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China – The Future of HNWIs to 2015: Opportunities for Wealth Managers and Private Banks

© WealthInsight. This report is a licensed product and is not to be photocopied.

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The Family Office Report

2013

Publication date: April, 2013

Report code: WI0091MR

The Family Office Report 2013

© WealthInsight. This report is a licensed product and is not to be photocopied. Page 1

About WealthInsight

WealthInsight provides detailed data and insightful analysis on the world's HNWI and wealth sector. With

decades of experience providing business information, WealthInsight helps organizations to make informed

decisions and win new business.

At WealthInsight's core is our proprietary HNWI Database of the world's wealthiest individuals. Around this

database we have built a number of valuable research-based products and services that make

WealthInsight much more than just a rich contact list.

Contact:

Andrew Amoils

Senior Analyst & Head of Reports Team, WealthInsight

[email protected]

+44 (0)20 7406 6564

mailto:[email protected]



TABLE OF CONTENTS

1 Introduction .................................................................................................................... 6

1.1 Definitions .............................................................................................................................. 6

2 Summary ......................................................................................................................... 9

3 Country Profiles ........................................................................................................... 11

3.1 Australian Family Offices .................................................................................................... 11

3.2 Austrian Family Offices ....................................................................................................... 19

3.3 Belgian Family Offices ........................................................................................................ 19

3.4 Brazilian Family Offices ...................................................................................................... 20

3.5 Canadian Family Offices ..................................................................................................... 21

3.6 Dutch Family Offices ........................................................................................................... 23

3.7 Finnish Family Offices ......................................................................................................... 23

3.8 French Family Offices ......................................................................................................... 24

3.9 German Family Offices ........................................................................................................ 25

3.10 Guernsey Family Offices ..................................................................................................... 26

3.11 Indian Family Offices ........................................................................................................... 27

3.12 Isle of Man Family Offices ................................................................................................... 27

3.13 Irish Family Offices .............................................................................................................. 28

3.14 Israeli Family Offices ........................................................................................................... 28

3.15 Italian Family Offices ........................................................................................................... 29

3.16 Japanese Family Offices ..................................................................................................... 29

3.17 Jersey Family Offices .......................................................................................................... 30

3.18 Liechtenstein Family Offices .............................................................................................. 30

3.19 Luxemburg Family Offices .................................................................................................. 31

3.20 Norwegian Family Offices ................................................................................................... 31

3.21 Polish Family Offices ........................................................................................................... 31

3.22 Russian Family Offices ....................................................................................................... 32

3.23 Singapore Family Offices .................................................................................................... 32

3.24 South African Family Offices .............................................................................................. 33

3.25 Spanish Family Offices ....................................................................................................... 33

3.26 Swiss Family Offices ........................................................................................................... 34

3.27 Turkish Family Offices ........................................................................................................ 35

3.28 UAE Family Offices .............................................................................................................. 36

3.29 UK Family Offices ................................................................................................................ 36

3.30 USA Family Offices .............................................................................................................. 38

3.31 Other Countries ................................................................................................................... 40

3.32 Case Study: Wealthy European Families ........................................................................... 41

4 Competitive Landscape of Family Office Sector ....................................................... 43



5 Largest Family Offices ................................................................................................. 53

6 Future Prospects.......................................................................................................... 61

6.1 Summary .............................................................................................................................. 61

6.2 Regional Business Trends .................................................................................................. 61

6.3 Future Growth ...................................................................................................................... 62

6.4 Huge Potential in Asia ......................................................................................................... 63

7 Global Wealth Management Statistics ....................................................................... 64

8 About WealthInsight .................................................................................................... 68



LIST OF TABLES

Table 1: HNWI Wealth Band and Group Definitions ........................................................................................................................................... 7

Table 2: Australia: Multi-Family Offices, 2012 .................................................................................................................................................. 11

Table 3: Australia: SFOs – State Comparison and Potential ............................................................................................................................ 13

Table 4: Australia: SFOs – Sector Comparison and Potential .......................................................................................................................... 15

Table 5: Australia: SFOs – Top 10 SFOs by AuM ............................................................................................................................................ 18

Table 6: Austria: Family Offices, 2012 ............................................................................................................................................................. 19

Table 7: Belgium: Family Offices, 2012 ............................................................................................................................................................ 19

Table 8: Brazil: Family Offices, 2012 ............................................................................................................................................................... 20

Table 9: Canada: Family Offices, 2012 ............................................................................................................................................................ 22

Table 10: The Netherlands: Family Offices, 2012 ............................................................................................................................................ 23

Table 11: Finland: Family Offices, 2012 ........................................................................................................................................................... 23

Table 12: France: Multi-Family Offices, 2012 ................................................................................................................................................... 24

Table 13: Germany: Family Offices by City, 2012 ............................................................................................................................................ 25

Table 14: Germany: Family Offices, 2012 ........................................................................................................................................................ 26

Table 15: Guernsey: Family Offices, 2012 ....................................................................................................................................................... 26

Table 16: India: Family Offices, 2012 ............................................................................................................................................................... 27

Table 17: Isle of Man: Family Offices, 2012 ..................................................................................................................................................... 27

Table 18: Ireland: Family Offices, 2012 ............................................................................................................................................................ 28

Table 19: Israel: Family Offices, 2012 .............................................................................................................................................................. 28

Table 20: Italy: Family Offices, 2012 ................................................................................................................................................................ 29

Table 21: Japan: Family Offices, 2012 ............................................................................................................................................................. 29

Table 22: Jersey: Family Offices, 2012 ............................................................................................................................................................ 30

Table 23: Liechtenstein: Family Offices, 2012 .................................................................................................................................................. 30

Table 24: Luxemburg: Family Offices, 2012 ..................................................................................................................................................... 31

Table 25: Norway: Family Offices, 2012 .......................................................................................................................................................... 31

Table 26: Poland: Wealth Managers and Family Offices, 2012 ........................................................................................................................ 31

Table 27: Russia: Multi-Family Offices, 2011 ................................................................................................................................................... 32

Table 28: Singapore: Family Offices, 2012 ...................................................................................................................................................... 32

Table 29: South Africa: Family Offices, 2012 ................................................................................................................................................... 33

Table 30: Spain: Family Offices, 2012 ............................................................................................................................................................. 33

Table 31: Switzerland: Asset Allocation of Typical Single Family Office, 2011 ................................................................................................. 34

Table 32: Switzerland: Family Offices, 2012 .................................................................................................................................................... 35

Table 33: Turkey: Wealth Managers and Family Offices, 2012 ........................................................................................................................ 35

Table 34: UAE: Family Offices, 2012 ............................................................................................................................................................... 36

Table 35: UK: Major Multi-Family Offices, 2012 ............................................................................................................................................... 36

Table 36: UK: Major Single-Family Offices, 2012 ............................................................................................................................................. 37

Table 37: The US: Family Offices, 2011 .......................................................................................................................................................... 38

Table 38: The US: Family Offices by City, 2011 ............................................................................................................................................... 39

Table 39: Rest of the World: Family Offices, 2012 ........................................................................................................................................... 40

Table 40: Europe: Major Single-Family Offices, 2012 ...................................................................................................................................... 41

Table 41: Europe: Major Single-Family Offices, 2012 (continued) .................................................................................................................... 42

Table 42: Top 20 Global Family Offices, 2011 ................................................................................................................................................. 53



Table 43: Global: Offshore Centers by AuM (US$ Billion), 2011 ...................................................................................................................... 64

Table 44: Global: Major Countries by AuM (US$ Billion) 2011 ......................................................................................................................... 65

Table 45: Global: AuM Compared to HNWI Wealth by Major Country (US$ Billion), 2011 ............................................................................... 66

Table 46: Global: Other Countries by AuM (US$ Billion), 2011 ........................................................................................................................ 66

LIST OF FIGURES

Figure 1: HNWI Wealth Band Definitions ........................................................................................................................................................... 8

Figure 2: Wealth Management Industry – Maturity Level of Players ................................................................................................................. 10

Figure 3: Australia: SFOs – Geographical Location by Region ......................................................................................................................... 12

Figure 4: Australia: SFOs – State Comparison ................................................................................................................................................ 13

Figure 5: Australia: SFOs – By Sector ............................................................................................................................................................. 14

Figure 6: Australia: SFOs – Sector Comparison............................................................................................................................................... 15

Figure 7: Australia: SFOs – Retail and Fashion vs. Real Estate ....................................................................................................................... 16

Figure 8: Australia: SFOs – Basic Materials and Manufacturing vs. the Services Sector .................................................................................. 17



1 Introduction

1.1 Definitions

“Wealth management” is defined as the provision of banking services to wealthy individuals and

their families. It generally involves the management of trusts, inheritance and the allocation of client

funds.

A “family office” is defined as a wealth management company that focuses on a single HNWI or

small group of selected HNW clients.

A “private bank” is defined as a division of the banking group that provides wealth management

services.

A “wealth manager” is defined as a specialist wealth management service provider.

For the purposes of this report, the phrase “coverage period” refers to the period of 2007–2017,

while the “review period” relates to the years 2007–2012 and the “forecast period” relates to the

years 2012–2017.



Table 1: HNWI Wealth Band and Group Definitions

Wealth Band Definition

Billionaires Billionaires are those HNWIs with wealth of US$1 billion or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

Centimillionaires Centimillionaires are those HNWIs with wealth of between US$100 million and less than US$1 billion, including equities, bonds, cash and deposits, fixed-income products real estate (excluding primary residence), alternative assets and business interests.

Affluent Millionaires Affluent millionaires are those HNWIs with wealth of between US$30 million and less than US$100 million, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

Mid-Tier Millionaires Mid-tier millionaires are those HNWIs with wealth of between US$5 million and less than US$30 million, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

Lower-Tier Millionaires

Lower-tier millionaires are those HNWIs with wealth of between US$1 million and less than US$5 million, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

Wealth Group Definition

HNWIs The high net worth individuals (HNWIs) wealth group comprises all wealth bands. It represents those individuals with wealth of US$1 million or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

UHNWIs

The ultra high net worth individuals (UHNWIs) wealth group comprises the billionaire, centimillionaire and affluent millionaire wealth bands. It represents those individuals with wealth of US$30 million or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

Core HNWIs

The core HNWIs group comprises the mid-tier millionaire and lower-tier millionaire wealth bands. It represents those individuals with wealth of between US$1 million and less than US$30 million, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

Source: WealthInsight © WealthInsight



Figure 1: HNWI Wealth Band Definitions

Source: WealthInsight © WealthInsight



About WealthInsight

WealthInsight provides detailed data and insightful analysis on the world's HNWI and wealth sector. With

decades of experience providing business information, WealthInsight helps organizations to make informed

decisions and win new business.

At WealthInsight's core is our proprietary HNWI Database of the world's wealthiest individuals. Around this

database we have built a number of valuable research-based products and services that make

WealthInsight much more than just a rich contact list.

We work with and provide solutions for:

Wealth managers

Private banks

Family offices

Technology providers

Professional services – consultants, accountants, lawyers and real estate professionals

Fund managers, hedge fund managers, asset managers, venture capitalists

Non-profit and educational institutions

WealthInsight’s corporate headquarters are located in London, with offices in New York, San Francisco,

Sydney, Seoul and Hong Kong.

For more information on WealthInsight please visit www.wealthinsight.com

Intelligence Center

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 dossiers on

over 60,000 HNWIs from around the world.

The Intelligence Center also includes tracking of wealth and liquidity events as they happen and detailed

profiles of major private banks, wealth managers and family offices in each market.

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.

http://www.wealthinsight.com/



Reports

WealthInsight publishes high-quality research reports focused on the wealth sector. The reports provide

comprehensive analysis of countries, regions and special topics.

With the HNWI Database as the foundation for its primary research and analysis, WealthInsight is able to

obtain an unsurpassed level of granularity, insight and authority on the HNWI universe in each of the

countries and regions covered.

All reports are available as a part of the WealthInsight Intelligence Centre. Reports can also be purchased

on a subscription or one-off basis.

Every WealthInsight report is uniquely formulated for the region, country or topic covered. Key features of

the reports include:

Market sizing

Forecasting

Benchmarking

HNWI asset allocation

Behavioral mapping

Family offices

Methodology

WealthInsight’s teams of in-house analysts devise and collect data over a historical period of five years and

develop forecasts for a five-year forecast period. All WealthInsight wealth reports are rigorously sourced

and created according to a comprehensive methodological process:

Internal audit

Review of in-house databases to gather existing data:

Historic market databases and reports

HNWI Database

Wealth management, private bank and family office database

Financial deals and news archive

Secondary research

Collection of the latest market-specific data from a wide variety of industry sources:

Government statistics

Industry associations



Company filings

Broker reports

International organizations

Primary research

Review of the latest wealth management and private banking industry trends

Surveys using panels compiled from across the wealth sector:

Wealth management and private banking professionals

Financial services experts

HNWIs

Expert opinion

Collation of opinion taken from WealthInsight interviews of leading industry experts

Analysis of third-party opinion and forecasts:

Broker reports

Industry associations

Wealth management and private banking media

Official government sources

Leading academic research and commentary

Data consolidation and verification

Consolidation of data and opinion to create historical datasets

Creation of models to benchmark data across sectors, asset classes and geographies

Market forecasts

Feed of forecast data into market models:

Macroeconomic indicators

Industry-specific drivers

Analysis of the WealthInsight HNWI Database and Wealth sector company databases to identify

key trends:

Latest wealth trends

Key drivers of the wealth management industry

Report writing

Analysis of market data

Discussion of company and industry trends and issues

Integration of survey results

Annual review of financial deals and wealth management trends

Standardization of market definitions using recognized industry classifications



Quality control

Peer review

Senior-level QC

Random spot checks on data integrity

Benchmark checks across databases

Market data cross-checked for consistency with accumulated data from:

Internal databases

Company filings



Contributors to this report:

Andrew Amoils

Senior Analyst & Head of Reports Team, WealthInsight

[email protected]

+44 (0)20 7406 6564

Shekhar Tripathi

Senior Analyst, WealthInsight

Sunil Agarwal

Analyst, WealthInsight

Disclaimer

All Rights Reserved.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note

that the findings, conclusions and recommendations that WealthInsight delivers will be based on information

gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position

to guarantee. As such WealthInsight can accept no liability whatever for actions taken based on any information

provided herein.

mailto:[email protected]

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