Wealth in Australia: Sizing the Market Opportunity 2017

Wealth in Australia: Sizing the Market Opportunity 2017

  • Products Id :- VF0150CI
  • |
  • Pages: 46
  • |
  • |
  • |
  Request for Sample Report
  Request A Quote

Executive Summary

We expect 2017 to be a turning point for the Australian wealth market, after growth slowed down over the past few years, with economic concerns having a negative effect on performance. Returning economic strength and more favorable equity market conditions will contribute to stronger retail investment savings growth, which in turn will translate into more robust wealth growth. Between 2016 and 2020 liquid assets held by affluent individuals are forecast to record a compound annual growth rate (CAGR) of 5.9%, representing a sizable opportunity for wealth managers operating in the country. Yet there is notable regional disparity within Australia in terms of wealth distribution, with the vast majority of wealth found on the Eastern seaboard.

Key Findings

At the end of 2016, of the approximately 18.7 million adults living in Australia, 19.1% (or 3.57 million) could be considered affluent.

While expanding at a slightly slower pace than in previous years, wealth market growth in Australia will still be dwarfed by many other developed markets through to 2020, and wealth held by affluent retail investors is forecast to record a CAGR of 5.9% over the forecast period.

While Australia's stock market has struggled in recent years (before regaining momentum in 2016), generous dividend payouts and a friendly tax system have seen retail investors' love affair with equities continue.

Australian HNW individuals are heavily exposed to property in their non-traditional investments, with real estate investment trusts of particular interest.

While HNW individuals in Australia invest offshore for a multitude of reasons, access to a wider range of investments is the main factor. But investors only hold a comparatively small proportion of their wealth offshore.


GlobalData's "Wealth in Australia: Sizing the Market Opportunity 2017" analyzes the Australian wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

Specifically the report:

Sizes the affluent market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.

Analyzes which asset classes are favored by Australian investors and how their preferences impact the growth of the total savings and investments market.

Examines HNW clients' attitudes towards non-traditional investments such as property and commodities.

Identifies key drivers and booking centers for offshore investments.

Examines the tax landscape in Australia and future implications for investors.

Reasons to Buy

Benchmark your share of the Australian wealth market against the current market size.

Forecast your future growth prospects using our projections for the market to 2020.

Identify your most promising client segment by analyzing penetration of affluent individuals in Australia.

Evaluate your HNW proposition by understanding how the Australian tax system impacts HNW clients.

Review your offshore strategy by identifying HNW motivations for offshore investments and their preferred booking centers.

Read More

Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications



Australia's wealth market continues to represent a sizable opportunity

Key findings

Critical success factors



By 2020 affluent individuals will constitute 23% of Australia's adult population

Australia's affluent population is forecast to record an AAGR of 5.8% between 2016 and 2020

HNW individuals account for 1.0% of adults but hold 37.2% of liquid assets

Affluent individuals hold 77% of Australian retail liquid assets

Australia's onshore wealth is concentrated in the populous states of the eastern seaboard, while growth is to be found in the west and north


While still impressive compared to other developed countries, retail savings and investment market growth dropped in 2016

Australia's investment market outlook remains robust over the long term

Australians' love affair with equities is not expected to end any time soon

Growing at above market rate, retail deposit holdings will remain the largest asset class

Deposit growth will continue to outstrip GDP growth

Economic concerns suppressed retail investment holdings growth in 2016, but this is expected to change

Equities and mutual funds are most allied to the performance of the Australian stock market

Mutual funds are less sensitive to stock market movements than equities

There is a negative correlation between the ASX S&P All Ords and retail bond holdings

Retail bond holdings growth will be strong over the forecast period


HNW individuals' high allocation into superannuation is an opportunity for wealth managers

HNW investors in Australia hold just over 14% of their wealth offshore

Australian HNW investors prefer to invest their wealth at home

Access to better investment options is the primary driver for HNW offshore investment

The importance of tax efficiencies as a driver for offshore investments has decreased over the past few years

HNW offshore wealth is held predominately in the US and the UK

Australia has signed numerous TIEAs in an effort to combat offshore tax evasion


Abbreviations and acronyms

Supplementary data






Exchange of information



Liquid assets

Mass affluent





2016 Global Wealth Managers Survey

2015 Global Wealth Managers Survey

Global Wealth Model methodology

Global Retail Investments Analytics methodology


Further reading

About GlobalData


Figure 1: 19% of the Australian population can be considered affluent

Figure 2: HNW individuals hold 37.2% of liquid assets in Australia

Figure 3: Eastern Australia accounts for the majority of affluent liquid assets

Figure 4: Australia's retail investments market is forecast to record a CAGR of 7.0% between 2016 and 2020

Figure 5: Deposits account for 55.5% of the Australian retail investment market

Figure 6: Retail deposit holdings will continue to dominate, but bond holdings will perform strongest

Figure 7: Deposit holdings growth is forecast to exceed GDP growth

Figure 8: The local stock market regained momentum in 2016

Figure 9: Retail mutual fund and equity investments correlate strongly to the performance of the Australian stock market

Figure 10: Mutual funds are heavily invested in property and equity-and little else

Figure 11: Retail bond holdings tend to move in the opposite direction of Australia's All Ords index

Figure 12: HNW investors allocate 35% of their wealth into non-traditional investments

Figure 13: HNW individuals in Australia hold 14.1% of their assets offshore

Figure 14: Access to better investment options is the biggest motivation for offshore investment

Figure 15: Australian HNW individuals prefer to invest in the US and the UK

Figure 16: The Australian government has signed 38 TIEAs

Table 1: Australian income tax rates for residents 2016-17, applicable as of July 1, 2016

Table 2: Stamp duty levied in New South Wales, Australia

Table 3: Australia: total liquid wealth segmented by affluent category and asset band (A$bn), 2010-15

Table 4: Australia: total liquid wealth segmented by affluent category and asset band (A$bn), 2016e-20f

Table 5: Australia: adult population segmented by affluent category and asset band (000s), 2010?15

Table 6: Australia: adult population segmented by affluent category and asset band (000s), 2016e?20f

Table 7: Australia: total liquid wealth segmented by affluent category and asset band ($bn), 2010-15

Table 8: Australia: total liquid wealth segmented by affluent category and asset band ($bn), 2016e-20f

Table 9: Australia: adult population segmented by affluent category and asset band (000s), 2010?15

Table 10: Australia: adult population segmented by affluent category and asset band (000s), 2016e?20f

Single User License:
Report can be used by individual purchaser only

Site License:
Report can be shared by unlimited users within one corporate location, e.g. a regional office

Corporate User License:
Report can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company

To know more information on Purchase by Section, please send a mail to sales [@] kenresearch.com

China Construction Bank, ICBC, Credit Suisse

private banking, wealth management, Australia, Asia Pacific, investments, savings, HNW, offshore, mass affluent, mutual funds, FATCA, AEOI, CRS, bonds, deposits, self-managed superannuation funds, SMSF

select a license
Single User License
USD 3450 INR 246089
Site License
USD 6900 INR 492177
Corporate User License
USD 10350 INR 738266



The report was very informative and gives me an interesting view on the Indian market....

We would like to thank the entire team of Ken Research in showcasing professionalism in research and quick turnaround time. We have had multiple research reports from Ken Research. The deadline communicated for research was duly met. The research reports were covering many aspects in detail. This showcases their endeavor and care for client satisfaction and a strong understanding of the clients’ requirements. Thank you again for your help...

I appreciate their diligence and determination in customizing the research project. The data proves to be valuable and accurate. I would, in future, definitely use their services again...

I would like to thank Ken research team for meeting our report deliverables. The report is very good and we appreciate your well cooperation. ...

The research you conducted was very helpful for us and the integrity of your research approach gave us great confidence in the data. Look forward to collaborating again in future...

Ken Research Private Limited, Unit 14, Tower B3, Spaze I Tech Business Park, Sohna Road, sector 49
     Gurgaon, Haryana - 122001, India


Company Brochure

Engage with Us

sales [@] kenresearch.com