The wealth management market - Brazil

1.1 Market presentation

The aim of wealth management is to grow the client's tangible and intangible assets and liabilities. Wealth management is a very broad activity, encompassing a wide range of activities such as financial investment management, real estate asset management, the acquisition of works of art, etc.

The global wealth management market is performing well. In fact, the global market grew at a CAGR of 4.8% between 2015 and 2020. What's more, growth prospects are good, with the market expected to double in size between 2021 and 2030, despite increasingly burdensome regulation.

The Brazilian wealth management market, which offers a variety of services such as investments, financial planning and tax and succession advice, was worth around R$3.5 trillion before the pandemic in 2019, according to data from the Brazilian Association of Financial and Capital Market Entities (ANBIMA). This sector serves a wide range of clients, from high-income individuals to business families.

The COVID-19 pandemic has profoundly affected the wealth management market in Brazil, causing volatility in the financial markets and leading to a reassessment of clients' financial objectives and investment strategies. Regulatory changes and the constantly evolving economic environment have also required wealth management firms to adapt quickly.

In addition to the significant impact of the pandemic, there is also a growing trend in demand for sustainable and socially responsible wealth management services. Brazilian investors are showing a growing concern for environmental, social and governance (ESG) issues, looking for investment options that are in line with their personal values.