COVID-19 sees HNWI wealth decline
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.
AUTHOR
Chris Dastoor
Recommended for you
ASIC has released the results of the latest financial adviser exam, held in November 2025.
Winners have been announced for this year's ifa Excellence Awards, hosted by Money Management's sister brand ifa.
Adviser exits have reported their biggest loss since June this week, according to Padua Wealth Data, kicking off what is set to be a difficult December for the industry.
Financial advisers often find themselves taking on the dual role of adviser and business owner but a managing director has suggested this leads only to subpar outcomes.
