Demographics and wealth “journeys” influence viewpoints
If there’s one word that summarizes American culture today, it might be “change.” Transformational technological, social, cultural and economic changes are taking place in almost every aspect of life, and with that are new ideas and approaches to building, protecting and passing on wealth.
2021 witnessed the third successive year of billionaire population expansion but the weakest growth since 2018. The global billionaire population rose by 3.3% to 3,311 individuals, with total wealth surging by 17.8% to a record $11.8trn. The Covid-19 pandemic remained the dominant influence, and growth was buoyed by a largely rebounding global economy and a strong upturn in corporate earnings and IPO activity.
The wealth management agenda is getting more crowded—and the items on it more urgent. Net-zero, crypto, personalization, and digitization are not merely arenas that leaders can simply consider. They are imperatives whose outcomes will determine which institutions grow client share over the next five years. The most important question facing wealth managers (WMs) right now is not which initiatives to prioritize—but how best to execute on all of them.
2021 year was a period of tremendous wealth accumulation around the world: recovering economies boosted by stock market gains pushed the global HNWI population and global wealth totals to grow by 7.8% and 8%, respectively.
A record 2021 for household wealth:
By the end of 2021, global wealth totaled an estimated USD 463.6 trillion, which is an increase of 9.8% versus 2020 and far above the average annual +6.6% recorded since the beginning of the century. Setting aside exchange rate movements, aggregate global wealth grew by 12.7%, making it the fastest annual rate ever recorded. Wealth per adult continued rising to USD 87,489 at the end of 2021.
Executive Summary:
The wealth industry is on the cusp of the next evolution stage towards “Wealth Management 3.0”. To tap into the substantial revenue pools across wider wealth brackets and customer segments, wealth managers need to diversify and modularize their service and operating models, taking full advantage of technology. This will help address the fundamental growth and profitability challenges the industry faces.
Ultra High Net Worth investors have increasingly become more influential leaders in the global asset management industry, leveraging a more sizeable base of assets under management to participate in more complex transactions, all while broadening their global reach.
Not with standing uncertain times, have still seen substantial wealth creation globally with the number of people with net wealth of US$30 million or more increasing by almost 10% last year. We offer our perspective on current trends and opportunities and look to the future to help guide clients through evolving real estate markets. What has become clear during the pandemic is that wealth cannot exist in a bubble. We need to be cognisant that inequality levels are increasing, and that the battle against climate change has reached what many now regard as a tipping point.
The pandemic has seen French buyers re-evaluate their housing requirements and working practices, in many cases relocating, upgrading, or acquiring that long-yearned- for second home. In 2021, when borders reopened, they were joined by pandemic- weary overseas buyers, for whom the French lifestyle resonated even more strongly.
The Africa Wealth Report is the benchmark of luxury sector research in Africa. Knowing where affluent individuals live, understanding their spending habits and being aware of their preferences is critically important to the providers of wealth management and luxury services in Africa and globally.