Summary

Based on our proprietary datasets, this report analyzes the UK’s wealth and retail savings and investments markets, with a focus on the high net worth (HNW) segment. This includes the overall affluent market size (both by the number of individuals and the value of their liquid assets) as well as a breakdown of liquid vs. illiquid HNW holdings. The report also provides analysis of the factors driving liquid asset growth, including a breakdown and forecast of total retail savings and investments split by asset classes including deposits, mutual funds, equities, and bonds.

The value of liquid assets in the UK decreased year on year in 2018 for the first time since the 2008 recession, as a result of economic and political instability and a particularly poor stock exchange performance. Deposits remained the most popular asset class among UK investors, with balances growing by 3% in 2018 as declines on the stock market encouraged investors to save rather than invest. These declines also negatively affected mutual fund and equity balances, which dropped by 6% and 5% respectively. Interest rates remained fairly unchanged, contributing to the 12.4% decline of bond balances in 2018. However, reduced instability is expected in the coming years and the UK wealth market will begin to see positive year-on-year growth. We forecast that compound annual growth rates (CAGRs) across all four key asset classes will be positive between 2019 and 2023 as the uncertainty surrounding Brexit eventually dwindles.

Scope

- While affluent individuals accounted for under a third of the UK’s total adult population in 2018, they held 92% of the country’s wealth.
- UK retail investors allocated the majority of their wealth to deposits in 2018, accounting for 56% of all liquid retail savings and investments during the year.
- In 2018, 21% of UK HNW investors’ wealth was held offshore, notably above the 17% global average.

Reasons to buy

- Make strategic decisions using top-level historic and forecast data on the UK wealth industry.
- Identify the most promising client segments by analyzing the penetration of affluent individuals.
- Receive detailed insights on retail liquid asset holdings in the UK.
- Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the wealth space.

Companies Mentioned

Shell
BP
Bank of England
Nutmeg
Moneybox
Wealth Wizards
AFH Financial Group
Butterfield Bank
Ninepoint Partners
Intrinsic Financial Services
A E Garment Independent Financial Services
ABN Amro
Logiq Global Partners
Lighthouse Group