BCG Global Wealth Report 2023: $515 Trillion Total Assets, $179 Trillion Assets in APAC, APAC AUM Asset Class 76.8%, Deposits 12.2%, Loans 11.1%, Top 5 Booking Centres in Switzerland, Hong Kong, Singapore, United States & United Kingdom
21st July 2023 | Hong Kong
Boston Consulting Group (BCG) has released the BCG Global Wealth Report 2023, providing key insights into global wealth, financial assets, real assets, cash & deposits, liabilities & the top booking centres in the world in 2022. In 2022, the total assets in the world is $515 trillion (APAC: $179 trillion), with $254 trillion (APAC: $71.2 trillion) in financial assets, $261 trillion (APAC: $107.8 trillion) in real assets (real estate, art, jewelries, premium antiques, rare wines), and the total liabilities is $57.3 trillion (APAC: $19.8 trillion). The Asia-Pacific AUM breakdown is Asset Class 69.2%, Deposits 21.1%, Loans 9.7%. The North America AUM breakdown is Asset Class 76.8%, Deposits 12.2%, Loans 11.1%. The Western Europe AUM breakdown is Asset Class 69.6%, Deposits 22.3%, Loans 8.1%. In 2022, the top 10 booking centres are Switzerland, Hong Kong, Singapore, United States, United Kingdom, Channel Islands & Isle of Man, United Arab Emirates, Luxembourg, Cayman Islands, Bahamas. The top 5 booking centres volume are Switzerland $2.4 trillion, Hong Kong $2.2 trillion, Singapore $1.5 trillion, United States $1.1 trillion, United Kingdom $900 billion. The top 5 booking centres top source of funds are Switzerland from Western Europe, Hong Kong from Asia Ex-Japan, Singapore from Asia Ex-Japan, United States from Central & South America, United Kingdom from Western Europe. In 2022, the Wealth Management pre-tax profit margin globally is 0.18% (18.9 bps), APAC is 0.14% (14.9 bps), North America is 0.19% (19.6 bps) and Western Europe is 0.14% (14.9 bps). Boston Consulting Group (BCG) recommends 8 ways to increase revenue – Build scalable growth engine, Design distinctive private market offering, Lead revolution in financial advice, Complete end-to-end (E2E) process review, Get shoring decisions right (selecting locations), 3rd-party tech & operations solutions, Simplify products & services via advice-like discretionary portfolio management (DPM). See below for key findings & summary | View report here. (Real assets ~ real estate, art, jewelries, premium antiques, rare wines)
“ BCG Global Wealth Report 2023: $515 Trillion Total Assets, $179 Trillion Assets in APAC, APAC AUM Asset Class 76.8%, Deposits 12.2%, Loans 11.1%, Top 5 Booking Centres in Switzerland, Hong Kong, Singapore, United States & United Kingdom “
Wealth Segment:
- Retail: between $0 and $250,000
- Affluents: between $250,000 and $1 million
- HNWI: between $1 million and $100 million
- UHNWI: more than $100 million
BCG Global Wealth Report 2023
Boston Consulting Group (BCG) has released the BCG Global Wealth Report 2023, providing key insights into global wealth, financial assets, real assets, cash & deposits, liabilities & the top booking centres in the world in 2022.
Real assets ~ real estate, art, jewelries, premium antiques, rare wines
Summary:
- No. of years of global financial wealth expansion – 15 years (since 2007/2008 financial crisis), global financial assets decreased by -3.5% in 2022
- Global Total Assets – $515 trillion (Financial + Real Assets)
- APAC Total Assets – $179 trillion (Financial + Real Assets)
- Global Financial Assets in 2022 – $254 trillion (APAC $55.4 trillion)
- Global Real Assets in 2022 – $261 trillion (APAC: $107.8 trillion)
- Global Liabilities in 2022 – $57.3 trillion (APAC: $19.8 trillion)
- Asia-Pacific AUM – Asset Class 69.2%, Deposits 21.1%, Loans 9.7%
- North America AUM – Asset Class 76.8%, Deposits 12.2%, Loans 11.1%
- Western Europe AUM – Asset Class 69.6%, Deposits 22.3%, Loans 8.1%
- Top 10 Booking Centres – Switzerland, Hong Kong, Singapore, United States, United Kingdom, Channel Islands & Isle of Man, United Arab Emirates, Luxembourg, Cayman Islands, Bahamas
- Top 5 Booking Centres Volume – Switzerland $2.4 trillion, Hong Kong $2.2 trillion, Singapore $1.5 trillion, United States $1.1 trillion, United Kingdom $900 billion
- Top 5 Booking Centres Top Source of Funds – Switzerland from Western Europe, Hong Kong from Asia Ex-Japan, Singapore from Asia Ex-Japan, United States from Central & South America, United Kingdom from Western Europe
- Wealth Management Profit Margin in 2022 – 0.18% (18.9 bps)
- Wealth Management Profit Margin in Asia-Pacific in 2022 – 0.14% (14.9 bps)
- Wealth Management Profit Margin in North America in 2022 – 0.19% (19.6 bps)
- Wealth Management Profit Margin in Western Europe in 2022 – 0.14% (14.9 bps)
- 8 Initiatives to Increase Revenue – Build scalable growth engine, Design distinctive private market offering, Lead revolution in financial advice, Complete end-to-end (E2E) process review, Get shoring decisions right (selecting locations), 3rd-party tech & operations solutions, Simplify products & services via advice-like discretionary portfolio management (DPM)
BCG Global Wealth Report 2023
2022 Review
- 15 years of global financial wealth expansion after 2007/2008 financial crisis.
- In 2022, global financial assets decreased by -3.5% to $254.6 trillion
- Cash & deposits increased by 6.2% due to high interest rates & shifts in asset allocation
- Value of real assets (real estate, art, jewelries, premium antiques, rare wines) increased by +5.5% to $261 trillion in 2022
- Liabilities increased by +5.9% to $57.3 trillion
1) Global / Regional Assets
Global Assets in 2022 (YOY)
- Total Assets – $515 trillion (Financial + Real Assets)
- Financial Assets – $254 trillion (-3.5%)
- Real Assets – $261 trillion (+5.5%)
- Liabilities – $57.3 trillion (+5.9%)
APAC Assets in 2022
- Total Assets – $179 trillion (Financial + Real Assets)
- Financial Assets – $71.2 trillion
- Real Assets – $107.8 trillion
- Liabilities – $19.8 trillion
Global Assets in 2027 (Forecast)
- Financial Assets – $329 trillion
- Real Assets – $341 trillion
- Liabilities – $73.9 trillion
Real assets ~ real estate, art, jewelries, premium antiques, rare wines
2) Assets in 2022 by Region (YOY)
Asia-Pacific Ex-Japan
- Financial Assets – $55.4 trillion (+2.4%)
- Real Assets – $96.5 trillion (+5%)
- Liabilities – $17.1 trillion (+5.6%)
Japan:
- Financial Assets – $15.8 trillion (+0.8%)
- Real Assets – $11.3 trillion (+5.1%)
- Liabilities – $2.7 trillion (+1.6%)
North America:
- Financial Assets – $116 trillion (-8.1%)
- Real Assets – $61.2 trillion (+6.8%)
- Liabilities – $21.2 trillion (+7.6%)
Western Europe:
- Financial Assets – $55.4 trillion (-2.8%)
- Real Assets – $96.5 trillion (+2.7%)
- Liabilities – $17.1 trillion (+3.8%)
Middle East & Africa:
- Financial Assets – $7.3 trillion (+7.5%)
- Real Assets – $12 trillion (+12.9%)
- Liabilities – $1.3 trillion (+10%)
Latin America:
- Financial Assets – $6.5 trillion (+9%)
- Real Assets – $9.5 trillion (+7.8%)
- Liabilities – $1.3 trillion (+7.8%)
3) AUM Breakdown by Asset Class, Deposits & Loans
Asia-Pacific AUM:
- Asset Class – 69.2%
- Deposits – 21.1%
- Loans – 9.7%
- Total – 100%
North America AUM:
- Asset Class – 76.8%
- Deposits – 12.2%
- Loans – 11.1%
- Total – 100%
Western Europe AUM:
- Asset Class – 69.6%
- Deposits – 22.3%
- Loans – 8.1%
- Total – 100%
4) Top Booking Centres
Top 10 Booking Centres in 2022:
- Switzerland – $2.4 trillion
- Hong Kong – $2.2 trillion
- Singapore – $1.5 trillion
- United States – $1.1 trillion
- United Kingdom – $900 billion
- Channel Islands & Isle of Man – $600 billion
- United Arab Emirates – $500 billion
- Luxembourg – $500 billion
- Cayman Islands – $400 billion
- Bahamas – $400 billion
Top 10 Booking Centres Top Source of Funds:
- Switzerland – Western Europe
- Hong Kong – Asia Ex-Japan
- Singapore – Asia Ex-Japan
- United States – Central & South America
- United Kingdom – Western Europe
- Channel Islands & Isle of Man – Western Europe
- United Arab Emirates – Middle East
- Luxembourg – Western Europe
- Cayman Islands – North America
- Bahamas – North America
Top 10 Booking Centres in 2027 (Forecast):
- Hong Kong – $3.1 trillion
- Switzerland – $2.8 trillion
- Singapore – $2.3 trillion
- United States – $1.3 trillion
- United Kingdom – $1 trillion
- United Arab Emirates – $800 billion
- Channel Islands & Isle of Man – $700 billion
- Luxembourg – $600 billion
- Cayman Islands – $500 billion
- Bahamas – $400 billion
5) Wealth Management Profit Margins
Global:
- 2020 – 0.21% (21.5 bps)
- 2021 – 0.21% (21.2 bps)
- 2022 – 0.18% (18.9 bps)
0.18% of $1 billion is $1.8 million pre-tax profit margin. $10 billion is $18 million. $100 billion is $180 million. Basis Point (bps) is a unit of measure in finance, for interest rates or percentages. 1 bps is 1/100 of 1%, which is 0.01%. 10 bps is 10/100 of 1%, which is 0.1%. 100 bps is 100/100 of 1%, which is 1%.
Asia-Pacific:
- 2020 – 0.22% (22.3 bps)
- 2021 – 0.20% (20.4 bps)
- 2022 – 0.14% (14.9 bps)
North America:
- 2020 – 0.23% (23.1 bps)
- 2021 – 0.22% (22.7 bps)
- 2022 – 0.19% (19.6 bps)
Western Europe:
- 2020 – 0.22% (22.3 bps)
- 2021 – 0.20% (20.4 bps)
- 2022 – 0.14% (14.9 bps)
Profit Margins are Pre-Tax
6) Increasing Wealth Management Revenue
8 Initiatives to Increase Revenue:
- Build scalable growth engine – Follow lead of fintech players in alternatives / private market in using digital client acquisition channels (Non-scalable model: Hiring & Retaining Relationship Managers)
- Design distinctive private market offering – Provide broad offering of private equity, private debt, venture capital, real estate, and exclusive access to co-investment & direct investment.
- Revise the product shelf in line with shifting interest rates – Fixed income, deposits, money-market funds
- Lead revolution in financial advice – Using Generative artificial intelligence (GenAI) to perform Chief Investment Officer tasks, generate investment ideas, measure portfolio against asset allocation & risk preference, filling up KYC forms (Know-your-client), compiling client materials.
- Complete end-to-end (E2E) process review – Many firms are unable to apply end-to-end process due to organisational silos.
- Get shoring decisions right (selecting locations) – Remote locations to lower labour-cost versus near-shoring locations to key hubs for proximity
- 3rd-party tech & operations solutions – Custom, in-house or “best” tech solutions. New trend towards integrated 3rd-party solutions.
- Simplify products & services via advice-like discretionary portfolio management (DPM) – Lower cost of advisory and save time for Wealth Managers, especially if they have many low AUM clients. Clients who prefer advice can invest into customisable discretionary portfolio management (DPM) solutions, lowering cost of advisory and allowing Wealth Managers to serve more clients.
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