Wealth in Denmark: Sizing the Market Opportunity

1.1. Market summary
1.2. Key findings
1.3. Critical success factors

2.1. Introduction
2.2. An enviable economic position will lead to strong growth for the wealth market
2.2.1. The Danish economy is a strong position, with few headwinds on the horizon
2.2.2. Danes have high levels of personal debt, but higher levels of personal assets
2.2.3. The rebounding affluent population is set to record a CAGR of 4.5% to 2022
2.2.4. The Danish market has a notable emerging affluent segment
2.2.5. Growth in liquid assets will be stronger over the next five years than the previous five
2.2.6. HNW individuals also hold notable assets in less liquid assets, particularly property
2.3. Offshore investments account for just over 12% of total HNW assets
2.3.1. Equities, alternatives, and property account for the majority of offshore wealth
2.3.2. Tax efficiency is a key driver for offshore investment, but Danish authorities are tightening the net on evasion
2.3.3. Denmark also plays an active role in global tax transparency efforts, having signed TIEAs and double taxation conventions with many offshore centers globally

3.1. Introduction
3.2. Total retail savings and investments are set to grow by 5.0% to 2022
3.2.1. The strong investment component of the market aids growth
3.2.2. Mutual funds and equities are set to experience the strongest future growth
3.3. Retail deposit growth has largely been driven by inflows
3.3.1. Deposits continue to attract inflows, despite negative interest rates
3.4. Mutual funds will continue to go from strength to strength
3.4.1. Strong inflows are propelling the market
3.4.2. The mixed allocation of funds buffers investors from the extremes of the stock market
3.5. Equities will continue to grow, but this is contingent on performance
3.5.1. Stock market performance rather than inflows is driving equity growth
3.5.2. The Danish government is introducing tax benefits to further encourage equity inflows
3.6. Bonds will remain a peripheral asset for retail investors
3.6.1. Retail investors are pulling out of bonds

4.1. Non-resident investments are concentrated in the equity and bond markets
4.1.1. Non-resident holdings accounted for 28% of total retail equity balances in 2017
4.1.2. The world’s largest covered bond market is proving a draw for foreign investors

5.1. Abbreviations and acronyms
5.2. Supplementary data
5.3. Definitions
5.3.1. Affluent
5.3.2. Domicile
5.3.3. Double taxation convention
5.3.4. Emerging affluent
5.3.5. FATCA
5.3.6. HNW
5.3.7. Individual
5.3.8. Liquid assets
5.3.9. Mass affluent
5.3.10. Mass market
5.3.11. Onshore
5.3.12. Residency
5.3.13. Exchange of information
5.3.14. TIEAs
5.4. Methodology
5.4.1. 2018 Global Wealth Managers Survey
5.4.2. Retail Investments Analytics
5.4.3. Global Wealth Model
5.4.4. Exchange rates
5.5. Bibliography

Table 1: Number of adults in Denmark segmented by asset band (000s), 2006-11
Table 2: Number of adults in Denmark segmented by asset band (000s), 2012-17
Table 3: Number of adults in Denmark segmented by asset band (000s), 2018f-22f
Table 4: Retail liquid assets in Denmark segmented by asset band ($m), 2006-11
Table 5: Retail liquid assets in Denmark segmented by asset band ($m), 2012-17
Table 6: Retail liquid assets in Denmark segmented by asset band ($m), 2018f-22f
Table 7: US dollar exchange rates with the Danish krone

Figure 1: Affluent individuals accounted for 22.16% of the adult population by the end of 2017
Figure 2: The mass affluent segment accounts for almost half of retail liquid assets in Denmark
Figure 3: Danish HNWs hold 12.1% of their assets offshore
Figure 4: Denmark is part of the CRS early adopter group
Figure 5: A diversified retail savings and investments market aids growth
Figure 6: The decline of retail bond holdings is the only negative in the savings and investments market
Figure 7: Deposit growth has rallied since 2015, despite low interest rates
Figure 8: Strong inflows have driven consistent growth in the mutual fund market
Figure 9: The Danish mutual fund market is dominated by bond and equity funds
Figure 10: Retail investors in Denmark have been withdrawing assets from the stock market
Figure 11: Healthcare companies make up the majority of the Copenhagen Stock Exchange main index
Figure 12: Retail bond investments have been in decline since 2009
Figure 13: Non-resident investors are primarily drawn to Denmark’s equity and bond markets
Figure 14: Example of a four-input forecasting process