Market Research Report
Wealth in Germany: Sizing the Market Opportunity 2018
|Published by||GlobalData||Product code||357425|
|Published||Content info||40 Pages
|Wealth in Germany: Sizing the Market Opportunity 2018|
|Published: April 23, 2018||Content info: 40 Pages||
Germany has an established and mature wealth market. The upswing in the German economy and strong stock market performance in 2017, has fueled further growth in this sector, increasing the proportion of the population that can be classed as affluent. This provides significant opportunities for German wealth managers, not only to grow assets under management but also to gain new clients. However, with changes to capital gains tax on the horizon and falling real returns in the traditionally preferred safe havens of deposits and bonds, the role of wealth managers in a traditionally risk-averse market will become more challenging.
Favorable economic conditions mean that growth in the affluent population and their assets is forecast to pick up further to 2021. HNW individuals holding more than $10m in assets are expected to see the fastest increases. Wealth managers should note that almost a fifth of HNW assets are held in illiquid classes, with residential and commercial property investments proving popular as a result of booming markets. Providing access to expertise in property investments, whether through partnerships or directly, is a good option for wealth managers to explore and develop.
While a relatively low proportion of German HNW wealth is held offshore, the country's new coalition government has promised a major crackdown on tax evasion. Wealth managers should not ignore the important benefits of portfolio diversification that offshore investments can bring. Yet for wealth managers and HNW investors, the risks of getting it wrong in terms of structuring investments in a non-compliant manner have increased substantially in recent years, meaning having access to tax expertise is critical.
"Wealth in Germany: Sizing the Market Opportunity 2018", analyzes Germany's wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.
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