Marktanalyse - HNWI Asset Allocation in Brazil to 2016

Synopsis
This report is the result of WealthInsight’s extensive research covering the HNWI population and wealth management industry in Brazil. It provides detailed figures on the current and expected HNWI asset allocations of Brazilian HNWIs to 2016.

Summary
This report provides the latest asset allocations of Brazilian HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocation of Brazilian HNWIs to 2016 and a comprehensive and robust background of the local economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation.

Scope
The report features:
• Independent market sizing of Brazilian HNWIs across five wealth bands
• HNWI volume, wealth and allocation trends from 2007 to 2011
• HNWI volume, wealth and allocation forecasts to 2016
• HNWI and UHNWI asset allocations across 13 asset classes
• 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 up to one hundred data-points on over 100,000 HNWIs from around the world. It also includes profiles on major private banks, wealth managers and family offices in each country. 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.
• Comprehensive forecasts to 2016.

Key Highlights
• Brazil has the highest number of HNWIs in Latin America and third highest among BRIC nations. As of 2011, there are just over 194,000 HNWIs in Brazil, with a combined wealth of US$951 billion, accounting for roughly 29% of Brazil’s total wealth (US$3.3 trillion).
• The total number of HNWIs in Brazil increased by 31% during the review period (2007—2011), while the HNWI wealth rose by 39%.
• In 2011, real estate is the largest asset class for HNWIs in Brazil (37.4% of total HNWI assets), followed by equities (18.4%), cash (13.5%). business interests (12.7%) fixed income (12.4%) and alternatives (5.6%).
• Brazilian HNWI real estate allocations of 37.4% are significantly higher than the global average of 15—20%.

Table of Contents

1 Introduction

1.1 What is this Report About?

2 Executive Summary

3 Wealth Management Fundamentals

3.1 Political Background to Brazil

3.2 Economic Background to Brazil

3.3 Benchmarking Brazil’s Wealth in Context

3.3.1 Distribution of wealth

4 Analysis of Brazilian HNWI Investments

4.1 Analysis by Asset Class

4.1.1 Changing trends in liquid assets (equity, fixed income and cash and deposits)

4.1.2 Trends in alternative assets

4.1.3 Trends in 'Art, Wine and Wheels”

4.1.4 Trends of investments in real estate

4.1.5 Trends of investments in cash and deposits

4.1.6 Trends of investments in fixed income

4.1.7 Trends of investments in equity

4.1.8 Trends of investments in business interest

4.2 Analysis of Foreign Investments

4.2.1 Trend of investments in North America

4.2.2 Trend of investments in Latin America and Caribbean

4.2.3 Trend of investments in Europe

4.2.4 Trend of investments in Asia-Pacific region

4.3 Analysis of Brazilian UHNWI Investments

5 Appendix

5.1 Regulatory Environment in Brazil

5.1.1 Banking regulations

5.1.2 Regulations on Taxes

5.1.3 Regulations on wealth management and private banking

5.1.4 Regulations related to immigration, investment and employment

5.2 Social Background of Brazil

5.3 Key economic trends and drivers

5.3.1 LC to USD Exchange Rate

5.3.2 Real GDP growth

5.3.3 GDP per capita

5.3.4 Domestic market capitalization

5.3.5 Housing price indices

5.3.6 Commodity index

5.3.7 Foreign direct investment

5.3.8 Investments of FIIs in equity products

5.3.9 Inflation rate

5.3.10 Interest rate

5.3.11 Balance of payments

5.3.12 Government debt

5.3.13 Stock market performance

5.3.14 HNWI wealth to GDP ratio

6 About WealthInsight



List of Tables

Table 1: HNWI Wealth Band and Group Definitions

Table 2: Regions in Brazil

Table 3: Largest 10 Cities in Brazil

Table 4: HNWIs — HNWI Holdings Growth (%), 2007—2016

Table 5: HNWIs — Liquid Asset Composition (%), 2007—2016

Table 6: HNWIs — Trends of Investments in Alternative Assets (%), 2007—2016

Table 7: HNWIs — Alternative Asset Composition (%), 2007—2016

Table 8: HNWIs — Trends in 'Art, Wine and Wheels”, 2007—2011

Table 9: HNWIs — Residential Real Estate Prices Per City, 2011

Table 10: HNWIs — Foreign Real Estate investment in Brazil, 2007—2016

Table 11: HNWIs — Prime International Cities, 2007—2011

Table 12: HNWIs — % Foreign Allocation, 2007—2016 — X Axis

Table 13: UHNWIs — Allocations and Share of HNWI Assets, 2011

Table 14: LC to USD Exchange Rate, 2006—2016

Table 15: Real GDP Growth, 2006—2016

Table 16: GDP Per Capita, 2006—2016

Table 17: Domestic Market Capitalization, 2006—2011

Table 18: Housing Price Index, 2006—2011

Table 19: Commodity Indices, 2006—2016

Table 20: Foreign Direct Investments, 2006—2016

Table 21: Investments of FIIs in Equity Products, 2006—2010

Table 22: Inflation Rate, 2006—2016

Table 23: Money Market Rate, 2006—2016

Table 24: Balance of Payments, 2006—2011

Table 25: Government Debt to GDP, 2006—2016

Table 26: Stock Market Performance, 2006—2011

Table 27: HNWI Wealth vs. GDP Ratio, 2007—2016

Table 28: Appendix One

Table 29: Appendix Two



List of Figures

Figure 1: HNWI Wealth Band Definitions

Figure 2: Map of Brazil

Figure 3: Asset Price Performance, 2007—2011

Figure 4: Brazilian HNWI Performance, 2007—2016

Figure 5: HNWI — Brazil vs the World

Figure 6: HNWIs — Asset Class Composition, 2007—2016

Figure 7: HNWIs — Changing Trends in Total Liquid Assets (as a Percentage of Total Assets), 2007—2016

Figure 8: HNWIs — Trends of Investments in Alternative Assets (in US$ Billion), 2007—2016

Figure 9: HNWIs — Trends in 'Art, Wine and Wheels”, 2007—2011

Figure 10: HNWIs — Foreign Investment Allocation and Growth by Asset Class (%), 2011—2016

Figure 11: HNWIs — Global Distribution of Foreign Investments, 2007—2016

Figure 12: UHNWIs — Asset Class Composition, 2007—2016

Figure 13: LC to USD Exchange Rate, 2006—2016

Figure 14: Real GDP Growth (%), 2006—2016

Figure 15: GDP Per Capita, 2006—2016

Figure 16: Domestic Market Capitalization, 2006—2011

Figure 17: Housing Price Index, 2006—2011

Figure 18: Commodity Indices, 2006—2016

Figure 19: Foreign Direct Investments, 2006—2016

Figure 20: Investments of FIIs in Equity Products, 2006—2010

Figure 21: Inflation Rate, 2006—2016

Figure 22: Money Market Rate, 2006—2016

Figure 23: Balance of Payments, 2006—2011

Figure 24: Government Debt to GDP, 2006—2016

Figure 25: Stock Market Performance, 2006—2011

Figure 26: HNWI Wealth vs GDP Ratio, 2007—2016

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