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Switzerland Wealth Management: HNW Investors 2019

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  • 44 Pages
  • April 2020
  • Region: Switzerland
  • GlobalData
  • ID: 5017153
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Switzerland Wealth Management: HNW Investors 2019


Swiss HNW investors - who skew heavily towards professional and high-earning males - show strong demand for most forms of wealth advice and planning. A multi-service proposition underpinned by a proven ability to demonstrate returns will be key to tapping into demand. A burgeoning appetite for digitized and automated solutions such as robo-advice, the upcoming transfer of wealth between generations, and the growing female segment provide arguably the most significant growth opportunities for global wealth managers in the foreseeable future.

This report analyzes the investing preferences and portfolio allocation of Switzerland's HNW individuals. It profiles HNW investors in terms of their demographics, examines the allocation of HNW investors’ portfolios, analyzes their propensity to invest offshore, and explores their product and service demand.

  • 90% of Swiss HNWs are male, and almost half of those are older than 60, suggesting that spousal inheritance will increase the role of women in the market dramatically over the coming years.
  • An above-average proportion of HNW individuals in Switzerland are expats. Providers that understand the distinct needs of this lucrative segment will be able to achieve higher margins.
  • Advisory mandates are still popular, but will be challenged by automated services and discretionary mandates over the next 12 months.

Reasons to Buy
  • Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.
  • Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors’ preferences for the various styles of asset management.
  • Tailor your investment product portfolio and service proposition to match current and future demand among HNW individuals.

Table of Contents

1. Executive Summary
1.1. Switzerland still offers room for growth
1.2. Key findings
1.3. Critical success factors
2. Sizing And Forecast
2.1. The proportion of HNW individuals in Switzerland will rise over the next five years
2.1.1. Despite its small size, the affluent investor market accounts for the bulk of the population
2.2. Currently more than a third of Switzerland’s liquid assets are concentrated among HNW
individuals, and this is set to increase
2.2.1. Affluent assets will increase at a more robust pace that investor numbers
3. Demographics
3.1. HNW professionals are a lucrative target market
3.1.1. The majority of HNW individuals have reached or are approaching retirement age
3.1.2. The majority of Swiss HNW wealth is amassed through earned income
3.2. Financial services and healthcare are the key HNW wealth generators
4. HNW Expats
4.1. Expats represent a major part of the Swiss HNW market
4.1.1. Expats constitute over 21% of the local HNW market, which is high compared to other high-immigration nations
4.1.2. Professional HNW expats from Europe represent an attractive target segment
4.1.3. Intergenerational opportunities and lifestyle factors are the biggest drivers for expats
5. HNW Investment Style Preferences
5.1. Life events coupled with the expectation of better returns drive uptake of advice
5.2. for traditional wealth managers
6. HNW Asset Allocation Preferences
6.1. A desire for further diversification will drive uptake of alternatives among HNW investors27
6.1.1. The typical HNW portfolio is very evenly spread across equities, bonds, cash, and property
6.1.2. Swiss HNWs keep a surprisingly high proportion of their wealth in cash
6.1.3. Commodity investments will show the least increase in demand over the next year
6.1.4. Diversification is a key driver of investment decisions
7. Offshore Investment Drivers And Motivators
7.1. Swiss HNW offshore holdings are high compared to the wider region
7.1.1. The extensive offshore market has exposed HNW Swiss to offshore wealth options
7.2. Offshore booking centers are either geographically close or tax havens
7.2.1. Swiss HNW investors are highly exposed to the Italian COVID-19 crisis
8. HNW Product And Service Demand9. Appendix
List of Figures
Figure 1: After investor numbers have declined in 2019 and 2020, growth will resume at a steadier rate
Figure 2: Swiss HNW holdings represent a significant and growing proportion of the country’s wealth
Figure 3: HNW individuals are predominately older males
Figure 4: Swiss HNW individuals mainly derive their wealth from earned income
Figure 5: Finance and healthcare have helped power the current generation of HNW investors
Figure 6: Expats represent an above-average proportion of the Swiss HNW population
Figure 7: HNW expats are drawn to Switzerland for its superior quality of life
Figure 8: Life events and the expectation of better returns drive demand for advice
Figure 9: Swiss HNW individuals use a smaller-than-average number of providers to manage their wealth
Figure 10: Advisory mandates are still the preference among Swiss HNW investors
Figure 11: Automated services are in high demand relative to more established options
Figure 12: Automated services like Swissquote allow clients to test the platforms with a virtual trial investment
Figure 13: Demand for discretionary asset management will surge over the next 12 months
Figure 14: Advances in digital tools is the key reason HNW individuals self-direct
Figure 15: clevercircles blends control and advice through an innovative digital offering
Figure 16: Swiss HNW individuals have a more balanced asset allocation than the wider region
Figure 17: Equity funds are the single most popular product among HNW individuals
Figure 18: Pre-COVID-19, equities were set to experience the highest net increase in demand
Figure 19: Diversification benefits and returns strongly affect asset allocation preferences
Figure 20: Swiss HNW offshore holdings are well above what is typical for Europe
Figure 21: HNW individuals are aiming for better returns offshore
Figure 22: Swiss HNW offshore holdings are widespread
Figure 23: HNW individuals are aiming for better returns offshore
Figure 24: Demand is most pronounced for secured lending services
Figure 25: Strong opportunities exist for more diversified product offerings

Companies Mentioned

A selection of companies mentioned in this report includes:

  • UBS
  • Credit Suisse
  • Julius Baer
  • Swissquote