Product Description
Introduction
Clients lost a lot in the recession: returns, risk tolerance and confidence. Now in a rebuilding phase, wealth managers that understand their clients' demands and motivations are in the best position to profit. Datamonitor' s analysis provides the data and insight to monitor competitors' strategies, size their potential customer base, and understand their needs.
Features And Benefits
• Build your customer targeting strategy using in-depth HNW demographics and needs analysis based on Datamonitor' s annual Global Wealth Manager Survey.
• Assess your competition through detailed profiles of notable players, including the customer targeting, marketing and product strategies they employ.
• Size your potential client base using Datamonitor' s proprietary data, presenting the number of affluent individuals by liquid asset band to 2014.
Highlights
The Financial Services Authority (FSA), is being dismantled, with control of macro-prudential regulation handed over to the Bank of England. The most significant legislation for wealth managers is the upcoming implementation of the Retail Distribution Review. The ICB report also has implications for wealth managers.
According to Datamonitor' s Global Wealth Managers Survey 2011, the typical UK HNW individual amassed their wealth through earned income and allocates the largest proportion of the investment portfolio into equities and fixed income. UK HNWs are loyal to their wealth manager and demand face-to-face contact.
The UK wealth management market includes some of the most prestigious and recognized financial institutions in the world. Asset-management led institutions play a key role in the market. Profiled competitors include Brewin Dolphin, Coutts & Co, Kleinwort Benson, RBC Wealth Management and Vestra Wealth
Your Key Questions Answered
• What strategies are my competition employing to win and keep affluent clients?
• Which products and services will affluent clients in the UK want in the next two years?
• How is the UK wealth management structured? What role do banks and asset managers play?
• How many potential clients in the UK have onshore liquid assets that would allow me to run a very profitable business?
• Who are the main regulators in the UK and which legislation has impacted wealth managers?
Table of Contents
Executive Summary
Sizing and forecasting the affluent population in the UK
Recent macroeconomic trends
Recent regulatory changes have been introduced to reinforce macro-prudential regulation and best practice in the wealth management industry
The number of HNW individuals in the UK has yet to recover to pre-crisis levels
The UK offshore market is typically associated with the island financial centers
HNW customers in the UK
The typical UK HNW individual is over 65 years old and amassed their wealth through earned income
UK HNW individuals allocate a large proportion of their portfolio into equities
Discretionary asset management and financial planning services are readily available
UK HNW investors are interested in offshore investments, look to create personal relationships, and are loyal to their manager
Existing clients and client events are the most successful methods of attracting new clients
Competitor developments in the UK wealth management market
The UK market hosts some of the most prestigious names in the industry
Since 2008 mergers and acquisitions activity has had a significant impact on the UK wealth management market
Wealth managers are making tentative forays into social media
Key competitors in UK wealth management
OVERVIEW
Catalyst
Summary
Methodology
SIZING AND FORECASTING THE AFFLUENT MARKET IN THE UK
Macroeconomic overview
Recent trends and performance
GDP
Inflation
Long-term and short-term interest rates
Stock market capitalization
Income distribution
Regulation of wealth management in the UK
Key institutions and players
Recent legislation and regulatory developments
Sizing the onshore affluent population in the UK
The number of affluent individuals in the UK is yet to recover to the high of 2007
The value of mass affluent and HNW assets decreased during the recession, and is yet to fully recover
Forecasting the onshore affluent market in the UK
The number of affluent individuals will increase through to 2014
The value of assets will rise steadily on the back of the improving economic situation
The offshore market is associated with island financial centers in the Channel Islands and the Isle of Man
The islands are part of the European Savings Tax Directive
The UK is by far the largest source of wealth in all three of the island financial centers
HNW CUSTOMERS IN THE UK
The typical UK HNW investor is over 65 years old and amassed their wealth through earned income
The most significant proportion of HNW individuals in the UK are over 65 years old
Men account for a significant proportion of UK HNW individuals
The majority of UK HNW investors amassed their wealth through earned income
UK HNW individuals typically invest in equities
In broad asset class terms, UK HNW investors allocate more into equities than the regional average
Detailed asset class analysis shows UK HNW individuals have invested the majority of their funds in equities
Within two years asset allocation will see little change from current trends
There is high demand for discretionary asset management among UK HNW investors
UK HNW investors currently have a strong appetite for discretionary asset management
Looking forward two years, demand for discretionary asset management will remain relatively static
UK HNW investors currently show below average demand for financial planning services
The low levels of demand for financial planning services will not change over the next two years
UK HNW individuals are open to offshore investment, and tend to be loyal to their wealth manager
UK HNW investors display a greater understanding of risk and return than the regional average
UK HNW investors value personal relationships when doing business
Wealth managers have face-to-face contact with their clients once per quarter
UK HNW individuals are loyal to their wealth manager
Over 60% of UK HNW investors will keep between 71-90% of their portfolio with a single wealth manager
UK HNW investors are loyal to their wealth manager, bank, or company brand
Existing client and intermediary referrals are the most successful methods of acquiring new clients
Client events are the most successful way of acquiring HNW clients aside from referrals
COMPETITOR DEVELOPMENTS IN UK WEALTH MANAGEMENT
Business models of UK wealth managers
There are several major domestic and foreign banks operating in the market, with Barclays Wealth the market leader
However, the UK wealth management market is dominated by asset managers
Competitor trends
There has been significant M&A activity in the UK market for both domestic and foreign-owned wealth managers
Wealth managers continue to expand their UK operations to focus on regional wealth centers
New entrants are focusing on specific investment areas and client support services in order to differentiate themselves
Wealth managers are making tentative forays into social media
Key competitors in UK wealth management
Market shares
Competitor profile: Brewin Dolphin
Competitor profile: Coutts & Co
Competitor profile: Kleinwort Benson
Competitor profile: RBC Wealth Management
Competitor profile: Vestra Wealth
Appendix
Supplementary data
Definitions
High net worth (HNW)
Liquid assets
Mass affluent
Measures of growth
Onshore
Methodology
Overall methodology
Market shares of UK wealth managers
Global Wealth Managers Survey 2011
Global Wealth Model methodology
Selected bibliography
Further reading
Ask the analyst
Datamonitor consulting
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