Capgemini World Wealth Report 2020
1st October 2020 | Hong Kong
Capgemini has released the World Wealth Report 2020. The report tracks high net worth individuals (HNWIs), their wealth, and global and economic conditions that drive change in the wealth management industry.
” 19.6 million HNWIs,183,000 UHNWIs “
The World Wealth Report 2020 covers 71 countries, accounting for more than 98% of global gross national income and 99% of world stock market capitalization. The Capgemini 2020 Global HNW Insights Survey also surveyed more than 2,500 HNWIs across 21 major wealth markets in North America, Latin America, Europe, and the Asia-Pacific region. (The survey was conducted in January and February in 2020, thus the survey results do not account for the impact of the COVID-19 crisis).
The full Capgemini World Wealth Report 2020 can be accessed at the webpage: World Wealth Report 2020
Summary of Capgemini World Wealth Report 2020
- There are 19.6 million HNWIs in the world at the end of 2019
- Total HNWIs in the world held $74 trillion of wealth
- The average HNWI wealth is $3.77 million
- 19.4 million HNWIs with $1 million to $30 million
- 17.6 million HNWIs with $1 million to $5 million
- 1.75 million HNWIs with $5 million to $30 million
- 183,400 are UHNWIs with $30 million or more
- United States has the most HNWIs, with 12.07 million
- Japan has the 2nd most HNWIs, with 3.38 million
- Germany has the 3rd most HNWIs with 1.46 million
- China has the 4th most HNWIs with 1.31 million
- France has the 5th most HNWIs with 702,000
- The top 5 countries above, have a total of 12.78 million HNWIs, representing 65.2% of global HNWIs population
- The top 25 countries have a total of 17.73 million HNWIs, representing 90.47% of global HNWIs population
- The 9 APAC countries in the top 25 list, have a total of 6.11 million HNWIs, representing 31.1% of global HNWIs population.
Notes
- High Net Worth Individuals are defined as those having investable assets of $1 million or more, excluding primary residence, collectibles, consumables, and consumer durables.
- Ultra-HNWIs have more than $30 million in investable assets.
- All currencies are in USD
- For Capgemini Global HNW Insights Survey 2020, over 2,500 HNWIs were surveyed in Jan – Feb 2020
Anirban Bose, Capgemini’s Financial Services CEO and Group Executive Board Member:
“In the face of today’s extraordinary uncertainty, wealth managers and firms are finding themselves in uncharted waters.
This unpredictable period may also present opportunities for firms to reassess and reinvent their business and operating models to be more agile and resilient. Analytics and automation as well as emerging technologies like artificial intelligence, can enable firms to enhance revenues through better client experiences while reducing costs by streamlining processes.”
1. 2020 Global HNWI Population
| Year | HNWI Population |
| 2012 | 12 million |
| 2013 | 13.7 million |
| 2014 | 14.7 million |
| 2015 | 15.4 million |
| 2016 | 16.5 million |
| 2017 | 18.1 million |
| 2018 | 18 million |
| 2019 | 19.6 million |
At the end of 2019, there are around 19.6 million High net worth individuals (HNWIs) in the world. HNWIs have investable assets of USD 1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables.
2. Total Wealth of HNWIs
| 2017 | 2018 | 2019 | |
| Total HNWI Wealth | $70.2 trillion | $68.1 trillion | $74 trillion |
| Wealth Growth (%) | 10.60% | -3.00% | 8.60% |
The total wealth of HNWIs in 2019 is around $74 trillion, growing 8.6% from $68.1 trillion in 2018. With 19.6 million HNWIs, the average HNWI wealth is $3.77 million.
3. HNW, UHNW Distribution
| Segment | 2019 | Population | Wealth |
| UHNWI (> $30 m) | 183,400 | 0.90% | 33.60% |
| HNW $5m – $30m | 1,757,600 | 9% | 22.60% |
| HNW $1m – $5m | 17,666,600 | 90.10% | 43.80% |
| Total | 19,607,600 | 100% | 100% |
Of the 19.6 million HNWIs, 183,400 are UHNWs with more than $30 million of wealth while 19.4 million are HNWs with $1 million to $30 million.
Of the 19.4 million who are HNWIs with $1 million to $30 million, 17.6 million have $1 million to $5 million and 1.75 million have $5 million to $30 million.
- Total of 19.6 million HNWIs
- 19.4 million HNWIs with $1 million to $30 million
- 17.6 million with $1 million to $5 million
- 1.75 million with $5 million to $30 million
- 183,400 are UHNWIs with $30 million or more
4. Top 25 Countries with the Most HNWIs
| Country | 2018 | 2019 | Growth | |
| 1 | United States | 5,322,000 | 5,909,000 | 11.03% |
| 2 | Japan | 3,151,000 | 3,387,000 | 7.49% |
| 3 | Germany | 1,350,000 | 1,466,000 | 8.59% |
| 4 | China | 1,189,000 | 1,317,000 | 10.77% |
| 5 | France | 635,000 | 702,000 | 10.55% |
| 6 | United Kingdom | 556,000 | 591,000 | 6.29% |
| 7 | Switzerland | 384,000 | 438,000 | 14.06% |
| 8 | Canada | 362,000 | 392,000 | 8.29% |
| 9 | Italy | 275,000 | 298,000 | 8.36% |
| 10 | Netherlands | 259,000 | 287,000 | 10.81% |
| 11 | Australia | 266,000 | 284,000 | 6.77% |
| 12 | India | 256,000 | 263,000 | 2.73% |
| 13 | South Korea | 235,000 | 243,000 | 3.40% |
| 14 | Spain | 224,000 | 235,000 | 4.91% |
| 15 | Russia | 200,000 | 215,000 | 7.50% |
| 16 | Kuwait | 188,000 | 207,000 | 10.11% |
| 17 | Saudi Arabia | 191,000 | 203,000 | 6.28% |
| 18 | Brazil | 186,000 | 199,000 | 6.99% |
| 19 | Norway | 174,000 | 182,000 | 4.60% |
| 20 | Taiwan | 162,000 | 178,000 | 9.88% |
| 21 | Hong Kong | 153,000 | 172,000 | 12.42% |
| 22 | Austria | 145,000 | 155,000 | 6.90% |
| 23 | Sweden | 129,000 | 142,000 | 10.08% |
| 24 | Thailand | 127,000 | 134,000 | 5.51% |
| 25 | Indonesia | 129,000 | 134,000 | 3.88% |
United States has the most HNWIs, with 12.07 million. Japan has the 2nd most HNWIs, with 3.38 million while Germany has the 3rd most HNWIs with 1.46 million. China has the 4th most HNWIs with 1.31 million and France has the 5th most HNWIs with 702,000.
The top 5 countries (United States, Japan, Germany, China, France), have a total of 12.78 million HNWIs, representing 65.2% of global HNWIs population. The top 25 countries (above) have a total of 17.73 million HNWIs, representing 90.47% of global HNWIs population.
5. Top 9 Countries in APAC with the Most HNWIs
| Country | 2018 | 2019 | Growth | |
| 1 | Japan | 3,151,000 | 3,387,000 | 7.49% |
| 2 | China | 1,189,000 | 1,317,000 | 10.77% |
| 3 | Australia | 266,000 | 284,000 | 6.77% |
| 4 | India | 256,000 | 263,000 | 2.73% |
| 5 | South Korea | 235,000 | 243,000 | 3.40% |
| 6 | Taiwan | 162,000 | 178,000 | 9.88% |
| 7 | Hong Kong | 153,000 | 172,000 | 12.42% |
| 8 | Thailand | 127,000 | 134,000 | 5.51% |
| 9 | Indonesia | 129,000 | 134,000 | 3.88% |
In Asia-Pacific, Japan has the most HNWIs with 3.38 million and is the only country in Asia. China has the 2nd most HNWIs with 1.31 million while Australia has the 3rd most HNWIs with 284,000.
The 9 APAC countries in the top 25 list (Japan, China, Australia, India, South Korea, Taiwan, Hong Kong, Thailand, Indonesia), have a total of 6.11 million HNWIs, representing 31.1% of global HNWIs population.
Capgemini 2020 Global HNW Insights Survey
6. Asset Allocation of HNWIs
| Asset Allocation | Q2 2019 | Q1 2020 |
| Equity | 25.7% | 30.1% |
| Fixed Income | 17.6% | 17.1% |
| Cash & Equivalents | 27.9% | 25.2% |
| Real Estate | 15.8% | 14.6% |
| Alternatives | 13.0% | 12.9% |
In Q1 2020^, HNWIs allocate 30.1% of their assets into Equity, 17.1% into Fixed income, 25.2% into Cash & equivalents. 14.6% of their assets are allocated into Real Estate* and 12.9% are into Alternatives**.
- *Real Estate – excludes primary residence
- **Alternatives – Includes hedge funds, private equity, structured products, derivatives, foreign currency, commodities
- ^ Survey in Jan, Feb 2020
7. HNWIs on Compensation for Wealth Services
| Fee Structure | Existing | Desired |
| Based on investment performance | 26% | 35% |
| Based on all services | 11% | 15% |
| Percentage of assets | 24% | 13% |
8. Interest in Sustainable Investing
| Interest in Sustainable Investing | Survey Results |
| HNWIs ($1m – $5m) | 17% |
| UHNWs | 40% |
9. HNWI Sustainable Asset Allocation
| Year | 2020 | 2021 |
| Portfolio Allocation | 41% | 46% |
10. Availability of Sustainable Investing in Wealth Management Firms
| Sustainable Investing Availability | Survey Results |
| Yes | 80% |
| Soon | 12% |
| No plans | 8% |
11. Why HNWIs do Sustainable Investing
| Purpose of Sustainable Investing | Survey Results |
| Higher returns from sustainable investment products | 39% |
| Sustainable investments seem sound, less speculative | 33% |
| Understand ESG funds better than before | 29% |
| There are better sustainable investment offerings | 27% |
| Want to give back to society | 26% |
12. Sustainable Investing Priorities: HNWIs vs Wealth Firm
| Priorities | HNWIs | Wealth Firm |
| Environmental Risks | 55% | 43% |
| Climate Change, Carbon Footprint | 55% | 45% |
| Ethical Corporate Governance Systems | 54% | 63% |
| Socially conscious business policies & practices | 52% | 55% |
13. Most Sought after Services for UHNWIs Younger than 40 years old
- Tax planning
- Legal consultation
- Inheritance advice
- Services for passion investments (art, wine, collectibles, luxury cars, yachts)
14. Value-added Services in Primary Wealth Management Firm
| Segment | Interested | Will Pay |
| HNWIs ($1 m – $5m) Age< 40 | 38% | 55% |
| HNWIs ($1 m – $5m) Age >60 | 35% | 3% |
| UHNWIs (>$30 m) Age< 40 | 48% | 80% |
| UHNWIs (>$30 m) Age >60 | 59% | 27% |
15. Factors Impacting Wealth Management Firms
| Factors | Survey Results |
| Impact of natural events – eg. Pandemics | 59% |
| Global economic slowdown | 39% |
| Impact of technology, change in business models | 31% |
| Geopolitical instability | 29% |
| Threats of new entrants – eg. BigTech firms | 26% |
| Changing market dynamics – increasing information transparency | 26% |
| Fee pressure due to zero trading commission, shift towards passive products | 29% |
| Wealth transfer, uncertainty regarding future customers | 31% |
| Changing client profiles & expectations | 35% |
16. Wealth Firms vs BigTech Firms Service Level Perception
| Wealth | BigTech | |
| Researching information about the firm and its capabilities | 13% | 31% |
| Receiving value-added services | 11% | 29% |
| Receiving educational market information | 11% | 29% |
| Accessing portfolio information | 13% | 30% |
| Receiving personalized updates about new products and services | 12% | 29% |
BigTech firms are technology firms such as Google, Apple, Facebook, Amazon, Alibaba or Tencent.
18. Key Touch Points for Wealth Management Firms
- Researching information about the firm
- Product / Service or investment information search
- Firm selection & on boarding
- Receiving portfolio advice
- Personalised updates about new products / services
- Receiving educational market information
- Executing transactions
- Accessing portfolio information
- General communication with wealth manager
- Interactions with specific experts in the firm
- Receiving value-added services
19. Where clients are Least Satisfied
- Researching information about the firm
- Personalised updates about new products / services
- Receiving educational market information
- Interactions with specific experts in the firm
- Receiving value-added services
20. What Wealth Management Firms are Facing
| Challenges | Survey Results |
| Impact of natural events – eg. Pandemics | 59% |
| Global economic slowdown | 39% |
| Impact of technology, change in business models | 31% |
| Geopolitical instability | 29% |
| Threats of new entrants – eg. BigTech firms | 26% |
| Changing market dynamics – increasing information transparency | 26% |
| Fee pressure due to zero trading commission, shift towards passive products | 29% |
| Wealth transfer, uncertainty regarding future customers | 31% |
| Changing client profiles & expectations | 35% |
The full Capgemini World Wealth Report 2020 can be accessed at the webpage: World Wealth Report 2020
About Capgemini
Capgemini is a global leader in consulting, digital transformation, technology and engineering services. The Group is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms.
Building on its strong 50-year+ heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. Today, it is a multicultural company of 270,000 team members in almost 50 countries. With Altran, the Group reported 2019 combined revenues of €17 billion.
Visit: www.capgemini.com
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