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Wealth in Australia: Sizing the Market Opportunity

Wealth in Australia: Sizing the Market Opportunity

Summary

Wealth in Australia: Sizing the Market Opportunity analyzes Australia's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our Global Wealth Managers Survey, our Global Wealth Markets Analytics, and our Global Retail Investments Analytics.

Synopsis

  • Size your potential client base using our proprietary data, presenting the number of affluent individuals by liquid asset band to 2017.
  • Understand the drivers behind the growth of the affluent market, such as the wider macroeconomic environment and investment preferences.
  • Quantify HNW asset allocations into non-liquid assets such as property. Find out how much of their investible assets are held offshore.
  • Export the graphics from the dashboard, or if you are more at ease using Excel, export the data into your own worksheets.
Reasons To Buy
  • How large is the HNW market in Australia?
  • What is the penetration of affluent individuals in Australia?
  • What is the current and future mix of asset class balances in Australia?
  • How much of their wealth do Australian HNW individuals invest offshore?
  • Which booking centers are used by Australian HNW individuals to invest offshore?
Key Highlights

Australian HNW individuals are heavily exposed to property in their non-traditional investments, and given the availability of cheap money and rising property prices, investors' appetite for real estate is forecast to remain strong. At the same time demand for alternative assets is forecast to increase over the coming two years.


  • Executive Summary
    • 2015 promises to be a strong year for the Australian wealth market
    • Key findings
    • Critical success factors
  • Sizing and Forecasting the Australian Wealth Market
    • By 2018 affluent individuals will constitute 29% of Australia's adult population
      • Australia's affluent population is forecast to record an AAGR of 10.9% between 2014 and 2018
    • HNW individuals account for 1.0% of adults but hold 38.3% of liquid assets
      • Affluent individuals hold 86.5% of Australian retail liquid assets
    • Australia's onshore wealth is concentrated in the populous states of the Eastern seaboard, while growth is to be found in the west and north
  • Drivers for Growth in the Australian Wealth Market
    • 2015 will be a strong year for Australia's retail savings and investment market
      • Australia's investment market is forecast to perform strongly despite weak economic conditions
      • Australians' love affair with equities is not expected to come to an end any time soon
    • Strong equity performance and returning economic growth will support wealth creation in Australia
      • Retail deposit holdings will remain the largest asset class, but equity holdings are set to grow fastest
      • Economic concerns suppressed retail investment holdings growth in 2014, but this is expected to change
      • Stock market growth is expected to pick up, having slowed down in 2014
      • Retail bond holdings will continue decreasing despite efforts to spur the asset class
  • HNW Investment Preferences
    • HNW individuals hold 18% of their investable assets in non-traditional investments
      • Property investments are set to become an even more important part of HNW individuals' portfolios over the next two years
      • Demand for alternative assets is also forecast to increase
      • Commodities only constitute a small proportion of the typical HNW portfolio
      • An opportunity for Australian wealth managers, HNW individuals' high allocation into superannuation should not be ignored
    • Offshore capability is key for serving the Australian HNW market
      • Australia's high immigration rate is the primary driver for HNW offshore investment
        • Table Australian income tax rates for residents 2014-15, applicable as of July 1, 2014
        • Table Stamp duty levied in New South Wales, Australia
      • The majority of Australian HNW offshore wealth is held in Asian booking centers, the US, and the UK
      • Australia has signed numerous TIEAs in an effort to combat offshore tax evasion
  • Appendix
    • Abbreviations and acronyms
    • Supplementary tables
      • Table Total Australian liquid wealth segmented by affluent category and asset band (A$bn), 2007-13
      • Table Total Australian liquid wealth segmented by affluent category and asset band (A$bn), 2014e-18f
      • Table Australian adult population segmented by affluent category and asset band (000s), 2007-13 [asset bands in A$m]
      • Table Australian adult population segmented by affluent category and asset band (000s), 2014e-18f [asset bands in A$m]
      • Table Total Australian liquid wealth segmented by affluent category and asset band ($bn), 2007-13
      • Table Total Australian liquid wealth segmented by affluent category and asset band ($bn), 2014e-18f
      • Table Australian adult population segmented by affluent category and asset band (000s), 2007-13 [asset bands in $m]
      • Table Australian adult population segmented by affluent category and asset band (000s), 2014e-18f [asset banks in $m]
      • Table Australian retail investments by product type ($m), 2007-13
      • Table Australian retail investments by product type ($m), 2014e-18f
    • Definitions
      • Affluent
      • Australian Taxation Office
      • Domicile
      • HNW
      • Liquid assets
      • Mass affluent
      • Measures of growth
      • Medicare
      • Onshore
      • REITs
      • Residency
      • Superannuation
      • SMSFs
      • TIEAs
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Australia Retail Investments and Superannuation Analytics methodology
      • Exchange rates
        • Table Australian dollar-US dollar exchange rate, December 31, 2011 and December 31, 2012
    • Bibliography
    • Further reading

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