Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report showing that the Brazilian high net worth market is largely unaffected by sub prime credit crisis.
“Wealth Management Market in Brazil” highlights the fact that the strong economic fundamentals in Brazil and its non dependence on the U.S. for exports of its commodities and manufactured goods is likely to leave the country and the High Net Worth (HNW) segment of the population largely unaffected by the fallout from the sub prime crisis.
The present population of 120,000 dollar millionaires, which enjoyed an increase of 30% in numbers between 2003 and 2006, is therefore likely to continue growing strongly by over 6% a year up to 2010 – ahead of the global average HNW growth rate of 5.6% of a year.
The report examines the key economic factors which have allowed Brazil to rise to 10th in the world in terms of numbers of millionaire households. It focuses on the growth of credit for the corporate sector which has helped to sustain strong profitability without the burden of excessive debt, the development of interest rates and the appreciation of the currency, the strength of foreign direct investment, and the continuing commodities boom. This boom is unlikely to fade in the medium term given Brazil’s huge mineral resources both onshore and offshore in, for example, the Tupi oilfield, one the largest fields to be found globally in the last 40 years.
The report further goes on to assess the business conditions which have further helped the rise of the HNW population such as a strong flow of IPOs, privatisations, and acquisitions, to say nothing of the stock market growth which has allowed Brazil in February 2008 to overtake China as the world’s largest emerging market in terms of value of stocks available to foreign investors. Some slowdown in IPOs is however likely this year but most local observers expect that corporate credit from other sources will not be a problem and therefore family shareholder wealth will not be impaired.
The final two sections of the Report, assesses the growth of the HNW population in the next three years, and its present regional distribution within the country. Assessments are then made of the level of competition within the Brazilian wealth management marketplace, with profiles of all the significant wealth managers including 24 private banks, nine private asset managers and three multi-family offices. Comment is provided on the level of competition faced by national banks from foreign institutions, the market share of the main private banks and their number of clients, and a comparison made of the services offered by the main players.
“Wealth Management Market in Brazil” is available from Report Buyer. For more information, see website.
Report Buyer product ID: HIR00001
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