Reportlinker Adds Wealth Management in Russia 2009

NEW YORK, Feb. 4 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Wealth Management in Russia 2009

http://www.reportlinker.com/p0175705/Wealth-Management-in-Russia-2009.html

Introduction

The wealth management market in Russia is becoming much more competitive, spurred on by the growth of domestic providers. Russian high net worths, however, remain unsophisticated and staunchly conservative when it comes to investments. To succeed in the country, wealth managers need to know what this lucrative customer wants from them, in terms of products, services and interactions.

Scope

*Sizes, segments and forecasts the number of affluent individuals across 10 liquid asset bands from EUR50k.

*Primary research among domestic wealth managers provides insight into HNWs and the private banking market.

*Utilizes Datamonitor's proprietary Wealth Management Opportunity Index to score the attractiveness of the market.

Highlights

Russia has undergone a long period of economic and political upheaval and its burgeoning wealth market has experienced mixed fortunes. The relatively steady growth that characterized the Russian economy gave way to a much poorer performance by 2008. Nonetheless, the declines in the wealth of Russia's affluent population have been relatively modest.

Although Russian HNWs are relatively unsophisticated and conservative when it comes to their wealth, they are business savvy and know when to take a risk. Wealth managers need to cater for this by offering them: friendly, personal service; understandable products; and customized education to extend their investment knowledge.

Russia has a significant number of domestic wealth management players, although the landscape for this sector in Russia is changing, with the presence of an increasing number of international banks creating a more competitive market for the management of wealth.

Reasons to Purchase

*Understand Russian HNWs' attitudes and investment behaviour, and the expectations they have of their wealth managers.

*Gain insight into the competitive characteristics of the Russian wealth management market, and learn the factors for success.

*See how Russia's wealth management market scores against Datamonitor's Opportunity Index.

Overview 1

Catalyst 1

Summary 1

Methodology 2

Executive Summary 3

In the context of the economic and market woes, the falls in wealth have been relatively modest 3

HNWs are relatively unsophisticated on investment matters, loyal and very conservative 3

Russia is becoming more competitive for wealth managers 3

Table of Contents 4

Table of tables 5

Table of figures 6

Table of figures 6

Russia's Wealth 7

Russia's fortunes are very much linked to the vagaries of oil and gas 7

After a bruising 2008, the Russian Stock Exchange bounced back strongly in 2009 9

The property market has also given up gains made in prior years 10

Deposit rates and money market rates have offered modest returns to Russian investors 10

Russian investors have the vast majority of their liquid assets in deposits 11

The fall in the market has increased the importance of deposits over other asset classes 11

The recessionary environment has taken its toll on Russian HNWs in 2008 13

The declines have been modest and Datamonitor expects a rapid growth in wealth going forward 13

The value of wealth held by affluent shows associated growth rates 17

The Evolution of Russia's Wealth Management Market 19

Russia's wealth management market has its origins in the economic reforms of the former Soviet Union 19

The burgeoning wealth market in Russia has given rise to opportunities for domestic and international wealth managers who invest clients' money onshore and offshore 20

Domestic Russian banks have expanded their businesses to offer HNWs a range of wealth offerings 20

International banks have started to significantly expand their wealth management operations into Russia 21

The Russian wealth market is a competitive space for both onshore and offshore funds 21

Encouraging the take-up of a broader range of investment products is a challenge for wealth managers in Russia 22

The Wealth Management Opportunity Index 23

Wealth management market features 26

Range of products and services: 0 26

Level of consolidation: 1 27

Ease of market entry: 2 27

Level of international wealth management activity in the country: 1 28

Russian HNW client characteristics 29

Level of use of onshore services: -1 29

Level of demand for high quality service: -2 29

Appendix 31

Datamonitor's Wealth Management Opportunity Index 31

There are five key parameters when assessing a market for its wealth management potential 31

There are 18 components to the five key parameters of the wealth management opportunity index 32

Institutional factors 32

Economic variables 32

Wealth management market size 32

Wealth management market features 33

Wealth management client characteristics 34

Definitions 35

The drivers of growth in the wealthy population 35

Income growth (combined with inflation, changes in GDP by sector, household savings rates and debt levels) 35

Investment returns (market capitalization, interest rates and bond yields) 35

The following measures are not, in themselves, drivers of wealthy population growth 35

Market capitalization 35

GDP 35

The following measures are not drivers of wealthy population growth except under very restricted circumstances 36

Primary residence value growth 36

Inheritance 36

Methodology 36

Global Wealth Model 36

The UK sub-model 36

Global sub-model (for all other countries) 36

Forecasting methodology 37

Continuous refinement to the understanding of liquid wealth distribution 37

Datamonitor's wealth numbers compared with other wealth numbers 37

Bibliography 38

Further reading 38

Ask the analyst 39

Datamonitor consulting 39

Disclaimer 39

List of Tables

Table 1: Market capitalization of Central and Eastern European stock exchanges 10

Table 2: Short-term deposit and money market rates, and change in consumer prices in Russia 11

Table 3: The portfolio allocations of retail investors in Russia 13

Table 4: Number of individuals in Russia in euro bands (000s) 15

Table 5: Forecast number of individuals in Russia in euro bands (000s) 17

Table 6: Value of onshore liquid assets in Russia in euro bands (euro bn) 17

Table 7: Forecast value of onshore liquid assets in Russia in euro bands (eurobn) 18

Table 8: Wealth Management Opportunity Index: Russia 24

Table 9: Wealth Management Opportunity Index: Russia 25

List of Figures

Figure 1: 2008 marked a turning point in the fortunes of Russia's labor market 8

Figure 2: The Russian Stock Exchange fell dramatically between the end of 2007 and 2008 9

Figure 3: Rates of return on deposits and in the money market have run at mid-single digits 11

Figure 4: Deposits dominate retail investors' portfolios in Russia 12

Figure 5: The number of wealthy individuals in Russia declined over 2008 14

Figure 6: The number of wealthy individuals in Russia is set to rise rapidly from 2009 onwards 16

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Private Banking Industry: Wealth Management in Russia 2009

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