JSB Market Research: HNWI Asset Allocation in Japan 2014

HNWI Asset Allocation in Japan 2014 

On 6 th May 2014 

Synopsis 

This report is the result of WealthInsights extensive research covering the high net worth 

individual (HNWI) population and wealth management market in Japan. 

The report focuses on HNWI performance between the end of 2008 (the peak before the global 

financial crisis) and the end of 2013. This enables us to determine how well the countrys HNWIs 

have performed through the crisis. 

Summary 

This report provides the latest asset allocations of Japan HNWIs across 13 asset classes. The 

report also includes projections of the volume, wealth and asset allocations of Japan HNWIs to 

2018 and a comprehensive and robust background of the local economy. 

Scope 

Independent market sizing of Japan HNWIs across five wealth bands 

HNWI volume and wealth trends from 2009 to 2013 

HNWI volume and wealth forecasts to 2018 

HNWI and UHNWI asset allocations across 13 asset classes 

Insights into the drivers of HNWI wealth 

Email ID- contact@jsbmarketresearch.com 

Tel No- 91 2241236650 

Published by- http:/www.jsbmarketresearch.com/

Reasons To Buy 

The WealthInsight Intelligence Center Database is an unparalleled resource and the leading 

resource of its kind. Compiled and curated by a team of expert research specialists, the 

database comprises dossiers on over 60,000 HNWIs from around the world. 

The Intelligence Center also includes tracking of wealth and liquidity events as they happen and 

detailed profiles of major private banks, wealth managers and family offices in each market. 

With the Database as the foundation for our research and analysis, we are able obtain an 

unsurpassed level of granularity, insight and authority on the HNWI and wealth management 

universe in each of the countries and regions we cover. 

Report includes comprehensive forecasts to 2018. 

Key Highlights 

In 2013, business interests was the largest asset class for Japanese HNWIs, with 30.0% of total 

HNWI assets, followed by equities with 26.0%, real estate with 19.0%, fixed-income with 10.0%, 

cash and deposits with 8.0% and alternatives with 7.0%. 

Equities, alternatives and business interests recorded growth during the review period at 

respective rates of 53.0%, 46.0% and 36.0%. 

Alternative assets held by Japanese HNWIs increased during the review period, from 6.3% of 

the total HNWI assets in 2009 to 7.0% in 2013; HNWI allocations to commodities increased 

from 1.2% of total assets in 2009 to 1.6% in 2013. 

Over the forecast period, WealthInsight expects allocations in commodities to decline to 1.3% 

of total HNWI assets by 2018, as global liquidity tightens due to a forecast near-term drop in 

demand from China for raw materials. This is expected to cause global commodity prices to 

flatten out. 

As of 2013, Japanese HNWI liquid assets amounted to US$3.9 trillion, representing 44.0% of 

wealth holdings. 


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Other industries we cover: 

 

 

 

 

 

 

 

 

 

Advertising and Media 

Automotive and Parts 

Consumer Goods 

Healthcare and Medical 

Finance and Banking 

Food and Beverages 

Travel and Tourism 

Textiles and Clothing 

SWOT Analysis 

Additional report highlights: 

 

 

Over the forecast period, WealthInsight expects allocations in commodities to decline to 

just over 1% of total HNWI assets by 2018, as global liquidity tightens due to a forecast 

near-term drop in demand from China for raw materials. 

Growth rates for HNWI wealth and volumes are expected to improve over the forecast 

period. 

The number of Japanese HNWIs is forecast to grow by 7% to reach 2,340,459 in 2018. 

HNWI wealth is projected to increase by 21% to reach just over US$11 trillion by 2018. 

Buy now to find out more! 

Table of Content 

1 Introduction 

1.1 Details of this Report 

1.2 Definitions 

2 Summary 

3 Wealth Sector Fundamentals 

3.1 Political Background 

3.2 Economic Background 


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3.3 Benchmarking Japans Wealth in Context 

3.3.1 Distribution of wealth in Japan 

3.4 HNWI Volume and Wealth Trends 

4 Analysis of Japanese HNWI Investments 

4.1 Analysis by Asset Class 

4.1.1 Trends in alternative assets 

4.1.2 Trends in art, wine and wheels 

4.1.3 Trends of investment in real estate 

4.1.4 Trends of investment in cash and deposits 

4.1.5 Trends of investment in fixed-income 

4.1.6 Trends of investment in equity 

4.1.7 Trends of investment in business interests 

4.2 Analysis of Foreign Investments 

4.2.1 Investments in Europe 

4.2.2 Investments in North America (including the US, Mexico and the Caribbean) 

4.2.3 Investments in Asia-Pacific 

4.2.4 Investments in Central and South America 

4.2.5 Investments in the Middle East 

4.2.6 Investments in Africa 

4.3 Alternative Breakdown: Liquid vs Investable Assets 


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4.4 Analysis of Japanese UHNWI Investments 

5 Appendix 

5.1 Additional Components of the Wealth Sector in Japan 

5.1.1 Philanthropy 

5.1.2 Demand for intergenerational wealth transfer 

5.1.3 Human resource availability for the wealth management industry 

5.2 Regulations on Taxes 

5.3 Regulations Related to Immigration, Investment and Employment 

5.4 Key Drivers 

5.4.1 JPY to US$ exchange rate 

5.4.2 Real GDP growth 

5.4.3 Per capita GDP 

5.4.4 Domestic market capitalization 

5.4.5 Commodity index 

5.4.6 Foreign direct investments (FDI) inflows and outflows 

5.4.7 Inflation rate 

5.4.8 Interest rate 

5.4.9 Balance of payments 

5.4.10 Government debt 

5.4.11 Stock market performance 


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5.5 Wealth Breakdowns 

6 About WealthInsight 

List of Tables 

Table 1: HNWI Wealth Band and Group Definitions 

Table 2: Japanese Population Volume of Key Cities (Million), 2013 

Table 3: Japanese Allocations of HNWI Assets (%), 20092018 

Table 4: Japanese HNWIs Holdings Growth (%), 20092018 

Table 5: Japanese HNWIs Alternative Asset Composition (%), 20092018 

Table 6: Japanese HNWIs Trends of Investments in Alternative Assets (%), 20092018 

Table 7: Japanese Trends in Art, Wine and Wheels, 20092013 

Table 8: Global Prime Real Estate Prices per m2 (US$), 2014 

Table 9: Japanese HNWIs Percentage of Foreign Investment Allocations (%), 20092018 

Table 10: Japanese HNWIs Liquidity Breakdown (US$ Billion), 20092018 

Table 11: Japanese HNWIs Liquidity Breakdown (%), 20092018 

Table 12: Japanese UHNWIs Allocations and Share of HNWI Assets, 2013 

Table 13: Japanese Income Tax Bands (JPY), 20122013 

Table 14: Japanese Exchange Rate JPY to US$, 20092018 

Table 15: Japanese Real GDP Growth (%), 20092018 

Table 16: Japanese GDP Per Capita (US$), 20092018 

Table 17: Japanese Domestic Market Capitalization (US$ Billion), 20092013 


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Table 18: Japanese Commodity Indices, 20092018 

Table 19: Japanese Foreign Direct Investments (US$ Billion), 20092018 

Table 20: Japanese Inflation Rate (%), 20092018 

Table 21: Japanese Money Market Rate (%), 20092018 

Table 22: Japanese Balance of Payments (US$ Billion), 20092013 

Table 23: Japanese Government Debt as a Percentage of GDP (%), 20092018 

Table 24: Japanese Stock Market Performance (Index), 20092013 

Table 25: Japanese HNWI Wealth vs GDP Ratio (%), 20092018 

Table 26: Japan Appendix One 

Table 27: Japan Appendix Two 

List of Figures 

Figure 1: HNWI Wealth Band Definitions 

Figure 2: Map of Japan 

Figure 3: Japanese Asset Price Performance (US$), 20092013 

Figure 4: Japanese HNWI Performance, (US$), 20092018 

Figure 5: Japanese vs Global HNWIs in Terms of Volume and GDP per Capita Growth (US$), 

20092013 

Figure 6: Japanese HNWIs Asset Class Composition (%), 20092018 

Figure 7: Japanese HNWIs Trends in Alternative Assets (US$ Billion), 20092018 

Figure 8: Japanese Trends in Art, Wine and Wheels, 20092013 

Figure 9: Japanese HNWIs Foreign Investment Allocation and Growth (%), 2013 


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Figure 10: Japanese HNWIs Global Distribution of Foreign Investments (%), 20092018 

Figure 11: Japanese HNWIs Liquidity Breakdown (%), 20092018 

Figure 12: Japanese UHNWIs Asset Class Composition (%), 20092018 

Figure 13: Japanese Exchange Rate JPY to US$, 20092018 

Figure 14: Japanese Real GDP Growth (%), 20092018 

Figure 15: Japanese GDP Per Capita (US$), 20092018 

Figure 16: Japanese Domestic Market Capitalization (US$ Billion), 20092013 

Figure 17: Japanese Commodity Indices, 20092018 

Figure 18: Japanese Foreign Direct Investments (US$ Billion), 20092018 

Figure 19: Japanese Inflation Rate (%), 20092018 

Figure 20: Japanese Money Market Rate (%), 20092018 

Figure 21: Japanese Balance of Payments (US$ Billion), 20092013 

Figure 22: Japanese Government Debt as a Percentage of GDP (%), 20092018 

Figure 23: Japanese Stock Market Performance (Index), 20092013 

Figure 24: Japanese HNWI Wealth vs GDP Ratio (%), 20092018 

Figure 25: Japanese HNWIs Volume by Wealth Band, 20092018 

Figure 26: Japanese HNWIs Wealth by Wealth Band (US$ Billion), 20092018 

Figure 27: Japanese HNWIs Wealth per Capita (US$ Million), 20092018 


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To know more on HNWI Asset Allocation in Japan 2014 

http://www.jsbmarketresearch.com/finance-banking/r-HNWI-Asset-Allocation-in-Japan- 

2014-108434 


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JSB Market Research: HNWI Asset Allocation in Japan 2014

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