Wealth in Germany: Sizing the Market Opportunity 2017

Germany’s economy looks set to continue its robust, but moderate growth. However, there are considerable political, economic, and financial uncertainties on the horizon that could significantly impact the country’s wealth market. With lower growth and return prospects, the role of wealth managers in a traditionally risk-averse market will become more challenging.

Key Findings

Affluent individuals account for 20% of the German population, holding 74% of liquid assets. This wealth distribution is similar to other developed economies.

A robust economic performance will continue to underpin growth in Germany’s overall retail savings and investments market, which is forecast to grow by an average of 2.9% a year to 2020. However, it is important to highlight the predicted slowdown in this mature and conservative market.

Deposits dominate, accounting for 68% of balances. This reflects a habitual, persistent risk aversion that is forecast to remain, in spite of a 0% interest rate and rising inflation.

Investor uncertainties surrounding domestic elections, Brexit, and the US agenda have significantly dampened stock market appetite. As a result, equities and mutual funds are forecast to grow by only 1.7% a year to 2020.

Germany’s HNW individuals invest 22% of their assets outside traditional investments, with private equity and property proving popular.

Offshore investments account for 10% of HNW individuals’ illiquid assets, distinctly below the global average. These investments are driven by the desire for better returns rather than tax efficiency.

Synopsis

Wealth in Germany: Sizing the Market Opportunity analyzes the German 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 value of their liquid assets) using GlobalData’s proprietary datasets

Analyzes which asset classes are favored by German 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.

Identifies key drivers and booking centers for offshore investments.

Reasons to Buy

Benchmark your share of the German 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 the penetration of affluent individuals in Germany.

Evaluate your HNW proposition by understanding how the changing German tax systems will impact HNW clients.

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