HNWI Asset Allocation in the UK to 2015

WealthInsight Ltd, March 2012, Pages: 70

This report is the result of WealthInsight’s extensive research covering the HNWI population and wealth management industry in the United Kingdom. It provides detailed figures on the current and expected HNWI asset allocations of UK HNWIs to 2015.

This report provides the latest asset allocations of HNWIs in the UK. The report also includes projections of the volume, wealth and asset allocation of UK 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 UK 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:
- As of 2011, there are just over 675,000 HNWIs in the UK, with a combined wealth of US$2.6 trillion, accounting for roughly 24% of the UK’s total wealth (US$10.9 trillion).
- The total number of HNWIs in the UK declined by 12.0% over the review period (2007 to 2011), while HNWI wealth dropped by 17.1%.
- Equities are the largest asset class for HNWIs in the UK (27% of total HNWI assets), followed by business interests (25%), real estate (17.8%), fixed income (17.0%), cash (7.3%) and alternatives (6.4%).
- Fixed income and cash holdings were the best performing asset classes over the review period, driven by a flight to safety during and after the global financial crisis.
- Driven in particular by a strong commodities market, the alternative asset holdings of British HNWIs increased over the review period from 6.1% of total assets in 2007 to 6.4% in 2011. This was mainly due to a significant rise in commodity holdings.
- Over the forecast period, WealthInsight expects a further movement away from real estate and towards alternatives, equities and fixed income products.

1 Introduction
1.1 What is this Report About?
2 Executive Summary
3 Wealth Sector Fundamentals
3.1 Political Background to the Wealth Sector
3.2 Economic Background to the Wealth Sector
3.3 Benchmarking UK Wealth in Context
3.3.1 Distribution of Wealth
4 Analysis of UK HNWI Investments
4.1 Analysis by Asset Classes
4.1.1 Changing 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 Europe
4.2.2 Trend of Investments in Asia-Pacific
4.2.3 Trend of Investments in North America
4.2.4 Trend of Investments in Latin America, the Middle East and Africa
4.3 Analysis of UK Ultra HNWI Investments
4.4 Case Study: UK towns with highest average house prices
5 Appendix
5.1 Cities, Counties and Regions
5.2 Education
5.3 Philanthropy
5.4 Demand for Intergenerational Wealth Transfer and Younger Clientele
5.5 Regulatory Environment in the UK
5.5.1 Regulations on Non-domiciled Residents
5.5.2 Banking Regulations
5.5.3 Regulations on Taxes
5.5.4 Regulations on Fund Management
5.5.5 Regulations on Foreign Investment
5.5.6 Regulations on Real Estate
5.5.7 Regulations on Foreign Investment in Real Estate
5.5.8 Regulations on Wealth Management and Private Banking
5.5.9 Regulations Related to Investment and Employment
5.6 Key Economic Trends and Drivers
5.6.1 GBP to USD Moving Annual Average Exchange Rate
5.6.2 Real GDP Growth
5.6.3 Per Capita GDP
5.6.4 Gross Savings Rate as a Percent of GDP
5.6.5 Domestic Market Capitalization
5.6.6 Housing Price Index
5.6.7 Commodity Index
5.6.8 Foreign Direct Investment
5.6.9 Investments of FII’s in Equity Products
5.6.10 Inflation Rate
5.6.11 Repo Rate
5.6.12 Balance of Payments
5.6.13 Government Debt
5.6.14 Stock Market Performance
5.6.15 HNWI Wealth vs. GDP Ratio
5.6.16 Capital Formation as Percent of GDP
5.6.17 Disposable Income as Percent of GDP
5.7 Background of the UK
5.7.1 Political and Economic Background
5.7.2 Social Background
5.7.3 Technological Background
6 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions
Table 2: HNWIs – HNWI Holdings Growth (%), 2007-15
Table 3: HNWIs – Liquid Asset Composition (%), 2007-15
Table 4: HNWIs – Trends of Investments in Alternative Assets (%), 2007-15
Table 5: HNWIs – Alternative Asset Composition (%), 2007-15
Table 6: HNWIs – Trends in “Art, Wine and Wheels”, 2006-10
Table 7: HNWIs – Real estate performance per region, 2007-2015
Table 8: HNWIs – Trends in UK HNWI foreign real estate investment per country, 2007-2015
Table 9: HNWIs – Composition (%) of Foreign Assets, 2007-15
Table 10: HNWIs – % Growth, 2007-15 – Y Axis
Table 11: HNWIs – % Foreign Allocation, 2007-15 – X Axis
Table 12: UHNWIs – Allocations and Share of HNWI Assets, 2011
Table 13: UHNWIs – UK towns with highest average house prices
Table 14: Largest 10 UK cities by population and number of UHNWIs
Table 15: GBP to USD Moving Annual Average Exchange Rate, 2006–15
Table 16: Real GDP Growth Rate, 2006–15
Table 17: GDP Per Capita, 2006–15
Table 18: Gross Savings as a % of Real GDP, 2006–2015
Table 19: Domestic Market Capitalization, 2006–10
Table 20: Housing Price Index, 2006–10
Table 21: Commodity Indices, 2006–15
Table 22: Foreign Direct Investments, 2006–2015
Table 23: Investments of FIIs in Equity Products, 2006–10
Table 24: Inflation Rate, 2006–15
Table 25: Repo Rate, 2006–15
Table 26: Balance of Payments, 2006-10
Table 27: Government Debt to GDP, 2006–10
Table 28: Stock Market Performance, 2006–10
Table 29: HNWI Wealth vs. GDP Ratio, 2006–15
Table 30: Capital Formation as % of GDP, 2006-15
Table 31: Disposable Income as % of GDP, 2006-15

List of Figures

Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of the United Kingdom
Figure 3: HNWIs in the UK, 2007-15
Figure 4: HNWIs – UK vs. RoW
Figure 5: Asset Price Performance, 2007-11
Figure 6: HNWIs – Asset Class Composition, 2007-15
Figure 7: HNWIs – Changing Trends in Total Liquid Assets (as % of Total Assets), 2007-15
Figure 8: HNWIs – Liquid Assets Composition (US$ Billions), 2007-15
Figure 9: HNWIs – Trends of Investments in Alternative Assets (in US$ Billion), 2007-15
Figure 10: HNWIs – Trends in “Art, Wine and Wheels”, 2006-10
Figure 11: HNWIs –Foreign Asset Allocation vs. Growth, 2011-2015
Figure 12: HNWIs – Global Distribution of Foreign Investments, 2007-15
Figure 13: UHNWIs – Asset Class Composition, 2007-15
Figure 14: GBP to USD Moving Annual Average Exchange Rate, 2006–15
Figure 15: Real GDP Growth (%), 2006–15
Figure 16: GDP Per Capita, 2006–15
Figure 17: Gross Savings as a % of Real GDP, 2006–2015
Figure 18: Domestic Market Capitalization, 2006–10
Figure 19: Housing Price Index, 2006–10
Figure 20: Commodity Indices, 2006–15
Figure 21: Foreign Direct Investments, 2006–2015
Figure 22: Investments of FIIs in Equity Products, 2006–10
Figure 23: Inflation Rate, 2006–15
Figure 24: Repo Rate, 2006-15
Figure 25: Balance of Payments, 2006-10
Figure 26: Government Debt to GDP, 2006–10
Figure 27: Stock Market Performance, 2006–10
Figure 28: HNWI Wealth vs. GDP Ratio, 2006–15
Figure 29: Capital Formation as % of GDP, 2006-15
Figure 30: Disposable Income as % of GDP, 2006-15

- Barclays Wealth
- Coutts
- St James's Place
- Brewin Dolphin
- Hargreaves Lansdown
- Rathbones
- GLG Partners
- Investec
- Smith & Williamson
- Lloyds TSB
- UBS
- HSBC
- Goldman Sachs
- Merrill Lynch
- Societé General PB Hambros
- Credit Suisse
- JPMorgan Private Bank
- Deutsche Bank
- EFG Private Bank
- BNP Paribas
- Stonehage
- Smith and Williamson
- Fleming Family & Partners
- Bedi Capital LLP
- Dewhurst Torevell and Co Ltd
- Turcan Connell Family Office
- Iveagh
- Kedge Capital
- Grosvenor Limited
- Capsicum Private Office
- Acropolis Capital Partners Limited
- Höegh Capital Partners
- Alta Advisers

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