Growth in France’s retail savings and investment market will be dampened by a faltering economic recovery and a weaker stock market performance. Economic and political challenges continue to reverberate in the development of the affluent market, with lower growth forecast in both individuals and assets to 2020.
- Affluent individuals account for 17.5% of the French adult population and hold 80.6% of liquid assets. This wealth distribution is similar to other developed economies. The proportion of affluent individuals among the French adult population is expected to increase by 2 percentage points by 2020.
- Slow but steady growth is forecast in the French retail savings and investments market (2.2% compound annual growth rate to 2020). Lower growth rates are anticipated across all asset classes due to continuing economic and political struggles.
- Deposits dominate the retail savings and investments market, accounting for just under 70% of liquid assets. They are forecast to be the main driver of growth to 2020 as a result of their ongoing status as a safe haven.
- Investment in illiquid assets has increased significantly. In 2016, they constitute over 30% of a typical HNW portfolio. Real estate investment trusts are the most important type of investment in this field.
- Offshore investments account for just over 14% of HNW assets. These are primarily driven by the desire for tax efficiency, but concerns over local political stability are also significant.
Verdict Financial’s “Wealth in France: Sizing the Market Opportunity 2016” analyzes the French 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 the number of individuals and the value of their liquid assets) using our proprietary datasets.
- Analyzes which asset classes are favored by French 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 French 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 the penetration of affluent individuals in France.
- Evaluate your HNW proposition by understanding how the French tax system will impact HNW clients.
- Review your offshore strategy by learning HNW motivations for offshore investments and their preferred booking centers.