Challenges and Opportunities for the Wealth Sector in South Africa 2014

Published: June 2014
No. of Pages: 61
   

Synopsis

  • This report is the result of WealthInsight's extensive research covering the high net worth individual (HNWI) population and wealth management market in South Africa.
  • The report focuses on HNWI performance between the end of 2008 (the peak before the global financial crisis) and the end of 2013. This enables us to determine how well the country's HNWIs have performed through the crisis.

Summary

This report is a thorough analysis of South Africa's Wealth Management and Private Banking sector, and the opportunities and challenges that it faces.

Scope

  • Independent market sizing of South Africa HNWIs across five wealth bands
  • HNWI volume and wealth trends from 2009 to 2013
  • HNWI volume and wealth forecasts to 2018
  • HNWI and UHNWI asset allocations across 13 asset classes
  • Number of UHNWIs in each state and all major cities
  • Fastest growing cities and states for UHNWIs (2009-2013)
  • 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 dossiers on over 60,000 HNWIs from around the world.
  • The Intelligence Center also includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
  • 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 2018.

Key Highlights

  • At the end of 2013, South African HNWIs held 17.4% (US$35 billion) of their wealth outside their home country, which is below the worldwide average of 20-30%.
  • WealthInsight expects foreign asset holdings to increase to US$45 billion by 2018, accounting for 16.1% of total South African HNWI assets.
  • In 2013, Africa accounted for 27.0% of South African HNWIs' foreign assets.
  • It was followed by North America with 24.2%, Europe with 22.6%, Asia-Pacific with 11.7%, Latin America with 9.0% and the Middle East with 5.4%.
  • Compared with other regions, South African HNWI allocations to Africa increased during the review period, rising from 21.0% in 2009 to 27.0% in 2013. Africa was the emerging region in terms of global investments, especially from prosperous neighboring countries.
  • Over the forecast period, South African HNWIs are expected to further increase their levels of investment in Africa to 30.1% of foreign HNWI assets by 2018. Investments are increasingly being diverted to the continent.

Challenges and Opportunities for the Wealth Sector in South Africa 2014

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 Social Background
3.4 Benchmarking South African Wealth in Context
3.4.1 Distribution of wealth in South Africa
3.5 HNWI Volume and Wealth Trends

4 Competitive Landscape of the Wealth Sector
4.1 Competitive Landscape
4.1.1 Domestic private banks
4.1.2 Foreign private banks
4.1.3 Acquisitions and Partnerships
4.1.4 Wealth managers
4.1.5 Family offices
4.1.6 Financial advisors
4.2 Developments in the South African Private Banking Industry
4.3 Wealth Management and the Private Banking Industry
4.4 South African Wealth Management Industry - Clientele Model and Maturity
4.5 Behavioral Mapping of Wealth Management and Private Banking in South Africa

5 Appendix
5.1 Additional Components of the Wealth Sector in South Africa
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 ZAR 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: Cities in South Africa by Population (Volume), 2013
Table 3: Leading Domestic Private Banks in South Africa by Local and Global AuM (US$ million), 2013
Table 4: Leading Foreign Private Banks in South Africa by local AuM (US$ million), 2013
Table 5: Leading Wealth Managers in South Africa by AuM (US$m), 2013
Table 6: Top South African Family Offices by AuM (US$m), 2013
Table 7: Wealth Management Industry - Recent Deal Activity in South Africa, 2013
Table 8: South African Income Tax Bands (ZAR), 2013-2014
Table 9: ZAR per US$ Exchange Rate, 2009-2018
Table 10: South African Real GDP Growth (%), 2009-2018
Table 11: South African GDP per Capita (US$), 2009-2018
Table 12: South African Domestic Market Capitalization (US$ Billion), 2009-2013
Table 13: South African Commodity Indices, 2009-2018
Table 14: South African Foreign Direct Investment (US$ Billion), 2009-2018
Table 15: South African Inflation Rate (%), 2009-2018
Table 16: South African Money Market Rate (%), 2009-2018
Table 17: South African Balance of Payments (US$ Billion), 2009-2013
Table 18: South African Government Debt as a Percentage of GDP, 2009-2018
Table 19: South African Stock Market Performance, 2009-2013
Table 20: South African HNWI Wealth vs GDP Ratio, 2009-2018
Table 21: South Africa - Appendix One
Table 22: South Africa - Appendix Two

List of Figures

Figure 1: HNWI Wealth Band Definitions
Figure 2: Map of South Africa
Figure 3: South African Asset Price Performance (%), 2009-2013
Figure 4: South African HNWI Performance (US$ Billions and HNWI Volume), 2009-2018
Figure 5: South African vs Global HNWIs (%), 2009-2018
Figure 6: South African Wealth Management Industry - Maturity Level of Operators, 2014
Figure 7: South African Wealth Management Industry Behavioral Mapping, 2013
Figure 8: ZAR to US$ Exchange Rate, 2009-2018
Figure 9: South African Real GDP Growth (%), 2009-2018
Figure 10: South African GDP per Capita (US$), 2009-2018
Figure 11: South African Domestic Market Capitalization (US$ Billion), 2009-2013
Figure 12: South African Commodity Indices, 2009-2018
Figure 13: South African Foreign Direct Investment (US$ Billion), 2009-2018
Figure 14: South African Inflation Rate (%), 2009-2018
Figure 15: South African Money Market Rate (%), 2009-2018
Figure 16: South African Balance of Payments (US$ Billion), 2009-2013
Figure 17: South African Government Debt as a Percentage of GDP, 2009-2018
Figure 18: South African Stock Market Performance, 2009-2013
Figure 19: South African HNWI Wealth vs GDP Ratio, 2009-2018
Figure 20: South African HNWIs - Volume by Wealth Band, 2009-2018
Figure 21: South African HNWIs - Wealth by Wealth Band (US$ Billion), 2009-2018
Figure 22: South African HNWIs - Wealth per Capita (US$ Million), 2009-2018

Published By: WealthInsight
Product Code: WealthInsight822


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