(MENAFN Press) There were just over 94,000 HNWIs in Turkey in 2012. These HNWIs held US500 billion in wealth, which equates to 43% of total individual wealth held in the country.
Turkish HNWIs outperformed the worldwide HNWI average during the review period “ worldwide HNWI volumes decreased by 0.3% whilst Turkish HNWI numbers rose by 7.4%.
Growth in HNWI wealth and volumes are expected to improve over the forecast period. The total number of Turkish HNWIs is forecast to grow by 58% by 2017. HNWI wealth will see a smaller percentage increase of 48%.
Asset allocation of HNWI investments
In 2012, business interests were the largest asset class for HNWIs in Turkey (24% of total HNWI assets), followed by equities (22%), fixed income (19.6%), real estate (18.4%), cash (11.8%) and alternatives (4.3%). Fixed-income products recorded the strongest growth over the review period, driven by a movement into safer assets and relatively high local savings rates.
Over the forecast period, alternatives are expected to be the top-performing asset class for HNWIs, followed by fixed-income products. As a result, there will be a movement away from cash and towards alternatives.
Core millionaires “ volume and wealth trends
Core millionaires collectively account for only 48% of the wealth of Turkish HNWIs, which is well below the worldwide average of 70%.
This reflects the underdeveloped nature of the core HNWI band in Turkey as well as the overdeveloped nature of the UHNWI band. According to WealthInsight's projections, the number of core HNWIs in Turkey will grow by 58% over the forecast period.
UHNWIs “ volume and wealth trends
Turkish UHNWIs hold 52% of the total wealth of the country's HNWIs. During the review period, the number of UHNWIs in Turkey increased by 26%.
There was a wide range of performance between the different UHNWI wealth bands: The number of billionaires increased by 17%, while the number of centimillionaires and affluent millionaires rose by 37% and 23% respectively.
WealthInsight expects the number of UHNWIs to increase by 57% over the forecast period.
UHNWIs “ demographic and sector trends
Diversified is the most important industry from which Turkish UHNWIs have acquired their wealth “ it is the primary source of wealth for 43% of local UHNWIs. This reflects the nature of local companies with a large proportion of Turkish companies covering more than one core industry.
Financial services, in second place, was the primary source of wealth for 13.4% of UHNWIs.
UHNWIs “ regional and city trends
Istanbul is the largest city for Turkish UHNWIs, accounting for 58% of total UHNWIs. There are also sizable UHNWI populations in Ankara, Izmir, Antalya and Bursa.
Bursa was the top performing city for UHNWIs, with numbers rising by 58% during the review period.
This rise occurred as many foreign companies chose to build their headquarters in and around the city. Major industries in the city include automotive, textiles, FMCG and tourism (skiing). UHNWIs in the largest city “ Istanbul “ rose by 26% over the review period, which was in line the country average.
Wealth management in Turkey
Turkey is seen as a core emerging European wealth management market, after a decade of political stability and economic progress under the AKP government elevated Turkey's position in the eyes of international investors and wealth managers. Investors from the Gulf region, Russia and former Turkic Republics account for a major share of the potential investor base
As of 2012, there are 28 private banks active in Turkey, the largest of which are Garanti and Yap Kredi.
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