The global financial crisis, which started with a sharp downturn in the US housing market, has since spread around the globe, destabilising markets, devaluing shares, undermining confidence and potentially sparking a global recession. So far, most wealth managers have escaped the worst of the effects, which have battered, and even obliterated, some of their cousins in the retail and investment sectors. However, this does not mean that their clients have avoided the troubles (consider those who invested in AIG’s now closed enhanced fund) or that they are immune from a prolonged global downturn.

Many wealthy investors will have seen the value of at least some of their assets fall over the past few months, if not the past year, particularly those exposed to the property and equity markets. Confidence has also been hit, with investors looking to take up more cautious or defensive positions. The challenge for wealth managers, therefore, is threefold. Firstly, they must defend their reputations and maintain confidence in their brand – after all, a number of leading private banks and wealth management firms are owned or part owned by retail or investment banks. Secondly, they must be proactive in responding to the changing environment and to changing client needs. Finally, they must strive to develop the wealth market, by seeking out new avenues of growth.

Drawing on a range of information and data sources including Mintel’s own consumer survey findings, these issues are explored in this report. Our research also reveals that, despite deteriorating market conditions, there are still many opportunities for the taking.

In this report, Mintel asks…

What is the size of the target wealth market and how does it segment into the various wealth tiers (ie Mass Affluent, Affluent, Ultra Affluent and HNW)?

What is the total value of assets owned by these wealthy individuals – and what proportion is managed by firms comprising the UK wealth management sector?

Which savings and investment products do wealthy individuals own?

And what are they planning to invest in over the next 12 months?

Has the global financial crisis changed their investment goals or approach?

Where do they go for financial advice?

Who are the largest wealth managers in the UK? And to what extent have they been affected by the credit crisis?

What is the short-term outlook for this market?