COVID-19 sees HNWI wealth decline

HNWIs/wealth-managers/capgemini/

10 July 2020
| By Chris Dastoor |
image
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

So we are now underwriting criminal scams?...

5 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

1 week 6 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

3 weeks 2 days ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

3 days 22 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5