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Wealth in Russia: Sizing the Market Opportunity

Wealth in Russia: Sizing the Market Opportunity

Summary

Wealth in Russia: Sizing the Market Opportunity analyzes Russia'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 2019.
  • 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 what proportion of 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 Russia?
  • What is the penetration of affluent individuals in Russia?
  • What is the current and future mix of asset class balances in Russia?
  • How much of their wealth do Russian HNW individuals invest offshore?
  • Which booking centers are used by HNW individuals to invest offshore?
Key Highlights

Affluent individuals held 92% of total retail liquid assets in Russia in 2014. Total liquid wealth by affluent individuals amounted to $444bn, with HNW individuals holding $167bn equating to 37.6% of this.

The retail savings and investment market is only forecast to grow by 0.7% in 2015 and 4.1% in 2016. From 2016 onwards the macroeconomic environment is predicted to improve and as such there should be a noticeable pick-up in the retail savings and investment market.

Russian HNW individuals have significant holdings of non-traditional asset classes. On average, alternative, commodity, and property investments account for 28% of HNW portfolios.


  • Executive Summary
    • The Russian wealth market will be flat in 2015 but will return to growth from 2016
    • Key findings
    • Critical success factors
  • Sizing and Forecasting the Russian Wealth Market
    • Affluent individuals will represent 2% of the adult population by 2019
    • Affluent individuals account for 1.6% of the adult population but hold 92% of the liquid assets
  • Drivers of Growth in the Russian Wealth Market
    • Russia's retail savings and investments market is stagnant
      • Total retail savings and investments will grow by just 0.7% in 2015
      • The market is dominated by deposits, reflecting an underdeveloped securities market
    • The retail savings and investments market is set to rebound from 2017
      • The retail savings and investments market will grow at an average annual rate of 6.2% between 2015 and 2019
      • Real disposable income is falling and will lead to a decline in deposits through 2015
      • High-policy interest rates are fueling strong returns on direct bond holdings
  • HNW Investment Preferences
    • Russian HNW individuals allocate 28% of their portfolios outside of traditional liquid asset classes
      • HNW investors allocate almost a quarter of their illiquid portfolios into gold holdings
    • Russian HNW individuals have a significant propensity to invest offshore
      • Tax efficiency and anonymity are the leading reasons Russian HNW individuals invest offshore
      • Taxation in Russia
      • The British Virgin Islands, Cyprus, Luxembourg, and the UK account for 72% of offshore bookings from Russia
  • APPENDIX
    • Abbreviations and acronyms
    • Supplementary data
      • Table Total Russian adult population by asset band (000s), 2010-14
      • Table Total Russian adult population by asset band (000s), 2015e-19f
      • Table Russia: onshore liquid assets by asset band ($bn), 2010-14
      • Table Russia: onshore liquid assets by asset band ($bn), 2015e-19f
    • Definitions
      • Affluent
      • Domicile
      • DTA
      • HNW
      • Liquid assets
      • Mass affluent
      • Onshore
      • Tax Information Exchange Agreements
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Global Retail Investments Analytics methodology
        • Table Russian ruble-US dollar exchange rate, December 31, 2012-December 31, 2014
    • Bibliography
    • Further reading

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