Despite tax evasion scandals Switzerland remains the world’s largest wealth management centre with $2 trillion assets under management at the end of 2014, this is an increase of 14% compared to 2008, according to financial consulting firm Deloitte.
The UK with AuM of $1.7 trillion was placed second followed by the United States ($1.4 trillion) and Panama & Caribbean ($0.9 trillion).
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However, smaller Asian centres, such as Hong Kong and Singapore, continue to grow at a faster rate than Switzerland despite remaining some distance away in terms of absolute size of assets under management (AUM), the report said.
Daniel Kobler, head of banking strategy consulting at Deloitte in Switzerland, said: "As the Deloitte analysis shows, Switzerland remains the world’s largest centre, but other locations are catching up rapidly – especially Hong Kong, the US and Singapore.
"The split between European and non-European clients remains stable in Switzerland, while outside Europe, the most important market regions remain the United States, Canada, Australia, New Zealand and Japan."
Overall, international wealth management centres experienced an outflow of 23% client assets, while Switzerland lost 7% of assets. The market volume growth is driven mainly by capital market performance, not net new client assets, the report says.
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By GlobalDataThe study also found that the overall profit margin for Switzerland has decreased to an estimated level of 24 bps in 2014 (against 40 bps in 2008).
"Swiss providers face some challenges on both revenue realisation and sustainable cost management," Kobler added.
