Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Affluent Investing - UK - November 2015

“Wealth managers have managed to perform well in a testing investment environment in the last year. However, firms must remain vigilant in order to remain successful and provide returns for their clients. The increased market share of discretionary services in 2014 reflects investors’ belief in managers to negotiate turbulent periods better than they could do themselves.”
– Rich Shepherd, Financial Services Research Analyst

This report discusses the following key topics:

  • Can digital services serve changing needs?
  • Can managers introduce risk earlier in an investor’s career?
  • Pension freedoms, an opportunity and a threat?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Report scope and definitions
      • Executive Summary

          • The market
            • Assets under management grew by 7.9% in 2014
              • Figure 1: Total UK wealth management industry revenues – Fan chart, 2010-20
            • Companies and brands
              • St James’ Place is the UK’s largest wealth manager
                • Figure 2: Largest 15 wealth managers, by assets under management – UK, 2014
              • The consumer
                • 92% of Affluent and HNW individuals are investors
                  • Figure 3: Saving and investment product ownership, July 2015
                • Two thirds make their own investment decisions
                  • Figure 4: Approach to investment management and decision making, July 2015
                • Retirement is the biggest saving and investment goal
                  • Figure 5: Saving and investment priorities for the next 12 months, July 2015
                • IFAs are the top choice for advice
                  • Figure 6: Sources of financial advice when taking out an investment product, July 2015
                • Investors favour a long-term, cautious approach
                  • Figure 7: Attitudes towards investments, July 2015
                • A fifth are more likely to save to invest in pensions since pension freedoms
                  • Figure 8: Impact of pension freedoms on saving and investing, July 2015
                • What we think
                • Issues and Insights

                  • Can digital services serve changing needs?
                    • The facts
                      • The implications
                        • Can managers introduce risk earlier in an investor’s career?
                          • The facts
                            • The implications
                              • Pension freedoms, an opportunity and a threat?
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Assets under management grew by 7.9% in 2014…
                                      • …driven mostly by investment managers
                                        • Discretionary services are the dominant form of wealth management
                                          • An uncertain market
                                          • Market Size and Forecast

                                            • Wealth managers’ revenues grew by 2% in 2014
                                              • Figure 9: Size of the UK wealth management sector, by number of client accounts, value of investment assets managed or administered and total revenues, 2011-15
                                            • Steady growth expected in the next five years
                                              • Figure 10: Total UK wealth management industry revenues – Fan chart, 2010-20
                                              • Figure 11: Forecast of total UK wealth management industry revenues, 2015-20
                                            • Forecast methodology
                                            • Market Segmentation

                                              • Investment managers achieved the strongest asset growth in 2014…
                                                • Figure 12: Value of assets managed, by type of wealth management firm, 2011-14
                                              • …but full-service wealth managers brought in the most clients
                                                • Figure 13: Number of accounts/portfolios, by type of firm, 2013-14
                                              • Private banks saw revenues fall in 2014
                                                • Figure 14: Wealth manager revenues, by type of firm, 2011-14
                                            • Channels to Market

                                                • Most clients use discretionary services…
                                                  • Figure 15: Number of client accounts/portfolios, by mandate type, 2010-14
                                                • ...which achieved 10% growth in assets in 2014
                                                  • Figure 16: Investment assets held by wealth managers, by mandate type, 2011-14
                                              • Market Drivers

                                                • Volatility on the stock market
                                                  • Global markets slow and show signs of decline
                                                    • Figure 17: Market capitalisation of global stock exchanges, by region, 2009-15
                                                  • Legislative and regulatory environment
                                                    • Introduction of MiFID II nears
                                                      • Pension freedoms create new opportunities
                                                        • Summer Budget ends permanent non-dom status and cuts tax relief on pensions
                                                          • Reduction to deposit protection
                                                          • Key Players – What You Need to Know

                                                            • St James’ Place is the UK’s largest wealth manager
                                                              • Innovation or tradition?
                                                                • Above-the-line advertising expenditure cut by 45%
                                                                • Market Share

                                                                  • St James’ Place is the UK’s largest wealth management firm
                                                                    • Figure 18: Largest 15 wealth managers, by assets under management – UK, 2013 and 2014
                                                                • Competitive Strategies

                                                                  • Product and regulatory developments in digital innovation…
                                                                    • …but traditions remain important
                                                                      • Focus on higher-value clients
                                                                      • Advertising and Marketing Activity

                                                                        • Above-the-line advertising spend fell by 45% in 2015
                                                                          • Figure 19: Top ten recorded above-the-line, direct mail and online display advertisers of wealth management products and services, 2011-15
                                                                        • Press and outdoor advertising dominate advertising channels
                                                                          • Figure 20: Recorded above-the-line, direct mail and online display advertising expenditure on wealth management products and services, by media type, 2013-15
                                                                        • Nielsen Media Research coverage
                                                                        • The Consumer – What You Need to Know

                                                                          • Investment ownership increases with wealth…
                                                                            • …while most investors have diversified assets
                                                                              • Two thirds make their own investment decisions
                                                                                • Retirement is the biggest saving and investment goal
                                                                                  • IFAs are the top choice for advice
                                                                                    • Investors favour a long-term, cautious approach
                                                                                      • A fifth are more save to invest in pensions since pension freedoms
                                                                                      • Segmenting the Target Wealth Market

                                                                                        • Segmentation of wealth tiers
                                                                                          • Figure 21: Segmentation of total sample, by investable assets, July 2015
                                                                                        • Panel composition
                                                                                        • Saving and Investment Product Ownership

                                                                                          • Wealthier individuals are more likely to invest
                                                                                            • Figure 22: Saving and investment product ownership, July 2015
                                                                                          • Most clients have diversified assets…
                                                                                            • Figure 23: Repertoire of currently owned savings and investment products, July 2015
                                                                                          • …especially Affluent and HNW clients
                                                                                            • Figure 24: Repertoire of currently owned savings and investment products, by wealth tier, July 2015
                                                                                          • Property appeals to diversified investors, but only to a point
                                                                                              • Figure 25: Repertoire of currently owned savings and investment products, by saving and investment products owned, July 2015
                                                                                          • Investment Management Approach

                                                                                            • Two thirds make all their own decisions
                                                                                              • Figure 26: Approach to investment management and decision making, July 2015
                                                                                            • All groups turn towards self-directed investing
                                                                                              • Figure 27: Approach to investment management and decision making, by wealth tier, 2012-15
                                                                                          • Saving and Investment Priorities

                                                                                            • Retirement is the top priority for the next year
                                                                                              • Figure 28: Saving and investment priorities for the next 12 months, July 2015
                                                                                            • Priorities change with age
                                                                                              • Figure 29: Selected saving and investment priorities for the next 12 months, by age, July 2015
                                                                                            • Over-65s prioritise looking after what they have
                                                                                            • Sources of Financial Advice

                                                                                              • IFAs are the top source of advice
                                                                                                • Figure 30: Sources of financial advice when taking out an investment product, July 2015
                                                                                              • Online platforms fail to achieve growth in interest…
                                                                                                • …but adventurous investors are willing to use their services
                                                                                                  • Figure 31: Sources of financial advice when taking out an investment product, by attitude towards investment risk, July 2015
                                                                                              • Attitudes towards Investing

                                                                                                • Long-term gains are more important than anything else
                                                                                                  • Figure 32: Attitudes towards investments, July 2015
                                                                                                • Cautiousness is most common among the Aspirational
                                                                                                  • Figure 33: Agreement with the statement “I’m fairly cautious” towards investing, by wealth tier, July 2015
                                                                                                • Green and ethical issues make little impact
                                                                                                  • Under-45s have shorter-term ambitions
                                                                                                    • Figure 34: Agreement with attitudes towards investments, by age, July 2015
                                                                                                • Impact of Pension Freedoms on Saving and Investing

                                                                                                  • Most investors feel unaffected by pension freedoms…
                                                                                                    • Figure 35: Impact of pension freedoms on saving and investing, July 2015
                                                                                                  • …but 30% of under-45s are now more likely to save in a pension
                                                                                                    • Figure 36: Impact of pension freedoms on saving and investing, by age, July 2015
                                                                                                • Appendix – Market Size and Forecast

                                                                                                    • Figure 37: Best- and worst-case forecast of total UK wealth management industry revenues, 2015-20
                                                                                                  • Forecast methodology
                                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                    • Abbreviations
                                                                                                      • Key sources

                                                                                                      Companies Covered

                                                                                                      To learn more about the companies covered in this report please contact us.

                                                                                                      Affluent Investing - UK - November 2015

                                                                                                      £1,995.00 (Excl.Tax)