Russian Millionaires Are Growing by the Millions

Russian multi-millionaires control liquid assets worth about $300 billion to $350 billion, compared with $73 billion for the rich in Poland, $38 billion in the Czech Republic and $35 billion in Hungary, UK wealth management consultancy firm Scorpio Partnership said in a statement.

"Based on the lower absolute numbers of potential clients today it is clear that most international private banks are placing a major bet on the future market potential," Scorpio consultant Ted Wilson said.

He added: "To capture these assets requires considerable early investment. We see this taking place in each of the four markets to varying degrees."

Scorpio said these four markets are increasingly being earmarked by the world's leading wealth managers as a zone of future business interest.

"Critically, the interest is both in an onshore and offshore context although there are limitations at present on the onshore market," the survey said.

"Wealth is owned and rests predominately in the hands of young entrepreneurial and professional 'nouveaux riches,' residing in the major centres across the region," said Scorpio managing partner Sebastian Dovey.

He added: "They are the engine of future growth and are already showing strong signs of interest in broader wealth management solutions."

The research found that local wealth management firms within Poland, the Czech Republic and Hungary are targeting lower-tier individuals, those with less than $1 million, to build a solid platform of clients with strong growth potential.

Scorpio said although the three countries may all be similar, it is the product and service levels that differentiate them.

The Czech Republic has the most sophisticated offering in the market in terms of asset allocation and this was reflected in the fact the country had the highest threshold for tailored investment products.

The Scorpio survey consisted of 50 interviews with senior wealth management professionals in each country complemented by further information derived from economic and political data, banking information, client profiles and product details within each market.