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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

 

Capgemini Logo

 

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 1
New York City, United States
Year HNWI Population
2012 12 million
2013 13.7 million
2014 14.7 million
2015 15.4 million
2016 16.5 million
2017 18.1 million
2018 18 million
2019 19.6 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

Rich Asian 6
The World of Billionaires
2017 2018 2019
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 4
Private Jet for Billionaires, UHNWs
Segment 2019 Population Wealth
UHNWI (> $30 m) 183,400 0.90% 33.60%
HNW $5m – $30m 1,757,600 9% 22.60%
HNW $1m – $5m 17,666,600 90.10% 43.80%
Total 19,607,600 100% 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
United States
Country 2018 2019 Growth
1 United States 5,322,000 5,909,000 11.03%
2 Japan 3,151,000 3,387,000 7.49%
3 Germany 1,350,000 1,466,000 8.59%
4 China 1,189,000 1,317,000 10.77%
5 France 635,000 702,000 10.55%
6 United Kingdom 556,000 591,000 6.29%
7 Switzerland 384,000 438,000 14.06%
8 Canada 362,000 392,000 8.29%
9 Italy 275,000 298,000 8.36%
10 Netherlands 259,000 287,000 10.81%
11 Australia 266,000 284,000 6.77%
12 India 256,000 263,000 2.73%
13 South Korea 235,000 243,000 3.40%
14 Spain 224,000 235,000 4.91%
15 Russia 200,000 215,000 7.50%
16 Kuwait 188,000 207,000 10.11%
17 Saudi Arabia 191,000 203,000 6.28%
18 Brazil 186,000 199,000 6.99%
19 Norway 174,000 182,000 4.60%
20 Taiwan 162,000 178,000 9.88%
21 Hong Kong 153,000 172,000 12.42%
22 Austria 145,000 155,000 6.90%
23 Sweden 129,000 142,000 10.08%
24 Thailand 127,000 134,000 5.51%
25 Indonesia 129,000 134,000 3.88%

 

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 City 2
Shanghai, China
Country 2018 2019 Growth
1 Japan 3,151,000 3,387,000 7.49%
2 China 1,189,000 1,317,000 10.77%
3 Australia 266,000 284,000 6.77%
4 India 256,000 263,000 2.73%
5 South Korea 235,000 243,000 3.40%
6 Taiwan 162,000 178,000 9.88%
7 Hong Kong 153,000 172,000 12.42%
8 Thailand 127,000 134,000 5.51%
9 Indonesia 129,000 134,000 3.88%

 

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 Allocation Q2 2019 Q1 2020
Equity 25.7% 30.1%
Fixed Income 17.6% 17.1%
Cash & Equivalents 27.9% 25.2%
Real Estate 15.8% 14.6%
Alternatives 13.0% 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 Structure Existing Desired
Based on investment performance 26% 35%
Based on all services 11% 15%
Percentage of assets 24% 13%

 

8. Interest in Sustainable Investing

Interest in Sustainable Investing Survey Results
HNWIs ($1m – $5m) 17%
UHNWs 40%

 

9. HNWI Sustainable Asset Allocation

Year 2020 2021
Portfolio Allocation 41% 46%

 

10. Availability of Sustainable Investing in Wealth Management Firms

Sustainable Investing Availability Survey Results
Yes 80%
Soon 12%
No plans 8%

 

 

11. Why HNWIs do Sustainable Investing

Purpose of Sustainable Investing Survey Results
Higher returns from sustainable investment products 39%
Sustainable investments seem sound, less speculative 33%
Understand ESG funds better than before 29%
There are better sustainable investment offerings 27%
Want to give back to society 26%

 

 

12. Sustainable Investing Priorities: HNWIs vs Wealth Firm

Priorities HNWIs Wealth Firm
Environmental Risks 55% 43%
Climate Change, Carbon Footprint 55% 45%
Ethical Corporate Governance Systems 54% 63%
Socially conscious business policies & practices 52% 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

Segment Interested Will Pay
HNWIs ($1 m – $5m)  Age< 40 38% 55%
HNWIs ($1 m – $5m)  Age >60 35% 3%
UHNWIs (>$30 m)  Age< 40 48% 80%
UHNWIs (>$30 m)  Age >60 59% 27%

 

15. Factors Impacting Wealth Management Firms

Factors Survey Results
Impact of natural events – eg. Pandemics 59%
Global economic slowdown 39%
Impact of technology, change in business models 31%
Geopolitical instability 29%
Threats of new entrants – eg. BigTech firms 26%
Changing market dynamics – increasing information transparency 26%
Fee pressure due to zero trading commission, shift towards passive products 29%
Wealth transfer, uncertainty regarding future customers 31%
Changing client profiles & expectations 35%

 

16. Wealth Firms vs BigTech Firms Service Level Perception

Wealth BigTech
Researching information about the firm and its capabilities 13% 31%
Receiving value-added services 11% 29%
Receiving educational market information 11% 29%
Accessing portfolio information 13% 30%
Receiving personalized updates about new products and services 12% 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

Challenges Survey Results
Impact of natural events – eg. Pandemics 59%
Global economic slowdown 39%
Impact of technology, change in business models 31%
Geopolitical instability 29%
Threats of new entrants – eg. BigTech firms 26%
Changing market dynamics – increasing information transparency 26%
Fee pressure due to zero trading commission, shift towards passive products 29%
Wealth transfer, uncertainty regarding future customers 31%
Changing client profiles & expectations 35%

 

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

 

Capgemini Logo

 

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


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