2015 WORLD WEALTH REPORT: focus on HNWI / Asset manager relationship

10 Jul 2015

WWR2015In collaboration with RBC Wealth Management, Capgemini has just released the 2015 edition of its annual World Wealth Report – dedicated to the study of major trends that affected HNWI and UHNWI through the world in 2014.

Without any surprise, Pacific-Asia and North America are ranked first and second with an annual growth of 8.5% for Pacific-Asia and 8.3% for North America. Middle East takes the third place on the podium with an interesting progression of 7.7%. At the bottom of the list, South America is facing a negative growth of -2.1% while Europe and Africa are still enjoying stable developments with rates of 4 and 5.2%.

On a global scale, growth is relatively low as it is beyond the moderate level of 7%. It is a real disappointment as it is the second worst rate recorded over the past five years.

Concerning HNWI satisfaction, almost 3 on 4 are satisfied with the services provided by their asset manager. However, this number fluctuates a lot when looking at the different regions separately. If the USA is leading with a satisfaction level of 82%, Japan is lagging behind with a poor satisfaction rate of 56%.

Among the causes of dissatisfaction, many HNWI believe that asset managers are underestimating and not granting enough importance to several of their main concerns. As an example, HNWI aged under 45 are the most concerned by personal and family health issues, whether assets will last a lifetime, the rising costs of Healthcare, and the ability to afford the lifestyle they want in retirement.

On their side, asset managers are also under pressure and subjected to many concerns and questions concerning the future of the asset management sector. Among these questions, the main one is linked to the threats hidden behind permanently evolving regulations. Indeed, compliance is taking a major place in asset managers’ daily life and they thus have to invest more and more to ensure being compliant with financial norms. As a consequence, costs are rising and wealth managers can’ only focus on core skills and activities.

Today, asset managers have to master a full range of competencies and skills that they were not used to deal with in the past years.

If you would like to view the full version of the 2015 World Wealth Report, please click here.

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