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The Global Wealth Market in 2015

The Global Wealth Market in 2015

Summary

The global wealth market is on a continuous growth path, but it is not homogeneous. Rates and reasons for growth differ between individuals’ affluent segments, the level of economic development in any given nation, and local conditions. So too do inclinations to invest in different asset classes. Understanding these differences is crucial for wealth managers when approaching clients.

Synopsis

  • Understand the dynamics of regional wealth markets and how this is set to change by 2018.
  • Find out local preferences regarding tendencies towards investing in different asset classes.
  • Discover the main drivers for offshore investments.
Reasons To Buy
  • What local wealth market is the biggest in the world? And what markets are chasing it?
  • Which affluent segments represent the biggest opportunity for wealth managers?
  • What impact do political and economic conditions have on the global wealth market?
  • How do HNW and mass affluent individuals differ in terms of their portfolio allocation preferences?
Key Highlights

Worldwide liquid onshore assets will exceed $100tn no later than 2016. The wealthiest will grow their assets faster than the rest of the population. This underlines the fact that the majority of global wealth is held by a small number of people.

Most developing economies are deposit-heavy, with equities and mutual funds the domain of mature markets. Investors in emerging and frontier markets still remember the turbulence caused by the financial crisis, when their portfolios suffered from significant losses. On the other hand, low yields have been discouraging investors from bonds.

Currency exchange rates have a significant impact on countries’ relative strength against other wealth markets. Markets with their currencies pegged to the US dollar benefited from stability in 2014, as the dollar gained against most other currencies.


  • 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 $80tn
      • Affluent individuals will hold almost $100tn in liquid assets by the end of 2018
        • Table Global total liquid assets ($bn), end of year 2011-18f
      • The global affluent population totals over 300 million individuals and continues to grow
        • Table Global number of affluent individuals (millions), end of year 2011-18f
      • The wealthiest will grow their assets at an even faster rate
    • Global retail savings and investment trends
      • Equities and mutual fund holdings reach pre-financial crisis levels
        • Table Global total retail savings and investments, end of year 2011-18f
      • Bond holdings have been decreasing, but this will change
      • For HNW individuals, alternative investments play an important role
        • Table Average global HNW investor's portfolio
    • Retail savings and investment geographical analysis
      • Attitudes towards deposits differ clearly between mature and emerging markets
        • Table Top 10 countries in terms of deposit allocations (%), 2010, 2014e, and 2018f
        • Table Top 10 developed countries in terms of deposit allocations (%), 2010, 2014e, and 2018f
      • Investors in the US hold three times more equities and mutual funds than global average
        • Table Top 10 countries in terms of equities and mutual fund allocations (aggregate %), 2010, 2014e, and 2018f
      • Bond holdings are significantly affected by yields
        • Table Top 10 countries in terms of bond allocations (%), 2010, 2014e, and 2018f
    • Offshore holdings represent a significant proportion of global wealth
      • Table Retail non-resident savings and investments in selected markets ($bn), 2013
      • On average HNW investors hold 17.2% of their wealth offshore
      • Motivations for offshoring wealth differ by country and affluent group
  • Geographic Analysis of the Global Wealth Market
    • Global wealth is distributed unequally
      • HNW individuals hold a third of global wealth
      • Inequality in wealth distribution is clearer in frontier markets
    • Developing countries will be chasing mature markets
      • Kenya will be the fastest-growing wealth market over 2015-18
        • Table Top 10 global wealth markets in terms of forecast CAGR, 2015-18
      • Western Europe is the only region set to record faster growth
    • The US will remain by far the biggest wealth market
      • China took second place, although developed markets still dominate the top 15
        • Table Top 15 wealth markets in terms of liquid assets ($bn) 2010, 2014e, and 2018f
      • Spain is no longer a top 10 HNW wealth market
        • Table Top 15 wealth markets in terms of HNW liquid assets ($bn) 2010, 2014e, and 2018f
      • Currency exchange rate fluctuations affect wealth market rankings
        • Table Selected wealth markets' liquid assets ($bn), 2014, different exchange rates
    • Liquid assets per capita analysis
      • The average Swiss citizen holds the largest pot of liquid assets
        • Table Top 10 markets in terms of onshore liquid asset holdings per resident ($), 2014e
      • Large emerging markets' rankings prove unequal wealth distribution
        • Table Top five (and other selected) developing markets in terms of onshore liquid assets holdings per resident ($), 2014e
  • Appendix
    • Abbreviations and acronyms
    • Coverage
      • Table Our geographic coverage spans 65 markets and six regions
      • Countries classification
        • Table Country classification in terms of level of market development
    • Definitions
      • Affluent
      • HNW
      • Liquid assets
      • Mass affluent
      • Onshore
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Global Retail Investments Methodology
      • Global Wealth Model methodology
    • Bibliography
    • Further reading

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