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Wealth in Switzerland: Sizing the Market Opportunity

Wealth in Switzerland: Sizing the Market Opportunity

Summary

Wealth in Switzerland: Sizing the Market Opportunity analyzes Switzerland's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our 2013 and 2014 Global Wealth Managers Surveys, 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 Switzerland?
  • What is the penetration of affluent individuals in Switzerland?
  • What is the current and future mix of asset class balances in Switzerland?
  • How much of their wealth do Swiss HNW individuals invest offshore?
  • Which booking centers are used by HNW individuals to invest offshore?
Key Highlights

Switzerland remains one of the largest offshore centers globally, but recent developments in tax co-operation have eroded its reputation as a safe haven and decreased its share of the non-resident market.

Similar to many other mature financial markets, Switzerland has a balanced allocation outside of deposits. In recent years the strong performance of the Swiss Market Index has supported growth in mutual funds and equities.

At the end of 2014, of the 6.5 million adult individuals living in Switzerland an estimated 76.2% could be considered affluent. The country has by far the highest levels of affluent and HNW individuals among “sizable” economies.


  • Executive Summary
    • Key findings
    • Critical success factors
  • Sizing and Forecasting the Wealth Market in Switzerland
    • Switzerland's offshore market is undergoing change
      • Conflicting forces are causing the onshore and offshore wealth markets to diverge
      • Offshore mutual funds form the largest non-resident asset class
      • Both the resident and non-resident mutual fund markets are in flux
      • The Swiss non-resident retail deposit market is growing
    • In the resident retail market, affluent individuals account for the bulk of the total adult population
      • Affluent individuals in Switzerland have the highest penetration globally
      • Swiss affluent individuals held over $1,190.8bn in liquid assets in 2014
  • Drivers for Growth in the Swiss Wealth Market
    • Growth moderated in 2014 after a strong upswing in 2013
      • The Swiss market is well diversified, with substantial non-deposit holdings
    • The future outlook is one of steady growth
      • Deposits, mutual funds, and equities will drive growth, while bonds are set to decline
      • GDP growth is forecast to remain moderately positive in Switzerland
      • The Swiss stock market has enjoyed consistent upward growth, and in 2014 surpassed its previous peak from 2006
  • HNW Investment Preferences
    • HNW individuals allocate 7% of their investible assets outside traditional investments
      • Allocations in hedge funds and other structured products make up the bulk of investments outside traditional asset classes
    • In addition to their onshore holdings, Swiss HNW individuals hold 26% of their wealth offshore
      • Tax is a limited driver for offshore investment
        • Table Maximum individual income tax rates for unmarried taxpayers
      • The majority of Swiss HNW offshore wealth is booked through the UK
      • Switzerland has signed numerous DTAs and is discussing a number of information exchanges
      • Switzerland and the US have agreed a tax program to regularize the ongoing tax dispute between the two countries
        • Table List of Swiss banks named as foreign financial institutions or facilitators under investigation by IRS
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Total retail resident and non-resident holdings (CHFm), 2010-14
      • Table Total Swiss adult population by asset band (000s), 2010-14
      • Table Swiss adult population segmented by affluent category and asset band (000s), 2010-14
      • Table Total Swiss adult population by asset band (000s), 2015e-19f
      • Table Swiss adult population segmented by affluent category and asset band (000s), 2015e-19f
      • Table Total Swiss onshore liquid wealth segmented by affluent category and asset band ($bn), 2010-14
      • Table Total Swiss onshore liquid wealth segmented by affluent category and asset band ($bn), 2015e-19f
    • Definitions
      • Affluent
      • DTA
      • HNW
      • Liquid assets
      • Mass affluent
      • Mass market
      • Measures of growth
      • Onshore
      • Residency
      • TIEAs
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
      • Verdict Financial's Global Wealth Model
      • Verdict Financial's Global Retail Investments Analytics
      • Verdict Financial's Global Offshore Investments Analytics
        • Table Swiss franc-US dollar exchange rate, December 31, 2013 and December 31, 2014
    • Bibliography
    • Further reading

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