Switzerland Wealth Management - Market Sizing and Opportunities to 2027

Abstract

Based on our proprietary datasets, this report analyzes Switzerland's wealth and retail savings and investments markets, including overall affluent market size (both by number of individuals and the value of their liquid assets). The report also provides analysis of the factors driving liquid asset growth, including a breakdown and forecast of total retail savings and investments split by equities, mutual funds, deposits, and bonds.

The upcoming year may prove to be difficult for affluent Swiss individuals. The collapse of Credit Suisse, uncertainty due to the Russia/Ukraine conflict, and the tightening of monetary policy may blur the growth prospects of affluent individuals. However, due to Switzerland's safe and resilient reputation, the liquid wealth of affluent individuals is forecast to grow.

Scope

• Swiss affluent individuals held 98.9% of the country's total onshore liquid assets in 2022, with the mass affluent segment alone holding nearly 62.3%
• In 2022, Switzerland's base rate rose dramatically to counter inflation that had not been seen since the 2008 financial crisis. This, along with the threat of Credit Suisse's collapse, caused residents and non-residents to seek safety from bond portfolios. As a consequence, the bond market experienced one of its busiest years with five-year swap rates skyrocketing to 205 basis points (bps) in September 2022.
• Equities accounted for a notable share of the average Swiss HNW portfolio in 2022. Despite the Russia/Ukraine conflict-induced volatility, investors chased capital appreciation opportunities in the equity space which reflects the high-risk appetite of this investor class.
• Across all affluent groups, the humble savings account is the most-popular place for asset allocation. Within the mass affluent segment there is considerably more risk appetite, even though savings accounts are still the most-popular allocation.

Reasons to Buy

• Keep up to date with the Swiss wealth management industry, looking at investors' asset allocation by affluence bandings as well as a detailed picture of where HNWs distribute their investments.
• Understand offshore investment drivers for mass affluent, emerging affluent, mass market, and HNW individuals.
• Develop knowledge of resident savings and investments by looking at the performance and net inflows of bonds, mutual funds, equities, and deposits in Switzerland.