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Wealth in the Netherlands: Sizing the Market Opportunity

Wealth in the Netherlands: Sizing the Market Opportunity

Summary

The Dutch retail savings and investments market is dominated by deposits, which account for over three quarters of the total market. The Dutch retail savings and investments market has long been plagued by slow growth due to the stagnant economy but is now set to pick up speed – fueled by GDP growth and the continuing recovery of the property market.

Key Findings

  •  In 2015, 74.1% of the country’s total liquid assets were held by affluent individuals. Total affluent assets are expected to continue to grow over the next five years to reach $530bn by 2019. The proportion of wealth held by affluent individuals is expected to remain stable at around 74%.
  •  The savings and investments market is dominated by deposits, which account for over three quarters of the total retail savings and investments market. Mutual funds are second with a 14% share of the market.
  •  Mutual funds and equities are expected to perform particularly well going forward, while the low interest rate environment will continue to suppress the retail bond market.
  •  Dutch HNW individuals hold 11.5% of their investments in alternative, commodity, or property investments. Property investment is the largest investment type outside the traditional asset classes.
  •  In the Netherlands, 14% of HNW individuals' total portfolios is held offshore, with leading destination Luxembourg absorbing 60% of total HNW offshore bookings. The main drivers for offshore investment are better investment returns and access to a better range of investment options.
Synopsis

Verdict Financial’s “Wealth in the Netherlands: Sizing the Market Opportunity” analyzes the Dutch wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.Specifically the report:
  •  Sizes the affluent market (both by the number of individuals and value of their liquid assets) using our proprietary datasets.
  •  Analyzes which asset classes are favored by Dutch 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.
Reasons To Buy
  •  Benchmark your share of the Dutch wealth market against the current market size.
  •  Forecast your future growth prospects using our projections for the market to 2019.
  •  Identify your most promising client segment by analyzing penetration of affluent individuals in the Netherlands – both at a country and regional level.
  •  Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.


  • Executive Summary
    • Key Findings
    • Critical Success Fasctors
  • Sizing and Forecasting the Dutch Wealth Market
    • Affluent individuals accounted for 17.8% of the total adult population in 2014
      • Growth in the number of wealthy individuals reflects the broader economic recovery
      • Dutch affluent individuals held $457.1bn in liquid assets at the end of 2015
  • Drivers of Growth in the Dutch Wealth Market
    • The strong focus on deposits limits growth potential
      • Looking forward to 2019, mutual funds will record the strongest growth
    • Deposits will continue to perform strongly, in line with GDP
      • GDP growth is back on track
      • Inflation remains low
    • Equities and mutual funds are expected to fare well in line with the stock market
      • The Dutch stock market continues on a growth trajectory
  • HNW Investment Preferences
    • Dutch HNW individuals allocate 11.5% of their investible assets outside traditional investments
      • Property investments account for 7.9% of total HNW portfolios
    • Dutch HNW individuals hold almost 14% of their wealth offshore
      • Wealth managers looking to access the flow of wealth offshore need to offer broad investment options
        • Table Taxable income rates for 2016
      • Luxembourg is the leading destination for Dutch HNW offshore wealth
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Dutch Onshore liquid assets by asset band ($bn),2011-15
      • Table Dutch Onshore liquid assets by asset band ($bn) 2016e-19f
      • Table Total Dutch adult population by assets brand (000s),2011-15
      • Table Total Dutch adult population by asset band (000s), 2016e-19f
    • Definitions
      • Affluent
      • Domicile
      • DTA
      • FATCA
      • HNW
      • Liquid assets
      • Mass affluent
      • Onshore
      • Residency
      • TIEAs
    • Methodology
      • Verdict Financial's 2015 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Global Retail Investments Analytics methodology
        • Table Euro to us dollar exchange rate , December 31, 2014 and December 31, 2015
    • Bibliography
    • Further reading
    • About Verdict Financial
    • Disclaimer

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