Wealth in Australia Market Report: Jsbmarketresearch

Wealth in Australia: Sizing the Market Opportunity

Released on 9th May 2016

Summary

Compared to previous years, the Australian wealth market expanded at a slightly lower (but still impressive) rate in 2015, with economic concerns having a negative effect on performance. Weak equity market conditions and economic growth are also expected to contribute to lower growth in 2016, before the market bounces back in the following years thanks to returning economic strength. Between 2015 and 2019 liquid assets held by affluent individuals are forecast to record a compound annual growth rate (CAGR) of 8.5%, representing a sizable opportunity for wealth managers operating in the country. Yet there is notable regional disparity within Australia in terms of wealth distribution; while the east accounts for the majority of assets, growth is typically found in the capital state and the north.

Key Findings

- At the end of 2015, of the approximately 17.9 million adults living in Australia, 26.1% (or 4.7 million) could be considered affluent.

- While expanding at a slightly slower pace than in previous years, wealth market growth in Australia still dwarfed other developed markets in 2015, and wealth held by affluent retail investors is forecast to record a CAGR of 8.8% between 2015 and 2019.

- While Australias stock market struggled in 2015, generous dividend payouts and a friendly tax system have seen retail equity holdings growth outperform the local stock market index.

- Australian HNW individuals are heavily exposed to property in their non-traditional investments, and despite a slight rise in interest rates for investors appetite for real estate is forecast to remain strong.

Synopsis

Wealth in Australia: Sizing the Market Opportunity analyzes Australias 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...