Overview
- Thought Leadership
World Wealth Report 2008
High Net Worth population rises to over 10 million, with assets reaching $40.7 Trillion, as average HNWI Wealth surpasses $4 Million for first time, reveals 2008 World Wealth Report.
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Capgemini and Merrill Lynch explore the fast growing wealth of the Asia Pacific region.
Asia Pacific Wealth Report 2008 
New Coverage of the Asia Wealth Market
The 2008 Asia-Pacific Wealth Report, is an in-depth look at the changes in the high net worth marketplace in the region. Built on the success of the World Wealth Report, which is now in its 12th year, the report seeks to understand the behaviour of HNWIs and the responses of wealth management providers in nine markets in the Asia-Pacific: Australia, China, Hong Kong, India, Indonesia, Japan, Singapore, South Korea and Taiwan.
According to the report, the wealth of Asia-Pacific HNWIs totalled US$9.5 trillion in 2007. The report also reveals India (22.7%), China (20.3%) and South Korea (18.9%) are fastest-growing HNWI populations. It also examines how both providers and their wealthy clients are looking to Vietnam and Thailand as the next areas of growth. In addition, the 2008 report depicts a region that is enjoying some of the fastest growth rates in the world, with both GDP expansion and stock market performance well above global averages. While growth prospects in the near term may be compromised by the global slowdown, the long-term potential of the Asia-Pacific HNWI marketplace remains strong: the regional economies continue to generate real and sustainable wealth on an unprecedented scale.
Finally the report shows how competition for high-net-worth clients has prompted wealth management providers to look more closely at Emerging-HNWIs and Ultra-HNWIs, two groups which experienced significant growth both in terms of numbers and their combined wealth in 2007.
Fast-Breaking Headlines
- World’s High Net Worth population breaks 10 million mark with India, China and Brazil showing highest growth
- World wealth grows 9.4% to US$40.7 trillion with average HNWI wealth surpassing US$4 million for the first time
- North America: Growth Slows in 2007 As Cooling Housing Market, Tight Credit, and Financial Market Turmoil Converge
- Europe: U.S. Downturn Affects Mature Economies; Sharp Increases in Commodity & Gas Prices Benefit Russia, Eastern Europe
- Asia-Pacific: HNWI Population & Wealth Boom in India & China
- Trends show clients in growth markets require flexible service models
- As environmental awareness rises, Green Investing gains traction
From the World Wealth Report
2007 is a story of two halves: The first half of 2007 consisted of steady worldwide growth, while the second half was marked by a sharp divergence between mature and emerging economies. The U.S. economic slowdown weighed heavily on key mature regions. However, strong performances in emerging markets boosted HNWI gains around the globe. Although real GDP and market capitalization, the two key drivers of wealth creation, were weaker than in 2006, world growth was strong in 2007 and drove solid increases in both HNWI populations and overall wealth. Driven by market capitalization growth in emerging economies, the wealth of High Net Worth Individuals (HNWI) rose 9.4% to US$40.7 trillion, led by India, China and Brazil with real GDP growth of 7.9%, 11.4% and 5.1% respectively. While market capitalization in these emerging countries led with robust gains, the United States, Europe and Asia experienced only moderate gains. For example, various Dow Jones Market Indexes had moderate returns in 2007, averaging 6.8 percent, far below the 17.3 average in 2006. Compared to 2006, market gains in 2007 failed to have as positive an impact on HNWI wealth generation. Most major European and Asian indexes were held to low, single-digit growth. The world’s worst performer, the Nikkei 225, contracted 11.1 percent, while Europe’s best performer, the German DAX, was the only major traditional index to outpace its 2006 performance and sustain double-digit growth.
Growth Markets Need Flexible Service Models to Meet HNWI Client Needs
Despite the economic turmoil, the number of HNWI continues to grow globally in both emerging and mature markets. To meet the increasingly diverse needs of these different growth populations, leading wealth management firms are assessing their capabilities and tailoring key delivery models to ensure that service is aligned with the unique needs of the clients in each market. This year’s Spotlight section takes a closer look.
