Turkey 2013 Wealth Book: The Jewel of Asia

Synopsis

• This report is the result of WealthInsight’s extensive research covering the high net worth individual (HNWI) population and wealth management market in Turkey.
• The report focuses on HNWI performance between the end of 2007 (the peak before the global financial crisis) and the end of 2012. This enables us to determine how well the country’s HNWIs have performed through the crisis.

Summary

There are just over 94,000 HNWIs and 1,923 UHNWIs in Turkey in 2012. This report reviews the performance and asset allocations of HNWIs and Ultra HNWIs (UHNWIs) in Turkey, and highlights top-performing cities. It also includes an evaluation of the local wealth management industry.

Scope

• Independent market sizing of Turkish HNWIs across five wealth bands
• HNWI volume, wealth and allocation trends from 2007 to 2012
• HNWI volume, wealth and allocation forecasts to 2017
• HNWI and UHNWI asset allocations across 13 asset classes                                                                                                                                                                                                    
• Number of UHNWIs and UHNWI growth rates in every state
• Number of UHNWIs in all major cities
• Fastest growing cities for UHNWIs (2007-2012)
• Number of wealth managers in each city
• City wise ratings of wealth management saturation and potential
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in Turkey
• Size of the Turkish wealth management industry
• Detailed wealth management and family office information
• Insights into the drivers of HNWI wealth

Reasons To Buy

• The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the Database comprises profiles on major private banks, wealth managers and family offices in each country.
• The WealthInsight Intelligence Center Database also includes up to one hundred data-points on over 100,000 HNWIs from around the world.
• With the Database 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 2017.
• Also provides detailed information on UHNWIs in each major city.

Key Highlights

• There were just over 94,000 HNWIs in Turkey in 2012. These HNWIs held US$500 billion in wealth, which equates to 43% of total individual wealth held in the country.
• At the end of 2012, Turkish HNWIs held 26.6% (US$138 billion) of their wealth outside their home country, which is in line with the worldwide norm of between 20% and 30%.
• WealthInsight expects foreign asset holdings to reach US$195 billion by 2017 when they will account for 26.4% of total HNWI assets.
• Istanbul is the largest city for Turkish UHNWIs, accounting for 58% of total UHNWIs with 1,110 individuals. There are also sizable UHNWI populations in Ankara (200 UHNWIs), Izmir (50 UHNWIs), Antalya (40 UHNWIs) and Bursa (30 UHNWIs).
• Bursa was the top performing city for UHNWIs, with numbers rising by 58% from 19 in 2007 to over 30 in 2012. This rise occurred as many foreign companies chose to build their headquarters in and around the city. Major industries in the city include automotive, textiles, FMCG and tourism (skiing).
• As of 2012, there are 28 private banks active in Turkey.
• The largest domestic private banks are Garanti and Yapı Kredi.

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 Turkish Wealth in Context
3.3.1 World statistics
3.3.2 Distribution of wealth in Turkey
3.4 HNWI Volume and Wealth Trends

4 Findings from the WealthInsight HNWI Database
4.1 Trends in HNWI Wealth to 2017
4.1.1 HNWI trend analysis
4.1.2 Trends of the wealth bands
4.1.3 Demographic breakdown of HNWIs
4.2 UHNWIs 30
4.2.1 UHNWI volume trend analysis
4.2.2 UHNWI wealth trend analysis
4.2.3 Demographic breakdown of UHNWIs
4.2.4 UHNWIs – job titles
4.2.5 UHNWIs – industry breakdown
4.2.6 UHNWIs – industry performance
4.2.7 UHNWI breakdown by city
4.2.8 UHNWIs – city performance
4.2.9 UHNWIs – Istanbul Suburbs
4.2.10 UHNWIs – population densities
4.2.11 UHNWIs – city forecasts
4.3 UHNWIs – Billionaires
4.3.1 Billionaire volume trend analysis
4.3.2 Billionaire wealth trend analysis
4.3.3 Billionaire per capita net worth trend analysis
4.3.4 List of billionaires
4.4 UHNWIs – Centimillionaires
4.4.1 Centimillionaire volume trend analysis
4.4.2 Centimillionaire wealth trend analysis
4.4.3 Centimillionaire per capita net worth trend analysis
4.5 UHNWIs – Affluent Millionaires
4.5.1 Affluent millionaire volume trend analysis
4.5.2 Affluent millionaire wealth trend analysis
4.5.3 Affluent millionaire per capita net worth trend analysis
4.6 Core HNWIs
4.6.1 Core HNWI volume trend analysis
4.7 Core HNWIs – Mid-Tier Millionaires
4.7.1 Mid-tier millionaire volume trend analysis
4.7.2 Mid-tier millionaire wealth trend analysis
4.7.3 Mid-tier millionaire per capita net worth trend analysis
4.8 Core HNWIs – Lower-Tier Millionaires
4.8.1 Lower-tier millionaire volume trend analysis
4.8.2 Lower-tier millionaire wealth trend analysis
4.8.3 Lower-tier millionaire per capita net worth trend analysis

5 Analysis of Turkish HNWI investments
5.1 Analysis by Asset Class
5.1.1 Trends in alternative assets
5.1.2 Trends in “art, wine and wheels”
5.1.3 Trends of investments in real estate
5.1.4 Trends of investments in cash and deposits
5.1.5 Trends of investments in fixed income
5.1.6 Trends of investments in equity
5.1.7 Trends of investments in business interest
5.2 Analysis of Foreign Investments
5.2.1 Investments in Europe
5.2.2 Investments in the Middle East
5.2.3 Investments in North America
5.2.4 Investments in Asia-Pacific
5.2.5 Investments in Latin America
5.2.6 Investments in Africa
5.3 Alternative Breakdown: Liquid vs Investable Assets
5.4 Analysis of Turkish UHNWI Investments

6 Competitive Landscape of the Wealth Sector
6.1 Competitive Landscape
6.1.1 Private banks
6.1.2 Wealth managers
6.1.3 Family offices
6.1.4 Financial advisors
6.2 Developments in the Turkish Private Banking Industry
6.3 Turkish Wealth Management Industry – Clientele Model and Maturity
6.4 Behavioral Mapping of the Wealth Management and Private Banking Industry in the Turkey
6.5 Porter’s Five Forces Analysis – Wealth Management Industry in the Turkey
6.6 Financial Services Review
6.6.1 Retail banks
6.6.2 Fund management

7 Appendix
7.1 Additional Components of the Wealth Sector in Turkey
7.1.1 Philanthropy
7.1.2 Demand for intergenerational wealth transfer
7.2 Regulatory environment in Turkey
7.2.1 Regulations on taxes
7.3 Key Drivers
7.3.1 LC to US$ exchange rate
7.3.2 Real GDP growth
7.3.3 Per capita GDP
7.3.4 Domestic market capitalization
7.3.5 Housing price index
7.3.6 Commodity index
7.3.7 Foreign direct investment
7.3.8 Inflation rate
7.3.9 Interest rate
7.3.10 Balance of payments
7.3.11 Government debt
7.3.12 Stock market performance
7.4 Wealth Breakdowns

8 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions
Table 2: TURKEY – Forecast Summary
Table 3: TURKEY: HNWIs – Volume Distribution Wealth Pyramid, 2012
Table 4: TURKEY: HNWIs – Wealth Distribution Wealth Pyramid (% share), 2012
Table 5: TURKEY: UHNWI Gender Performance, 2007–2012
Table 6: TURKEY: Sources of UHNWI Wealth (%), 2012
Table 7: TURKEY: UHNWI Cities, 2012
Table 8: TURKEY: UHNWIs in Top Cities, 2007–2012
Table 9: TURKEY: Suburbs of Istanbul, 2007–2012
Table 10: TURKEY: UHNWI Population Density in Major Cities, 2012
Table 11: TURKEY: Top UHNWI Cities, 2007–2017
Table 12: TURKEY: UHNWI Growth Rates for Top Cities, 2007–2017
Table 13: TURKEY: Billionaires – Market Overview (US$ Billion) 2007–2017
Table 14: TURKEY: Top 10 Billionaires, 2012
Table 15: TURKEY: Billionaire Wealth Growth, 2007−2012
Table 16: TURKEY: Centimillionaires – Market Overview, 2007–2017
Table 17: TURKEY: Affluent Millionaires – Market Overview, 2007–2017
Table 18: TURKEY: Mid-Tier Millionaires – Market Overview, 2007–2017
Table 19: TURKEY: Lower-Tier Millionaires – Market Overview, 2007–2017
Table 20: TURKEY: Allocations of HNWI Assets, 2007−2017
Table 21: TURKEY: HNWI Holdings Growth (%), 2007–2017
Table 22: TURKEY: HNWIs – Trends of Investments in Alternative Assets (%), 2007–2017
Table 23: TURKEY: HNWIs – Alternative Asset Composition (%), 2007–2017
Table 24: TURKEY: Trends in “Art, Wine and Wheels”,  2007–2011
Table 25: TURKEY: Residential real estate prices, US$ terms, 2012
Table 26: GLOBAL: Prime International Cities (US$), 2007–2012
Table 27: GLOBAL: Prime real estate prices per square meters, US$ terms, 2012
Table 28: TURKEY: HNWIs - % Foreign allocation, 2007–2017
Table 29: TURKEY: HNWIs – Liquidity Breakdown (US$ Billion), 2007–2017
Table 30: TURKEY: HNWIs – Liquidity Breakdown (%), 2007–2017
Table 31: TURKEY: UHNWI Allocations and Share of HNWI Assets, 2012
Table 32: TURKEY: Wealth Managers per City, 2012
Table 33: TURKEY: Wealth Managers and Family Offices, 2012
Table 34: TURKEY: Financial Advisors, 2012
Table 35: TURKEY: M&A Activity, 2012
Table 36: TURKEY: Income Tax Structure for Individuals in Turkey, 2012
Table 37: TURKEY: Free Zones, 2012
Table 38: TURKEY: TRY to US$ Exchange Rate, 2007–2017
Table 39: TURKEY: Real GDP Growth, 2007–2017
Table 40: TURKEY: GDP Per Capita, 2007–2017
Table 41: TURKEY: Domestic Market Capitalization (US$ Billion) 2007–2011
Table 42: TURKEY: Housing Price Index, 2007–2012
Table 43: TURKEY: Commodity Indices, 2007–2017
Table 44: TURKEY: Foreign Direct Investments (US$ Billions) 2007–2017
Table 45: TURKEY: Inflation Rate, 2007–2017
Table 46: TURKEY: Money Market Rate, 2007–2017
Table 47: TURKEY: Balance of Payments (US$ Billion) 2007–2012
Table 48: TURKEY: Government Debt to GDP, 2007–2017
Table 49: TURKEY: Stock Market Performance, 2007–2012
Table 50: TURKEY: HNWI Wealth vs GDP Ratio, 2007–2017
Table 51: TURKEY: Appendix One
Table 52: TURKEY: Appendix Two

List of Figures

Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of Turkey
Figure 3: TURKEY: Asset Price Performance, 2007–2012
Figure 4: TURKEY: HNWI Performance, 2007–2017
Figure 5: TURKEY: Turkish HNWIs vs the World
Figure 6: TURKEY: HNWIs – Growth Factor Correlation, 2007–2012
Figure 7: TURKEY: HNWIs – Volume Distribution Wealth Pyramid, 2012
Figure 8: TURKEY: HNWI Wealth Share Distribution Pyramid (%), 2012
Figure 9: TURKEY: HNWI Age Distribution, 2012
Figure 10: TURKEY: UHNWIs – Wealth Share vs Volume Growth, 2007–2012
Figure 11: TURKEY: UHNWIs – Volume by Wealth Band, 2007–2017
Figure 12: TURKEY: UHNWI Wealth by Wealth Band (US$ Billion), 2007–2017
Figure 13: TURKEY: UHNWI Age Distribution (% Share), 2012
Figure 14: TURKEY: UHNWI Job Titles, 2007–2012
Figure 15: TURKEY: UHNWI Distribution by Industry, 2012
Figure 16: TURKEY: UHNWI Sector Performance, 2007–2012
Figure 17: TURKEY: UHNWI City Performance, 2007–2012
Figure 18: TURKEY: UHNWI Numbers by City, 2007–2012
Figure 19: TURKEY: UHNWI City Forecasts, 2012–2017
Figure 20: TURKEY: UHNWI Populations by City, 2012–2017
Figure 21: TURKEY: Billionaires – Market Overview, 2007–2017
Figure 22: TURKEY: Centimillionaires – Market Overview, 2007–2017
Figure 23: TURKEY: Affluent Millionaires – Market Overview, 2007–2017
Figure 24: TURKEY: Mid-Tier Millionaires – Market Overview, 2007–2017
Figure 25: TURKEY: Lower-Tier Millionaires – Market Overview, 2007–2017
Figure 26: TURKEY: HNWIs – Asset Class Composition, 2007–2017
Figure 27: TURKEY: HNWIs – Trends in Alternative Assets (in US$ Billion),  2007–2017
Figure 28: TURKEY: Trends in “Art, Wine and Wheels”,  2007–2011
Figure 29: TURKEY: HNWIs – Foreign Investment Allocation and Growth (%), 2012–2017
Figure 30: TURKEY: HNWIs – Global Distribution of Foreign Investments, 2007–2017
Figure 31: TURKEY: HNWIs – Liquidity Breakdown (%), 2007–2017
Figure 32: TURKEY: UHNWIs – Asset Class Composition, 2007–2017
Figure 33: TURKEY: Wealth Management Industry – Maturity Levels
Figure 34: TURKEY: Wealth Management Industry – Behavioral Mapping, 2012
Figure 35: TURKEY: Wealth Management Industry – Five Forces Analysis
Figure 36: TURKEY: TRY to US$ Exchange Rate, 2007–2017
Figure 37: TURKEY: Real GDP Growth (%), 2007–2017
Figure 38: TURKEY: GDP Per Capita, 2007–2017
Figure 39: TURKEY: Domestic Market Capitalization (US$ Billion)  2007–2011
Figure 40: TURKEY: Housing Price Index, 2007–2012
Figure 41: TURKEY: Commodity Indices, 2007–2017
Figure 42: TURKEY: Foreign Direct Investments (US$ Billion) 2007–2017
Figure 43: TURKEY: Inflation Rate, 2007–2017
Figure 44: TURKEY: Money Market Rate, 2007–2017
Figure 45: TURKEY: Balance of Payments (US$ Billion) 2007–2012
Figure 46: TURKEY: Government Debt to GDP, 2007–2017
Figure 47: TURKEY: Stock Market Performance, 2007–2012
Figure 48: TURKEY: HNWI Wealth vs GDP Ratio, 2007–2017
Figure 49: TURKEY: HNWIs – Volume by Wealth Band, 2007–2017
Figure 50: TURKEY: HNWIs – Wealth by Wealth Band (US$ Billion), 2007–2017
Figure 51: TURKEY: HNWIs – Wealth per Capita (US$ Billion), 2007–2017