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Wealth in Turkey: HNW Customers

Wealth in Turkey: HNW Customers

Summary

Part of a two-part series, Wealth in Turkey: HNW Customers analyzes the profile of Turkish HNW individuals, from their investments to product demand to sources of wealth. This report is based on our 2014 Global Wealth Managers Survey. The results of the survey are accompanied by best-practice case studies on how to target Turkish HNW individuals where applicable.

Synopsis

  • Understand the major sources of HNW wealth in Turkey and the industries from which it has been amassed.
  • Interpret the investment portfolios of Turkish HNW individuals through detailed asset allocation analysis.
  • Evaluate product and service demand among Turkish HNW individuals from discretionary asset management to art advisory and philanthropy.
  • Analyze the best methods to capture new Turkish HNW clients and how best to maintain communication during the client relationship.
Reasons To Buy
  • How do Turkish HNW individuals amass their wealth?
  • What investments make up an average Turkish HNW investment portfolio?
  • What wealth management products and services are in demand in Turkey?
  • How often do Turkish wealth managers contact their clients through email, social media, and face-to-face meetings?
  • How do Turkish HNW individuals compare to their European peer groups?
Key Highlights

The typical profile of the Turkish HNW client is someone who has earned their income in the manufacturing, construction, or hospitality industries. However, while this is the current profile, a growing proportion have inherited their wealth.

In comparison to many other countries at a similar stage of development to Turkey, cash and near-cash products account for the largest asset allocation in the typical HNW Turkish investment portfolio. Greater portfolio diversification is forecast over the next two years.

Execution-only asset management mandates dominate the wealth management market in Turkey. This trend is likely due to the fact that Turkish clients prefer to have ultimate control over their wealth and investments.


  • Executive Summary
    • Turkey's wealth market is dominated by earned income
    • Key findings
    • Critical success factors
  • Profiling the Turkish HNW Client
    • Earned income is the most important source of wealth accumulation, followed by inherited wealth
    • Manufacturing is the main wealth generating industry in Turkey
    • Expats represent just 3.4% of the Turkish HNW population
      • Russians and Brits are the largest expat nationalities in Turkey
  • Understanding Asset Allocation Trends Among Turkish HNW Individuals
    • Cash and property are popular in the Turkish HNW portfolio
      • A tendency towards cash can create difficulties for wealth managers
      • Local property and both local and foreign deposits are popular assets
      • Equity funds are popular but the fund market remains small
    • Equities and alternatives will see a strong upsurge in demand
      • In the next two years, equity is expected to see the strongest growth in demand
  • Product and Service Demand Among Turkish HNW Individuals
    • Asset management services
      • Turkish HNW individuals prefer to maintain control over their investments
      • Over the next two years, discretionary asset management will see the greatest increase in demand
      • Actively managed portfolios are expected from wealth managers
    • Planning services
      • Wealth managers must offer financial planning to attract HNW individuals
      • Demand for pensions and retirement planning as well as financial planning will increase dramatically
      • Pension planning is not well served in other parts of the market, creating opportunities for wealth managers
    • Credit products
      • Credit demand is muted among Turkish HNW clients
      • Demand for mortgages will grow
      • Property is a hot investment option in Turkey
    • Insurance products
      • Demand for general insurance products remains muted
      • Insurance products will see a marginal increase
    • Art advisory and philanthropy services
      • Demand for art advisory and philanthropy is limited
      • Art advisory is not a service that should be considered an essential part of the wealth management proposition
  • Customer Acquisition and Communication
    • Client referrals are the main method of client onboarding
    • Client communication
      • Face-to-face meetings typically take place quarterly
      • Turkish wealth managers are active in social media
      • Turkish consumers are keen for mobile services, and wealth managers must offer greater functionality
  • Appendix
    • Abbreviations and acronyms
    • Definitions
      • Affluent
      • HNW
      • Ijarah
      • Liquid assets
      • Sukuk
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
    • Bibliography
    • Further reading

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