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Capgemini’s World Wealth Report 2018

18 September 2018

Capgemini SE a French multinational professional services and business consulting corporation releases World Wealth Report 2018 – 18.1 Million HNWIs holding $70.2 Trillion of Wealth

Capgemini has released the World Wealth Report 2018, reporting HNWIs totaling 18.1 million and holding $70.2 trillion of wealth in 2017. https://www.capgemini.com

The report also highlighted key trends, including global HNWI wealth breaking the $70 trillion mark for the first time in 2017, growing 10.6% from 2016.

In 2017, global HNWI investment returns managed by wealth managers were up 27.4%, however HNWI satisfaction level did not meet 70%, despite the significant returns in 2017. In 2018, only 55.5% of HNWIs said they connected very well at a personal level with their wealth managers.

Equities remain the largest asset class for HNWI in Q1 2018 at 30.9%, cash and equivalents at 27.2% and real estate at 16.8%, representing 74.9% of portfolio.

Capgemini’s World Wealth Report 2018 explores the trends that affect high net worth individuals (HNWIs) in 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization.

Key Findings

Capgemini’s World Wealth Report 2018 explores trends that affect high net worth individuals (HNWIs) in 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization www.worldwealthreport.com

2018 findings reveal:

  • Growth Continues as Global HNWI Wealth Breaks the US$70 Trillion Mark. Registering its sixth consecutive year of gains, HNWI wealth grew 10.6 percent, making 2017 the second-fastest year of HNWI growth since 2011.
  • Wealth managers delivered another year of strong returns. According to the report, global HNWI investment returns (on the assets managed by wealth managers) were up 27.4 percent in 2017, with equities remaining the largest asset class in the first quarter of 2018 at 30.9 percent of HNWI financial wealth, cash and cash equivalents at 27.2 percent, and real estate at 16.8 percent (increase of 2.8 percentage points.)
  • Robust investment returns are not increasing HNWI satisfaction. Global HNWI satisfaction did not meet 70% satisfaction levels, despite significant returns. In 2018, only 55.5 percent of HNWIs said they connected very well at a personal level with their wealth managers. Better personal connections between wealth managers and their HNW clients may lead to better HNWI satisfaction scores.
  • Cryptocurrencies gained global attention in 2017. Cryptocurrency investments reached an all-time high, with total market capitalization peaking in January 2018. HNWIs are cautiously interested in holding cryptocurrencies, with 29.0% globally having a high degree of interest, and 26.9% saying they were somewhat interested.
  • Wealth management firms must accelerate hybrid transformation and transform budget approaches to tackle significant hybrid demand from HNWIs and potential BigTech entry. Report reveals that 68.7% of HNWIs globally said hybrid advice is a significant factor regarding decisions related to asset consolidation with their primary wealth management firm. Additionnally, more than 50% of HNWIs expressed an interest in wealth management services offered by BigTech firms. To transform and drive hybrid innovation, leading firms are heavily investing in technologies such as intelligent automation and artificial intelligence.