North America and Asia-Pacific led the way in 2014, with European growth
expected to accelerate in next few years, finds World Wealth Report
TORONTO and PARIS, June 17, 2015 /CNW/ - Strong economic and equity
market performance helped create nearly a million (920,000) new
millionaires globally in 2014, as High Net Worth Individuals (HNWIs1) grew in both number and wealth to 14.6 million and US$56.4 trillion,
respectively. This reflects an increase of about seven percent, roughly
half the growth rate of the previous year, according to the World
Wealth Report 2015 (WWR) released today by Capgemini and RBC Wealth Management. The report found that while the vast majority of the HNWI population
and wealth is relatively evenly distributed between North America,
Europe and Asia-Pacific, the Asia-Pacific region grew at the fastest
rate and is now home to more HNWIs than any other region.
While North America continues to rank first overall for HNWI wealth at
US$16.2 trillion vs. Asia-Pacific's US$15.8 trillion and Europe's
US$13.0 trillion, Asia-Pacific's wealth growth (11 percent vs. North
America's nine percent and Europe's 4.6 per cent) is expected to
continue. In fact, Asia-Pacific is expected to take top spot for HNWI
wealth before the end of 2015.
Asia-Pacific also expanded its HNWI population at the fastest rate
globally (nine percent), pushing it past North America as the region
with the most HNWIs at 4.69 million. North America's HNWIs grew to 4.68
million (eight percent growth) and Europe's grew to 4.0 million (up
"2014 was the sixth consecutive year of growth for the High Net Worth
market, with robust equity returns and economic performance enabling
wealth to grow by about seven percent, following double digit growth
the year prior," said George Lewis, Group Head, RBC Wealth Management & RBC Insurance. "Asia-Pacific led the growth in wealth this year and just edged out
North America as the new leader in High Net Worth population. Looking
ahead to the next few years, we expect Europe to be a large driver of
HNWI wealth as the region recovers economically."
From a country-level perspective, China and the U.S. drove more than
half (52 percent) of global HNWI population growth. India led the world
in growth for both HNWI population (26 percent) and wealth (28 percent)
due to strong equity market performance and the reduced cost of its
substantial oil imports. China followed, with population and wealth
growth rates of 17 percent and 19 percent, respectively, driven by GDP
growth, increased exports and moderate equity market performance.
Strong growth in Asia-Pacific and North America contrasted with negative
growth in Latin America - the only region with a decline in HNWI
population (-2 percent) and wealth (-0.5 percent) in 2014, largely due
to falling commodity prices and a resulting decline in equity markets.
In Europe HNWI population and wealth grew by roughly four percent due
to weak economic performance and falling equity markets in most
1 HNWIs are defined as those having investable assets of US$1 million or
more, excluding primary residence, collectibles, consumables, and
Equities and cash dominate HNWI portfolios; use of credit also high
Equities overtook cash as the preferred asset class of HNWIs in 2014,
representing 27 percent of portfolios, according to the Global High Net
Worth Insights Survey2 in the WWR.
"Approximately five years into a steady rise in global stock markets,
equities have overtaken cash as the dominant asset class in HNWI
portfolios," said Andrew Lees, Global Sales Officer, Capgemini Global Financial
Services. "Increased exposure to equities indicates a slowly expanding appetite
for risk as High Net Worth Individuals show comfort in equities taking
up a larger portion of portfolios, as asset values rise."
HNWIs continue to hold more than one-quarter (26 percent) of their
wealth in cash, doing so primarily to maintain their lifestyle (36
percent) or for security in case of market volatility (31 percent). The
balance of portfolios was allocated to real estate (20 percent), fixed
income (16 percent) and alternative investments (10 percent).
The WWR also found that the use of credit in HNWI portfolios is
widespread, with 18 percent of assets being financed through borrowed
money, with higher levels evident amongst women (19 percent), those in
higher wealth bands (US$20 million+: 22 percent), and those under 40
(27 percent). Credit is used largely as leverage for investments (40
percent), followed by real estate (22 percent).
2 The Capgemini and RBC Wealth Management Global HNW Insights Survey 2015
is the largest and most in-depth survey of high net worth individuals
ever conducted, surveying more than 5,000 HNWIs across 23 major wealth
markets in North America, Latin America, Europe, Asia-Pacific, the
Middle East, and Africa and was conducted in January and February 2015.
HNWIs seek to make a positive impact on society
As shown in the World Wealth Report 2014, HNWIs continue to have an
interest in investing their wealth, expertise and/or time to drive a
positive social impact, with 92 percent viewing it as important to do
so. This year's report notes that HNWIs turn primarily to wealth
managers (30%), family (27%) and friends (22%) for advice on social
impact opportunities and approaches. It also shows that of those HNWIs
currently receiving social impact support from their wealth managers
and firms, more than half (54%) want even more help in setting clear
social impact goals, determining which investments will effect the most
change, structuring their investments, and measuring the impact of
their social efforts.
Global HNWI wealth forecast to top $70 trillion by 2017
Looking ahead, global HNWI wealth is projected to grow by almost eight
percent annually from the end of 2014 through to 2017, to reach US
$70.5 trillion, led by Asia-Pacific at an anticipated growth rate of
10.3 percent. In a shift from recent years, Europe is expected to act
as a more prominent engine of HNWI wealth expansion at 8.4 percent
annually, as a result of improved optimism for a more substantial
recovery throughout the region, while the wealth of HNWIs in North
America is anticipated to grow by a more modest seven percent.
The World Wealth Report from Capgemini and RBC Wealth Management is the industry-leading benchmark for tracking high net worth
individuals (HNWIs), their wealth, and the global and economic
conditions that drive change in the Wealth Management industry. This
year's 19th annual edition includes findings from the most in-depth
primary research works available on global HNWI perspectives and
behavior. Based on responses from over 5,100 High Net Worth Individuals
across 23 countries, the Global HNW Insights Survey explores HNWI
confidence levels, asset allocation decisions, perspectives on driving
social impact, as well as their wealth management advice and service
preferences. The inaugural 2015 Capgemini Wealth Manager Survey also
queried more than 800 wealth managers across 15 major wealth markets to
assess the evolving role of wealth managers.
For more information, explore the interactive report website at www.worldwealthreport.com.
With more than 145,000 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 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 ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Rightshore® is a trademark belonging to Capgemini
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 24,000 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.
Learn more about us at www.capgemini.com and www.capgemini.com/financialservices.
Connect with our wealth management experts in the Financial Services
section of Capgemini Expert Connect at http://www.capgemini.com/experts/financial-services.
The World Wealth Report 2015 and other Capgemini thought leadership is
available for your iPad through Capgemini's Financial Services Insights
app. Download it through iTunes here.
About RBC Wealth Management
RBC Wealth Management is one of the world's top five largest wealth managers*. RBC Wealth
Management directly serves affluent, high-net-worth and ultra-high net
worth clients globally with a full suite of banking, investment, trust
and other wealth management solutions, from our key operational hubs in
Canada, the United States, the British Isles, and Asia. 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$747 billion of assets under administration, more than C$481
billion of assets under management and approximately 4,100 financial
consultants, advisors, private bankers, and trust officers. For more
information, please visit www.rbcwealthmanagement.com.
*Scorpio Partnership Global Private Banking KPI Benchmark 2014. 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.
Royal Bank of Canada is Canada's largest bank, and one of 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, insurance, investor
services and capital markets products and services on a global basis.
We employ approximately 78,000 full- and part-time employees who serve
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RBC supports a broad range of community initiatives through donations,
sponsorships and employee volunteer activities. In 2014, we contributed
more than $111 million to causes worldwide, including donations and
community investments of more than $76 million and $35 million in
Image with caption: "WWR 2015 Infographic from Capgemini and RBC Wealth Management: Global population of high net worth individuals and their wealth hit new highs. (CNW Group/Capgemini)". Image available at: http://photos.newswire.ca/images/download/20150617_C9626_PHOTO_EN_43529.jpg
For further information:
Drea Garrison (North America)
Weber Shandwick for Capgemini
+1 952 346 6152
Cortney Lusignan (EMEA)
Weber Shandwick for Capgemini
+44 (0) 20 7067 0764
RBC Wealth Management Contacts:
Tony Maraschiello (North America)
+1 416 974 9334
Fiona McLean (EMEA)
+44 (0) 20 7653 4516