Overview
- Thought Leadership
World Wealth Report 2007
Assets of High Net Worth Individuals rises by 11.4% to $37.2 trillion, showing first double-digit growth in 7 years.
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As HNW client needs grow ever more complex, Wealth Management firms adopt new service models to better satisfy clients.
Emerging Models for Serving High Net Worth Clients
Fast-Breaking Headlines
Global High Net Worth (HNW) population reaches 9.5 million with Singapore and India leading growth.
World Wealth grows 11.4% to $37.2 trillion demonstrating first double growth seen in seven years.
Global economy hits new heights with Europe and Asia-Pacific delivering strong performance.
From the World Wealth Report
In 2007 global economies and emerging markets were fueled by real GDP and market capitalization to drive wealth generation. For the first time in seven years High Net Worth Individuals (HNWI) wealth rose to double digit growth of 11.4% led by emerging markets such as China and India who sustained real GDP growth rates of 10.5% and 8.8% respectively. Market capitalizations grew rapidly in Europe, Asia-Pacific and Latin America, driven by strong corporate profits, IPO activity and ongoing foreign investment. Looking ahead, as more mature markets like the US return to more moderate growth rates and central banks tighten monetary policy, the period of high liquidity that has stimulated recent growth may soon come to an end.
Driven by Singapore, India, Indonesia and Russia, worldwide HNWI population growth continues strong at 8.3%. For their investment dollars, real estate produced high returns and garnered a larger percentage of HNWIs’ portfolios globally. Commercial real estate markets and REITs drove the increased allocation to real estate.
New HNW Service Models Emerging
This year’s World Wealth Report spotlight features an exploration of dynamic needs-based service approaches to better meet the needs of increasingly complex and ever changing High Net Worth (HNW) clients. The trend in using more advanced segmentation approaches based on individual characteristics and on-going, changing client needs is becoming much more important to evaluating the effectiveness of Wealth Management firm service models. Using a needs-based approach provides advisors with the right products and services to offer their investors to achieve investment goals and improve client satisfaction.
