The level of welfare of 55% of wealthy clients in Latvia is viewed as stable. 31% of wealthy clients have even managed to increase their level of welfare in the past twelve months. This is shown by information of Swedbank Private Banking regarding the volume of funds entrusted by clients – it had grown 9% in 2015.
When asked about plans regarding their plans to increase expenses, 47% of clients mentioned wanting to spend more money on travel and leisure, as reported by Swedbank.
Clients believe the biggest welfare increase for them was provided by business results (83%). It is worth mentioning that business covers a wide range for the bank’s wealthy clients. The most popular business fields mentioned by them include trading, real estate and manufacture. 29% of respondents mentioned that their welfare was positively impacted by investments into real estate. 23% of clients mentioned investments in securities as another positive factor for their welfare. This is also demonstrated by information from the bank – investments into securities of developed countries had secured up to 10.4% increase in profitability last year.
According to data from Swedbank, corporate value currently makes up the largest part of clients’ total asset value – approximately 43%. 28% of clients’ total asset value is made up of money savings, 17% – real estate properties and 12% – securities. Banks are valuable cooperation partners, because approximately 40% of assets owned by wealthy clients are serviced through banks.
When asked about the most appropriate forms of investments, 47% of respondents mentioned real estate, followed by business (46%) and shares (27%). 23% of wealthy respondents mentioned that the most reliable form of investments at the moment is investment into a child’s welfare. Data of Swedbank show that clients invest considerable funds into their children. One particular form of investment is paying for their studies abroad. 15% of respondents also mentioned investing into pieces of art and 12% mentioned buying gold and other precious metals.
Depending on the clients’ owned assets, the bank has noticed some changes in their deposit habits. Clients, whose owned assets do not exceed EUR 300,000 in value, give preference to small and regular deposits. 58% prefer shares and/or deposit funds, 29% prefer 3rd pension level and/or savings insurance and 13% prefer deposits with capital guarantee. Clients, whose welfare exceeds EUR 300,000, prefer to invest in shares and deposit funds in 94% of cases.
When asked in which areas they plan to invest money this year, the majority of the bank’s wealthy clients mentioned business (49%). It is followed by investments into real estate (40%). 28% mentioned having plans to invest more money into shares. 25% of respondents mentioned having plans to divert money to charity.
Compared with 2008, there has been a stable increase in the volume of funds clients plan to invest in security in recent years. Although 68% of clients still prefer to keep their money on their account, the proportion of securities continues its stable growth and currently makes up 32% of assets owned by wealthy clients.