Wealth in Belgium: Sizing the Market Opportunity 2016

  • ID: 3959724
  • Report
  • Region: Belgium
  • 41 pages
  • GlobalData
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Summary

Wealth market growth in Belgium has experienced a slowdown in 2016 following the terrorist attacks and Brexit. Combined with the volatility of the stock market, Belgian individuals have been driven to adopt cautious investment strategies. Nevertheless, future growth will be driven by mutual funds. The increase in their popularity in a sector where asset allocation is dominated by deposits can be attributed to their balanced and fixed income strategies.

Key Findings

- Deposits account for over 50% of the Belgian savings and investments market, but mutual funds will register the highest growth during 2016-20.

- HNW individuals allocate over 10% of their investible assets outside traditional investments. Hedge funds, real estate investment trusts (REITs), and private equity funds constitute the bulk of investments outside traditional asset classes.

- Belgian HNW investors offshore almost a fifth of their total investments, preferring to stay close to home, with Luxembourg alone absorbing 40% of total HNW offshore bookings.

- Access to a better range of investments is the major driver for offshore investments in Belgium, as tax efficiency has lost its importance due to international regulations on automatic exchange of information.

Synopsis

“Wealth in Belgium: Sizing the Market Opportunity 2016” analyzes the Belgian wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

Specifically the report:

- Sizes the affluent market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.

- Analyzes which asset classes are favored by Belgian investors and how their preferences impact the growth of the total savings and investments market.

- Examines HNW clients' attitudes towards non-liquid investments such as property and commodities.

- Identifies key drivers and booking centers for offshore investments.

Reasons to Buy

- Benchmark your share of the Belgian wealth market against the current market size.

- Forecast your future growth prospects using our projections for the market to 2020.

- Identify your most promising client segment by analyzing penetration of affluent individuals in Belgium.

- Evaluate your HNW proposition by understanding how the Belgian tax system will impact HNW clients.

- Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.
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1. Executive Summary
- Balanced investment strategies are driving wealth growth in Belgium
- Key findings
- Critical success factors

2. Sizing and Forecasting the Belgian Wealth Market
- Affluent individuals accounted for almost 40% of the total adult Belgian population in 2015
- Belgium's HNW individuals account for less than 1% of the total population
- Affluent individuals hold over 90% of total Belgian liquid assets
- Belgium's millionaires account for less than 1% of individuals but hold almost a third of liquid assets

3. Drivers for Growth in the Belgian Wealth Market
- The total retail savings and investments market is set to recover after a challenging 2016
- Mutual funds register the highest growth but deposits still hold the largest share of the market
- Future growth will be driven by mutual funds
- Deposits follow average nominal wages and outperform GDP
- Deposits will see a strong increase up to 2018
- Despite relatively high inflation, interest rates in Belgium remain low
- Bonds are experiencing a negative trend
- Strong fluctuations are forecast for Belgium's bonds
- The performance of the stock market goes hand in hand with equities and mutual funds
- Stock market performance is on the rise
- The performance of the stock market has had a direct impact on equities and mutual funds

4. HNW Investment Preferences
- Belgian HNW individuals allocate over 12% of their investible assets outside traditional investments
- Hedge funds are the most popular non-traditional investment
- Belgian HNW individuals offshore almost a fifth of their total investments
- Access to a better range of investments is the major driver of off shoring wealth
- Belgian HNW individuals tend to book their assets in European centers

5. Appendix
- Abbreviations and acronyms
- Supplementary data
- Definitions
- Affluent
- DTC
- HNW
- Liquid assets
- Mass affluent
- Onshore
- Residency
- Exchange of information
- TIEAs
- Methodology
- 2016 Global Wealth Managers Survey
- Global Wealth Model methodology
- Global Retail Investments Analytics methodology
- Exchange rates

List of Tables

Table 1: Belgian income tax rates, 2016
Table 2: Belgium: adult population segmented by affluent category and asset band (000s), 2011?15
Table 3: Belgium: adult population segmented by affluent category and asset band (000s), 2016f?20f
Table 4: Belgium: total liquid wealth segmented by affluent category and asset band ($bn), 2011?15
Table 5: Belgium: total liquid wealth segmented by affluent category and asset band ($bn), 2016f?20f
Table 6: Euro to US dollar exchange rate, December 31, 2014 and December 31, 2015

List of Figures

Figure 1: Affluent individuals account for almost 40% of the Belgian population
Figure 2: Belgium's HNW individuals account for almost 30% of liquid assets
Figure 3: The total retail savings and investments market is set to recover after a challenging 2016
Figure 4: Belgian HNW individuals will increase mutual fund investment and decrease bond allocation
Figure 5: Future growth will be driven by mutual funds and equities
Figure 6: Deposits will see a strong increase up to 2018
Figure 7: Strong fluctuations are forecast for Belgium's bonds
Figure 8: The stock market sets the trend for equities and mutual funds
Figure 9: Stock market performance highly impacts equity and mutual fund growth
Figure 10: Balanced funds were the preferred asset class allocation in 2015
Figure 11: Hedge funds and REITs account for more than half of non-traditional investments
Figure 12: Belgian HNW individuals offshore almost a fifth of their total investments
Figure 13: Access to a better range of investments is the major driver of offshore investment in Belgium
Figure 14: Luxembourg alone absorbs 40% of total HNW offshore bookings from Belgium
Figure 15: The Belgian government has signed TIEAs with many offshore centers
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