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July 5, 2021updated 09 Jul 2021 2:45pm

Wealth management set for banner year in 2021

By GlobalData Financial

Wealth managers see brighter times ahead despite lingering COVID-19 impacts. Wealth managers in GlobalData’s latest industry poll from H1 2021 are cautiously optimistic regarding industry conditions for the rest of 2021.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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Wealth management as an industry was spared the brunt of COVID-19 impact in 2020, although the negative economic conditions were not ideal for minting new affluent investors. Inflows remained positive for the vast majority of the industry and profitability was up at the world’s leading wealth managers. For example, UBS reported a pre-tax profit of $4.1bn in 2020 – up 20.4% on an already strong 2019.

Yet the pandemic did dent wealth managers’ confidence, with GlobalData’s 2020 Global Wealth Managers Survey (conducted in Q3 2020) finding 60% anticipating a hit to profits and 69% expecting an increase in customer churn. These were strong majorities for pessimism even after the lifting of the strictest lockdowns.

As such, it is striking that 54% of wealth managers in GlobalData’s Industry Poll H1 2021 see brighter conditions ahead – almost double those expressing pessimistic views, as detailed in the chart below. This might not be an industry consensus, but the findings do suggest the wealth space has turned the corner on COVID-19. If profits grew by a fifth in 2020 despite the gloom, just imagine what is in store for 2021.

Wealth managers forward business expectations as of H1 2021

wealth 2021

Source: GlobalData

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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