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Global High Net Worth Population Increases Slightly as their
Investable Wealth Declines, finds World Wealth Report
Asia-Pacific surpasses all regions with the largest HNWI
population, while North America retains the most HNWI wealth
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TORONTO, PARIS, June 19, 2012 - The overall financial
wealth of high net worth individuals (HNWI1) declined across
all regions in 2011, with the exception of the Middle East,
according to the World Wealth Report 2012, released today
by Capgemini and its new partner, RBC Wealth Management. The
1.7 percent decline is the first since the 2008 world economic
crisis, a year in which HNWI global wealth declined by 19.5
percent.
The 16th annual World Wealth Report finds that the number
of HNWIs in Asia-Pacific expanded 1.6 percent to 3.37 million
in 2011, making Asia-Pacific the largest HNWI region for the
first time, surpassing North America's HNWI population of
3.35 million. North America remained the largest region for
HNWI wealth at US$11.4 trillion compared to US$10.7 trillion
in the Asia-Pacific region.
1HNWIs defined as those having investable assets of US$1 million or more, excluding primary residence, collectibles, consumables, and consumer durables.
HNWI population edged up slightly while aggregate investable
wealth declined
After witnessing robust growth of 8.3 percent in 2010, global
HNWI population grew marginally by 0.8 percent to 11.0 million
in 2011. Most of this growth can be attributed to HNWIs in
the $1-5 million wealth band, which grew 1.1 percent and represents
90 percent of the global HNWI population. In contrast, global
HNWI wealth in 2011 fell by 1.7 percent to US$42.0 trillion
(compared with 9.7 percent growth to US$42.7 trillion in 2010).
The global population of Ultra-HNWIs2
declined by 2.5 percent in 2011 and its wealth declined by
4.9 percent after increasing by 10.2 percent and 11.5 percent
respectively in 2010.
The HNWI population country ranking saw South Korea replace
India for the 12th position, while the top three countries,
U.S., Japan and Germany, retained 53.3 percent of the total
share of HNWIs, slightly up from 53.1 percent in 2010. Of
the top twelve countries by population, Brazil saw the greatest
percentage rise (6.2 percent) in the number of HNWIs.
"While more people surpassed the US$1 million disposable
income level in 2011, the aggregate wealth of high net worth
individuals declined overall, as market volatility took its
toll," said George Lewis, Group Head, RBC Wealth Management.
"It is significant that for the first time this year
there are now more high net worth individuals in Asia-Pacific
than in any other region. However, losses in key markets such
as Hong Kong and India meant that wealth contracted in Asia-Pacific
overall."
2011 was second most volatile period in the past 15 Years
Following a period of near normalcy in 2010, volatility levels
spiked in 2011 reaching a peak in November 2011 due to widespread
concerns that the Eurozone's debt crisis might overwhelm some
larger economies. Although European Union leaders have taken
steps to contain the sovereign debt crisis, weak growth and
challenges in the Eurozone are expected to add to the volatility
in 2012.
2Ultra-HNWIs are defined as those having investable assets of US$30 million or more, excluding primary residence, collectibles, consumables, and consumer durables.
"Europe will be top of mind for investors, as repeated
flare-ups are likely to keep markets on edge. Additional drivers
such as the economic performance in China, mature market headwinds,
global political leadership changes and policy decisions will
all play key roles in determining whether 2012 drives increases
in HNWI wealth or further losses," said Jean Lassignardie,
Corporate Vice President, Capgemini Global Financial Services.
Economic uncertainty and volatile markets in 2011 drives
investor risk-aversion
Uncertainty drove many investors to safe-haven assets in
2011. Economic drivers of wealth were also diversified in
2011, affecting asset classes and producing varied results,
with equity and commodity performance on the decline, tangible
investments losing value, and investor preferences moving
toward capital preservation through cash and fixed income.
The best-performing asset class was fixed income, with the
price of long-term U.S. Treasuries reaching historic highs.
Moving forward, HNW clients will need to prepare themselves
for ongoing market volatility and extended periods of bimodal
investment outcomes, with returns likely to be extremely positive
or extremely negative, rather than equally distributed, the
report concludes.
About the World Wealth Report
The annual World Wealth Report is the global benchmark for
tracking HNWIs and covers HNWI market sizing with a review
of global economic drivers, HNWI investing behaviors and asset
performance trends. The World Wealth Report 2012, the 16th
annual edition, is an inaugural collaboration between Capgemini
and RBC Wealth Management.
For more information or to download the World Wealth Report
2012, please visit www.capgemini.com/worldwealthreport.
About Capgemini
With around 120,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology
and outsourcing services. The Group reported 2011 global revenues
of EUR 9.7 billion. Together with its clients, Capgemini creates
and delivers business and technology solutions that fit their
needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working,
the Collaborative Business Experience™, and draws on
Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.
About Capgemini's Financial Services
Global Business Unit
Capgemini's Global Financial Services Business Unit brings
deep industry experience, innovative service offerings and
next generation global delivery to serve the financial services
industry. With a network of 21,000 professionals serving over
900 clients worldwide Capgemini collaborates with leading
banks, insurers and capital market companies to deliver business
and IT solutions and thought leadership which create tangible
value.
More information is available at: www.capgemini.com/financialservices
Rightshore® is a trademark belonging to Capgemini
About RBC Wealth Management
RBC
Wealth Management is one of the world's top 10 largest
wealth managers*. RBC Wealth Management directly serves affluent,
high-net-worth and ultra high net worth clients in Canada,
the United States, Latin America, Europe, the Middle East,
Africa and Asia with a full suite of banking, investment,
trust and other wealth management solutions. The business
also provides asset management products and services directly
and through RBC and third-party distributors to institutional
and individual clients, through its RBC Global Asset Management
business (which includes BlueBay Asset Management). RBC Wealth
Management has more than C$560 billion of assets under administration,
more than C$322 billion of assets under management and approximately
4,300 financial consultants, advisors, private bankers and
trust officers.
About RBC
Royal
Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name RBC. We are Canada's largest
bank as measured by assets and market capitalization, and
are among the largest banks in the world, based on market
capitalization. We are one of North America's leading diversified
financial services companies, and provide personal and commercial
banking, wealth management services, insurance, corporate
and investment banking and transaction processing services
on a global basis. We employ approximately 74,000 full- and
part-time employees who serve more than 15 million personal,
business, public sector and institutional clients through
offices in Canada, the U.S. and 51 other countries. For more
information, please visit rbc.com.
*Scorpio Partnership Global Private Banking KPI Benchmark
2011. In the United States, securities are offered through
RBC Wealth Management, a division of RBC Capital Markets,
LLC, a wholly owned subsidiary of Royal Bank of Canada. Member
NYSE/FINRA/SIPC.
RBC Wealth Management contacts:
Beverley
MacLean, (North America), +1 416 974 9334
Paul French (EMEA),
+44 (0) 20 7002 2013
RBC Wealth Management contacts:
Stephen Bosk,
(North America), Weber Shandwick for Capgemini, +1 212 445 8491
Marta Saez (EMEA),
Weber Shandwick for Capgemini
+44 20 7067 0524
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