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FOR IMMEDIATE RELEASE 13th March 2007 EU HNW sector grows by 9.9% to 4.2m individuals London - Research carried out by strategy consultants Market-Dynamics Research & Consulting Ltd (MDRC) suggests that the number of HNW[1] individuals in the EU grew by 9.9% to 4.2m in 2006. For the past 2 years MDRC has been researching the size and characteristics of the HNW sector in the 27 countries of the EU. Using newly commissioned market research together with microeconomic data obtained with the assistance of consultants in each country, plus published macroeconomic statistics, MDRC has developed a EU wide version of its MIDAS market model. The model suggests:
1) the EU HNW sector grew by 9.92% in 2006 to 4,190,700 individuals. 2) the largest HNW segment is in Germany - with over 700,000 HNW individuals. 3) the most rapidly growing HNW segment is in Poland - a 2006 growth rate of 23.6% 4) the country with the highest proportion of HNW individuals is Luxembourg - 24.5% 5) the largest behavioural segment in the EU is the “Value Seekers”[2]
Results
Based on the most conservative measure of individual wealth (free and investable assets) and using a common set of assumptions about the definition of “ free and investable assets”, the MIDAS model suggests that 5 largest HNW markets in the EU are Germany, UK, France, Italy and Spain with 68% of Europe’s HNW individuals. However the model also suggests that Poland has the 7th largest HNW sector in the EU with some 190,000 HNW individuals and that it is also the fastest growing HNW sector in the EU. Close analysis of this result shows that much of this new wealth is driven by an increasing number of (successful) Polish entrepreneurs, an expansion of professional services particularly law firms and a dramatic increase in the price of residential property, not only in Warsaw but also in cities such as Wroclaw and Kracow. The high growth rates are seen in the other countries that recently joined the EU, are largely driven by the same factors.
Conclusions Richard Williams, managing director of MDRC commented: “ Our model of the UK HNW market (MIDAS) has been used by many of the world’s major wealth managers to provide a robust foundation to their strategy and business planning in the UK. In expanding the model to cover the whole of the EU we hope that we will be able to provide the same robust foundation to the development of strategies for business development across all the countries of the EU.” The output of the model will be published in detail in MDRC’s forthcoming review of the High Net Worth Market 2007. [1]HNW defined as an individual having €350,000 or equivalent in free and investable assets. [2]Definitions of MDRC’s 6 behavioural segments are contained in the full report
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