13th World Wealth Report- Rich people stay rich, but on a much lower level
<<-- please click on charts to enlarge
- State of the World’s Wealth: High Net Worth (HNW) population and wealth shrink below 2005 levels. The wealth of High Net Worth Individuals (HNWIs) drops 19.5% to $32.8 trillion and the world’s HNW population now stands at 8.6 million
- Regional and Country Trends: HNWI populations remain concentrated in North America, Asia and Europe with the U.S., Japan and Germany accounting for 54% of the world’ HNWI population in 2008.
- Asset Allocations: HNWIs sought refuge in cash, fixed income and domestic investments to reduce their exposure to equities across the globe.
- Spotlight: While Advisors are mostly aligned with the basic needs of clients, there are several priorities that advisors significantly underestimate. These are considered “Strategic Levers” which can affect and improve client retention and attrition.Risk Management: 73% of HNWIs surveyed said strong risk management and due diligence capabilities were an important factor in their decision to remain with their Wealth Management firm in 2008.
- Investments of Passion: Luxury collectibles remained the primary HNWI passion investment while the recession took a toll on philanthropy. Lifestyle spending rose on health and wellness but dropped on luxury travel.
State of the World’s Wealth
At the end of 2008, the world’s population of high net worth individuals (HNWIs) was down 14.9% from the year before, while their wealth had dropped 19.5%. The unprecedented declines wiped out two robust years of growth in 2006 and 2007, reducing both the HNWI population and its wealth to below levels seen at the close of 2005.