COVID-19 sees HNWI wealth decline

HNWIs wealth managers capgemini

10 July 2020
| By Chris Dastoor |
image
image
expand image

The value of high net worth individuals (HNWIs) has continued to increase in 2019 but is expected to have declined due to the impacts of COVID-19, according to a report. 

According to the World Wealth Report 2020 from Capgemini, the number of HNWI’s for Australia – those with assets totally over US$1 million (AUD$1.43m) or more – increased 6.8% in 2019, while their collective financial wealth increased 4.2%. 

North America saw a 11% rise, followed by Europe (9%), surpassing Asia-Pacific (8%) for the first time since 2012. 

Capgemini projected a decline of between 6-8% in global wealth at the end of April 2020, compared to December 2019.  

Anirban Bose, Capgemini financial services chief executive, said 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,” Bose said. 

“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.” 

Its analysis also found investment priorities have also shifted as sustainable investments that uphold environmental and social priorities, had gained significant prominence post-pandemic with 40 of HNWI planning to put cash into sustainably investments. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

3 days ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 week ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 5 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

3 weeks ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

6 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

5 days 7 hours ago