Wednesday, 29 October 2014

Wealth in Russia




The Wealth in Russia reports are an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the report comprises a wide variety of data. With the wealth reports as the foundation for our research, analysis and forecasts to 2018 you can compose new strategies to grow your business effectively. 

These reports provide a thorough analysis of the private banking and wealth management sector, latest merger and acquisition activity, and the opportunities and challenges that it faces. Buy all three reports to gain a really strong understanding of the landscape of the Russian wealth industry. All three reports are designed to complement each other and give the consumer a full package. These reports are ideal to grow your business, give you the knowledge of the challenges within the industry or for in depth information based on the Russian wealth market.

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Report highlights
There were 1,318 UHNWIs in Russia in 2013, with an average per capita wealth of US$454 million, making them the prime target group for wealth sector professionals. Of this total, there were 108 billionaires, 643 centimillionaires and 567 affluent millionaires. UHNWIs accounted for just under 1% of the total HNWI population of Russia in 2013, slightly higher than the global average of 0.7%. During the review period, the number of UHNWIs in Russia increased by 118%, from 603 in 2009 to 1,318 in 2013. There was a range of performance between the different UHNWI wealth bands; the number of billionaires increased by 208%, while the number of centmillionaires and affluent millionaires increased by 110% and 115% respectively. WealthInsight expects the number of UHNWIs to increase by 5%, to reach 1,399 in 2018. This will include 125 billionaires, 680 centimillionaires and 594 affluent millionaires.


In 2013, equities was the largest asset class for Russian HNWIs, with 29% of the total HNWI assets, followed by real estate with 20%, business interests with 19%, fixed-income with 17.5%, alternatives with 7% and cash and deposits with 5%.Equities, alternatives and real estate recorded growth during the review period at respective rates of 102%, 96% and 86%. Alternative assets held by Russian HNWIs increased during the review period, from 7% of the total HNWI assets in 2009 to 7% in 2013; HNWI allocations to commodities increased from 1% of total assets in 2009 to 2% in 2013. Over the forecast period, WealthInsight expects allocations in commodities to decline back to 1% of total HNWI assets by 2018, as global liquidity tightens due to a forecast near-term drop in demand from China for raw materials. This is expected to cause global commodity prices to flatten out .As of 2013; Russian HNWI liquid assets valued US$594 billion, representing 52% of total wealth holdings.


In 2013, Russian HNWIs held 30% (US$345 billion) of their wealth outside of their home country; the worldwide average is 20–30%. WealthInsight expects foreign asset holdings to increase to US$404 billion by 2018, accounting for 29% of the country’s total HNWI assets. In 2013, Europe accounted for 60% of the foreign assets of Russian HNWIs. It was followed by Asia-Pacific with 17%, North America with 11%, the Middle East with 5%, Latin America with 3% and Africa with 1%.Russian HNWI allocations to Europe decreased sharply compared with other regions during the review period, from 72% in 2009 to 60% in 2013. Over the forecast period, WealthInsight expects HNWIs to reduce their level of investment in Europe to 54% of foreign HNWI assets by 2018, with investments decreasing due to growing confidence in Asian economies.


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