Part of a two-part series, Wealth in South Africa: Sizing the Market Opportunity analyzes South Africa's wealth and retail investments markets, with a particular focus on the HNW segment. Analysis is based upon Verdict Financial's 2013 Global Wealth Managers Survey, Verdict Financial's Global Wealth Markets Analytics, and Verdict Financial's Global Retail Investments Analytics.
Size your potential client base using Verdict Financial's proprietary data, presenting the number of affluent individuals by liquid asset band to 2017.
Understand the drivers behind the growth of the affluent market, such as the wider macroeconomic environment and investment preferences.
Quantify HNW asset allocations into non-liquid assets such as property. Find out how much of their investible assets are held offshore.
Export the graphics from the dashboard, or if you are more at ease using Excel, export the data into your own worksheets.
How large is the HNW market in South Africa?
What is the penetration of affluent individuals in South Africa?
What is the current and future mix of asset class balances in South Africa?
How much of their wealth do South African HNW individuals invest offshore?
Which booking centers are used by HNW individuals to invest offshore?
South Africa has experienced very positive growth in terms of its affluence in the past five years. However, the country still has some way to develop, as according to Verdict Financial's Global Wealth Markets Analytics only 1.3% of the adult population is affluent. This is forecasted to increase to 1.6% by 2017.
The retail investments market performed well in 2012 thanks largely to growth in retail equity, which saw year-on-year growth of nearly 25.9%. The future outlook for assets remains positive, if muted in comparison to historic growth levels.
South African HNW individuals allocated one third of their assets outside of traditional liquid allocations, mostly in directly owned property and property funds. This asset allocation preference is due to a property boom in South Africa that encouraged large investments into local property.