HNWI Asset Allocation in Australia to 2015

Synopsis:

This report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in Australia. It provides detailed figures on the current and expected HNWI asset allocations of Australian HNWIs to 2015.

Summary:

This report provides the latest asset allocations of Australian HNWIs. The report also includes projections of the volume, wealth and asset allocation of Australian HNWIs to 2015 and a comprehensive and robust background of the local economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation.

The report features:

- Independent market sizing of Australia’s HNWIs
- Volume, wealth and allocation trends from 2007 to 2011
- Volume, wealth and allocation forecasts to 2015
- Insights into the drivers of HNWI wealth

Reasons To Buy:

- The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises up to one hundred data-points on over 100,000 HNWIs from around the world. It also includes profiles on major private banks, wealth managers and family offices in each country. With the database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover
- Comprehensive forecasts to 2015

Key Highlights:

- There are just over 274,000 HNWIs in Australia, with an average wealth of US$3.1 million per person and a combined wealth of US$845 billion.
- HNWI wealth accounts for roughly 17% of Australia’s total wealth. This percentage is low compared to the worldwide norm of over 30% which is indicative of the relatively even wealth distribution within Australia.
- The number of Australia’s HNWIs increased by 8.9% (2.2% pa) over the review period (2007-2011), while total wealth grew by 0.9% (0.2% pa).
- Real estate is the largest asset class for HNWIs in Australia (29% of total HNWI assets), followed by business interests (23%), equities (17%), cash (12%), fixed income (11%) and alternatives (7.7%). Allocations to real estate and alternative assets are significantly higher in Australia than global and regional norms.
- Real estate, fixed income and cash holdings were the best performing segments over the review period (2007-2011), driven by the rise in the local property market and high local interest rates during the second half of the review period. SHOW LESS READ MORE >

1 Introduction
1.1 What is this Report About?

2 Executive Summary

3 Wealth Sector Fundamentals
3.1 Political Background of the Wealth Sector
3.2 Economic Background to the Wealth Sector
3.3 Benchmarking Australian Wealth in Context
3.3.1 Distribution of Wealth

4 Analysis of Australian HNWI Investment
4.1 Analysis by Asset Classes
4.1.1 Trends in Liquid Assets – Equity, Fixed Income and Cash and Deposits
4.1.2 Trends in Alternative Assets
4.1.3 Trends in “Art, Wine and Wheels”
4.1.4 Trends of Investments in Real Estate
4.1.5 Trends of Investments in Cash and Deposits
4.1.6 Trends of Investments in Fixed Income
4.1.7 Trends of Investments in Equity
4.1.8 Trends of Investments in Business Interest
4.2 Analysis of Foreign Investments
4.2.1 Trend of Investments in Rest of Asia
4.2.2 Trend of Investments in North America and Europe
4.2.3 Trend of Investments in the Middle East and Latin America

5 Appendix
5.1 Pertinent Regulations
5.1.1 Regulations on Banks
5.1.2 Regulations on Taxes
5.1.3 Regulations on Fund Management
5.1.4 Regulations on Foreign Investment
5.1.5 Regulations on Real Estate
5.1.6 Regulations on Foreign Investment in Real Estate
5.1.7 Regulations on Hedge Funds
5.1.8 Regulations on Wealth Management and Private Banking
5.1.9 Regulations Related to Investment and Employment
5.1.10 Regulations Related to Immigration
5.2 Additional case study
5.2.1 Superannuation fund and insurance companies: An edge over others
5.3 Key Economic Trends and Drivers
5.3.1 AUD to USD Moving Annual Average Exchange Rate
5.3.2 Real GDP Growth
5.3.3 Per Capita GDP
5.3.4 Gross Savings Rate as a % of GDP
5.3.5 Domestic Market Capitalization
5.3.6 Housing Price Index
5.3.7 Commodity Index
5.3.8 Foreign Direct Investment
5.3.9 Investments of FII’s in Equity Products
5.3.10 Inflation Rate
5.3.11 Repo Rate
5.3.12 Balance of Payments
5.3.13 Stock Market Performance
5.3.14 HNWI Wealth vs. GDP Ratio
5.3.15 Capital Formation as % of GDP
5.3.16 Disposable Income as % of GDP

6 About WealthInsight

List of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: Australian State Statistics
Table 3: HNWIs – Share (%) of Liquid Assets, 2007-15
Table 4: HNWIs – Change (%) in Liquid Asset Composition, 2007-15
Table 5: HNWIs – Share (%) of Alternative Asset, 2007-15
Table 6: HNWIs – Change (%) in Alternative Asset Composition, 2007-15
Table 7: HNWIs – HNWI – Trends in “Art, Wine and Wheels”, 2006-10
Table 8: HNWIs – Composition (%) of Foreign Assets, 2007-15
Table 9: HNWIs – % Growth, 2007-15
Table 10: HNWI – % Foreign Allocation, 2007-15
Table 11: SGD to USD Moving Annual Average Exchange Rate, 2006–15
Table 12: Real GDP Growth Rate, 2006–15
Table 13: GDP Per Capita, 2006–15
Table 14: Gross Savings as a % of Real GDP, 2006–2015
Table 15: Domestic Market Capitalization, 2006–10
Table 16: Housing Price Index, 2006–10
Table 17: Commodity Indices, 2006–15
Table 18: Foreign Direct Investments, 2006–2015
Table 19: Investments of FIIs in Equity Products, 2006–10
Table 20: Inflation Rate, 2006–15
Table 21: Repo Rate, 2006–15
Table 22: Balance of Payments, 2006-10
Table 23: Stock Market Performance, 2006–10
Table 24: HNWI Wealth vs. GDP Ratio, 2006–10
Table 25: Capital Formation as % of GDP, 2006-15
Table 26: Disposable Income as % of GDP, 2006-15

List of Figures
Figure 1: HNWI Wealth Band Definitions
Figure 2: HNWI Wealth Sector Market Attractiveness, 2007-15
Figure 3: HNWIs – Australia vs. RoW and Asia-Pacific
Figure 4: HNWIs – Asset Class Composition, 2007-15
Figure 5: HNWIs – Changing Trends in Total Liquid Assets (as % of Total Assets), 2007-15
Figure 6: HNWIs – Liquid Assets Composition (US$ Billions), 2007-15
Figure 7: HNWIs – Trends of Investments in Alternative Assets (US$ Billion), 2007-15
Figure 8: HNWIs – Trends in “Art, Wine and Wheels”, 2006-10
Figure 9: HNWIs –Foreign Asset Allocation vs. 2011-2015 Growth
Figure 10: HNWI – Global Distribution of Foreign Investments, 2007-15
Figure 11: AUD to USD Moving Annual Average Exchange Rate, 2006–15
Figure 12: Real GDP Growth (%), 2006–15
Figure 13: GDP Per Capita, 2006–15
Figure 14: Gross Savings as a % of Real GDP, 2006–2015
Figure 15: Domestic Market Capitalization, 2006–10
Figure 16: Housing Price Index, 2006–10
Figure 17: Commodity Indices, 2006–15
Figure 18: Foreign Direct Investments, 2006–2015
Figure 19: Investments of FIIs in Equity Products, 2006–10
Figure 20: Inflation Rate, 2006–15
Figure 21: Repo Rate, 2006-15
Figure 22: Balance of Payments, 2006-10
Figure 23: Stock Market Performance, 2006–10
Figure 24: HNWI Wealth vs. GDP Ratio, 2006–10
Figure 25: Capital Formation as % of GDP, 2006-15
Figure 26: Disposable Income as % of GDP, 2006-15

Wealth Managers:

- Prime Value Asset Management Limited
- Tristone Financial Group
- AMP Private Wealth Mngmt
- JBWere
- Perpetual
- EWM Group
- Ord Minnet
- RBS Morgans
- Deloitte Private
- Investec Bank (Australia)
- Hillross Financial Services
- Bendigo Wealth
- Centric Wealth

Multi Family Office:

- BMF Asset Management
- The Family Office - Hayes Knight
- First Unity
- Fordam
- FORM - Family Office Research and Management
- GGBWealthcare (GGB)
- Goodman - Private Wealth Advisors
- LBW
- Levi Kim & Associates Pty Ltd
- Mancell
- MGI
- Morrows - Morrows Private Wealth
- Mutual Trust
- Myer Family Office Ltd.
- Nexia ASR Family Office
- Phillips Financial
- Pitcher Partners
- Vos Family Office
- Mutual Trust Pty Ltd
- Lowenhaupt Global Advisors
- ROI Group

International Private Banks:

- Morgan Stanley Smith Barney
- UBS
- Deutsche Bank Private Wealth
- Credit Suisse
- Citi Global Wealth
- HSBC Private Bank
- Bank of America/Merrill Lynch

Local Private Banks:

- Macquarie Private Bank
- ANZ Private Bank
- Commonwealth Private
- Westpac Private Bank
- NAB Private Wealth
- BT Financial Group