Marktanalyse - HNWI Asset Allocation in South Africa to 2016

Synopsis
This report is the result of WealthInsight’s extensive research covering the HNWI population and wealth management industry in South Africa.

Summary
This report provides the latest asset allocations of South African HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocation of South African 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:
• 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
• South Africa has the highest number of HNWIs in Africa. As of 2011, there were over 44,700 HNWIs in South Africa, with a combined wealth of US$188 billion, accounting for roughly 27% of South Africa’s total individual wealth (US$740 billion).
• Business interests recorded the strongest growth over the review period, driven by new business formation, particularly in the BEE arena.
• Alternative allocations were boosted by a strong gold and general commodities market — the commodity holdings of South African HNWIs increased from 1.6% of total assets in 2007 to 2.4% in 2011.
• Over the forecast period, WealthInsight expects a movement away from real estate, cash and fixed-income investments and towards equities and business interests.
• In 2011, HNWIs in South Africa held 17.4% (US$33 billion) of their wealth outside of South Africa. This is below the global average of approximately 30%.
• The share of foreign assets that South Africa’s HNWIs allocate to the rest of Africa increased substantially from 16% in 2007 to 23.4% in 2011. A large portion of new investment went into Mozambique, which is an emerging business location for South Africans. HNWI investment into Ghana, Uganda, Nigeria and Kenya also increased substantially.

Table of Contents

1 Introduction

2 Executive Summary

3 Wealth Sector Fundamentals

3.1 Political Background to South Africa

3.2 Economic Background to South Africa

3.3 Benchmarking South Africa’s Wealth in Context

3.3.1 Distribution of wealth

3.3.2 HNWI volume and wealth trends

4 Analysis of South African 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 interests

4.2 Analysis of Foreign Investments

4.2.1 Trend of investments in Europe

4.2.2 Trend of investments in North America

4.2.3 Trend of investments in the rest of Africa

4.2.4 Trend of investments in Asia-Pacific region

4.2.5 Trend of investments in Latin America

4.2.6 Trend of investments in the Middle East

4.3 Analysis of South African UHNWI investments

5 Appendix

5.1 Additional Components of the Wealth Sector in South Africa

5.1.1 Philanthropy

5.1.2 Black Economic Empowerment (BEE) and ‘Previously Disadvantaged Groups’

5.2 Regulatory Environment in South Africa

5.2.1 Exchange controls

5.2.2 Banking regulations

5.2.3 Regulations on taxes

5.2.4 Regulations on property and inheritance

5.3 Additional background of South Africa

5.4 Key Economic Trends and Drivers

5.4.1 LC to USD exchange rate

5.4.2 Real GDP growth

5.4.3 GDP per capita

5.4.4 Domestic market capitalization

5.4.5 Housing price indices

5.4.6 Commodity index

5.4.7 Foreign direct investment

5.4.8 Foreign institutional investments (FIIs) in equity products

5.4.9 Inflation rate

5.4.10 Interest rate

5.4.11 Balance of payments

5.4.12 Government debt

5.4.13 Stock market performance

5.5 Wealth breakdowns

6 About WealthInsight







List of Tables

Table 1: HNWI wealth band and group definitions

Table 2: Major regions in South Africa, 2011

Table 3: Largest cities in South Africa

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 — Local Residential Cities, 2007—2011

Table 10: HNWIs — Foreign Real Estate Investment in South Africa, 2007—2016

Table 11: HNWIs — City office prices per square meter

Table 12: HNWIs — Prime International Cities, 2007—2011

Table 13: HNWIs — % Foreign allocation, 2007—2016

Table 14: UHNWIs — Allocations and Share of HNWI Assets, 2011

Table 15: Tax Structure for Individuals in South Africa

Table 16: LC to USD Exchange Rate, 2006—2016

Table 17: Real GDP Growth, 2006—2016

Table 18: GDP Per Capita, 2006—2016

Table 19: Domestic Market Capitalization, 2006—2011

Table 20: Housing Price Index, 2006—2011

Table 21: Commodity Indices, 2006—2016

Table 22: Foreign Direct Investments, 2006—2016

Table 23: Investments of FIIs in Equity Products, 2006—2010

Table 24: Inflation rate, 2006—2016

Table 25: Money Market Rate, 2006—16

Table 26: Balance of Payments, 2006—2011

Table 27: Government Debt to GDP, 2006—2016

Table 28: Stock Market Performance, 2006—2011

Table 29: HNWI Wealth to GDP Ratio, 2007—2016

Table 30: Appendix One

Table 31: Appendix Two







List of Figures

Figure 1: HNWI wealth band definitions

Figure 2: Map of South Africa

Figure 3: Asset Price Performance, 2007—2011

Figure 4: South African HNWI Performance, 2007—2016

Figure 5: HNWI — South Africa vs The World

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

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

Figure 8: HNWIs — Liquid Assets Composition (US$ billion), 2007-16

Figure 9: HNWIs — Trends of Investments in Alternative Assets (in US$ billion), 2007—2016

Figure 10: HNWIs — Trends in 'Art, Wine and Wheels”, 2007—2011

Figure 11: HNWIs — Foreign Investment Allocation and Growth by Asset Class (%), 2011—2016

Figure 12: HNWIs — Global Distribution of Foreign Investments, 2007—2016

Figure 13: UHNWIs — Asset Class Composition, 2007—2016

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

Figure 15: Real GDP Growth (%), 2006—2016

Figure 16: GDP Per Capita, 2006—2016

Figure 17: Domestic Market Capitalization, 2006—2011

Figure 18: Housing Price Index, 2006—2011

Figure 19: Commodity Indices, 2006—2016

Figure 20: Foreign Direct Investments, 2006—2016

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

Figure 22: Inflation rate, 2006—2016

Figure 23: Money Market Rate, 2006—2016

Figure 24: Balance of Payments, 2006—2011

Figure 25: Government Debt to GDP, 2006—2016

Figure 26: Stock Market Performance, 2006—2011

Figure 27: HNWI Wealth vs GDP Ratio, 2007—2016

Figure 28: HNWIs — Volume by Wealth Band, 2007—2016

Figure 29: HNWIs — Wealth by Wealth Band (in US$ Billion), 2007—2016

Figure 30: HNWIs — Per Capita Net Worth (US$ million), 2007—2016

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