Synopsis
This report provides the latest asset allocations of the UK HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocations of the UK HNWIs to 2019 and a comprehensive and robust background of the local economy.
Scope
• Independent market sizing of the UK HNWIs across five wealth bands
• HNWI volume and wealth trends from 2010 to 2014
• HNWI volume and wealth forecasts to 2019
• HNWI and UHNWI asset allocations across 13 asset classes
• Insights into the drivers of HNWI wealth
Summary
• This report is the result of WealthInsights extensive research covering the high net worth individual (HNWI) population and wealth management market in the UK.
• The report focuses on HNWI performance between the end of 2010 and the end of 2014. This enables us to determine how well the country's HNWIs have performed through the crisis.
Reasons To Buy
• The HNWI Asset Allocation in the UK 2015 is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises dossiers on over 60,000 HNWIs from around the world.
• With the wealth report 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.
• Report includes comprehensive forecasts to 2019.
Key highlights
• Equities were the largest asset class for HNWIs in the UK in 2014, and accounted for 29.5% of total HNWI assets, followed by business interests with 25.9%, real estate with 16.1%, fixed-income with 15.9%, cash with 6.7% and alternatives with 5.8%.
• Equities, real estate and business interests recorded review-period growth of 29.6%, 31.3% and 18.8% respectively.
• Alternative assets held by UK HNWIs increased during the review period, from 5.7% of total HNWI assets in 2010 to 5.8% in 2014. HNWI allocations to commodities fell from 1.4% in 2010 to 1.3% in 2014.
• WealthInsight expects allocations in commodities to decline over the forecast period to reach 1.1% of total HNWI assets by 2019, as global liquidity tightens due to a forecast near-term drop in demand from China for raw materials, which will cause global commodity prices to flatten out, especially in the second half of 2014.
• As of 2014, UK HNWI liquid assets amounted to US$1.4 trillion, representing 52.2% of wealth holdings.
Table Of Contents
1 Introduction
1.1 Details of this Report
1.2 Definitions
2 Executive Summary
3 Wealth Sector Fundamentals
3.1 Political Background
3.2 Economic Background
3.3 Benchmarking the UKs Wealth in Context
3.3.1 Distribution of wealth in the UK
3.4 HNWI Volume and Wealth Trends
4 Analysis of UK HNWI Investments
4.1 Analysis by Asset Class
4.1.1 Trends in alternative assets
4.1.2 Trends in art, wine and wheels
4.1.3 Trends of investments in real estate
4.1.4 Trends of investments in cash and deposits
4.1.5 Trends of investments in fixed-income
4.1.6 Trends of investments in equity
4.1.7 Trends of Investments in business interests
4.2 Analysis of Foreign Investments
4.2.1 Investments in Europe
4.2.2 Investments in North America (including the US, Mexico and the Caribbean)
4.2.3 Investments in the Asia-Pacific
4.2.4 Investments in Central and South America
4.2.5 Investments in the Middle East
4.2.6 Investments in Africa
4.3 Alternative Breakdown: Liquid vs Investable Assets
4.4 Analysis of UK UHNWI Investments
5 Appendix
5.1 Additional Components of the Wealth Sector in the UK
5.1.1 Philanthropy
5.1.2 Demand for intergenerational wealth transfer
5.2 Tax Regulations
5.3 Regulations Related to Immigration, Investment and Employment
5.4 Key Drivers
5.4.1 GBP to US$ exchange rate
5.4.2 Real GDP growth
5.4.3 Per capita GDP
5.4.4 Domestic market capitalization
5.4.5 Commodity index
5.4.6 Foreign direct investments - inflow and outflow
5.4.7 Inflation rate
5.4.8 Interest rate
5.4.9 Balance of payments
5.4.10 Government debt
5.4.11 Stock market performance
5.5 Wealth Breakdowns
6 About WealthInsight
List Of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: Regions in the UK (Thousand), 2014
Table 3: UK Allocations of HNWI Assets (%), 2010-2019
Table 4: UK HNWIs ? Holdings Growth (%), 2010-2019
Table 5: UK HNWIs - Alternative Asset Composition (%), 2010-2019
Table 6: UK HNWIs - Trends of Investments in Alternative Assets (%), 2010-2019
Table 7: UK Trends in Art, Wine and Wheels, 2010-2014
Table 8: Global Prime Real Estate Prices per m² (US$), 2014
Table 9: UK HNWIs - Percentage of Foreign Investment Allocations, 2010-2019
Table 10: UK HNWIs - Liquidity Breakdown (US$ Billion), 2010-2019
Table 11: UK HNWIs - Liquidity Breakdown (%), 2010-2019
Table 12: UK UHNWIs - Allocations and Share of HNWI Assets, 2014
Table 13: UK Income Tax Bands (CHF), 2014-2014
Table 14: GBP per US$ Exchange Rate (%), 2010-2019
Table 15: UK Real GDP Growth (%), 2010-2019
Table 16: UK GDP Per Capita (US$), 2010-2019
Table 17: UK Domestic Market Capitalization (US$ Billion), 2010-2014
Table 18: UK Commodity Indices, 2010-2019
Table 19: UK Foreign Direct Investments (US$ Billion), 2010-2019
Table 20: UK Inflation Rate (%), 2010-2019
Table 21: UK Money Market Rate (%), 2010-2019
Table 22: UK Balance of Payments (US$ Billion), 2010-2014
Table 23: UK Government Debt as a Percentage of GDP (%), 2010-2019
Table 24: UK Stock Market Performance, 2010-2014
Table 25: UK HNWI Wealth vs GDP Ratio (%), 2010-2019
Table 26: The UK - Appendix One
Table 27: The UK - Appendix Two
List Of Figures
Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of the UK
Figure 3: The UKs Asset Price Performance (US$), 2010-2014
Figure 4: UK HNWI Performance (US$), 2010-2019
Figure 5: UK vs Global HNWIs (US$), 2010?2014
Figure 6: UK HNWIs - Asset Class Composition (%), 2010-2019
Figure 7: UK Trends in Art, Wine and Wheels, 2010-2014
Figure 8: UK HNWIs - Foreign Investment Allocation and Growth (%), 2014
Figure 9: UK HNWIs - Global Distribution of Foreign Investments (%), 2010-2019
Figure 10: UK HNWIs - Liquidity Breakdown (%), 2010-2019
Figure 11: UK UHNWIs - Asset Class Composition, 2010-2019
Figure 12: GBP to US$ Exchange Rate (%), 2010-2019
Figure 13: UK Real GDP Growth (%), 2010-2019
Figure 14: UK GDP Per Capita (US$), 2010-2019
Figure 15: UK Domestic Market Capitalization (US$ Billion), 2010-2014
Figure 16: UK Commodity Indices, 2010-2019
Figure 17: UK Foreign Direct Investments (US$ Billion), 2010-2019
Figure 18: UK Inflation Rate (%), 2010-2019
Figure 19: UK Money Market Rate (%), 2010-2019
Figure 20: UK Balance of Payments (US$ Billion), 2010-2014
Figure 21: UK Government Debt as a Percentage of GDP (%), 2010-2019
Figure 22: UK Stock Market Performance, 2010-2014
Figure 23: UK HNWI Wealth vs GDP Ratio (%), 2010-2019
Figure 24: UK HNWIs - Volume by Wealth Band, 2010-2019
Figure 25: UK HNWIs - Wealth by Wealth Band (in US$ Billions), 2010-2019
Figure 26: UK HNWIs - Wealth Per Capita (in US$ Millions), 2010-2019
