Targeting ex soviet wealthy customers

Targeting Key Ex-Soviet Bloc Clients inWealth ManagementWealth management for Russian, Kazakh, and Ukrainianclients

Use this report to understand how best to

target each nationality with the right products

and services

Report summary

• Use our Global Wealth Model datato find out how many potentialclients are in your target customerbase and build your businessplans for 2011-14

• Use our analysis of clientcharacteristics to understand howbest to target each nationality withthe right products and services

• Understand your competition,including the strategies they areusing to build business, using ourcompetitive profiles

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RESEARCHSTORE


www.datamonitor.com/storeDatamonitor ReportPublished: Oct 10 | Code: CM00007-002

About this report

Targeting Key Ex-Soviet Bloc Clients in Wealth Management RESEARCHSTORE

Introduction

With the global recession having knocked billions off affluent investors' portfolios, wealth managers are looking to rebuild their businesses, and the

former Soviet Bloc countries provide fertile hunting ground for wealth managers, both local and foreign, to find new clients.

As a result of the 'enforced marriage' of the Soviet Union for 70 years, the state structures and many of the underlying determinants of wealth are similar

across Russia, Kazakhstan, and Ukraine. Despite all being part of the CIS, there are important differences between their economies today, their

prospects for future growth, and the composition and needs of their affluent citizens.

Key findings and highlights

• When it comes to service and contact expectations, Russians are the most demanding, according to their banks. Russia's affluent population, like

those in Kazakhstan and Ukraine, is financially unsophisticated and conservative. The reasons for this have to do with these countries' histories and

the source of most of the wealth there today.

• All three nationalities hold the vast majority of their onshore liquid wealth in deposits, and only in Russia do investors put any money in equities,

mutual funds, or bonds; these products barely exist for Kazakh or Ukrainian investors onshore.

• The wealthy Russian, Kazakh, and Ukrainian client bases have historically been the preserve of the international banks, as local offerings were, until

recently, thin on the ground. Global banks such as Coutts, Société Générale Private Banking, and Citigroup tend to target these customers from

outside their home market.

Key questions answered

• How many onshore clients are there in Russia, Kazakhsta, and the Ukraine whose liquid assets exceed my threshold?

• What are the investment and cultural characteristics of these clients and how do they translate into demand for products and services?

• What innovative strategies are my competition for these customers (both local and international) pursuing?

“All three nationalities hold the vast majority of their onshore liquid wealthin deposits, and only in Russia do investors put any money in equities,mutual funds, or bonds.”

Targeting Key Ex-Soviet Bloc Clients in Wealth Management 2010



Sample pages


“The wealthy Russian, Kazakh, and Ukrainian client bases have historicallybeen the preserve of the international banks, as local offerings were, untilrecently, thin on the ground.”




Table of contentsOVERVIEW

• Catalyst

• Summary

• Methodology

EXECUTIVE SUMMARY

• The wealthy in Kazakhstan, Russia, and Ukraine are first

generation entrepreneurs, reflecting the economic changes

their countries have undergone in the past 20 years

• The opportunity is significant, with nearly 1.4 million affluent

individuals onshore, and offshore holdings of at least $55

billion

• Despite taking big risks in building their fortunes, clients

prefer investments they consider to be 'safe'

• Wealth management is a new concept in the region

• International banks dominate wealth management for

Russians, Kazakhs, and Ukrainians

MARKET OPPORTUNITY

• The onshore customer base in Russia, Kazakhstan, and

Ukraine

• The offshore customer base

INVESTOR CHARACTERISTICS

• Behavioral characteristics

• Product and service needs

COMPETITOR DEVELOPMENTS

• There is increased focus on this lucrative customer segment

• Russia's onshore wealth management market is the most

developed in the region

• Kazakhstan has virtually no onshore wealth management

• Ukraine's embryonic onshore wealth management market is

being developed

• International banks have well developed services for wealthy

Russian, Kazakh, and Ukrainian clients

APPENDIX

• Definitions

• Methodology

• Further reading

• Ask the analyst

• Datamonitor consulting

• Disclaimer

LIST OF FIGURES

Figure 1: Russia's affluent population will see growth again in 2010f

Figure 2: Kazakhstan's affluent population will not recover until 2011

Figure 3: The affluent population in Ukraine will resume growth again

in 2010f

Figure 4: Switzerland dwarfs the Channel Islands/Isle of Man as the

most popular destination for CEE deposits and funds in

2009

Figure 5: At least 150,000 Russians and Ukrainians have leave to

enter the UK each year

LIST OF TABLES

Table 1: Russia: aggregate onshore liquid assets segmented by

asset band (€bn), 2005–09

Table 2: Russia: number of individuals segmented by asset band

(000s), 2005–09

Table 3: Russia: aggregate onshore liquid assets segmented by

asset band (€bn), 2010f–14f

Table 4: Russia: number of individuals segmented by asset band

(000s), 2010f–14f

Table 5: Kazakhstan: aggregate onshore liquid assets segmented by


Table 6: Kazakhstan: number of individuals segmented by asset

band (000s), 2005–09

Table 7: Kazakhstan: aggregate onshore liquid assets segmented by


Table 8: Kazakhstan: number of individuals segmented by asset

band (000s), 2010f–14f

Table 9: Ukraine: aggregate onshore liquid assets segmented by


Table 10: Ukraine: number of individuals segmented by asset band

(000s), 2005–09

Table 11: Ukraine: aggregate onshore liquid assets segmented by


Table 12: Ukraine: number of individuals segmented by asset band

(000s), 2010f–14f




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Targeting ex soviet wealthy customers