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Wealth Management in the UK 2011

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Country specific reports on the topic are available for purchase. Please contact us.

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
   Disclaimer
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