North America edged out Asia-Pacific as the largest wealth market by HNWI population, growing by 11.5 percent to reach 3.73 million. However, the report notes that Asia-Pacific is expected to reclaim the top spot in the near future, driven by strong projected HNWI wealth growth at 9.8 percent annually to reach an anticipated US$15.9 trillion by 2015.
“The Asia-Pacific market is clearly one to watch. Its leadership in global high net worth wealth growth positions it to become the largest wealth market by population as early as 2014,” said M. George Lewis, Group Head, RBC Wealth Management & RBC Insurance. “Asia-Pacific’s robust growth in 2012 builds on over five years of consistent outperformance. The region’s high net worth population and wealth has increased by 31 percent and 27 percent respectively since 2007, far outpacing growth in the rest of the world of 14 percent and nine percent.”
Added Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Global Financial Services: “GDP growth of 5.5 percent, which is more than double the global average, combined with strong equity market performance across the region and strong real estate market performance in some markets, drove robust growth in Asia-Pacific’s HNWI population and wealth in 2012. This GDP growth rate is projected to drive Asia-Pacific’s growth in HNWI population and wealth through 2014.”
Distinct trends reflected across Asia-Pacific and compared to rest of world
While all Asia-Pacific markets expanded in 2012, varying rates of growth across countries within the region reflect unique economic policies, pace of reform, regulatory developments, and investor preferences and behaviors.
Hong Kong and India experienced the most significant gains in HNWI population and wealth in 2012, following steep declines in 2011. Hong Kong’s HNWI population grew by 35.7 percent and their wealth by 37.2 percent, while India’s population grew by 22.2 percent and their wealth by 23.4 percent.
Japan and Taiwan were the only markets to experience single-digit increases in HNWI population, though both still showed steady growth at 4.4 percent and 7.0 percent respectively. Growth in Asia-Pacific’s Ultra-HNWI population and wealth, at 15.4 percent and 17.8 percent, was the highest among all wealth bands. It significantly exceeded gains made by Ultra-HNWIs in the rest of the world, who expanded in number by 9.7 percent and wealth by 9.4 percent.
Survey: Asia-Pacific HNWIs highly confident in industry, ability to generate future wealth
Asia-Pacific’s HNWIs are highly confident in the wealth management industry overall and their ability to generate wealth in the near future.
According to this year’s new Global HNW Insights Survey with responses from nearly 1,400 HNWIs in Australia, China, Hong Kong, India, Japan, and Singapore (and over 4,400 HNWIs in total), almost 80 percent of HNWIs in Asia-Pacific (excluding Japan) highly trust their wealth managers and firms, compared to about two-thirds of HNWIs in the rest of world. Additionally, 69.4 percent have high confidence in financial markets and 72.2 percent in regulators, compared to just 44.6 percent and 38.3 percent of HNWIs in other regions. HNWIs in India and China have the highest trust levels, followed, in order, by those in Singapore, Hong Kong, and Australia. Japan’s HNWIs proved an exception to the overall confidence trend, with less than a third having trust in key industry stakeholders.
In line with overall high trust levels, the outlook of Asia-Pacific (ex-Japan) HNWIs is extremely positive, with 90.5 percent confident they can build wealth in the near future, led by those in India (95.7 percent) and China (95.2 percent).
The Asia-Pacific Wealth Report 2013
Expanding on the findings of the World Wealth Report, the Asia-Pacific Wealth Report from Capgemini and RBC Wealth Management provides population and wealth data for ten core markets in Asia-Pacific. Spanning Australia, China, Hong Kong, India, Indonesia, Thailand, Japan, Singapore, South Korea and Taiwan, the report reviews economic and market performance drivers, as well as High Net Worth Individual (HNWI) investing behaviors in the Asia-Pacific region. This year’s report also includes a section that provides an in-depth focus on HNWI perspectives and behavior based on a global survey of over 4,400 HNWIs, including almost 1,400 respondents from Asia Pacific. Through the survey findings we explore HNWI confidence levels, asset allocation decisions, as well as their wealth management advice and service preferences. Download the report at www.asiapacificwealthreport.com.
About Capgemini India
Capgemini in India is around 40,000 people strong across 9 cities (Mumbai, Delhi, Bangalore, Hyderabad, Pune, Kolkata and Chennai – Trichy and Salem). A pioneer in the IT industry, Capgemini has over 45 years of global expertise collaborating with leading corporations and now brings the Consulting, Technology and Outsourcing experience to India. With dedicated teams to service the local markets, Capgemini has strong domain experience to assist clients across the Government and Public Sector, Energy and Utilities, Manufacturing, Telecom and Financial Services sectors and help them advance in their respective industries.
Please visit www.in.capgemini.com for more details.
With more than 125,000 people in 44 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.
Rightshore® is a trademark belonging to Capgemini
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. We are Canada’s largest bank as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. We are one of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and wholesale banking on a global basis. We employ approximately 80,000 full- and part-time employees who serve more than 15 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 44 other countries. For more information, please visit rbc.com.
*Scorpio Partnership Global Private Banking KPI Benchmark 2013. In the United States, securities are offered through RBC Wealth Management, a division of RBC Capital Markets, LLC, a wholly owned subsidiary of Royal Bank of Canada. Member NYSE/FINRA/SIPC.
Merrin Netto John
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As Japanese HNWIs have markedly unique investing behaviors and preferences and the country accounts for more than 50% of the region’s HNWI population, we frequently isolate and make reference to Asia-Pacific excluding Japan when performing regional analysis. However, complete findings on Japan as a country are covered extensively in the Asia Pacific Wealth Report.