Asia-Pacific surpasses all regions with the largest HNWI population,
while North America retains the most HNWI wealth
TORONTO AND PARIS, June 19, 2012 /CNW/ - 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.
HNWI population edged up slightly while aggregate investable wealth
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
"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.
"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
Economic uncertainty and volatile markets in 2011 drives investor
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
For more information or to download the World Wealth Report 2012, please
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 ExperienceTM, 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.
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.
1 HNWIs are defined as those having investable assets of US$1 million or
more, excluding primary residence, collectibles, consumables, and
2 Ultra-HNWIs are defined as those having investable assets of US$30
million or more, excluding primary residence, collectibles,
consumables, and consumer durables.
Image with caption: "Capgemini and RBC Wealth Management World Wealth Report 2012: Global HNWI Population and HNWI Wealth by Region (CNW Group/RBC Wealth Management)". Image available at: http://photos.newswire.ca/images/download/20120619_C2148_PHOTO_EN_15256.jpg
SOURCE RBC Wealth Management
For further information:
Stephen Bosk (North America)
Weber Shandwick for Capgemini
+1 212 445 8491
Marta Saez (EMEA)
Weber Shandwick for Capgemini
+44 20 7067 0524
RBC Wealth Management Contacts:
Beverley MacLean (North America)
+1 416 974 9334
Paul French (EMEA)
+44 (0) 20 7002 2013