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Wealth in Belgium: HNW Investors 2017

Wealth in Belgium: HNW Investors 2017

Summary

GlobalData’s “Wealth in Belgium: HNW Investors 2017” report analyzes the Belgian investments market, with a focus on the HNW segment. The report is based on our proprietary datasets.

The Belgian private banking space offers an interesting mix between the international and the traditional. Because of Belgium’s central location and its position as a hub for international organizations, there is a large expat segment comprised of professionals. At the same time, a vast number of HNW individuals have inherited their wealth and come from established backgrounds, creating a different set of client needs. Equities represent almost half of the typical HNW portfolio, and bonds rank second in HNW holdings. While demand is quite pronounced for all planning services, inheritance planning leads investor demand.

Specifically the report -

  • Sizes the affluent market (both by number of individuals and their demographics) using our proprietary datasets.
  • Analyzes which asset classes are favored by Belgian 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
  • Family business owners and inheritors account for the largest HNW client segments among Belgian HNW investors.
  • The largest sources of HNW wealth are manufacturing, IT, and real estate.
  • Equities and bonds dominate asset allocations. Belgian HNW individuals also prefer to own equities directly rather than through funds.
  • All planning services are in high demand, and this is expected to increase even further. However, particular attention should be given to inheritance planning.
Reasons to buy
  • Benchmark your share of the Belgian wealth market against the current market size.
  • Forecast your future growth prospects using our projections for the market to 2020.
  • Identify your most promising client segment by analyzing the penetration of affluent individuals in Belgium.
  • Evaluate your HNW proposition by understanding how the Belgian tax system will impact HNW clients.
  • Review your offshore strategy by learning about HNW motivations for offshore investments and their preferred booking centers.


  • Executive Summary
    • Belgian HNW investors predominantly inherited their wealth
    • Key findings
    • Critical success factors
  • Profiling the Belgian HNW Investor
    • Family business ownership remains the largest source of HNW wealth
      • The bulk of Belgian HNW individuals are male and over 60 years of age
        • Table Figure 1: The bulk of HNW investors in Belgium are male and over 60 years old
      • Inheritors are also a lucrative target market
        • Table Figure 2: Family business and inheritance are the main sources of wealth for Belgian HNW investors
      • Many HNW investors have built their fortunes through manufacturing
        • Table Figure 3: Manufacturing is the leading generator of Belgian wealth
        • Table Index of gross wages and salaries, 2015 and 2016
      • Almost half of HNW individuals in Belgium are directors
        • Table Figure 4: 46% of HNW investors in Belgium hold director positions
    • HNW expats in Belgium are an important target group
      • Expats constitute 6.3% of the local HNW population
        • Table Figure 5: 6.3% of Belgium's HNW client base comprises expats
      • HNW expats from France and the Netherlands represent an attractive target segment
        • Table Figure 6: The majority of HNW expats are from France
        • Table Figure 7: ABN Amro Private Banking Belgium targets wealthy expats' offshore wealth
  • HNW Investment Style Preferences
    • Lack of time is driving uptake of professional advice among Belgian HNW investors
      • The largest proportion of Belgian HNW wealth is professionally managed, with discretionary mandates taking the lead
        • Table Figure 8: Wealth managers should lead with discretionary mandates
      • Lack of time is motivating HNW investors to seek professional advice
        • Table Figure 9: Lack of time leads the demand for wealth management services
      • Belgian HNW investors place more than half of their managed wealth with their main wealth manager
        • Table Figure 10: The largest part of HNW investors show loyalty to their main advisor
    • The desire to retain control is driving uptake of advisory mandates
      • Wealth managers should cater for varied client needs
        • Table Figure 11: HNW demand is particularly high for discretionary services
      • Demand for advisory services is on the rise
        • Table Figure 12: Advisory asset management will experience the highest increase
      • Reluctance to give up control is driving demand for advisory mandates
        • Table Figure 13: HNW investors in Belgium are reluctant to relinquish control
      • HNW investors feel confident enough to invest a small proportion of their wealth independently
        • Table Figure 14: Wealth managers should monitor self-directing trends
  • Understanding Asset Allocation Trends Among Belgian HNW Individuals
    • Belgium's love affair with equities is set to continue
      • Equities dominate the typical HNW portfolio, but commodities are forecast to experience the greatest increase in popularity
        • Table Figure 15: Belgian HNW investor portfolios are dominated by equities
      • Equities constitute 42% of HNW investors' managed wealth
        • Table Figure 16: Most investments are made directly
        • Table Figure 17: Growth will be driven by capital appreciation opportunities
      • Bonds are the second most popular asset class
        • Table Figure 18: Bonds constitute a sizable proportion of HNW portfolios
        • Table Figure 19: Bond investments are forecast to decrease
      • Cash and near-cash investments constitute a very small part of the Belgian HNW portfolio
        • Table Figure 20: Cash and near-cash products are not very popular
        • Table Figure 21: Desire to maintain liquidity will drive cash and near-cash investments growth, but not more than absolutely necessary
      • Property constitutes only 3% of the typical HNW portfolio
        • Table Figure 22: Property funds are more popular than direct investments
        • Table Figure 23: Property investments are forecast to grow slightly
      • Alternatives constitute 7% of the typical HNW portfolio
        • Table Figure 24: Hedge funds are the most popular alternatives product
        • Table Figure 25: Many industry experts expect alternative investments to decrease
      • Commodity investments are of little interest to Belgian HNW clients
        • Table Figure 26: Belgian HNW investors' commodity allocations are mostly in gold
        • Table Figure 27: Commodity investments will see a rapid increase over the next year
  • HNW Product and Service Demand
    • Planning services are in high demand in Belgium
      • Belgian HNW individuals show strong demand for inheritance planning
        • Table Figure 28: Inheritance planning is the priority for Belgian HNW investors
        • Table Figure 29: ING Private Banking Belgium offers legal and taxation advice
      • Growth is to be expected over all planning services
        • Table Figure 30: Inheritance planning will experience the highest growth in demand
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Affluent
      • HNW
      • Liquid assets
      • Mass affluent
    • Methodology
      • GlobalData's 2016 Global Wealth Managers Survey
      • Global Data's WealthInsight
    • Bibliography
    • Further reading

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