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
|
Related Report
|
View Cart
