Wealth in Switzerland: Sizing the Market Opportunity

1.1. Economic factors influenced slow Swiss wealth market growth
1.2. Key findings
1.3. Critical success factors

2.1. Introduction
2.2. Growth will slow down in future years
2.2.1. 2017 saw slow yet positive growth in the Swiss economy
2.2.2. HNW individuals account for 2% of the population
2.2.3. The proportion of liquid assets held by HNW individuals increased by 1.5pp in 2017
2.2.4. A fifth of HNWs’ investable portfolio is held in illiquid assets
2.3. Offshore investments now account for 30% of Swiss HNW assets
2.3.1. Geographic diversification leads Swiss residents to invest offshore
2.3.2. Exchange rate fluctuations should encourage wealth repatriation
2.3.3. Switzerland introduced non-punishable voluntary disclosure for tax evaders

3.1. Introduction
3.2. Deposits will slow in growth but continue to contribute the most
3.2.1. Negative interest rates and stock market downturn will mute future growth
3.3. Mutual funds and equities drive the growth of the retail savings and investments market
3.3.1. The SMI is dominated by consumer goods and healthcare
3.3.2. Equity investors remain prudent in times of growth
3.3.3. Mutual funds growth exceeds other asset classes
3.4. Deposits experience steady but slow growth
3.4.1. Flows from the equity market offset the impact of negative interest rates on deposit growth
3.5. Bonds have experienced outflows since 2010
3.5.1. Negative interest rates continue to reduce appetite for bonds
3.5.2. The unstable European outlook reduces the chance of interest rate change

4.1. Introduction
4.2. Various initiatives and scandals affect the Swiss non-resident market
4.2.1. Switzerland agreed to automatic exchange of tax information
4.2.2. The appeal of Swiss banks is declining
4.3. The majority of retail non-resident assets are held in equities and mutual funds
4.3.1. Stock market performance in 2017 encouraged the resurgence of non-resident investors

5.1. Abbreviations and acronyms
5.2. Supplementary data
5.3. Definitions
5.3.1. Affluent
5.3.2. Domicile
5.3.3. Double taxation convention
5.3.4. Emerging affluent
5.3.5. FATCA
5.3.6. HNW
5.3.7. Individual
5.3.8. Liquid assets
5.3.9. Mass affluent
5.3.10. Mass market
5.3.11. Onshore
5.3.12. Residency
5.3.13. Exchange of information
5.3.14. TIEAs
5.4. Methodology
5.4.1. 2018 Global Wealth Managers Survey
5.4.2. Retail Investments Analytics
5.4.3. Global Wealth Model
5.4.4. Exchange rates
5.5. Bibliography
5.6. Further reading

Table 1: Number of adults in Switzerland segmented by asset band (000s), 2006-11
Table 2: Number of adults in Switzerland segmented by asset band (000s), 2012-17
Table 3: Number of adults in Switzerland segmented by asset band (000s), 2018f-22f
Table 4: Retail liquid assets in Switzerland segmented by asset band ($m), 2006-11
Table 5: Retail liquid assets in Switzerland segmented by asset band ($m), 2012-17
Table 6: Retail liquid assets in Switzerland segmented by asset band ($m), 2018f-22f
Table 7: US dollar exchange rates with the Swiss franc

Figure 1: 71% of the Swiss population is affluent
Figure 2: Affluent individuals account for 94% of total liquid assets
Figure 3: Commodities are forecast to have the highest increase in demand in terms of HNW asset allocation
Figure 4: Offshore investments by Swiss residents are above average
Figure 5: Deposits continue to dominate, although growth has slowed
Figure 6: Bonds are the only asset class to have decreased
Figure 7: The healthcare sector has the largest stock market weighting
Figure 8: Stock market performance boosted equities in 2017
Figure 9: Mutual funds recorded the highest growth in 2017
Figure 10: Growth slowed down in 2017 for deposits, and the outlook is poor
Figure 11: Appetite for bonds continues to fall
Figure 12: Switzerland has adopted the OECD’s CRS
Figure 13: Equities and mutual funds saw the largest growth among non-resident retail investors
Figure 14: Example of a four-input forecasting process 38