Global Wealth Market Post-COVID-19

Table of Contents

1. EXECUTIVE SUMMARY

• 1.1. The global wealth market will suffer due to the coronavirus pandemic
• 1.2. Key findings
• 1.3. Critical success factors

2. SIZING AND FORECASTING

• 2.1. The global wealth market will decline by 7% in 2020, losing $8.3tn
  • 2.1.1. Wealth managers headed into 2020 after a strong showing in 2019
  • 2.1.2. HNW investors will see their wealth reduce by 11% in 2020
  • 2.1.3. Retail investors’ preference for safe haven assets will protect them from drastic declines
  • 2.1.4. HNW wealth will increase by $7tn in 2021 following the 2020 crash
  • 2.1.5. Mass affluent investors will hold up better but will see less of a bounce back
• 2.2. The global retail savings and investments market is expected to contract by 7% in 2020
  • 2.2.1. The run-up in equities’ value means the fall in 2020 is more pronounced
• 2.3. Global retail savings and investments trends
  • 2.3.1. Global equity balances will suffer significantly, declining by 26% in 2020
  • 2.3.2. Despite their diversification benefits, mutual funds will alsosuffer in this economic crisis
  • 2.3.3. Investors will fly to safety, increasing deposit balances by 8% in 2020
  • 2.3.4. Bonds will see the largest growth of any core asset class, increasing by 9% against 2019
  • 2.3.5. The global reach of the pandemic has reduced investor appetite to offshore wealth
• 2.4. Key issues in a post-COVID-19 wealth market
  • 2.4.1. Expansion plans will need COVID-19 contingency planning for future waves and disruption
  • 2.4.2. Certain industries will be harder hit than others, requiring differentiated strategies
  • 2.4.3. Expanding advisor count and adapting to the new normal of working from home
  • 2.4.4. Expanding advisor numbers by acquiring smaller or weaker rivals wouldprove beneficial
  • 2.4.5. Greater competition from robo-advisors means different competition dynamics

3. GEOGRAPHICAL ANALYSIS

• 3.1. The North American wealth market will suffer most during the 2020 crash
  • 3.1.1. HNW North Americans will bear the brunt of the 2020 contraction
  • 3.1.2. The global retail investments market will decline by 7% but North America’s fall will be almost twice as high
• 3.2. US investors will suffer the most of any country in the 2020 crash
  • 3.2.1. Both mass affluent and HNW investors in the US will see their wealth decline by 15%
  • 3.2.2. The US retail savings and investments market is expected to decrease by 15%
• 3.3. Despite European investors’ affinity forsafe haven assets, many markets will suffer in this economic crash
• 3.4. The coronavirus pandemic will wipe out anypositive economic impact of theBrexit decision
  • 3.4.1. The UK wealth market will decline by 2%
  • 3.4.2. The UK retail savings and investments market will shrink by 2% in 2020
  • 3.4.3. All sectors of UK wealth management will suffer, but players with strong digital channels will be best placed to succeed
• 3.5. German investors’ strong preference for safe haven products will keep wealth growth in positive territory
• 3.6. Italy’s wealth market will stagnate in 2020
  • 3.6.1. The overall Italian retail savings and investments market will experience 0.2% growth
• 3.7. Lockdowns and travel bans will severely impactSpain as the country depends on tourism and hospitality to boost the economy
  • 3.7.1. Spain’s overall retail savings and investments market will increase by 1% due to the strong preference for deposits
• 3.8. The oil price war and the coronavirus pandemic will have a severe impact on the UAE investment market
  • 3.8.1. The UAE has a strong preference for deposits, which will keep growth on the up in 2020
• 3.9. Asia Pacific will suffer the least despite being the origin of the virus
  • 3.9.1. Asia Pacific’s wealth markets will continue to expand in 2020,although growth will be down
  • 3.9.2. Australia will suffer one of the worst impacts in Asia Pacific with an outright decline in wealth
  • 3.9.3. China is likely to lead the region out of the recession with a relatively strong market
  • 3.9.4. Hong Kong’s successful response to the pandemic has been overshadowed by its complex and evolving relationship with the mainland
  • 3.9.5. India’s retail savings and investments market will experience 0% growth for the first time since the globalfinancial crisis
  • 3.9.6. Singapore’s wealth market has been set back

4. APPENDIX

• 4.1. Abbreviations and acronyms
• 4.2. Definitions
  • 4.2.1. Affluent
  • 4.2.2. HNW
  • 4.2.3. Liquid assets
  • 4.2.4. Mass affluent
• 4.3. Secondary sources