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Wealth in Israel: Sizing the Market Opportunity

Wealth in Israel: Sizing the Market Opportunity

Summary

Wealth in Israel: Sizing the Market Opportunity analyzes Israel's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our 2014 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 2018.
  • 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 Israel?
  • What is the penetration of affluent individuals in Israel?
  • What is the current and future mix of asset class balances in Israel?
  • How much of their wealth do Israeli HNW individuals invest offshore?
  • Which booking centers are used by HNW individuals to invest offshore?
Key Highlights

The penetration of affluent individuals in Israel is a few percentage points below that seen in many other Western economies, but significantly higher than those observed in a typical emerging market. However, forecasted growth rates in the Israeli wealth market over the next few years are similar to those expected in more mature markets.

The Israeli retail savings and investments market recorded a strong performance in 2009, with capital outflows from mature markets benefiting the onshore market in Israel. However, the situation has changed dramatically in the years since the financial meltdown, with market growth in the lower single digits.

While the vast majority of HNW assets in Israel are held in traditional liquid investments, 11% of assets are held in alternative and property investments. Offshore investments are also sizable in the country, with 20% of HNW individuals' portfolios held overseas, particularly in Switzerland, the UK, and the US.


  • Executive Summary
    • Key findings
    • Critical success factors
  • Sizing and Forecasting the Wealth Market in Israel
    • In 2014, affluent individuals accounted for 14.4% of the total Israeli adult population
      • Israeli affluent individuals held over $209.43bn in liquid assets in 2014
  • Drivers for Growth in the Israeli Wealth Market
    • Moderate growth lies ahead for Israeli retail savings and investments
      • Growth in 2015 will be stronger but will remain moderate
      • The Israeli market is focused on deposits and fixed income products
    • Deposits will drive growth in the Israeli retail investments market
      • Deposits will outperform other asset classes in the years to 2018
      • GDP growth is forecast to approach 4%
      • Deposits will continue to show strong volatility
      • The stock market continues to perform well, boosting mutual funds and equities
  • HNW Investment Preferences
    • HNW individuals allocate 11% of their investible assets outside traditional investments.
      • Allocations in commodities and property investments account for the bulk of nontraditional investments
    • Israeli HNW individuals hold 7% of their wealth offshore
      • Wealth managers looking to stem the flow of wealth offshore need to offer a superior range of investment options
      • Taxation in Israel is in line with many Western economies
        • Table Income tax rates in Israel
      • The majority of Israeli HNW offshore wealth is booked through Switzerland, the UK, and the US
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Israel: onshore liquid assets by asset band ($bn), 2010-14
      • Table Israel: onshore liquid assets by asset band ($bn), 2015e-18f
      • Table Total Israeli adult population by asset band (000s), 2010-14
      • Table Total Israeli adult population by asset band (000s), 2015e-18f
    • Definitions
      • Affluent
      • Domicile
      • DTA
      • HNW
      • Liquid assets
      • Mass affluent
      • Onshore
      • Residency
      • TIEAs
    • Methodology
      • Verdict Financial's 2013 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Global Retail Investments Analytics methodology
        • Table Shekel to US dollar exchange rate, December 31, 2013 and December 31, 2014
    • Bibliography
    • Further reading

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