The Dominican Republic Wealth Report 2014

This report reviews the performance and asset allocations of HNWIs and Ultra HNWIs in the Dominican Republic. It also includes an evaluation of the local wealth management market.

Scope

• Independent market sizing of the Dominican Republic HNWIs across five wealth bands

• HNWI volume, wealth and allocation trends from 2009 to 2013

• HNWI volume, wealth and allocation forecasts to 2018

• HNWI and UHNWI asset allocations across 13 asset classes

• Geographical breakdown of all foreign assets

• Alternative breakdown of liquid vs investable assets

• Number of UHNWIs in major cities

• Number of wealth managers in each city

• City wise ratings of wealth management saturation and potential

• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in the Dominican Republic

• Size of the Dominican wealth management industry

• Largest private banks by AuM

• Detailed wealth management and family office information

• Insights into the drivers of HNWI wealth

Key Highlights

• There were 10,519 HNWIs in the Dominican Republic in 2013. These HNWIs held US$43 billion in wealth, and their wealth per HNWI was US$4.1 million.

• In 2013, Dominican Republic HNWI numbers increased by 5.5%, following a 6.5% increase in 2012.

• Growth in HNWI wealth and volumes is expected to improve over the forecast period. The number of Dominican Republic HNWIs is forecast to grow by 27% to reach 14,278 by 2018, and HNWI wealth is expected to grow by 37% to reach US$66 billion by 2018.

• At the end of 2013, Dominican Republic HNWIs held 31.0% (US$13 billion) of their wealth outside their home country, which is higher than the global average of 20–30%.

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 100,000 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.

• Also provides detailed information on UHNWIs in each major city.

Companies mentioned

Banco de Reservas

Banco Popular Dominicano

Banco BHD

Banco Leon

Banco del Progreso

Banco Santa Cruz

Banco BDI

Banco Lopez de Haro

Bancamérica

Banco Vimenca

Table of Contents

1 Introduction

1.1 Details of this Report

1.2 Definitions

2 Executive Summary

3 Wealth Sector Fundamentals

3.1 Political Background

3.2 Economic Background

3.3 Social Background

3.4 Benchmarking Dominican Republic Wealth in Context

3.4.1 Distribution of wealth in the Dominican Republic

3.5 HNWI Volume and Wealth Trends

4 Findings from the WealthInsight HNWI Database

4.1 Trends in HNWI Wealth to 2018

4.1.1 HNWI trend analysis

4.1.2 Wealth band trends

4.1.3 Demographic breakdown of HNWIs

4.1.4 HNWIs – breakdown by city

4.1.5 HNWIs – city performance

4.1.6 HNWIs – city population densities

4.1.7 HNWIs – city forecasts

4.1.8 HNWIs – breakdown by state

4.1.9 HNWIs – state performance

4.1.10 HNWIs – state population densities

4.2 UHNWIs

4.2.1 UHNWI volume trend analysis

4.2.2 UHNWI wealth trend analysis

4.2.3 Demographic breakdown of UHNWIs

4.2.4 UHNWIs – city breakdown and performance

4.3 UHNWIs – Centimillionaires

4.3.1 Centimillionaire volume trend analysis

4.3.2 Centimillionaire wealth trend analysis

4.3.3 Centimillionaire per capita net worth trend analysis

4.4 UHNWIs – Affluent Millionaires

4.4.1 Affluent millionaire volume trend analysis

4.4.2 Affluent millionaire wealth trend analysis

4.4.3 Affluent millionaire per capita net worth trend analysis

4.5 Core HNWIs

4.5.1 Core HNWI volume trend analysis

4.6 Core HNWIs – Mid-Tier Millionaires

4.6.1 Mid-tier millionaire volume trend analysis

4.6.2 Mid-tier millionaire wealth trend analysis

4.6.3 Mid-tier millionaire per capita net worth trend analysis

4.7 Core HNWIs – Lower-Tier Millionaires

4.7.1 Lower-tier millionaire volume trend analysis

4.7.2 Lower-tier millionaire wealth trend analysis

4.7.3 Lower-tier millionaire per capita net worth trend analysis

5 Analysis of Dominican Republic HNWI Investments

5.1 Analysis by Asset Class

5.1.1 Trends in alternative assets

5.1.2 Trends in art, wine and wheels

5.1.3 Trends of investments in real estate

5.1.4 Trends of investments in cash and deposits

5.1.5 Trends of investments in fixed-income

5.1.6 Investment trends in equity

5.1.7 Investments trends in business interests

5.2 Analysis of Foreign Investments

5.2.1 Investments in Europe

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

5.2.3 Investments in Asia-Pacific

5.2.4 Investments in Central and South America

5.2.5 Investments in the Middle East

5.2.6 Investments in Africa

5.3 Alternative Breakdown: Liquid vs. Investable Assets

5.4 Analysis of Dominican Republic UHNWI Investments

6 Competitive Landscape of the Wealth Sector

6.1 Competitive Landscape

6.1.1 Domestic banks

6.1.2 Foreign private banks

6.1.3 Acquisitions and Partnerships

6.1.4 Wealth managers

6.1.5 Financial advisors

6.2 Developments in the Dominican Republic Private Banking Industry

6.3 Wealth Management and the Private Banking Industry

6.3.1 The Dominican Republic’s wealth management industry – clientele model and maturity

6.4 Behavioral Mapping of Wealth Management and Private Banking in Dominican Republic

6.5 Porter’s Five Force Analysis – the Wealth Management Industry

7 Appendix

7.1 Additional Components of the Wealth Sector in Dominican Republic

7.1.1 Philanthropy

7.1.2 Demand for intergenerational wealth transfer

7.2 Tax Regulations

7.3 Regulations Related to Immigration, Investment and Employment

7.4 Key Drivers

7.4.1 DOP to US$ exchange rate

7.4.2 Real GDP growth

7.4.3 Per capita GDP

7.4.4 Domestic market capitalization

7.4.5 Commodity index

7.4.6 Foreign direct investment inflows and outflows

7.4.7 Inflation rate

7.4.8 Interest rate

7.4.9 Balance of payments

7.4.10 Government debt

7.4.11 Stock market performance

7.5 Wealth Breakdowns

8 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions

Table 2: Cities in Dominican Republic by Population (Volume), 2013

Table 3: Dominican Republic HNWIs – Volume Distribution (%), 2013

Table 4: Dominican Republic HNWIs – Wealth Distribution (%), 2013

Table 6: Dominican Republic HNWIs – Cities, 2013

Table 7: Dominican Republic HNWI Growth in Top Cities (Thousand), 2009–2013

Table 8: Dominican Republic HNWI Population Density in Major Cities (Thousand), 2013

Table 9: Dominican Republic HNWIs in Top Cities (Thousand), 2009–2018

Table 10: Dominican Republic HNWIs – Growth Rates for Top Cities (%), 2009–2018

Table 11: Dominican Republic Volume of HNWI by States (Thousand), 2013

Table 12: Dominican Republic HNWI State Performance (%), 2009–2013

Table 13: Dominican Republic HNWIs Population Density by State (Thousand), 2013

Table 14: Dominican Republic UHNWI Gender Performance (%), 2009–2013

Table 15: Dominican Republic UHNWI Sources of Wealth (%), 2013

Table 16: Dominican Republic Volume of UHNWIs in Top Cities, (Thousand) 2009–2018

Table 17: Dominican Republic UHNWI Growth Rates in Top Cities (%), 2009–2018

Table 18: Dominican Republic Centimillionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Table 19: Dominican Republic Affluent Millionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Table 20: Dominican Republic Mid-Tier Millionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Table 21: Dominican Republic Lower-Tier Millionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Table 22: Dominican Republic Allocations of HNWI Assets (%), 2009–2018

Table 23: Dominican Republic HNWI Holdings Growth (%), 2009–2018

Table 24: Dominican Republic HNWI Alternative Asset Composition (%), 2009–2018

Table 25: Dominican Republic HNWI Trends of Investments in Alternative Assets (%), 2009–2018

Table 26: Dominican Republic Trends in ‘Art, Wine and Wheels’, 2009–2013

Table 27: Global Prime Real Estate Prices per m2 (US$), 2013

Table 28: Dominican Republic HNWI Foreign Investment Allocations (%), 2009–2018

Table 29: Dominican Republic HNWI Liquidity Breakdown (US$ Billion), 2009–2018

Table 30: Dominican Republic HNWI Liquidity Breakdown (%), 2009–2018

Table 31: Dominican Republic UHNWI Allocations and Share of HNWI Assets (%), 2013

Table 32: Leading Domestic Banks in Dominican Republic by Total Local Assets (US$ Million), 2013

Table 33: Leading Foreign Private Banks in Dominican Republic by Local AuM (US$ Million), 2013

Table 34: Leading Wealth Managers in Dominican Republic, 2013

Table 35: Dominican Republic Wealth Management Industry – Recent Deal Activity, 2013

Table 36: Dominican Republic Income Tax Bands (DOP), 2013–2014

Table 37: Dominican Republic: DOP per US$ Exchange Rate, 2009–2018

Table 38: Dominican Republic Real GDP Growth (%), 2009–2018

Table 39: Dominican Republic GDP per Capita (US$), 2009–2018

Table 40: Dominican Republic Domestic Market Capitalization (US$ Billion), 2009–2013

Table 41: Dominican Republic Commodity Indices, 2009–2018

Table 42: Dominican Republic Foreign Direct Investment (US$ Billion), 2009–2018

Table 43: Dominican Republic Inflation Rate (%), 2009–2018

Table 44: Dominican Republic Money Market Rate (%), 2009–2018

Table 45: Dominican Republic Balance of Payments (US$ Billion), 2009–2013

Table 46: Dominican Republic Government Debt as a Percentage of GDP, 2009–2018

Table 47: Dominican Republic Stock Market Performance, 2009–2013

Table 48: Dominican Republic HNWI Wealth vs. GDP Ratio, 2009–2018

Table 49: Dominican Republic – Appendix One

Table 50: Dominican Republic – Appendix Two

List of Figures

Figure 1: HNWI Wealth Band Definitions

Figure 2: Map of Dominican Republic

Figure 3: Dominican Republic Asset Price Performance (%), 2009–2013

Figure 4: Dominican Republic HNWI Performance (US$ Billion and HNWI Volume), 2009–2018

Figure 5: Dominican Republic vs. Global HNWIs (%), 2009–2018

Figure 6: Dominican Republic HNWIs – Growth Factor Correlation, 2009–2013

Figure 7: Dominican Republic HNWIs – Wealth Pyramid (Volume Distribution), 2013

Figure 8: Dominican Republic HNWIs – Wealth Pyramid (Distribution), 2013

Figure 9: Dominican Republic HNWIs – Age Distribution (%), 2013

Figure 10: Dominican Republic HNWIs – City Performance (%), 2009–2013

Figure 11: Dominican Republic HNWIs – Volume of HNWIs by City (Thousand), 2009 and 2013

Figure 12: Dominican Republic HNWIs – City Forecasts (%), 2014–2018

Figure 13: Dominican Republic Volume of HNWIs by City (Thousand), 2014–2018

Figure 14: Dominican Republic UHNWI Wealth Share vs. Volume Growth (%), 2009–2013

Figure 15: Dominican Republic UHNWI Volume by Wealth Band (Thousand), 2009–2018

Figure 16: Dominican Republic UHNWI Wealth by Wealth Band (US$ Billion), 2009–2018

Figure 17: Dominican Republic Centimillionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Figure 18: Dominican Republic Affluent Millionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Figure 19: Dominican Republic Mid-Tier Millionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Figure 20: Dominican Republic Lower-Tier Millionaires Market Overview (Volume and US$ Million/Billion), 2009–2018

Figure 21: Dominican Republic HNWI Asset Class Composition (%), 2009–2018

Figure 22: Dominican Republic HNWI Trends in Alternative Assets (US$ Billion), 2009–2018

Figure 23: Dominican Republic Trends in ‘Art, Wine and Wheels’, 2008–2013

Figure 24: Dominican Republic HNWI Foreign Investment Allocations and Growth (%), 2013

Figure 25: Dominican Republic HNWI Global Distribution of Foreign Investments (%), 2009–2018

Figure 26: Dominican Republic HNWI Liquidity Breakdown (%), 2009–2018

Figure 27: Dominican Republic UHNWI Asset Class Composition (%), 2009–2018

Figure 28: Wealth Management Industry – Maturity Level of Operators, 2014

Figure 29: Wealth Management Industry – Behavioral Mapping, 2013

Figure 30: The Dominican Republic Wealth Management Industry – Five Forces Analysis

Figure 31: Dominican Republic: DOP to US$ Exchange Rate, 2009–2018

Figure 32: Dominican Republic Real GDP Growth (%), 2009–2018

Figure 33: Dominican Republic GDP per Capita (US$), 2009–2018

Figure 34: Dominican Republic Domestic Market Capitalization (US$ Billion), 2009–2013

Figure 35: Dominican Republic Commodity Indices, 2009–2018

Figure 36: Dominican Republic Foreign Direct Investment (US$ Billion), 2009–2018

Figure 37: Dominican Republic Inflation Rate (%), 2009–2018

Figure 38: Dominican Republic Money Market Rate (%), 2009–2018

Figure 39: Dominican Republic Balance of Payments (US$ Billion), 2009–2013

Figure 40: Dominican Republic Government Debt as a Percentage of GDP, 2009–2018

Figure 41: Dominican Republic Stock Market Performance, 2009–2013

Figure 42: Dominican Republic HNWI Wealth vs. GDP Ratio, 2009–2018

Figure 43: Dominican Republic HNWIs – Volume by Wealth Band, 2009–2018

Figure 44: Dominican Republic HNWIs – Wealth by Wealth Band (US$ Billion), 2009–2018

Figure 45: Dominican Republic HNWIs – Wealth per Capita (US$ Million), 2009–2018

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