The “Wealth in Belgium: HNW Investors 2017” report analyzes the Belgian investments market, with a focus on the HNW segment. The report is based on our proprietary datasets.
The Belgian private banking space offers an interesting mix between the international and the traditional. Because of Belgium’s central location and its position as a hub for international organizations, there is a large expat segment comprised of professionals. At the same time, a vast number of HNW individuals have inherited their wealth and come from established backgrounds, creating a different set of client needs. Equities represent almost half of the typical HNW portfolio, and bonds rank second in HNW holdings. While demand is quite pronounced for all planning services, inheritance planning leads investor demand.
Specifically the report -
- Sizes the affluent market (both by number of individuals and their demographics) 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.
- Family business owners and inheritors account for the largest HNW client segments among Belgian HNW investors.
- The largest sources of HNW wealth are manufacturing, IT, and real estate.
- Equities and bonds dominate asset allocations. Belgian HNW individuals also prefer to own equities directly rather than through funds.
- All planning services are in high demand, and this is expected to increase even further. However, particular attention should be given to inheritance planning.
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 the 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 about HNW motivations for offshore investments and their preferred booking centers.
1.1. Belgian HNW investors predominantly inherited their wealth
1.2. Key findings
1.3. Critical success factors
2. PROFILING THE BELGIAN HNW INVESTOR
2.1. Family business ownership remains the largest source of HNW wealth
2.1.1. The bulk of Belgian HNW individuals are male and over 60 years of age
2.1.2. Inheritors are also a lucrative target market
2.1.3. Many HNW investors have built their fortunes through manufacturing
2.1.4. Almost half of HNW individuals in Belgium are directors
2.2. HNW expats in Belgium are an important target group
2.2.1. Expats constitute 6.3% of the local HNW population
2.2.2. HNW expats from France and the Netherlands represent an attractive target segment
3. HNW INVESTMENT STYLE PREFERENCES
3.1. Lack of time is driving uptake of professional advice among Belgian HNW investors
3.1.1. The largest proportion of Belgian HNW wealth is professionally managed, with discretionary mandates taking the lead
3.1.2. Lack of time is motivating HNW investors to seek professional advice
3.1.3. Belgian HNW investors place more than half of their managed wealth with their main wealth manager
3.2. The desire to retain control is driving uptake of advisory mandates
3.2.1. Wealth managers should cater for varied client needs
3.2.2. Demand for advisory services is on the rise
3.2.3. Reluctance to give up control is driving demand for advisory mandates
3.2.4. HNW investors feel confident enough to invest a small proportion of their wealth independently
4. UNDERSTANDING ASSET ALLOCATION TRENDS AMONG BELGIAN HNW INDIVIDUALS
4.1. Belgium’s love affair with equities is set to continue
4.1.1. Equities dominate the typical HNW portfolio, but commodities are forecast to experience the greatest increase in popularity
4.1.2. Equities constitute 42% of HNW investors’ managed wealth
4.1.3. Bonds are the second most popular asset class
4.1.4. Cash and near-cash investments constitute a very small part of the Belgian HNW portfolio
4.1.5. Property constitutes only 3% of the typical HNW portfolio
4.1.6. Alternatives constitute 7% of the typical HNW portfolio
4.1.7. Commodity investments are of little interest to Belgian HNW clients
5. HNW PRODUCT AND SERVICE DEMAND
5.1. Planning services are in high demand in Belgium
5.1.1. Belgian HNW individuals show strong demand for inheritance planning
5.1.2. Growth is to be expected over all planning services
5.2. Abbreviations and acronyms
5.3.3. Liquid assets
5.3.4. Mass affluent
5.4.1. GlobalData’s 2016 Global Wealth Managers Survey
5.4.2. Global Data’s WealthInsight
5.6. Further reading
List of Figures
Figure 1: The bulk of HNW investors in Belgium are male and over 60 years old
Figure 2: Family business and inheritance are the main sources of wealth for Belgian HNW investors
Figure 3: Manufacturing is the leading generator of Belgian wealth
Figure 4: 46% of HNW investors in Belgium hold director positions
Figure 5: 6.3% of Belgium’s HNW client base comprises expats
Figure 6: The majority of HNW expats are from France
Figure 7: ABN Amro Private Banking Belgium targets wealthy expats’ offshore wealth
Figure 8: Wealth managers should lead with discretionary mandates
Figure 9: Lack of time leads the demand for wealth management services
Figure 10: The largest part of HNW investors show loyalty to their main advisor
Figure 11: HNW demand is particularly high for discretionary services
Figure 12: Advisory asset management will experience the highest increase
Figure 13: HNW investors in Belgium are reluctant to relinquish control
Figure 14: Wealth managers should monitor self-directing trends
Figure 15: Belgian HNW investor portfolios are dominated by equities
Figure 16: Most investments are made directly
Figure 17: Growth will be driven by capital appreciation opportunities
Figure 18: Bonds constitute a sizable proportion of HNW portfolios
Figure 19: Bond investments are forecast to decrease
Figure 20: Cash and near-cash products are not very popular
Figure 21: Desire to maintain liquidity will drive cash and near-cash investments growth, but not more than absolutely necessary
Figure 22: Property funds are more popular than direct investments
Figure 23: Property investments are forecast to grow slightly
Figure 24: Hedge funds are the most popular alternatives product
Figure 25: Many industry experts expect alternative investments to decrease
Figure 26: Belgian HNW investors’ commodity allocations are mostly in gold
Figure 27: Commodity investments will see a rapid increase over the next year
Figure 28: Inheritance planning is the priority for Belgian HNW investors
Figure 29: ING Private Banking Belgium offers legal and taxation advice
Figure 30: Inheritance planning will experience the highest growth in demand