Western Europe and Japan lagged behind with growth rates in the middle single digits.
Regional Variation Strong equity markets helped countries in the old world, which have large existing asset bases, to match the rapid growth in assets in the new world, which relies more on new wealth creation spurred by GDP growth and high savings rates.
We take a holistic view of the industry ecosystem—emphasizing how the market, the institutions, and the clients interact—with the aim of identifying the best opportunities for wealth managers.
Some of these firms have managed to bring a number of successful, high-end brokerage advisors into their fold. The key drivers, for the second consecutive year, were the performance of equity markets and the creation of new wealth in RDEs.
Their strategy and product offerings tend to be highly variable, based on the individual firm, and is typically grounded in customized investment advice, comprehensive financial planning, structured portfolios, and asset allocation.
Increasingly with this model, we are seeing a blurring of the fiduciary standard and the suitability standard—a convergence we expect to continue. However, ultra-wealthy populations are expected to continue to grow in the medium term.
United States and Canada. Indeed, the latest tensions between Russia and Ukraine, as well as the escalated conflict in Syria, have highlighted the need for domiciles that offer high levels of political and economic stability.
But players in each model will need to refine their core skills in order to achieve meaningful differentiation. The strong performance was driven by growth of A further factor, despite the tapering of quantitative easing in the U.
For example, private wealth grew by double digits in the U. And although many players have an international presence regardless of their home market, their perspective on the optimal business model can vary by region, as we explore below.
If the weakening yen is taken into account, however, private wealth in U. The report also takes a comprehensive look at a critical initiative for staying competitive in the marketplace: The main drivers were the bull market environment in all major economies—with wealth in equities and investment funds showing by far the strongest growth—and the significant strengthening of most major currencies against the dollar.
A few hybrid firms are emerging that combine attributes of different models, particularly with respect to the offering and service model for the sizable HNW segment. There is an interplay between this and the other factors affecting wealth growth.
All other markets and client segments should be limited to standard offerings. At an expected CAGR of 9. Middle East and Africa.
A distinctive feature is their fiduciary standard of customer care as opposed to a suitability standard. Of course, effective mass marketing that creates a strong brand is critical for success with this business model. That said, the weaker yen supported the Japanese export sector and led to an increase in nominal GDP growth from 0.
Regionwide, riding developments in other regions, the amount of private wealth held in equities rose strongly by As in other regions, the amount of wealth held in equities grew the strongest, rising by They are also improving their client-segmentation efforts, creating more diversified advisory forces in terms of age, gender, and ethnicityand trying to achieve a standardized and well-managed client experience.
Overall, repatriation flows back to Western Europe and North America, in line with the implementation of stricter tax regulations, will continue to put pressure on many offshore booking domiciles.
Players in every region will be required to forge creative strategies in order to deepen client relationships and lift both revenues and profits. These included France wealth growth of 5. Source: Credit Suisse Global Wealth Report, InMilanovich published Global Inequality: A New Approach for the Age of Globalization, showing how global inequality moves in cycles, fueled by war and disease, technological disruption, access to education, and redistribution.
In Riding a Wave of Growth: Global Wealthwhich is The Boston Consulting Group’s fourteenth annual report on the global wealth-management industry, we explore the current size of the market, the present state of offshore banking, and the performance of leading institutions in.
Global wealth grew significantly over the past two decades but per capita wealth declined or stagnated in more than two dozen countries in various income brackets, says a new World Bank report.
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