Introduction
Datamonitor's Wealth Management in Japan 2004 focuses on the onshore liquid wealth of mass affluent and high net worth customers in Japan. It provides detailed analytical views of macro-economic background, retail savings and investments, mass affluent and high net worth individuals, competitive dynamics, customer preferences and forecasts.
Scope of this report
- The macroeconomic and savings and investment data was collected directly from governmental sources such as the Bank of Japan
- Insight into the Japanese financial services market was obtained through in-depth interviews with wealth managers and private bankers
- Sizing and forecasting of mass affluent and high net worth individuals were generated from Datamonitor's proprietary Global Wealth Model
Research and analysis highlights
There are some specialized services for certain affluent sectors such as the super-rich (those with JPY1bn (USD9m)), landowners and small business owners, although at present, these services are the exception rather than the rule. This means that there are significant opportunities for wealth managers offering targeted services.
The size of the total onshore liquid retail investments market in Japan was JPY972,058bn (USD8,798bn) in 2003, making it almost four times the size of the US retail market and six times the size of the Chinese market.
Japan's high net worth population is expected to grow at an average annual rate of 4.8%, the number of high net worth individuals in Japan will reach 3.4 million by 2008.
Key reasons to read this report
- This report forecasts the market to 2008, allowing competitors to plan strategies on the basis of detailed market information
- Allows foreign wealth managers to assess the attractiveness of the market and to pick out opportunities
- opportunities Helps competitors plan products and services by giving key information on their customers' financial services preferences.
CHAPTER 1 EXECUTIVE SUMMARY
- Introduction
- What is this report about?
- Market overview
- Retail savings and investments
- Wealthy individuals
- Customer focus
- Competitive dynamics
- Future decoded
CHAPTER 2 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How to use this report
CHAPTER 3 MARKET OVERVIEW
- Introduction
- Macroeconomic overview
- GDP growth
- Inflation
- Interest rates
- Stock Market Cap
- Market size
- Retail liquid savings and investments
- Deposits
- Direct Bond investment
- Mutual fund investment
- Direct equity investment
- Income inequalityand the Gini index
- Affluent wealth
- Mass affluent individuals
- Number of individuals
- Onshore liquid wealth
- High net worth individuals
- Number of individuals
- Onshore liquid wealth
- Data
CHAPTER 4 CUSTOMER FOCUS
- Products and service preferences
- Property
- Offshore tendency
- Hedge funds
- Equities
- Bonds
- Population profile
- Age and diversity
- Target segments
- Expatriates
- Entrepreneurs
- High earners
- Data
CHAPTER 5 COMPETITIVE DYNAMICS
- Introduction
- Opportunities
- Barriers
- Regulatory changes
- Securities Companies
- Local banking groups
- Foreign banks
CHAPTER 6 FUTURE DECODED
- Introduction
- Forecast assumptions
- Economic outlook
- Retail savings and investments growth
- Wealthy individuals
- Mass affluent individuals
- Number of individuals
- Onshore liquid wealth
- High net worth individuals
- Number of individuals
- Onshore liquid wealth
- Data
CHAPTER 7 APPENDIX
- Definitions
- AAGR
- Advisory portfolio management
- CAGR
- Discretionary portfolio management
- The responsibility for buying and selling investments is delegated to an investment manager. The client grants the investment manager the authority to transact on their behalf, without seeking approval for every trade.
- Gini index
- High net worth (HNW)
- An individual holding USD300K or more of liquid assets.
- Liquid assets
- Liquid asset bands
- Mass affluent
- Datamonitor uses this term to refer to individuals who are of above average wealth, but do not have sufficient liquid assets to be classed as HNWs, i.e. they have liquid assets of USD50K -300K. As such they form the bridge between the HNW market and the mass retail market.
- Research methodology
- The Global Wealth Model
- The UK sub model
- Asia-Pacific sub model
- Forecasting methodology
- Datamonitor's wealth numbers compared with others' numbers
- Bespoke Wealth Market Sizing
- Further reading
- Datamonitor Asia-Pacific Wealth Reports
- Datamonitor Asia-Pacific Insight Reports
- Datamonitor Global Wealth Service: Competitor Tracking
- Datamonitor Financial Services Consulting
- Asia-Pacific contacts
List of Tables
- Table 1: Macro-economic factors, 1998-2003
- Table 2: Japanese onshore retail liquid asset balances, 1998-2003
- Table 3: Japanese onshore retail liquid asset balances, 1998-2003
- Table 4: Japan's GINI index and income quintiles
- Table 5: Percentage of affluent individuals and liquid assets by liquid wealth band, 2003
- Table 6: Japanese mass affluent individuals, 1998-2003
- Table 7: Japanese mass affluent liquid assets, 1998-2003
- Table 8: Number of Japanese HNW individuals, 1998-2003
- Table 9: Japanese HNW liquid assets, 1998-2003
- Table 10: Japanese population by age range, 2003
- Table 11: Japanese property price index - Nationwide
- Table 12: Japanese outstanding SME lending by lender, 2001
- Table 13: Number of households by household income, 2003
- Table 14: There are several foreign wealth brands competing in Japan
- Table 15: GDP growth and adult population forecasts, 2003-2008
- Table 16: Forecasted retail savings and investments growth, 2003-2008
- Table 17: Number of Japanese mass affluent individuals, 2003-2008
- Table 18: Japanese mass affluent liquid assets, 2003-2008
- Table 19: Number of Japanese HNW individuals, 2003-2008
- Table 20: Japanese HNW liquid assets, 2003-2008
- Table 21: Wealth markets that have been modeled using the Global Wealth Model
List of Figures
- Figure 1: Japanese retail savings and investments increased by just 2.1% in 2003
- Figure 2: The wealthiest 0.3% of wealthy individuals own 12.3% of total liquid assets owned by wealthy individuals
- Figure 3: There are a significant number of wealthy expatriates living and working in Japan
- Figure 4: The number of affluent Japanese individuals is set to grow at a rate of 3.9% averaged annually over the 2003-2008 period
- Figure 5: Methodology diagram and report structure
- Figure 6: The Japanese economy has performed poorly in the last six years
- Figure 7: The TSE has seen a turbulent few years in recent times, peaking in 1999 and the falling to a low in 2002
- Figure 8: Japanese retail savings and investments increased by just 2.1% in 2003
- Figure 9: The 20% of Japan individuals that have the highest income levels, earn 35.7% of total income
- Figure 10: Affluent assets decreased as a percentage of total wealth over the 2000-2002 period
- Figure 11: The wealthiest 0.3% of wealthy individuals own 12.3% of total liquid assets owned by wealthy individuals
- Figure 12: The number of Japanese mass affluent individuals has grown at an average annual rate of 1.0% over the 1998-2003 period
- Figure 13: Mass affluent liquid assets in Japan grew by just 4.8% over the 1998-2003 period
- Figure 14: The number of Japan HNW individuals has grown at a rate of 1.8% averaged annually over the 1998-2003 period
- Figure 15: HNW liquid assets in Japan dipped to USD2,102bn in 2002
- Figure 16: Retail property prices in Japan have been decreasing rapidly in recent years
- Figure 17: Japan has a relatively old population, with 18.5% of residents over 64 years of age
- Figure 18: Almost three quarters of foreigners in Japan are from Asia, 2002
- Figure 19: There are a significant number of wealthy expatriates living and working in Japan
- Figure 20: The Japanese SME loan market is dominated by the large banks
- Figure 21: In 2003 there were over 2.8 million resident households with an annual income of more than JPY10m (USD90,000)
- Figure 22: Consolidation in the Japanese banking market created four über banks in 2001
- Figure 23: Retail savings and investments set to grow at a compound rate of 3.9% between 2003 and 2008
- Figure 24: Mass affluent individuals will increase at an average annual rate of 3.9% over the 2003-2008 period
- Figure 25: Liquid assets of mass affluent individuals are expected to grow at a rate of 4.4% between 2003 and 2008 compounded annually
- Figure 26: The high net worth population in Japan is set to grow at an average annual growth rate of 4.8% over the 2003-2008 period
- Figure 27: Liquid assets are expected to grow substantially faster than mass affluent assets at 6.6% CAGR over the 2003-2008 period
