The World of Billionaires

Caproasia.com | The leading source of data, research, information & resource for financial professionals, institutional investors, professional investors and private investors (UHNWs, & HNWs). Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?

This site is for accredited investors, professional investors and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.


Capgemini World Wealth Report 2020

1st October 2020 | Hong Kong 

Capgemini has released the World Wealth Report 2020.  The report tracks high net worth individuals (HNWIs), their wealth, and global and economic conditions that drive change in the wealth management industry.

” 19.6 million HNWIs,183,000 UHNWIs “

The World Wealth Report 2020 covers 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization.  The Capgemini 2020 Global HNW Insights Survey also surveyed more than 2,500 HNWIs across 21 major wealth markets in North America, Latin America, Europe, and the Asia-Pacific region.  (The survey was conducted in January and February in 2020, thus the survey results do not account for the impact of the COVID-19 crisis).

The full Capgemini World Wealth Report 2020 can be accessed at the webpage: World Wealth Report 2020

 

Summary of Capgemini World Wealth Report 2020
  • There are 19.6 million HNWIs in the world at the end of 2019
  • Total HNWIs in the world held $74 trillion of wealth
  • The average HNWI wealth is $3.77 million
  • 19.4 million HNWIs with $1 million to $30 million
  • 17.6 million HNWIs with $1 million to $5 million
  • 1.75 million HNWIs with $5 million to $30 million
  • 183,400 are UHNWIs with $30 million or more
  • United States has the most HNWIs, with 12.07 million
  • Japan has the 2nd most HNWIs, with 3.38 million
  • Germany has the 3rd most HNWIs with 1.46 million
  • China has the 4th most HNWIs with 1.31 million
  • France has the 5th most HNWIs with 702,000
  • The top 5 countries above, have a total of 12.78 million HNWIs, representing 65.2% of global HNWIs population
  • The top 25 countries have a total of 17.73 million HNWIs, representing 90.47% of global HNWIs population
  • The 9 APAC countries in the top 25 list, have a total of 6.11 million HNWIs, representing 31.1% of global HNWIs population.

 

Notes

  • High Net Worth Individuals are defined as those having investable assets of $1 million or more, excluding primary residence, collectibles, consumables, and consumer durables.
  • Ultra-HNWIs have more than $30 million in investable assets.
  • All currencies are in USD
  • For Capgemini Global HNW Insights Survey 2020, over 2,500 HNWIs were surveyed in Jan – Feb 2020

 

 

Anirban Bose, Capgemini’s Financial Services CEO and Group Executive Board Member: 

“In the face of today’s extraordinary uncertainty, wealth managers and firms are finding themselves in uncharted waters.

This unpredictable period may also present opportunities for firms to reassess and reinvent their business and operating models to be more agile and resilient.  Analytics and automation as well as emerging technologies like artificial intelligence, can enable firms to enhance revenues through better client experiences while reducing costs by streamlining processes.”

 


 

1. 2020 Global HNWI Population

New York City, United States
YearHNWI Population
201212 million
201313.7 million
201414.7 million
201515.4 million
201616.5 million
201718.1 million
201818 million
201919.6 million

 

At the end of 2019, there are around 19.6 million High net worth individuals (HNWIs) in the world.  HNWIs have investable assets of USD 1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables.

 

2. Total Wealth of HNWIs

The World of Billionaires
201720182019
Total HNWI Wealth$70.2 trillion$68.1 trillion$74 trillion
Wealth Growth (%)10.60%-3.00%8.60%

 

The total wealth of HNWIs in 2019 is around $74 trillion, growing 8.6% from $68.1 trillion in 2018.  With 19.6 million HNWIs, the average HNWI wealth is $3.77 million.

 

3. HNW, UHNW Distribution

Private Jet for Billionaires, UHNWs
Segment2019PopulationWealth
UHNWI (> $30 m)183,4000.90%33.60%
HNW $5m – $30m1,757,6009%22.60%
HNW $1m – $5m17,666,60090.10%43.80%
Total19,607,600100%100%

 

Of the 19.6 million HNWIs, 183,400 are UHNWs with more than $30 million of wealth while 19.4 million are HNWs with $1 million to $30 million.

Of the 19.4 million who are HNWIs with $1 million to $30 million, 17.6 million have $1 million to $5 million and 1.75 million have $5 million to $30 million.

  • Total of 19.6 million HNWIs
  • 19.4 million HNWIs with $1 million to $30 million
  • 17.6 million with $1 million to $5 million
  • 1.75 million with $5 million to $30 million
  • 183,400 are UHNWIs with $30 million or more

 

4. Top 25 Countries with the Most HNWIs

United States
Country20182019Growth
1United States5,322,0005,909,00011.03%
2Japan3,151,0003,387,0007.49%
3Germany1,350,0001,466,0008.59%
4China1,189,0001,317,00010.77%
5France635,000702,00010.55%
6United Kingdom556,000591,0006.29%
7Switzerland384,000438,00014.06%
8Canada362,000392,0008.29%
9Italy275,000298,0008.36%
10Netherlands259,000287,00010.81%
11Australia266,000284,0006.77%
12India256,000263,0002.73%
13South Korea235,000243,0003.40%
14Spain224,000235,0004.91%
15Russia200,000215,0007.50%
16Kuwait188,000207,00010.11%
17Saudi Arabia191,000203,0006.28%
18Brazil186,000199,0006.99%
19Norway174,000182,0004.60%
20Taiwan162,000178,0009.88%
21Hong Kong153,000172,00012.42%
22Austria145,000155,0006.90%
23Sweden129,000142,00010.08%
24Thailand127,000134,0005.51%
25Indonesia129,000134,0003.88%

 

United States has the most HNWIs, with 12.07 million.  Japan has the 2nd most HNWIs, with 3.38 million while Germany has the 3rd most HNWIs with 1.46 million.  China has the 4th most HNWIs with 1.31 million and France has the 5th most HNWIs with 702,000.

The top 5 countries (United States, Japan, Germany, China, France), have a total of 12.78 million HNWIs, representing 65.2% of global HNWIs population.  The top 25 countries (above) have a total of 17.73 million HNWIs, representing 90.47% of global HNWIs population.

 

5. Top 9 Countries in APAC with the Most HNWIs

Shanghai, China
Country20182019Growth
1Japan3,151,0003,387,0007.49%
2China1,189,0001,317,00010.77%
3Australia266,000284,0006.77%
4India256,000263,0002.73%
5South Korea235,000243,0003.40%
6Taiwan162,000178,0009.88%
7Hong Kong153,000172,00012.42%
8Thailand127,000134,0005.51%
9Indonesia129,000134,0003.88%

 

In Asia-Pacific, Japan has the most HNWIs with 3.38 million and is the only country in Asia.  China has the 2nd most HNWIs with 1.31 million while Australia has the 3rd most HNWIs with 284,000.

The 9 APAC countries in the top 25 list (Japan, China, Australia, India, South Korea, Taiwan, Hong Kong, Thailand, Indonesia), have a total of 6.11 million HNWIs, representing 31.1% of global HNWIs population.

 

Capgemini 2020 Global HNW Insights Survey

6. Asset Allocation of HNWIs 

Asset AllocationQ2 2019Q1 2020
Equity25.7%30.1%
Fixed Income17.6%17.1%
Cash & Equivalents27.9%25.2%
Real Estate15.8%14.6%
Alternatives13.0%12.9%

 

In Q1 2020^, HNWIs allocate 30.1% of their assets into Equity, 17.1% into Fixed income, 25.2% into Cash & equivalents.  14.6% of their assets are allocated into Real Estate* and 12.9% are into Alternatives**.

  • *Real Estate – excludes primary residence
  • **Alternatives – Includes hedge funds, private equity, structured products, derivatives, foreign currency, commodities
  • ^ Survey in Jan, Feb 2020

 

7. HNWIs on Compensation for Wealth Services

Fee StructureExistingDesired
Based on investment performance26%35%
Based on all services11%15%
Percentage of assets24%13%

 

8. Interest in Sustainable Investing

Interest in Sustainable InvestingSurvey Results
HNWIs ($1m – $5m)17%
UHNWs40%

 

9. HNWI Sustainable Asset Allocation

Year20202021
Portfolio Allocation41%46%

 

10. Availability of Sustainable Investing in Wealth Management Firms

Sustainable Investing AvailabilitySurvey Results
Yes80%
Soon12%
No plans8%

 

 

11. Why HNWIs do Sustainable Investing

Purpose of Sustainable InvestingSurvey Results
Higher returns from sustainable investment products39%
Sustainable investments seem sound, less speculative33%
Understand ESG funds better than before29%
There are better sustainable investment offerings27%
Want to give back to society26%

 

 

12. Sustainable Investing Priorities: HNWIs vs Wealth Firm

PrioritiesHNWIsWealth Firm
Environmental Risks55%43%
Climate Change, Carbon Footprint55%45%
Ethical Corporate Governance Systems54%63%
Socially conscious business policies & practices52%55%

 

 

13. Most Sought after Services for UHNWIs Younger than 40 years old

  • Tax planning
  • Legal consultation
  • Inheritance advice
  • Services for passion investments (art, wine, collectibles, luxury cars, yachts)

 

14. Value-added Services in Primary Wealth Management Firm

SegmentInterestedWill Pay
HNWIs ($1 m – $5m)  Age< 4038%55%
HNWIs ($1 m – $5m)  Age >6035%3%
UHNWIs (>$30 m)  Age< 4048%80%
UHNWIs (>$30 m)  Age >6059%27%

 

15. Factors Impacting Wealth Management Firms

FactorsSurvey Results
Impact of natural events – eg. Pandemics59%
Global economic slowdown39%
Impact of technology, change in business models31%
Geopolitical instability29%
Threats of new entrants – eg. BigTech firms26%
Changing market dynamics – increasing information transparency26%
Fee pressure due to zero trading commission, shift towards passive products29%
Wealth transfer, uncertainty regarding future customers31%
Changing client profiles & expectations35%

 

16. Wealth Firms vs BigTech Firms Service Level Perception

WealthBigTech
Researching information about the firm and its capabilities13%31%
Receiving value-added services11%29%
Receiving educational market information11%29%
Accessing portfolio information13%30%
Receiving personalized updates about new products and services12%29%

 

BigTech firms are technology firms such as Google, Apple, Facebook, Amazon, Alibaba or Tencent.

 

18. Key Touch Points for Wealth Management Firms

  • Researching information about the firm
  • Product / Service or investment information search
  • Firm selection & on boarding
  • Receiving portfolio advice
  • Personalised updates about new products / services
  • Receiving educational market information
  • Executing transactions
  • Accessing portfolio information
  • General communication with wealth manager
  • Interactions with specific experts in the firm
  • Receiving value-added services

 

19. Where clients are Least Satisfied

  • Researching information about the firm
  • Personalised updates about new products / services
  • Receiving educational market information
  • Interactions with specific experts in the firm
  • Receiving value-added services

 

20. What Wealth Management Firms are Facing

ChallengesSurvey Results
Impact of natural events – eg. Pandemics59%
Global economic slowdown39%
Impact of technology, change in business models31%
Geopolitical instability29%
Threats of new entrants – eg. BigTech firms26%
Changing market dynamics – increasing information transparency26%
Fee pressure due to zero trading commission, shift towards passive products29%
Wealth transfer, uncertainty regarding future customers31%
Changing client profiles & expectations35%

 

The full Capgemini World Wealth Report 2020 can be accessed at the webpage: World Wealth Report 2020

 

 

About Capgemini

Capgemini is a global leader in consulting, digital transformation, technology and engineering services. The Group is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms.

Building on its strong 50-year+ heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. Today, it is a multicultural company of 270,000 team members in almost 50 countries. With Altran, the Group reported 2019 combined revenues of €17 billion.

Visit: www.capgemini.com

 

Caproasia Platforms:

Caproasia Events & Coverage:



Caproasia.com | The leading financial website for financial professionals, professional investors and HNW investors. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quicklinks: Caproasia Access | TFC | Caproasia | Jobs








Join 14,000+ leading financial professionals and professional investors in Asia. Stay ahead of your peers & competition. Receive Caproasia newsletter here.
Managing $20 million to $3 billion? Register here: Financial Professionals
.
Visit Access | Daily homepage for financial professionals & professional investors.

Register: Professional Investors | CEOs & Entrepreneurs


For press release, email to press@caproasia.com
For editorial, media kit, listing on TFC, events, seminars or research & data services, email to mail@caproasia.com