Super rich getting richer. 2017 was a year to remember for the so-called High net worth individual (Hnwi) that is to say for those who, with the exception of their main residence, were able to afford to invest at least one million euros in assets, consumer and durable collectibles. According to Capgemini's World Wealth Report 2018, in fact, for the first time their wealth exceeded the figure monstre d70 trillion dollars, realizing a growth of 10,6%.
A gallop that seems to have no end given that 2017 is also the sixth consecutive year of increases and the second best year since 2011 in terms of growth rate.
Geographically, the super rich are concentrated above all in the areas Asia-Pacific and North America accounting for 74,9% of new HNWIs globally and 68,8% ($4.600 trillion) of global wealth growth.
It doesn't look bad either Europe with assets up 7,8% and a 7,3% increase in the number of HNWIs. Italy is also doing well where, between 2016 and 2017, the number of high net worth individuals grew by around 9%, from 251.500 to 274.000. Broadening the horizon, the largest markets, including the United States, Japan, Germany and China, account for 61,2% of the world's HNWI population and 62% of all new HNWIs globally.
Yields for the so-called are also rising wealth managers: in detail, last year the returns on global investments of the Hnwis (on assets managed by wealth managers) increased by 27,4%. Equities remained the main asset class in Q2018 30,9 (27,2% of HNWI financial assets), followed by cash and cash equivalents at 16,8% and real estate at 2,8% (up XNUMX%).
Wealth management firms “have clear opportunities to strengthen the relationship with their high net worth clients, as nearly half of them say they don't feel very connected to their wealth managers,” said Monia Ferrari, head of banking of Capgemini Italy.
Another piece of data that emerged from Capgemini's annual report is also singular: the “super rich” are developing growing interest in cryptocurrencies: although they do not yet represent a significant component of their portfolios, at an international level, 29% have a high level of interest, while 26,9% are quite interested. It is mainly the high returns on investments and the store of value that attract the attention of the HNWIs.
Lastly, investments in innovative technologies such as intelligent automation and artificial intelligence are also significant. “We are seeing that returns alone cannot sustain the wealth management business. Hybrid models are gaining popularity because HNWIs can access financial planning services on a modular, pay-as-you-go basis and take control of the entire wealth management process,” Ferrari said.
