(Entertainment-NewsWire.com, March 16, 2018 ) 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.
Report Summary: - 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.
Report Scope: Publisher'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.
Companies Mentioned: China Construction Bank ICBC Credit Suisse
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.
