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Wealth in Turkey: HNW Investors: Understanding HNW investors and wealth management strategies.

Published By :

Verdict Financial

Published Date : Jul 2016

Category :


No. of Pages : 43 Pages

Nearly half of Turkish investors attribute their wealth to the manufacturing and property industries, reflective of market demand and the countrys main exports. When opting to have wealth managed by a professional, Turkish HNW clients expect better returns and the convenience of not dealing with administrative details. However, Turkish HNW clients are confident in self-directing their portfolios and prefer to manage simple investments themselves, as well as having exclusive control over at least a proportion of their portfolios.

Key Findings
Accumulating wealth through earned income or as a first-generation entrepreneur is common among Turkish individuals, together accounting for 64% of the HNW population.

40.9% of a typical Turkish HNW portfolio is invested in execution-only mandates. Turkish HNW clients are confident in self-directing their portfolios; they prefer managing simple investments and having exclusive control, and are comfortable with using digital investment tools.

Bonds constitute the largest proportion of Turkish HNW wealth and make up 43% of a typical portfolio. Nearly 90% of this wealth is kept directly instead of in funds.

Wealth managers are confident in the outlook of the Turkish property market: 23% of HNW wealth is held in property and 55% of wealth managers believe demand for property will increase over the next year.

Turkish HNW individuals seek professional advice in preparing for retirement, as the vast majority of wealth managers anticipate greater demand for inheritance planning.

Verdict Financials Wealth in Turkey: HNW Investors report analyzes the investing preferences and portfolio allocation of Turkish HNW investors. The report is based on our proprietary Global Wealth Managers Survey.

Specifically the report:

Profiles the average Turkish HNW investor in terms of their demographics and analyzes the expat opportunity in Turkey.

Analyzes which wealth management mandates are preferred among Turkish HNW investors and how demand will develop looking forward.

Examines the allocation of Turkish HNW investors portfolios into different asset classes and how this allocation is expected to develop in the future.

Analyzes the product and service demand among Turkish HNW investors.

Develop and enhance your client targeting strategies using our data on HNW profiles and sources of wealth.

Give your marketing strategies the edge required and capture new clients using insights from our data on HNW investors drivers for seeking investment advice vs. self-directing.

Tailor your investment product portfolio to match the current and future demand for different asset classes among HNW individuals.

Develop your service proposition to match the service and product demand expressed by Turkish HNW investors and react proactively to the forecasted change in demand.
Table of Contents
Key findings
Critical success factors
The main source of Turkish HNW wealth is earned income
Earned income and inheritance are the most important wealth sources for HNW investors
The sectors in which HNW clients amass wealth in Turkey are diverse
HNW expats constitute a significant proportion of HNW investors in Turkey
The majority of HNW expat clients in Turkey are classified as short-term residents
The largest proportions of HNW expats originate from EMEA
HNW expats invest in Turkey for better tax and investment opportunities
Turkish HNW individuals take an active approach to managing wealth
Investors forecast a better client experience when opting for professional management
Turkish HNW clients are most likely to self-direct their wealth
Demand for asset management is stronger in Turkey than in Central and Eastern Europe
Significant demand increases are forecast across all asset management types
70.9% of wealth managers expect demand for discretionary asset management to increase
Turkish investors prefer managing a proportion of their investments for control and trust reasons
Turkish HNW investors hold a sizable proportion of wealth in bonds
HNW clients prefer diversified investment strategies
Turkish HNW individuals hold 17% of their wealth in equities
Bonds make up the largest percentage of the average Turkish HNW portfolio
Cash constitutes the second largest proportion of Turkish HNW wealth
Demand for property investments among Turkish HNW investors will grow
Turkish HNW individuals hold a minimal amount in alternative investments
Commodity investments are of little interest to Turkish HNW clients
Turkish HNW individuals show varied demand for wealth services
Wealth managers experience the strongest demand for pension planning services
Wealth managers anticipate noticeable increases in demand for planning services
Wealth managers will experience strong demand for investment property advice
Demand levels for investment property advice are mixed
Investment property services will become a focal point of wealth management services
Abbreviations and acronyms
Verdict Financial's 2015 Global Wealth Managers Survey
Verdict Financial's 2014 Global Wealth Managers Survey
Further reading

List of Tables
Table 1: Spain, Portugal, Cyprus, Malta, and Greece offer Golden Visas through investment in real estate

List of Figures
Figure 1: Turkish HNW clients predominantly accumulated wealth through earned income
Figure 2: Many HNW clients accumulated wealth in the manufacturing and property sectors
Figure 3: Turkey's Manufacturing PMI illustrates contraction rather than expansion
Figure 4: The proportion of HNW expat investors in Turkey is more than twice that of Central and Eastern Europe
Figure 5: Switzerland and Kuwait are the major feeder countries for HNW expats
Figure 6: HNW expats invest in Turkey for tax advantages and better investment opportunities
Figure 7: Turkish HNW clients seek better returns when opting for wealth management services
Figure 8: Over 40% of Turkish HNW investors opt for execution-only management
Figure 9: Garanti Asset Management oversees $4bn in assets under management
Figure 10: Over half of wealth managers experience strong demand for advisory management
Figure 11: 91.1% of wealth managers expect demand for execution-only management to increase
Figure 12: Managing simple investments is the most common reason Turkish HNW clients have a preference for self-directing a proportion of their wealth
Figure 13: Turkish HNW asset allocation is similar to that of Central and Eastern Europe
Figure 14: 30.6% of equity is allocated to ETPs
Figure 15: 30% of Turkish wealth managers expect demand for equities to increase
Figure 16: Turkish HNW clients are heavily invested in bonds
Figure 17: Wealth managers anticipate greater demand for bonds over the next year
Figure 18: Many of Turkey's HNW clients allocate cash holdings to local or foreign currency deposits
Figure 19: HNW clients seek cash funds rather than direct holdings for better returns
Figure 20: Property constitutes 13% of Turkish HNW portfolios
Figure 21: Wealth managers will continue to experience strong demand for property investments
Figure 22: Alternatives is the only asset class that Turkish HNW investors prefer to hold in funds
Figure 23: The Abraaj Group is a global private equity firm investing in Turkey
Figure 24: Turkven is one of the country's largest private equity firms
Figure 25: HNW clients seek alternatives when they are dissatisfied with other investments
Figure 26: A minimal proportion of Turkish HNW wealth is allocated to commodities
Figure 27: Demand is not forecast to increase for commodity investments over the next year
Figure 28: 62.6% of wealth managers experience strong demand for pension planning
Figure 29: Wealth managers expect demand for financial planning services to grow
Figure 30: 71% of wealth managers experience strong demand for tax planning services
Figure 31: Demand for investment property advice is forecast to increase

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