Wealth in the Philippines: Sizing the Market Opportunity; Sizing the wealth market in one of Asias fastest growing economies.



Verdict Financial

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The Philippines is home to a relatively small affluent population, and the countrys financial services sector is somewhat unsophisticated relative to many of its ASEAN-6 neighbors and other developed nations. Retail participation in the equities and mutual fund markets is very low, with the bond market traditionally more popular but the majority of allocations still held in deposits. However, very strong economic performance over recent years and a new government committed to shaking off the image of the Philippines as the sick man of Asia bodes well for the future of its financial services sector and the populations financial literacy. Local wealth managers may not currently have a particularly large lucrative target market onshore, but this segment will grow significantly and wealth managers need to be ready to capitalize on the opportunity.

Key Findings
At the end of 2015, 1.12% of the Philippines adult population was considered affluent, and this segment is forecast to grow by 50% over the next five years. The HNW segment accounts for 0.03% of the population, but holds over a third of the countrys liquid wealth.

The Philippines retail investments market has doubled over the last five years, and Verdict Financial forecasts a compound annual growth rate (CAGR) of 9.2% to 2020 adding $78.26bn in assets.

The vast majority of HNW assets 97.5% are allocated to traditional liquid assets. Of the 2.5% held in illiquid assets, 95% is allocated to property (mostly direct property holdings).

HNW Filipinos hold 12.8% of their total liquid assets offshore a relatively small proportion in comparison to their neighbors in Indonesia, Singapore, and Hong Kong, where HNW investors offshore a third or more of their wealth.

Wealth in the Philippines: Sizing the Market Opportunity analyzes the Filipino wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.
Specifically the report:

Sizes the affluent market (both by the number of individuals and value of their liquid assets) using Verdict Financials proprietary datasets.

Analyzes which asset classes are favored by Filipino retail investors and how their preferences impact the growth of the total savings and investments market.

Examines HNW clients attitudes towards non-liquid investments, such as hedge funds, property, and commodities.

Identifies key drivers and booking centers for offshore investments by Filipino HNW clients.

Benchmark your share of the Filipino wealth market against the current market size.

Forecast your future growth prospects using our projections for the market to 2020.

Identify your most promising client segment by analyzing the penetration of affluent individuals in the Philippines both at country and regional level.

Evaluate your HNW proposition by understanding how regulation is affecting your HNW clients.

Review your offshore strategy by learning about HNW motivations for offshore investments and their preferred booking centers.