The outlook is highly positive for the Danish wealth market, with performance over the coming five years set to improve on the previous five. Denmark's economic position is strong, with impressive private consumption driving economic growth and economic growth in turn driving household saving. The country also has a high current account surplus, which saw it introduce negative interest rates in 2012. While household savings were protected, returns on deposits are minimal. Even so, both deposits and mutual funds continue to attract steady inflows. On the other hand, bond investments are diminishing, and it is a shrinking market for retail investors. The retail non-resident market is small, but does attract participation in Denmark's equity and bond markets.
This report analyzes Denmark's 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 assets) using GlobalData's proprietary datasets.
- Examines HNW clients' attitudes towards non-liquid asset classes such as property, commodities, and offshore investments.
- Analyzes which asset classes are favored by Danish investors and how their preferences impact the growth of the total savings and investments market.
- Evaluates the size of the retail non-resident (offshore) market in Denmark and foreign investors' preferences.
- The affluent population is rebounding. A compound annual growth rate of 4.5% is forecast between 2018 and 2022, bringing the number of affluent individuals to 1.2 million.
- The retail savings and investments market is well developed, with mutual funds and equities accounting for 46.6% of the market in 2017. Notably, historic growth in mutual funds has been driven by inflows, while for equity growth has been performance-driven.
- Denmark has the largest covered bond market in the world, which is a particular draw to foreign investors. Non-resident investors accounted for 50.8% of retail bond balances at the end of 2017.
Reasons to buy
- Benchmark your share of the Danish wealth market against the current market size.
- Forecast your future growth prospects using our projections for the market to 2022.
- Identify your most promising client segment by analyzing penetration of affluent individuals in Denmark.
- Evaluate your HNW proposition by understanding how the ever-changing tax system affects your HNW clients.
- Review your offshore strategy and offering for non-resident investors by learning the dynamics in these markets.