| |
Asia-Pacific shows Resiliency in Face of Global Economic
Challenges, Driving Wealth for "Millionaires Next Door"
Steady but Uneven Growth Makes Asia-Pacific's Population
of High Net Worth Individuals the Largest in the World
pdf
format
Asia-Pacific
Wealth Report 2012
Singapore, Hong Kong, Paris, September 19, 2012 -
Asia-Pacific's healthy gross domestic product (GDP) growth
and strong base of entrepreneurship helped the region overtake
North America as home to the largest population of High Net
Worth Individuals (HNWIs1)
in the world, finds the Asia-Pacific Wealth Report 2012 released
today by Capgemini and RBC Wealth Management. The Asia-Pacific
Wealth Report provides HNWI market sizing with a review of
economic drivers, market performance drivers and HNWI investing
behaviors in the Asia-Pacific region.
Asia-Pacific Sees Steady but Uneven HNWI Segment Growth
The report finds that Asia-Pacific's HNWI population grew
by 1.6 percent, twice the global population rate in 2011,
reaching 3.37 million HNWIs and surpassing North America for
the first time. Asia-Pacific had seven of the top 20 fastest-growing
HNWI populations globally in 2011, down from eight in 2010
and 14 in 2009. HNWI population growth was steady but uneven,
with robust growth in Thailand (12.8 percent), Indonesia (8.2
percent), China (5.2 percent), and Japan (4.8 percent) offsetting
significant declines in the key markets of India (of 18 percent)
and Hong Kong (of 17.4 percent) which had led growth in the
last two years.
The report also notes that wealth is increasingly concentrated
geographically in the region, with 76.1 percent of HNWIs located
in Japan, China, and Australia in 2011, up from 74.4 percent
in 2010.
Population and Wealth of 'Millionaires Next Door' Increased
in 2011 Despite Headwinds
While the wealth of Asia-Pacific's mid-tier and Ultra-HNWIs
dropped in 2011 by 5.2 percent and 1.9 percent respectively
due to their exposure to higher risk assets, the region's
'millionaires next door'2
saw increases in both their overall population (1.5 percent) and
wealth (1.9 percent). This is in part because Asia-Pacific's
economy, excluding Japan, continued to grow faster than other
major regions, posting 6.5 percent growth in GDP in 2011,
compared with world GDP growth of 2.7 percent. China and India,
the emerging giants from Asia-Pacific, were key contributors
to Asia-Pacific's wealth picture with GDP growth of 9.2 percent
and 6.9 percent respectively in 2011, which were low rates
by historical standards, but still better than other major
economies.
1HNWIs are
defined as those having investable assets of US$1 million
or more, excluding primary residence, collectibles, consumables,
and consumer durables. In the APWR analysis, we also separate
HNWIs into three discrete wealth bands, those with US$1million
to US$5million in investable assets (so-called "millionaires
next door"); those with US$5million to US$30million (so-called
"mid-tier millionaires") and those with US$30 million
or more ("Ultra-HNWIs).
2The 'millionaires next door' account for 91.5 percent of the region's total HNWI population and possess US$1 million to US$5million in investable wealth.
In 2011, Asia-Pacific experienced its share of economic challenges,
as it dealt with the impact of the Eurozone crisis and slumping
overseas demand and myriad domestic challenges, such as slumping
property prices, policy paralysis and inflation. The region
was also heavily exposed to international capital outflows.
China and India had US$1.60 billion and US$4.09 billion in
foreign institutional investor funds leave their markets.
The report findings show these had a negative impact on HNWI
overall wealth, which declined by 1.1 percent.
"Asia-Pacific will likely continue to face domestic
challenges such as high inflation and global factors such
as the weak economy in Europe," said Jean Lassignardie,
Corporate Vice President, Head of Sales and Marketing, Capgemini
Global Financial Services. "However, the diverse nature
of Asia-Pacific exports and economies means the outlook for
the region as a whole remains strong."
Entrepreneurs and Industries Aimed at Improving Society's
Wealth Will Generate Next Wave of HNWI Wealth
Entrepreneurship remains a major wealth driver in Asia-Pacific,
accounting for more than half3 of the HNWI wealth
in Asia-Pacific. Entrepreneurs are heavily involved in a variety
of industries in the region, including automobile, healthcare, IT, and manufacturing, which
have contributed to HNWI expansion, though growth in 2011
was constrained by global economic challenges. The report
predicts that industries aimed at improving society's wealth,
such as financial services, education, healthcare, and value-added
manufacturing, will lead the next wave of HNWI wealth.
3See World Wealth Report 2011.
"As emerging economies progress, the industrial focus
will likely shift toward sectors that can distribute wealth
and welfare more widely throughout the population," said
George Lewis, Group Head, RBC Wealth Management. "Entrepreneurs
who can establish or invest in businesses focused on improving
the wealth of society will be well-positioned to grow their
investable wealth."
An Optimistic Outlook for Asia-Pacific Economy and HNWI
Wealth
Global, regional and local macroeconomic conditions will remain
critical drivers of the HNWI segment. Looking forward, the
Asia-Pacific economy, excluding Japan, is expected to grow
by 6.1 percent in 2012 and 6.6 percent in 2013, driven by
China and India, which are likely to remain the fastest-growing
economies in the world. The performance of various asset classes
and the state of the business sector in each market will also
be critical to the growth of Asia-Pacific HNWI wealth, given
the heavy reliance to date on equities and real estate in
portfolio allocations and the importance of entrepreneurship
within the region.
The Asia-Pacific Wealth Report 2012
The Asia-Pacific Wealth Report, now in its seventh year, is
a product of Capgemini and RBC Wealth Management working to
better understand the needs of the high net worth marketplace.
Accounting for 91.5 percent of the region's gross domestic
product, the report focuses on 10 core countries and territories:
Australia, China, Hong Kong, India, Indonesia, Thailand, Japan,
Singapore, South Korea, and Taiwan. To download the full report,
please visit www.capgemini.com/apwr12
About Capgemini
With around 120,000 people in 40 countries, Capgemini is one
of the world's foremost providers of consulting, technology
and outsourcing services. The Group reported 2011 global revenues
of EUR 9.7 billion. Together with its clients, Capgemini creates
and delivers business and technology solutions that fit their
needs and drive the results they want. A deeply multicultural
organization, Capgemini has developed its own way of working,
the Collaborative Business ExperienceTM, and draws on Rightshore®,
its worldwide delivery model.
Learn more about us at www.capgemini.com.
About Capgemini's Financial Services
Global Business Unit
Capgemini's Global Financial Services Business Unit brings
deep industry experience, innovative service offerings and
next generation global delivery to serve the financial services
industry. With a network of 21,000 professionals serving over
900 clients worldwide Capgemini collaborates with leading
banks, insurers and capital market companies to deliver business
and IT solutions and thought leadership which
create tangible value. Visit us at: www.capgemini.com/financialservices
Rightshore® is a trademark belonging
to Capgemini
About RBC Wealth Management
RBC
Wealth Management is one of the world's top 10 largest
wealth managers*. RBC Wealth Management directly serves affluent,
high-net-worth and ultra-high net worth clients in Canada,
the United States, Latin America, Europe, the Middle East,
Africa and Asia with a full suite of banking, investment,
trust and other wealth management solutions. The business
also provides asset management products and services directly
and through RBC and third-party distributors to institutional
and individual clients, through its RBC Global Asset Management
business (which includes BlueBay Asset Management). RBC Wealth
Management has more than C$562 billion of assets under administration,
more than C$324 billion of assets under management and approximately
4,300 financial consultants, advisors, private bankers and
trust officers.
About RBC
Royal
Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name RBC. We are Canada's largest
bank as measured by assets and market capitalization, and
among the largest banks in the world, based on market capitalization.
We are one of North America's leading diversified financial
services companies, and provide personal and commercial banking,
wealth management services, insurance, corporate and investment
banking and investor services on a global basis. We employ
approximately 80,000 full- and part-time employees who serve
more than 15 million personal, business, public sector and
institutional clients through offices in Canada, the U.S.
and 51 other countries. For more information, please visit
rbc.com.
*Scorpio Partnership Global Private Banking KPI Benchmark
2012. In the United States, securities are offered through
RBC Wealth Management, a division of RBC Capital Markets,
LLC, a wholly owned subsidiary of Royal Bank of Canada. Member
NYSE/FINRA/SIPC.
RBC contacts:
Claire Holland,
(North America), +1 416 974 2239
Paul French (EMEA),
+44 (0) 20 7002 2013
Capgemini contacts:
Stephen Bosk,
(North America),
Weber Shandwick for Capgemini, +1 212 445 8491
Marta Saez (EMEA),
Weber Shandwick for Capgemini
+44 20 7067 0524
|
|
