LONDON - March 22, 2013 (www.investorideas.com newswire) The numbers of Turkish high net worth individuals (UHNWIs - those owning US$30m or more in investable assets) is expected to grow 57% by 2017, positioning it as an attractive pool of prospects for foreign investors and wealth managers. As a progressive economy with a sound fiscal infrastructure under the AKP government, the scope for international investment and wealth management is favourable, says Wealth Insight's Andrew Amolis.
In addition, the growth of Turkey's high net worth individuals (HNWIs – those with investable assets between $1m -$10m) soared above declining global averages, at 7.4% during 2007-2012.
Undeveloped nature of high net worth individuals (HNWIs) band in Turkey
The numbers of ultra high net worth individuals (UHNWIs) are climbing at a more rapid rate than the core millionaires (HNWIs - those with investable assets between $1 million and $10 million), representing opportunities for development within the HNWIs wealth band and an increased demand for established wealth professionals.
Bursa takes the lead in Turkish ultra-HNWI volumes
Despite Istanbul's size, Bursa was the top-performing city during 2007- 2012, owing to the increase in foreign headquarters based in the city. Istanbul contains the highest concentration of UHNWIs at 58% (and rose by 26% during 2007-2012), with Ankara , Izmir and Bursa also holding sizeable UHNWIs volumes.
Turkey's HNWIs move towards safer investments
Fixed income showed the highest growth from 2007-2012 prompted by comparatively high local saving rates and a preference for safer investments. Alternatives are expected to be the top-performing asset class by 2017, followed by fixed-income, representing a distinct movement away from cash investments.
Turkish HNWI's currently hold a quarter of their wealth outside the country, with 39% of UHNWIs owning second properties abroad. Furthermore, foreign asset holdings are expected to reach US$195bn by 2017, compounding the demand for international wealth management.
Diversified - a key driver of UHNWI wealth
Diversified is the main source of wealth for 43%of local UHNWIs and contributes to the economy's resilient performance. This provides insight into the diverse range of core industries that individual local companies cover, including automotive, textiles, FMCG and tourism (skiing).
Vast portions of UHNWI are owners of financial multinationals, with financial services being the second biggest wealth driver of UHNWIs at 13.4%. While this means the assets of the affluent market are conveniently concentrated and easily accessible, it also highlights the importance of multinationals having bases in Turkey as local competition advances.
Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and comment.
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