The Global Wealth Market in 2012 examines the global affluent population and its future growth prospects through to 2015. The report covers over 55 countries across seven regions.
Description
INTRODUCTION
After a sharp decline in 2008 and a smaller drop in 2011, the global wealth market 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 markets, with emerging markets set to show double digit growth - a trend which is set to bring about a change in the established order of country wealth markets.
FEATURES AND BENEFITS
Understand the dynamics between the world's regional wealth markets 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 Datamonitor's analysis of over 55 markets.
Discover how the world's largest three wealth managers have fared against the performance of the overall market.
Learn about the typical millionaire, his key demographics, how he invests his liquid assets based on Datamonitor's Global Wealth Managers Survey.
HIGHLIGHTS
North America's status as the largest wealth market is not threatened by the exponential growth of the emerging markets. 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 market by 2015.
The top 10 country wealth markets will change in 2012, with Brazil and India entering and Spain and Taiwan exiting. Taiwan is in fact growing faster than many other mature markets, 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.
YOUR KEY QUESTIONS ANSWERED
What is the future growth outlook for the global affluent population?
Which are the largest wealth markets and how will this change by 2015?
Which country markets within each region are growing most quickly?
Who are the three largest wealth managers and how their fortunes are faring compared to the overall market?
What are the key demographics of the typical HNW individual and how do these investors tend to allocate their liquid wealth?
TOC
OVERVIEW
Catalyst
Summary
Methodology
EXECUTIVE SUMMARY
Global overview
The global wealth market was worth $61tn at the end of 2011
The world's largest wealth managers have suffered sharper declines than the overall market
Regional comparison
Comparison of the seven main geographies shows strong differences
The top 10 country wealth markets 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 markets
The sovereign debt crisis and structural problems are hindering growth in many Southern European wealth markets
Regional analysis
Asia Pacific
The number of affluent individuals in Asia Pacific will reach 118 million by 2015
Central and Eastern Europe
Latin America
Middle East and Africa
North America
Western Europe
The Global HNW Consumer
Male and entrepreneur
Financial sophistication, risk appetite, and age help determine asset allocation
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 market was worth $61tn at the end of 2011
The eurozone sovereign crisis will weigh on the global wealth market 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 market
The world's largest wealth managers have suffered sharper declines than the overall market
The largest wealth managers focus their presence in their core markets but are rapidly expanding geographically
COMPARING REGIONAL WEALTH MARKETS
Introduction
Comparison of the seven main geographies shows strong differences
Mature wealth markets 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 markets 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 markets
Brazil, China, and India will see their liquid asset pools almost triple between 2006 and 2015
Five of the 10 largest markets are also among the worst performers
Nine out of the 10 worst performing markets in terms of growth are European
Outside of Western Europe, 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 Europe
Future liquid assets growth in Central and Eastern Europe will be impacted by the Western European 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 market 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 market extremely volatile
Country comparison: Canada and US exhibit very similar behaviors
Western Europe
Liquid asset growth in Western Europe 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 Europe will outperform Southern Europe 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 Europe 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 European HNW investors are very risk averse
APPENDIX
Definitions
Affluent
HNW
Mass affluent
Measures of growth
Onshore
Methodology
Global Savings & Investment Databases
Global wealth markets databases
Global Wealth Managers Survey 2011
Competitor data
Further reading
Ask the analyst
Disclaimer
TABLES
Table: Geographic coverage spans 59 countries segmented over seven regions
Table: Global Wealth Managers Survey 2011 - geographic coverage
Table: Worldwide liquid assets by total market, 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 markets by liquid assets held by affluent individuals worldwide ($bn), 2006-15f
Table: Largest markets by liquid assets held by affluent individuals worldwide (excluding Japan and US) ($bn), 2006-15f
Table: Liquid assets held by affluent individuals and CAGRs for the 10 worst performing countries worldwide ($bn), 2006-15f
Table: Liquid assets by total market, affluent and HNW individuals in Asia Pacific (excluding Japan) ($bn), 2006-15f
Table: Liquid assets by total market, 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 market, affluent and HNW individuals in Central and Eastern Europe ($bn), 2006-15f
Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in Central and Eastern Europe ($bn), 2006-15f
Table: Liquid assets by total market, 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 market, 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 market, 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 market, affluent and HNW individuals in Western Europe ($bn), 2006-15f
Table: Liquid assets held by affluent individuals and affluent individuals as a percentage of the total adult population by country in Western Europe ($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 market for the foreseeable future
Figure: The three largest wealth managers have collectively performed poorly in recent years when compared to the overall market
Figure: North America will remain the largest regional market up to 2015, while Asia Pacific (excluding Japan) will overtake Western Europe as the second largest market
Figure: Western Europe and Japan each have over 50 million affluent individuals but limited growth prospects
Figure: The US will remain the largest wealth market by far
Figure: Greece is the only country forecast to show negative asset growth in 2011-15f
Figure: Methodology overview
Figure: Geographic coverage spans 59 countries
Figure: Stock markets impact upon the global wealth markets more than GDP
Figure: Equities and mutual funds accounted for 38% of total liquid assets worldwide in 2011, and are strongly impacted by stock market performance
Figure: A sharp asset value decline in 2008 was followed by a strong rebound in 2009 and 2010
Figure: The HNW segment has been growing faster than the broader affluent segment, 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 market
Figure: China's massive liquid asset size, strong growth, and limited penetration from global players make it a very attractive market for the top three wealth managers
Figure: Western Europe and Japan each have over 50 million affluent individuals but limited growth prospects
Figure: North America will remain the largest regional market up to 2015, while Asia Pacific (excluding Japan) will overtake Western Europe as the second largest market
Figure: Asia Pacific (excluding Japan) will overtake Western Europe in terms of number of HNW individuals by 2012
Figure: The US will remain the largest wealth market 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 forecast to show negative asset growth in 2011-15f
Figure: Latvia's GDP contracted by almost 20% in 2009
Figure: Japan will remain the largest wealth market 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 Europe
Figure: The number of affluent individuals is forecast to reach 7 million by 2015
Figure: Russia and Turkey are forecast 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 market is forecast 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 forecast 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 market volatility
Figure: North America had over 3 million HNW individuals in 2011
Figure: The US and Canada exhibit very similar behaviors
Figure: Western Europe's reliance on fixed income products and limited economic growth prospects will dampen the growth of the region's wealth market
Figure: Western Europe had over 54 million affluent individuals and over 1.2 million HNW individuals in 2011
Figure: Northern European markets are forecast to show significantly stronger growth than Southern European markets
Figure: Geographic coverage
Figure: Women account for a greater share of total HNW individuals in the more developed wealth markets
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
