Wealth in Taiwan: Sizing the Market Opportunity 2016
SummaryA plunge in stock market performance and weak economic data took a toll on Taiwanese wealth generation in 2015. However, a robust equity market recovery in 2016 has boosted the retail savings and investment market, with gains of almost 10% on the Taiwan Futures Exchange in the first nine months of 2016. Between 2016 and 2020, Taiwan’s retail investment market is forecast to record a compound annual growth rate (CAGR) of 4.9%.
Key Findings
- Affluent individuals account for 25.9% of the population, with HNW individuals constituting just 0.45% of the total adult population. Affluent individuals hold 78% of the total wealth, or $987.2bn, of which the HNW share is around 29.8%.
- Over the forecast period, all asset classes are set to exceed economic growth. However, deposits are likely to decline as a proportion of savings, while investment holdings and equity mutual funds have recovered from a weak 2015 to see strong growth. Direct equity holdings will see the most growth over the next five years, recording a CAGR of 7.5%.
- Constituting only 0.9% and 2.6% respectively, bonds and mutual funds are strongly underrepresented in retail investors' portfolios, and despite above market growth neither are likely to become important parts of portfolios anytime soon.
- HNW individuals in Taiwan allocate around 15% of their investible assets outside of traditional investments, mostly in property and alternatives. In 2016, life insurance also became a significant facet of investor portfolios, accounting for around 25%. Of alternative investments, property remains the most popular asset class, with new regulations pushing real estate investment trusts into the spotlight.
Synopsis
Verdict Financial’s “Wealth in Taiwan: Sizing the Market Opportunity 2016†analyzes the Taiwanese 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 market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.
- Analyzes which asset classes are favored by Taiwanese investors and how their preferences impact the growth of the total savings and investments market.
- Examines HNW clients’ attitudes towards non-liquid investments such as property and commodities.
- Identifies key drivers and booking centers for offshore investments.
Reasons To Buy
- Benchmark your share of the Taiwan wealth market against the current market size.
- Forecast your future growth prospects using our projections for the market to 2020.
- Identify your most promising client segment by analyzing penetration of affluent individuals in Taiwan.
- Evaluate your HNW proposition by understanding how the Taiwanese tax system will impact HNW clients.
- Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.
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