With China and India leading the way, the region's High Net Worth
Individual wealth expected to grow 10 percent annually, according to
the Asia-Pacific Wealth Report 2015
HONG KONG AND SINGAPORE, Sept. 15, 2015 /CNW/ - China and India were among the key emerging markets to spearhead the
continued rise in Asia-Pacific's High Net Worth Individual (HNWI)1 population and wealth in 2014, according to the Asia-Pacific Wealth Report 2015 (APWR), published today by Capgemini and RBC Wealth Management.
Overall, Asia-Pacific saw its HNWI population grow 8.5% in 2014 to 4.7
million people - one million more than just two years ago - while
wealth increased 11.4% to US$15.8 trillion, leading all regions
"Asia-Pacific continues its tremendous run in wealth creation and
doesn't appear to be slowing down anytime soon," said Barend Janssens, head, RBC Wealth Management - Asia. "Despite some recent economic issues, the region's wealth is expected
to lead global growth and with this, will provide tremendous
opportunities for the wealth management firms that are well positioned
to meet the increasingly complex needs of HNWIs in Asia-Pacific."
Asia-Pacific has already surpassed North America with the largest HNWI
population (4.69 million versus 4.68 million), according to the recent World Wealth Report 2015, and is expected to overtake North America's leading US$16.2 trillion
in HNWI wealth by the end of the year. Looking further ahead, HNWI
wealth is expected to expand more in Asia-Pacific than in any other
region of the world with much of the new wealth expected to come from
the emerging economies of China, India, Indonesia, and Thailand. China
and India, in particular, have propelled Asia-Pacific HNWI wealth
growth in recent years and are expected to continue to act as key
drivers, both in the region and globally. China and India represent
nearly 10% of global HNWI wealth, and account for 17% of the global
increase in new wealth since 2006, adding US$3.2 trillion during that
In 2014 alone, China saw its HNWI population grow by 17.5% to 890,000,
while the HNWI wealth rose 19.3% to US$4.5 trillion. India, meanwhile,
recorded the largest percentage point gains - in the region and
globally - in HNWI population (26.3% to 198,000) and wealth (28.2% to
HNWI wealth in Mature Asia, which includes Japan, Australia, New
Zealand, Singapore, Hong Kong, Taiwan, Malaysia, and South Korea, grew
by 7.0 percent in 2014, and is expected to grow at a rate of 8.9
percent through 2017 to reach US$12 trillion in wealth.
Singapore grew its HNWI population and wealth at low rates of 2.2% and
3.9%, respectively, whereas Hong Kong grew its HNWI population and
wealth at strong rates of 11.2% and 13.1%, respectively.
The report also found that Asia-Pacific's ultra-HNWIs - those with more
than US$30 million in investable assets - accounted for less than 1% of
the region's millionaires in 2014, but generated over one quarter of
1 HNWIs are defined as those having investable assets of US$1 million or
more, excluding primary residence, collectibles, consumables, and
Cash and credit play prominent roles in HNWI portfolios
According to the report's Global HNW Insights Survey 20152, cash (23.1%) is now the largest component of HNWI portfolios in
Asia-Pacific (excl. Japan)3, followed closely by equities (22.8%) and real estate (21.4%), which
was the top-held asset last year. This sets the region apart from HNWIs
in the rest of the world4, who clearly favor equities (27.9%) over cash (23.3%) and real estate
(18.2%). However, Japanese HNWIs made a nearly seven percentage-point
move away from cash (from 43.8% in 2014 to 37.1% in 2015) and invested
more in equities (20.7% in 2014 to 26.3% in 2015).
And while HNWIs across the world say they keep cash on hand primarily to
meet their lifestyle requirements and for financial security in case of
market volatility, HNWIs in Asia-Pacific (excl. Japan) are more likely
to use cash to invest in financial opportunities that may suddenly
arise, as well as real estate investments.
The report also found that credit is important to Asia-Pacific (excl.
Japan) HNWIs, with more than one-quarter (25.5%) of assets financed
through credit, versus only 18.2% for HNWIs in the rest of the world.
As a result, HNWIs in the region place high importance (58.7%) on a
firm's ability to provide credit when choosing to initiate a wealth
management relationship versus those in the rest of the world (34.9%).
"Compared to their counterparts in the rest of the world, Asia-Pacific
(excl. Japan) HNWIs showcase a higher focus on and varied reasoning for
holding cash and credit," said Andrew Lees, global sales officer, Capgemini's Financial Services
Global Business Unit. "Wealth managers and firms can work with the HNWIs in the region to
provide them with customized opportunities in these areas, as a part of
overall wealth management and goal-based planning."
Despite a decline in international allocations from 43.4% in 2014 to
37.8% in 2015, Asia-Pacific (excl. Japan) HNWIs remained above the rest
of the world (36.2%) in their investments outside their domestic
2 The Capgemini and RBC Wealth Management Global HNW Insights Survey 2015
queried more than 5,100 HNWIs across 23 major wealth markets in North
America, Latin America, Europe, Asia-Pacific, the Middle East, and
Africa, including more than 1,600 in Asia-Pacific across eight major
markets of Australia, China, Hong Kong, India, Indonesia, Japan,
Malaysia, and Singapore.
3 As Japanese HNWIs have unique investing behaviors and preferences, and
because the country accounts for more than 50% of the region's HNWI
population, we frequently isolate and make reference to Asia-Pacific
excluding Japan when performing regional analysis. Complete findings on
Japan as a country are covered extensively in the Asia Pacific Wealth
4 Rest of the world refers to all countries covered in global market
sizing or the Global HNW Insights Survey 2015 except those in
Asia-Pacific HNWIs want more support for their social impact efforts
The APWR 2014 reported that 97 percent of Asia-Pacific (excl. Japan)
HNWIs ascribed some level of importance to driving social impact. This
year's report found that HNWIs in Asia-Pacific (excl. Japan) are
seeking advice on how to achieve their social impact goals, with demand
reaching 24.3% in 2015.
Wealth managers have emerged as the primary source for social impact
advice for HNWIs in Asia-Pacific (excl. Japan), with half (50.0%) of
HNWIs in the region saying they turn to their primary wealth managers
for advice compared to 23.9% in the rest of the world. More than
two-thirds (66.5%) say they want more social impact support from wealth
managers going forward.
Now with 180,000 people in over 40 countries, Capgemini is one of the
world's foremost providers of consulting, technology and outsourcing
services. The Group reported 2014 global revenues of EUR 10.573
billion. Together with its clients, Capgemini creates and delivers
business, technology and digital solutions that fit their needs,
enabling them to achieve innovation and competitiveness. A deeply
multicultural organization, Capgemini has developed its own way of
working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Capgemini's Financial Services Global Business Unit brings deep industry
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collaborates with leading banks, insurers and capital market companies
to deliver business and IT solutions and thought leadership which
create tangible value.
Learn more about us at www.capgemini.com and www.capgemini.com/financialservices.
Connect with our wealth management experts in the Financial Services
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About RBC Wealth Management
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Image with caption: "Asia-Pacific Wealth Report 2015 From Capgemini and RBC Wealth Management (CNW Group/Capgemini)". Image available at: http://photos.newswire.ca/images/download/20150915_C9753_PHOTO_EN_44202.jpg
For further information:
Mary-Ellen Harn (North America)
+1 704 490 4146
Cortney Lusignan (EMEA)
Weber Shandwick for Capgemini
+44 (0) 20 7067 0764
RBC Wealth Management Contacts:
Carol Lau (Asia-Pacific)
Weber Shandwick for RBC
+ 852 2533 9981