Keywords : mutual fund, asset class, investment database, mutual fund account
After a sharp decline in 2008 and a smaller drop in 2011, the global wealth industry is expected to recover in 2014–15 once the global economy picks up. Yet growth will not be even and there is a clear divide between the mature and emerging industries, with emerging industry s set to show double digit growth - a trend which is set to bring about a change in the established order of country wealth industries...
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After a sharp decline in 2008 and a smaller drop in 2011, the global wealth industry is expected to recover in 2014–15 once the global economy picks up. Yet growth will not be even and there is a clear divide between the mature and emerging industries, with emerging industry s set to show double digit growth - a trend which is set to bring about a change in the established order of country wealth industries.Understand the dynamics between the world's regional wealth industry s and how this is set to change by 2015.Find out which countries count among the world's wealth hot spots - or not - based on analysis of over 55 industries.Discover how the world's largest three wealth managers have fared against the performance of the overall industry .Learn about the typical millionaire, his key demographics, how he invests his liquid assets based on Global Wealth Managers Survey.North America's status as the largest wealth industry is not threatened by the exponential growth of the emerging industries. While the poor performances of Japan and Western Europe will cause them to be overtaken by Asia Pacific (excluding Japan), which will become the second largest regional industry by 2015.The top 10 country wealth industry s will change in 2012, with Brazil and India entering and Spain and Taiwan exiting. Taiwan is in fact growing faster than many other mature industries, but is still set to exit the top 10, largely due to the explosive growth of India and Brazil and the country's relatively small size.Males account for the majority of HNW individuals in all regions, with a stronger lack of balance in the Middle East and near-parity in North America. Middle East and Asia Pacific HNW individuals are generally younger than their counterparts in Western Europe and North America. Entrepreneurship is the most common source of wealth worldwide.What is the future growth outlook for the global affluent population?Which are the largest wealth industry s and how will this change by 2015?Which country industry s within each region are growing most quickly?Who are the three largest wealth managers and how their fortunes are faring compared to the overall industry ?What are the key demographics of the typical HNW individual and how do these investors tend to allocate their liquid wealth?
Global Investment Banking Industry
OVERVIEW
•Catalyst
•Summary
•Methodology
EXECUTIVE SUMMARY
•Global overview
- The global wealth industry was worth USD 61tn at the end of 2011
- The world's largest wealth managers have suffered sharper declines than the overall industry
•Regional comparison
- Comparison of the seven main geographies shows strong differences
•The top 10 country wealth industry s will change in 2012
- Brazil and India will enter the top 10 in 2012 at the expense of Spain and Taiwan
•Worst 10 performing country wealth industry s
- The sovereign debt crisis and structural problems are hindering growth in many Southern EUR pean wealth industry s
•Regional analysis
- Asia Pacific
- The number of affluent individuals in Asia Pacific will reach 118 million by 2015
- Central and Eastern EUR pe
- Latin America
- Middle East and Africa
- North America
- Western EUR pe
•The Global HNW Consumer
- Male and entrepreneur
- Financial sophistication, risk appetite, and age help determine asset allocation
INTRODUCTION
•Methodology
- Geographical coverage
- Methodology overview: Retail Savings & Investments Databases
- Methodology overview: Wealth Industries Database
- Methodology overview: Global Wealth Managers Survey 2011
- Methodology overview: Wealth Management Super League report
•Datamonitor’s global wealth numbers compared with other wealth numbers
ANALYZING THE GLOBAL WEALTH MARKET
•Introduction
•The global wealth industry was worth USD 61tn at the end of 2011
- The eurozone sovereign crisis will weigh on the global wealth industry for the foreseeable future
- Total liquid assets held by affluent individuals declined in 2011
- Affluent individuals represent 7.3% of the total adult population worldwide
•The world's top three wealth managers in 2011 held more than 5% of the global industry
- The world's largest wealth managers have suffered sharper declines than the overall industry
- The largest wealth managers focus their presence in their core industry s but are rapidly grow ing geographically
COMPARING REGIONAL WEALTH MARKETS
•Introduction
•Comparison of the seven main geographies shows strong differences
- Mature wealth industry s have a much more even wealth distribution than developing ones
- The regional hierarchy will only see one major change during 2006–15
- Strong inequality in developing countries creates a small affluent population with a higher percentage of HNW individuals
•The top 10 country wealth industry s will change in 2012
- Brazil and India will enter the top 10 in 2012 at the expense of Spain and Taiwan
- The US will remain number one, with Canada and the UK also performing strongly among the mature industry s
- Brazil, China, and India will see their liquid asset pools almost triple between 2006 and 2015
•Five of the 10 largest industry s are also among the worst performers
- Nine out of the 10 worst performing industry s in terms of growth are EUR pean
- Outside of Western EUR pe, Japan and Latvia are also barely growing
REGIONAL ANALYSIS
•Introduction
•Asia Pacific
- Liquid asset growth in Asia Pacific (excluding Japan) will remain in the double digits up to 2015
- Liquid asset growth in Japan will remain anemic for the foreseeable future
- The number of affluent individuals in Asia Pacific will reach 118 million by 2015
- Country comparison: Japan’s impressive lead will be eroded as a result of its own stagnant growth and impressive performances by China and India
•Central and Eastern EUR pe
- Future liquid assets growth in Central and Eastern EUR pe will be impacted by the Western EUR pean economic slowdown
- Russia, Turkey, and Poland account for over 70% of the total number of affluent individuals in the region
- Country comparison: Serbia to show the highest growth rate in the years up to 2015
•Latin America
- Affluent individuals held over 90% of the total liquid assets in the region
- Latin American affluent individuals account for only 1.3% of the total population
- Country comparison: Brazil to show the highest growth rate in the region
•Middle East and Africa
- The regional wealth industry did not slow down during 2011 thanks to high oil prices
- Affluent individuals in the region accounted for 3% of the total adult population in 2011
- Country comparison: Oman and Qatar will show the highest liquid asset growth rates up to 2015
•North America
- High allocations in equities and mutual funds make the North American wealth industry extremely volatile
- Country comparison: Canada and US exhibit very similar behaviors
•Western EUR pe
- Liquid asset growth in Western EUR pe is hindered by the sovereign debt crisis and rigid asset allocations
- The number of affluent individuals will account for 19% of the total adult population by 2015
- Country comparison: Northern EUR pe will outperform Southern EUR pe in the next five years
THE GLOBAL HNW CONSUMER
•Introduction
•HNW investors around the world share a number of similar characteristics
- Males account for the majority of HNW individuals in all regions
- Middle East and Asia Pacific HNW individuals are generally younger than their counterparts in Western EUR pe and North America
- Entrepreneurship is the most common source of wealth worldwide
•Asset allocations vary with age, financial sophistication, and risk appetite
- In Asia Pacific, high allocations in property have been caused by the limited returns offered by other asset classes
- Middle East HNW individuals invest a high proportion of their liquid assets into cash or near-cash products
- North American investors allocate over half of their liquid assets into equities
- Western EUR pean HNW investors are very risk averse
APPENDIX
•Definitions
- Affluent
- HNW
- Mass affluent
- Measures of growth
- Onshore
•Methodology
- Global Savings & Investment Databases
- Global wealth industry s databases
- Global Wealth Managers Survey 2011
- Competitor data
•Further reading
•Ask the analyst
•Disclaimer
TABLES
•Table: Geographic coverage spans 59 countries sector ed over seven regions
•Table: Global Wealth Managers Survey 2011 – geographic coverage
•Table: Worldwide liquid assets by total industry, affluent and HNW individuals ($bn), 2006–15f
•Table: Number of affluent individuals by region, 2011
•Table: Liquid assets held by affluent individuals and CAGRs by region, 2006–15f
•Table: Regional contribution by liquid assets held by affluent individuals (%), 2006–15
•Table: Number of HNW individuals by region, 2006–15f
•Table: Number of affluent individuals by region, 2006–15f
•Table: Largest industry s by liquid assets held by affluent individuals worldwide ($bn), 2006–15f
•Table: Largest industry s by liquid assets held by affluent individuals worldwide (excluding Japan and US) ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and CAGRs for the 10 worst performing countries worldwide ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in Asia Pacific (excluding Japan) ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in Japan ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in Asia Pacific ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in Central and Eastern EUR pe ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in Central and Eastern EUR pe ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in Latin America ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in Latin America ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in Middle East and Africa ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in the Middle East and Africa ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in North America ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in North America ($bn), 2006–15f
•Table: Liquid assets by total industry, affluent and HNW individuals in Western EUR pe ($bn), 2006–15f
•Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in Western EUR pe ($bn), 2006–15f
•Table: Top three wealth managers: business units defined
•Table: Top three wealth managers: AUM defined
FIGURES
•Figure: The eurozone sovereign crisis will weigh on the global wealth industry for the foreseeable future
•Figure: The three largest wealth managers have collectively performed poorly in recent years when compared to the overall industry
•Figure: North America will remain the largest regional industry up to 2015, while Asia Pacific (excluding Japan) will overtake Western EUR pe as the second largest industry
•Figure: Western EUR pe and Japan each have over 50 million affluent individuals but limited growth prospects
•Figure: The US will remain the largest wealth industry by far
•Figure: Greece is the only country projection to show negative asset growth in 2011–15f
•Figure: Methodology overview
•Figure: Geographic coverage spans 59 countries
•Figure: Stock industry s impact upon the global wealth industry s more than Gross Domestic Product
•Figure: Equities and mutual funds accounted for 38% of total liquid assets worldwide in 2011, and are strongly impacted by stock industry performance
•Figure: A sharp asset value decline in 2008 was followed by a strong rebound in 2009 and 2010
•Figure: The HNW sector has been growing faster than the broader affluent sector, recording a 55% increase between 2006 and 2015f
•Figure: The three largest wealth managers have collectively performed poorly in recent years when compared to the overall industry
•Figure: China's massive liquid asset size, strong growth, and limited penetration from global players make it a very attractive industry for the top three wealth managers
•Figure: Western EUR pe and Japan each have over 50 million affluent individuals but limited growth prospects
•Figure: North America will remain the largest regional industry up to 2015, while Asia Pacific (excluding Japan) will overtake Western EUR pe as the second largest industry
•Figure: Asia Pacific (excluding Japan) will overtake Western EUR pe in terms of number of HNW individuals by 2012
•Figure: The US will remain the largest wealth industry by far
•Figure: China will see the liquid assets held by its affluent individuals triple between 2006 and 2015
•Figure: Greece is the only country projection to show negative asset growth in 2011–15f
•Figure: Latvia's Gross Domestic Product contracted by almost 20% in 2009
•Figure: Japan will remain the largest wealth industry in Asia Pacific for the foreseeable future
•Figure: The slight decline experienced by Asia Pacific (excluding Japan) in 2011 was mainly due to negative sentiment from outside the region
•Figure: Japan has a large and stable pool of assets held by affluent individuals
•Figure: The number of affluent individuals in Asia Pacific will reach 118 million by 2015
•Figure: India and China will continue to show the strongest growth over 2011–15f
•Figure: Affluent individuals hold 75% of the total assets in Central and Eastern EUR pe
•Figure: The number of affluent individuals is projection to reach 7 million by 2015
•Figure: Russia and Turkey are projection to show double digit compounded growth over 2011–15f
•Figure: Affluent individuals hold over 90% of the total liquid assets in Latin America
•Figure: The number of affluent individuals in Latin America is set to more than double between 2006 and 2015
•Figure: Brazil is set to record the highest regional growth over 2011–15f
•Figure: After a sharp decline in 2008 the Middle East and Africa wealth industry is projection to show consistently strong growth over 2009–15f
•Figure: The number of affluent individuals in the Middle East and Africa will surpass the 2.5 million mark by 2015
•Figure: Oman is projection to show compound growth in excess of 20% over 2011–15f
•Figure: North American investors' high allocations in equities and mutual funds make them particularly sensitive to stock industry volatility
•Figure: North America had over 3 million HNW individuals in 2011
•Figure: The US and Canada exhibit very similar behaviors
•Figure: Western EUR pe's reliance on fixed income products and limited economic growth prospects will dampen the growth of the region's wealth industry
•Figure: Western EUR pe had over 54 million affluent individuals and over 1.2 million HNW individuals in 2011
•Figure: Northern EUR pean industry s are projection to show significantly stronger growth than Southern EUR pean industry s
•Figure: Geographic coverage
•Figure: Women account for a greater share of total HNW individuals in the more developed wealth industry s
•Figure: Middle East HNW individuals are significantly younger than in other regions
•Figure: Entrepreneurship is the most common source of wealth for HNW worldwide
•Figure: Real estate allocations are extremely popular in the Middle East and Asia Pacific
