Thai Retail Investment Sector to Record 4.9% CAGR to 2020, States Verdict Retail in Its Topical Report Available at MarketPublishers.com16 Nov 2016 • by Natalie Aster
LONDON – A plunge in the performance of the stock market and economic weakness had a negative effect on the generation of Taiwanese wealth in 2015. Nevertheless, a rapid equity market recovery in 2016 has given a boost to the retail savings and investment market, with gains of close to 10% on the Taiwan Futures Exchange (TAIFEX) in the first 9 months of 2016. Through to 2020, the domestic retail investment sector is forecast to record a CAGR of 4.9%.
In the forthcoming years, all asset classes will likely outreach economic growth. However, deposits are poised to decrease as a percentage of savings, whilst investment holdings and equity mutual funds have begun witnessing healthy growth since 2015. Direct equity holdings are projected to see the most significant growth over the next 5 years, at a CAGR of 7.5%.
Taiwan’s high-net-worth individuals (HNWIs) allocate nearly 15% of their investible assets outside of traditional investments, mainly in alternatives and property. In 2016, life insurance also turned into an important aspect of investor portfolios, capturing nearly 25%. Of alternative investment assets, property still takes the lead, with novel regulations pushing real estate investment trusts (REITs) into the spotlight.
Insightful topical report “Wealth in Taiwan: Sizing the Market Opportunity 2016” drawn up by Verdict Retail offers an in-depth analysis of the wealth and retail savings and investments markets on a national scale, focusing on the HNW segment.
The research study provides granular estimates of the size of the affluent marketplace based on the number of individuals and their liquid assets in value terms; canvasses which asset classes are favoured by the local investors and how their choices impact the growth of the total savings and investments sector. The report examines the attitudes of HNW clients towards non-liquid investments like commodities and property. Furthermore, the publication casts light on the key drivers and booking centers for offshore investments.
Other insightful market studies by this publisher can be found in the Verdict Retail catalogue.