statesman news service
KOLKATA, 6 JULY: Fuelled by global recovery in the equity and real estate markets, the investable wealth of the world’s High Net Worth Individuals (HNWIs) rebounded in 2012, growing by 10 per cent to reach a record high of $46.2 trillion, after declining 1.7 per cent in 2011, according to the World Wealth Report 2013 (WWR) released by Capgemini and RBC Wealth Management.
North America reclaimed its position as the largest HNWI market in 2012 after being overtaken by Asia-Pacific the year prior.
Global investable wealth growth was led by HNWIs in higher wealth bands, with ultra-HNWIs expanding in wealth and number by approximately 11 per cent, following declines in 2011.
"Despite a marked focus on capital preservation and high cash allocations, high net worth individuals achieved a record level of wealth in 2012, suggesting further growth lies ahead if trust and confidence in the markets increase further," said Mr M George Lewis, group head, RBC Wealth Management & RBC Insurance.
Global HNWI confidence in the wealth management industry has improved, with 61 per cent, having a high degree of trust in both wealth managers and their firms in early 2013, up four and three percentage points respectively from last year.
In terms of meeting wealth management needs, HNWIs indicated preference for a seamless approach, working with a single firm (41 versus 14 per cent preferring multiple firms) and single point of contact (34 versus 24 per cent preferring multiple contacts). While 31 per cent prefer direct in-person contact, almost one in four HNWIs feel digital communication to be more important, a trend driven by younger HNWIs and those in Asia-Pacific (excluding Japan).
Looking forward, with the ongoing economic recovery providing an environment of reduced risk and improving investor confidence, global HNWI wealth is forecast to grow by 6.5 per cent annually over the next three years. This is in contrast to the sluggish 2.6 per cent growth since the financial crisis in 2008.