Wealth in South Africa: HNW Investors 2017

Wealth in South Africa: HNW Investors 2017


  • Products Id :- FS0032IA
  • |
  • Pages: 49
  • |
  • |
  • |
  Request for Sample Report
  Request A Quote

Executive Summary

Wealth in South Africa: HNW Investors 2017

Summary

"Wealth in South Africa: HNW Investors 2017", analyzes the South African investment market, with a focus on the HNW segment. The report is based on our proprietary datasets.

More than 40% of South African HNW investors generated their wealth through earned income, mainly through manufacturing and the real estate and property sector. Most HNW individuals opt to have their assets managed by a professional, driven by a lack of expertise. However, clients who self-direct their investments do so mainly to avoid management fees and to retain exclusive control over some of their portfolio. Equities are the preferred asset class, but property, alternatives, and cash are forecast to experience notable increases over the next 12 months. Demand is quite pronounced for pension and inheritance planning, and a strong increase in demand is forecast across all planning services.

Specifically the report

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

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

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

Scope

Expats account for a below-average proportion of the HNW population, with UK HNW migrants accounting for the majority.

While equities dominate, demand for alternatives is forecast to rise rapidly as investors are looking for new means of diversification.

Despite a strong preference for discretionary mandates, 21.5% do not place their assets with a professional manager, which is double the global average.

Demand is strongest for pension and inheritance planning services, and will increase further increase over the next two years, along with demand for financial planning services.

Reasons to buy

Benchmark your share of the South African 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 South Africa.

Evaluate your HNW proposition by understanding how the South African tax system will impact HNW clients.



Read More



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

+91-9015378249

Table of Contents

1. EXECUTIVE SUMMARY

1.1. South African clients accumulate wealth through earned income 3

1.2. Key findings 3

1.3. Critical success factors 3

2. PROFILING THE SOUTH AFRICAN HNW INVESTOR 8

2.1. Earned income accounts for the largest source of wealth 8

2.1.1. The bulk of South African HNW individuals are males above 51 years of age 8

2.1.2. The largest proportion of HNW clients amass their wealth through earned income 9

2.1.3. Many HNW investors have built their fortunes through the manufacturing industry 11

2.1.4. Nearly half of HNW individuals in South Africa are directors 12

2.2. Expats account for 8.4% of the local HNW population 13

2.2.1. The majority of HNW expats are from the UK 14

3. SOUTH AFRICAN HNW INVESTMENT STYLE PREFERENCES 17

3.1. Wealth managers should highlight their professional expertise 17

3.1.1. Over half of South Africa's HNW wealth is held in discretionary mandates 17

3.1.2. A lack of expertise drives demand for professional advice 18

3.1.3. South Africa's HNW investors place a higher-than-average proportion of their wealth with their main wealth manager 19

3.2. A desire to avoid management fees is increasing demand for execution-only mandates 20

3.2.1. However, demand is strongest for discretionary mandates 20

3.2.2. Advisory mandates will experience the strongest growth in demand 21

3.2.3. A lack of expertise is driving demand for advisory mandates 22

3.2.4. South African HNW investors who self-direct want to avoid management fees 23

3.2.5. Charles Schwab offers automated investment services with a human element 24

4. UNDERSTANDING ASSET ALLOCATION TRENDS AMONG SOUTH AFRICAN HNW INDIVIDUALS 26

4.1. Property will register the fastest increase in demand over the next year 26

4.1.1. Equities continue to account for the largest segment of HNW portfolios 26

4.1.2. Equity investments constitute the largest proportion of the average South African HNW portfolio 27

4.1.3. Capital appreciation opportunities are the main driver for equity investments 28

4.1.4. Bond investments are lower in South Africa than the rest of the world 29

4.1.5. Wealth managers expect bond holdings to decrease significantly 30

4.1.6. Cash and near-cash allocations are in line with the global average 31

4.1.7. A desire to maintain liquidity is driving demand for cash and near-cash products 32

4.1.8. Property constitutes a relatively small part of the typical HNW portfolio 33

4.1.9. Rental income is the main driver for property investments 34

4.1.10. Investments in alternatives are more popular in South Africa than globally 35

4.1.11. Asset diversification is the leading driver for investments in alternatives 36

4.1.12. Commodities allocations are as low as the global average 37

4.1.13. Asset diversification is the leading driver for commodity investments 38

5. HNW PRODUCT AND SERVICE DEMAND 40

5.1. Wealth managers should lead with pension planning services 40

5.1.1. Pension planning demand is much higher in South Africa than the rest of the world 40

5.1.2. Demand for all planning services is forecast to increase 41

6. APPENDIX 44

6.1. Abbreviations and acronyms 44

6.2. Definitions 44

6.2.1. Affluent 44

6.2.2. HNW 44

6.2.3. Liquid assets 44

6.2.4. Mass affluent 44

6.3. Methodology 45

6.3.1. GlobalData's 2016 Global Wealth Managers Survey 45

6.3.2. GlobalData's 2015 Global Wealth Managers Survey 45

6.3.3. GlobalData's WealthInsight 45

6.3.4. Exchange rates 46

6.4. Bibliography 46

6.5. Further reading 48

List of Figures

Figure 1: Women represent just 9% of the South African HNW population 9

Figure 2: Earned income is the main source of wealth for South Africa's HNW investors 10

Figure 3: Manufacturing is the leading generator of South African wealth 12

Figure 4: A significant proportion of HNW investors in South Africa are directors 13

Figure 5: 8.4% of South Africa's HNW client base is made up of expats 14

Figure 6: Almost two thirds of South African HNW expats are from the UK 15

Figure 7: Nedbank Private Wealth targets British expats 16

Figure 8: More than half of HNW assets are managed using discretionary mandates 18

Figure 9: A lack of expertise is the major driver of wealth management demand 19

Figure 10: Over three quarters of South Africa's HNW investors use two or more advisors 20

Figure 11: Discretionary and advisory mandates experience the highest demand 21

Figure 12: Advisory asset management will experience the highest increase in demand 22

Figure 13: HNW investors' lack of expertise drives the need for advisory mandates 23

Figure 14: Advisors should offer innovative services to offset self-directing trends 24

Figure 15: Charles Schwab offers automated advice with a human touch 25

Figure 16: South African HNW investors are heavily exposed to equities 27

Figure 17: Equity investments are split almost equally between direct holdings and funds 28

Figure 18: Demand for equity holdings is forecast to decrease over the next year 29

Figure 19: Bond allocations in South Africa are half those seen globally 30

Figure 20: Bond investments are set to decline significantly 31

Figure 21: The majority of cash and near-cash is invested in money market funds 32

Figure 22: Cash and near-cash investments are set to record strong growth 33

Figure 23: South Africa's HNW investors favor direct property investments 34

Figure 24: Property investments are forecast to increase further 35

Figure 25: Hedge funds are the most popular alternatives investment 36

Figure 26: The majority of industry experts expect alternative investments to increase 37

Figure 27: Commodity funds are most attractive to South African HNW investors 38

Figure 28: Asset diversification drives South African commodities investments 39

Figure 29: Pension planning is the priority for South Africa's HNW investors 41

Figure 30: Pension planning will remain the preferred planning service 43

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
 

Mercantile Private Bank, Credit Suisse, Friends Provident International, Aviva, SIPP, Charles Schwab, Anglo American, BMW, Ford, Toyota, Savills, Nedbank

select a license

Single User License
USD 3450 INR 247986
Site License
USD 6900 INR 495972
Corporate User License
USD 10350 INR 743958

NEWSLETTER BY CATEGORY




Testimonials

An excellent provider. Thorough, precise and outstanding insight. They drill down to what we need and their reports are effective at integrating text with supporting graphics and charts. Their reports are a great resource to go back too. ...

Coherent, high-quality, thoroughly-researched reports. We received a very quick response to all our queries which eventually expedited the entire process....

Well structured, the insights they shared with us were very helpful and reliable. Their timely assistance make their services invaluable to us. I would highly recommend them and would definitely use them again in the future if needed...

The report sent to us was on the point, and its information was quite extensive, well structured, and well researched. More importantly what we valued was your response time and professionalism. As a leading global consulting firm, our clients expect high quality deliverables in short periods of time, so a reliable research partner is essential. For the price that you have charged the quality of your services were exceptional. We look forward to continue our relationship with your team on future engagements....

This is with regards to your report on India PVC pipes and fitting market outlook industry outlook to 2019. This is a very well written report and accept my compliments on the same.... ...



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

download

Company Brochure

Engage with Us

sales [@] kenresearch.com