英国における富裕層市場：2006年版

Abstract

Overview

Introduction

2005 has seen the UK private banking industry enjoying a turnaround in its fortunes after a prolonged period of flat performance. The painful cost-cutting measures of recent years have meant that the sector has been able to fully reap the benefits of rising equity markets. UK HNW Customers 2006 analyzes the developments in the market to provide an in-depth guide to this industry.

Scope

• Comprehensive data from Datamonitor' s proprietary Global Wealth Model sizing the HNW market by number of individuals and liquid assets
• Market sizing data for the period 2000-2005 with detailed splits by age and gender
• Detailed analysis of competitor trends based on a series of in-depth interviews with top executives in the UK private banking market
• Forecasts up to 2010 sizing the market for HNWs by number of individuals and liquid assets

Report Highlights

American wealth managers lead the upper high net worth market in 2005, as Morgan Stanley Private Wealth Management, Merrill Lynch and Goldman Sachs lead in terms of AuM, while Barclays Private Bank and UBS, major players in the upper high net worth field in previous years, have both become lower high net worth competitors.

Identifying and acquiring the right staff is a major concern for many UK wealth managers, partly as a result of business expansion in emerging markets, threatening the cost base and leading managers to initiate staff training programs to create qualified staff from scratch, while non-traditional avenues are also being explored.

Between 2005 and 2010, the total value of liquid assets held by high net worth individuals in the UK will have reached GBP846.7bn, having grown at a compound annual rate of 9.3% over this time. The greatest share of wealth will be held by those with between GBP2m and GBP5m, who collectively will hold GBP133.6bn by 2010.

Reasons to Purchase

• Plan your strategies on the basis of detailed market information, with the UK HNW market sized with forecasts to 2010
• Gain valuable insight into the market trends and discover views and opinions of some of the UK' s major wealth managers
• Benchmark yourself against your competitors and identify niches/opportunities available for future success using the detailed competitive analysis

Table of Contents

• EXECUTIVE SUMMARY
  • Introduction
    • What is this report about?
  • Market context
  • Competitive dynamics
  • Trends in UK HNW wealth management
  • The future decoded
• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
• CHAPTER 2 MARKET CONTEXT
  • Introduction
  • Key findings
  • The UK wealth market continued to grow in 2005
    • The UK HNW population has fallen slightly since 2004 relative to the total population
    • There were 877,300 high net worth individuals in the UK in 2005
    • High net worths in the UK were worth a total of GBP541.5bn in 2005
    • Following a dip in 2003 the number of wealthy individuals in the UK has grown relatively rapidly
    • The amount of wealth held by high net worth individuals has risen 4.6% since 2000
  • Wealthy women hold fewer assets than men despite being in the majority
    • Almost three quarters of high net worth women hold assets worth less than GBP500k
    • Males holding over GBP1m in assets accounted for 30.3% of all assets held by high net worth individuals
    • Since 2000 the assets held by male high net worths have grown faster than those held by high net worth women
  • Older age groups continue to dominate the UK wealth market
    • Those between 66 and 75 with between GBP200k and GBP250k are the largest client segment in terms of number of individuals
    • Those with GBP1m+ between the ages of 56 and 65 hold more wealth than any other high net worth segment
    • The 18-45 age group has been growing the fastest between 2000 and 2005
    • Assets held by the 18-45 age group have seen the greatest growth over the past five years
  • Data tables
    • Gender breakdowns
    • Age breakdowns
• CHAPTER 3 COMPETITIVE DYNAMICS
  • Introduction
  • Key findings
  • The upper HNW competitive landscape in the UK has changed significantly in the past year
    • American wealth managers lead the market in terms of assets under management in 2005
    • Merrill Lynch also has the greatest number of private client accounts among the upper HNW competitors
    • Dalton Strategic Partnership has the largest average AuM per client account
    • Baring Asset Management has the highest average number of client accounts per client relationship staff member
      • While Morgan Stanley Private Wealth Management' s relationship staff manage the largest average sum each
  • The lower HNW competitive landscape is dominated in most aspects by the largest wealth managers in the UK
    • Barclays Wealth Management leads the market in terms of private client assets under management
    • Barclays has far more private client accounts than its lower HNW competitors
    • Clients of Jupiter Asset Management have the largest average portfolio
    • Raymond James Investment Services has the lowest average number of client accounts per client relationship staff member
      • While UBS Wealth Management relationship staff manage the largest average sum each
  • The market penetration of the major competitors has risen since 2004 to represent almost half the total market
  • Data tables
    • Upper HNW competitors
    • Lower HNW competitors
• CHAPTER 4 TRENDS IN UK HNW WEALTH MANAGEMENT
  • Introduction
  • Key findings
  • M&A activity has slowed in the UK while growing across Europe
    • Consolidation has been widely discussed but rarely effectively actioned in the UK market over the past year
    • Although consolidation has been slower over the past year, there is less distinction between wealth related financial services
    • Entry into the UK market without an existing base is now extremely challenging
      • Branding and capital are vital for new entrants to the UK high net worth market
  • Identifying and acquiring the right staff is a major concern for many UK wealth managers
    • Staff training programs are being put in place to create qualified staff from scratch
    • Non-traditional avenues are also being explored to find potential staff
    • The search for qualified staff is a potential threat to the cost base
    • Business expansion into emerging markets has affected senior staffing levels within UK firms
  • Regional expansion in the UK market is likely to evolve as the challenge is now to provide integrated and comprehensive regional offerings
    • Targeting clients outside of London is a strategy that is bearing fruit for many wealth managers
    • Regional targeting has often concentrated on trying to attract a particular group in the area
    • Wealth managers are seeking to develop sophisticated targeting strategies to attract regional clients
  • Compliance with new regulation has raised several issues for wealth managers
    • There are significant levels of dissatisfaction with the changes that have occurred and their impact on businesses
      • Despite dissatisfaction, principles-based approaches are appreciated by wealth managers
    • Regulatory changes have had an effect on the way businesses are structured and run
    • MiFID will open up new opportunities across Europe, but it is already placing extra demands in terms of compliance
  • Changing IT needs have increased the level of outsourcing within the industry
    • Outsourcing is partly driven by increasing cost levels
    • While some firms seek to improve efficiency and client service in their use of technology
  • Offshore wealth management faces a number of barriers to growth
    • Repatriation of wealth from offshore centers is a growing international trend that impacts strongly on UK based players
    • Some wealth managers have bucked the trend and developed their offshore business
  • Changes in the profile of wealthy individuals in the UK are shifting strategies for targeting and acquiring clients
    • Segmentation strategies are not universally popular as a form of client targeting
      • Lateral segmentation of clients is a key way of developing targeting strategies
    • Business owners, entrepreneurs, women and ethnic groups are all viewed as lucrative segments that are currently underserved
    • Increasingly bespoke solutions for clients are becoming standard
    • UK clients expect more from their wealth manager
      • Raised client expectations are also part of the increasing sophistication of the average wealth management offering
  • Product development has been steered by changing regulations
    • Wealth managers have been developing SRI or ethical products and services.
    • Several products tackling the problem of inheritance tax have been launched over the past year
    • Property has been a focus both as an asset class and as an area of interest for wealthy individuals
    • UCITS III products continue to be launched in the UK
    • The trend towards the development of increasingly complex products continues
      • In uncertain times clients are looking for guarantees and limited risk from their investment products although some are venturing back to equities
      • Although some feel that equities are making a comeback others see a shift towards continental attitudes among clients
      • Alternative investments continue to develop and increase in popularity
      • Various forms of investment in real estate and property have been the subject of keen interest among clients
  • Service trends have developed to meet client demands
    • A holistic approach to service is becoming more prevalent among UK wealth management
    • A multi management approach in investment management is becoming more common
• THE FUTURE DECODED
  • Introduction
  • Key findings
  • There will be 1.34 million high net worth individuals in the UK by 2010
  • Onshore liquid assets held by UK HNWs will be worth GBP846.7bn by 2010
  • The industry is expected to become polarized while client profiles and services will change in the near future
    • A combination of factors will cause the UK wealth management industry to continue to polarize
    • An aging client base will lead to the introduction of a new generation of clients
    • Increased volatility in markets will generate demand for multi management and even greater diversification
  • Data tables
  • Data tables
• APPENDIX
  • Definitions
    • AuM
    • Assets under management.
    • Advisory portfolio management
    • Aggregate
    • CAGR
    • Discretionary portfolio management
    • The family office
    • Hedge fund
    • HNW
    • IFA
    • Liquid assets
    • Lower HNW competitor
    • Mass affluent
    • SIPP
    • Upper HNW competitor
  • Research methodology
    • Global Wealth Model Methodology
      • The UK sub model
      • Forecasting methodology
      • Continuous refinement to the understanding of liquid wealth distribution
      • Datamonitor' s wealth numbers compared with other wealth numbers
    • Customer information
    • Competitor information
  • Further Reading
    • Global Wealth Management SPP
      • Interactive Databases
      • Market Reports
      • Strategic Insight Reports
      • Wealth Management Competitor Tracker
    • Datamonitor Asia Pacific Wealth Management SPP
    • Savings and Investments SPP
      • Interactive Databases
      • Reports
      • Briefs
  • SPP writing team
  • List of Tables
    • Table 1: HNWs as a proportion of the UK adult population, 2005
    • Table 2: Number of HNW individuals by liquid asset band, 2000-2005
    • Table 3: Value of HNW individuals by liquid asset band, 2000-2005
    • Table 4: Number of HNW individuals split by gender, 2000-2005
    • Table 5: Value of HNW liquid assets split by gender, 2000-2005
    • Table 6: Number of HNW individuals by gender and asset band, 2005
    • Table 7: Value of HNW liquid assets by gender and asset band, 2005
    • Table 8: Indexed historic growth by gender, 2000-2005
    • Table 9: Number of HNW males by liquid asset band, 2000-2005
    • Table 10: Value of HNW liquid assets held by males, 2000-2005
    • Table 11: Number of HNW females by liquid asset band, 2000-2005
    • Table 12: Value of HNW liquid assets held by females, 2000-2005
    • Table 13: Number of HNW individuals by age band, 2000-2005
    • Table 14: Value of HNW liquid assets by age band, 2000-2005
    • Table 15: Number of HNW individuals by age and liquid asset band, 2005
    • Table 16: Value of HNW liquid assets by age and liquid asset band, 2005
    • Table 17: Number of HNW individuals aged 18-45 by liquid asset band, 2000-2005
    • Table 18: Value of HNW liquid assets held by 18-45 year olds, 2000-2005
    • Table 19: Number of HNW individuals aged 46-55 by liquid asset band, 2000-2005
    • Table 20: Value of HNW liquid assets held by 46-55 year olds, 2000-2005
    • Table 21: Number of HNW individuals aged 56-65 by liquid asset band, 2000-2005
    • Table 22: Value of HNW liquid assets held by 56-65 year olds, 2000-2005
    • Table 23: Number of HNW individuals aged 66-75 by liquid asset band, 2000-2005
    • Table 24: Value of HNW liquid assets held by 66-75 year olds, 2000-2005
    • Table 25: Number of HNW individuals aged 75+ by liquid asset band, 2000-2005
    • Table 26: Value of HNW liquid assets held by those over 75, 2000-2005
    • Table 27: Upper HNW competitors by private client assets under management, end of year 2005
    • Table 28: Upper HNW competitors by number of private client accounts, 2005
    • Table 29: Upper HNW competitors by average AuM per client account, 2005
    • Table 30: Upper HNW competitors: number of client accounts per client relationship staff member, 2005
    • Table 31: Upper HNW competitors: AuM per client relationship staff member, 2005
    • Table 32: Lower HNW competitors by private client assets under management, 2005
    • Table 33: Lower HNW competitors by number of private client accounts, 2005
    • Table 34: Lower HNW competitors by average AuM per client account, 2005
    • Table 35: Lower HNW competitors: number of client accounts per client relationship staff member, 2005 (of top 25 competitors in terms of number of client accounts)
    • Table 36: Lower HNW competitors: AuM per client relationship staff member, 2005
    • Table 37: Forecast number of HNW individuals by liquid asset band, 2005-2010
    • Table 38: Forecast value of HNW liquid assets by liquid asset band, 2005-2010
  • List of Figures
    • Figure 1: Only 1.8% of the UK population was high net worth in 2005
    • Figure 2: 90% of HNW individuals hold liquid onshore assets worth less than GBP1m
    • Figure 3: Almost half of HNW onshore liquid assets are concentrated in the hands of those with assets of GBP1m+
    • Figure 4: Between 2000 and 2005 the total number of HNWs has grown by 2.8% compounded annually
    • Figure 5: In 2005 assets held by UK HNWs rose above GBP500bn for the first time
    • Figure 6: There are slightly more wealthy women than men but HNW men hold a greater proportion of HNW assets
    • Figure 7: Females with assets between GBP200k and GBP250k represent the largest HNW customer segment
    • Figure 8: More than half of the wealth held by male high net worth is held by those with over GBP1m in liquid assets
    • Figure 9: HNW males have seen their numbers and their assets grow faster than those of HNW women since 2000
    • Figure 10: The majority of UK HNWs are above the age of 65 while the majority of HNW assets are controlled by those older than 55
    • Figure 11: The largest single segment is made up of those with between GBP200k and GBP250k who are aged between 66 and 75
    • Figure 12: Over half of all wealth held by those below the age of 66 was held by those with GBP1m or more
    • Figure 13: There has been a compound annual increase of 5.8% in the number of high net worths aged between 18 and 45 since 2000
    • Figure 14: Assets held by high net worths aged 18-45 have grown at a compound annual rate of 12.5% between 2000 and 2005
    • Figure 15: In 2005, Merrill Lynch became the player with the greatest amount of UK-based assets under management among the upper HNW competitors
    • Figure 16: Merrill Lynch takes over as the competitor with the most UK private client accounts in 2005
    • Figure 17: Dalton Strategic Partnership had the highest average assets per client account among the upper HNW market competitors in 2005
    • Figure 18: Among upper HNW competitors the number of client accounts per relationship staff member varies widely
    • Figure 19: Morgan Stanley Private Wealth Management' s client relationship staff manage an average of GBP268.5m on behalf of its clients
    • Figure 20: Barclays Wealth Management led the lower HNW competitive field in terms of AuM in 2005
    • Figure 21: Barclays has by far the largest number of private client accounts among the lower HNW competitors
    • Figure 22: There was relatively little variation between average private client account values among lower HNW competitors in 2005
    • Figure 23: James Brearley & Sons had by far the highest client account loading ratio among lower HNW competitors in 2005
    • Figure 24: UBS Wealth Management' s client relationship staff manage more of their firm' s AuM each than any other lower HNW competitor
    • Figure 25: Just over half of all HNW liquid assets were not managed by the major wealth managers in 2005
    • Figure 26: The UK HNW population will grow to 1.34 million by 2010
    • Figure 27: HNW liquid assets in the UK will grow to be worth GBP846.7bn by 2010