New Zealand Wealth Management - Market Sizing and Opportunities to 2026

New Zealand Wealth Management - Market Sizing and Opportunities to 2026

Summary

New Zealand’s affluent population (including high-net-worth [HNW] and mass affluent individuals) registered an average annual growth rate (AAGR) of 6.3% over 2016-19. This positive performance hit a roadblock in 2020 due to the outbreak of COVID-19. In 2021, the New Zealand economy rebounded, with the gradual easing of COVID-19 containment measures and high vaccination rates. Consequently, the affluent population, with significant exposure to equities, grew by 8.0% in 2021, while the HNW population increased by 7.6%. Affluent individuals accounted for 26.1% of New Zealand’s total adult population in 2021. However, they collectively held 88.9% of total onshore liquid assets, indicating the presence of a relatively narrower income gap in the country. Deposits maintained their dominance as stability of returns continued to entice investors despite low rates of interest. However, in 2021, retail equity holdings surged by 6.0% as the asset class witnessed strong net positive inflows as compared to the previous year. Furthermore, the country’s savings and investments market is observing a growing preference for discretionary and advisory mandates. Although the New Zealand economy is expected to grow in 2022, rising inflation and a global economic slowdown present significant downside risks.

Based on our proprietary datasets, this report analyzes the New Zealand wealth and retail savings and investments markets, with a focus on the HNW segment. This includes overall affluent market size (both by the number of individuals and the value of their liquid assets). The report also provides analysis of the factors driving liquid asset growth, including a breakdown and forecast of total retail savings and investments split by equities, mutual funds, deposits, and bonds.

Scope

• HNW individuals constituted only 0.8% of the total adult population of New Zealand in 2021.
• Discretionary and advisory mandates lead the New Zealand HNW wealth market. The flexibility to delegate the day-to-day management of the investment process to a qualified and competent wealth advisor for better investment opportunities looks to be appealing to many HNW clients in New Zealand.
• Robo-advisors currently constitute only 5.6% of the average HNW portfolio and have yet to gain traction in New Zealand despite growing in popularity across the world. This can be at least partly attributed to a belief that these services are not sophisticated enough to respond to current market events and turbulence.
• Deposits remain the most popular investment avenue for Kiwi investors, indicating their preference for safe investment asset classes.
• Almost a fifth of emerging affluent investors reach out to an independent financial advisor to seek advice regarding the right investment approach to follow.

• Make strategic decisions using top-level historic and forecast data on New Zealand’s wealth industry.
• Identify the most promising client segment by analyzing the penetration of affluent individuals.
• Receive detailed insights into retail liquid asset holdings in New Zealand.
• Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the wealth space.
• See an overview of key digital disruptors in the country’s wealth market.