Part of a three-part series, Wealth in South Africa: HNW Customers analyzes the profile of South African HNW individuals, from their investments to product demand to sources of wealth. This report is based on Verdict Financial's Global Wealth Managers Survey 2013. The results of the survey are accompanied by best-practice case studies on how to target South African HNW individuals where applicable.
Understand the major sources of HNW wealth in South Africa and the industries from which it has been amassed.
Interpret the investment portfolios of South African HNW individuals through detailed asset allocation analysis.
Evaluate product and service demand among South African HNW individuals from discretionary asset management to art advisory and philanthropy.
Analyze the best methods to capture new South African HNW clients and how best to maintain communication during the client relationship.
How do South African HNW individuals amass their wealth?
What investments make up an average South African HNW investment portfolio?
What wealth management products and services are in demand in South Africa?
How often do South African wealth managers contact their clients through email, social media, and face-to-face meetings?
How do South African HNW individuals compare to their European peer groups?
South African high net worth (HNW) individuals have typically amassed their wealth through earned income or as first-generation entrepreneurs. South African HNW individuals who made their fortunes through entrepreneurship or earned income typically did so through the manufacturing and construction industries.
South African HNW individuals favor equity and property investments. Detailed asset allocation analysis shows a preference towards local equity and residential property. Looking forward, strong growth is anticipated for equities, while demand for bonds is expected to fall.
The South African wealth market is dominated by advisory asset management services. Outside of this, South African HNW individuals demand financial and inheritance planning services from their wealth managers. In addition, credit product demand is moderate, mostly fueled by the demand for mortgages from entrepreneurs and property investors.