the few
    • The gap between mature and developing markets will shrink
      • Cambodia will be the fastest-growing wealth market over 2017-21
        • Table Top 10 (and selected) global wealth markets in terms of forecast CAGR, 2017-21
        • Table figure 15: Developing markets will continue to grow faster than mature economies
      • Latin America will be the fastest-growing region
        • Table figure 16: Japan's forecast growth is well behind the global average
        • Table figure 17: Western Europe will struggle the most with growth in the foreseeable future
      • Developing markets' impressive growth is offset by inflation
        • Table Top five (and selected) global wealth markets in terms of forecast real CAGR, 2017-21
        • Table figure 18: In real terms, frontier markets' growth over 2017-21 will still largely exceed that of mature economies
        • Table Countries with the highest and lowest CPI rate over 2012-16
        • Table figure 19: In real terms, Asia Pacific's wealth market has been growing much faster than other regions
      • Exchange rate fluctuations affect the relative strength of wealth markets
        • Table figure 20: Exchange rate volatility provides a different picture of the UK wealth market
  • The Global Wealth Markets Rankings
    • The US will remain by far the biggest wealth market in aggregate terms
      • China ranks second, although developed markets still dominate the top 15
        • Table Top 15 wealth markets in terms of liquid assets ($bn) 2011, 2016, and 2021f
        • Table figure 21: Kazakhstan is one of the fastest-growing wealth markets
      • HNW segment rankings highlight the growth of Asia Pacific
        • Table Top 15 wealth markets in terms of HNW liquid assets ($bn) 2011, 2016, and 2021f
        • Table figure 22: Argentina has been improving its HNW liquid assets ranking
    • Liquid assets per capita analysis
      • By 2021 the average Hong Kong citizen will be wealthier than their Swiss counterparts
        • Table figure 23: Top 10 markets in terms of onshore liquid asset holdings per individual ($), 2016
      • Large emerging markets' rankings highlight unequal wealth distribution
        • Table Top 5 developing markets by liquid assets per capita, 2016
        • Table Top 5 developing markets by aggregate liquid assets, 2016
        • Table figure 24: India will improve its rank position in terms of liquid assets per capita
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Global total liquid assets ($bn), end of year 2007-13
      • Table Global number of affluent individuals (thousands), end of year 2007-13
      • Table Global total retail savings and investments, end of year 2007-13
    • Coverage
      • Table figure 25: Our geographic coverage spans 71 markets and six regions
      • Table Our geographic coverage spans 71 markets and six regions
      • Country classification
        • Table Country classification in terms of level of market development
    • Definitions
      • AAGR
      • Affluent
      • Averages
      • CAGR
      • Developed (mature) economies or markets
      • Developing economies or markets
      • Emerging affluent
      • Emerging economies or markets
      • Frontier economies or markets
      • HNW
      • Individual
      • Liquid assets
      • Mass affluent
      • Mass market
      • Non-affluent market
      • Onshore
    • Methodology
      • 2017 Global Wealth Managers Survey
      • 2016 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Retail Investments Database Methodology
      • Exchange rates
        • Table US dollar exchange rates
    • Bibliography
    • Further reading

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report