Capgemini-2024年世界財富報告-與超級富豪一起獲勝的明智策略

WorldReportSeries2024

WealthManagement

Intelligentstrategiesfor

winningwiththeultra-wealthy

Bridgewealthmanagementandfamilyofficestrengthstofuelgrowth

2

WorldWealthReport2024

Contents

Foreword

3

ExecutiveSteeringCommittee2024

4

Executivesummary

NavigateHNWIwealthrecovery

5

duringuncertaintimes

Leveragingbehavioralfinanceto

6

reconnectwithHNWIs

18

Ultra-HNWIs:Themostlucrative

segmenttoattractandretain

30

Conclusion

40

Methodology

41

PartnerwithCapgemini

43

WorldWealthReport2024

3

Foreword

Wearebackinbusiness!Whileresearching,analyzing,andwritingtheWorldWealth

Report2024,our28theditionofthisreport,wediscoveredasignificantinvestment

shift:globally,high-net-worthindividuals(HNWIs)arereachingunprecedentednumbers

andwealthlevels.And,aswealthgrows,HNWIsarerevisitingcautious2022and

2023assetpreservationtendencies.Riskaversionissubsiding,andHNWIsareslowlyrebalancingbetweensafetyandgrowth.

Despitethisemergingpositivetrend,theglobalenvironmentisnotsobright,with

issuesrangingfromgeopoliticstoinflation.Uncertaintyisfurthercompoundedasmanycountriesholdelectionsin2024.Asthemarketupswingunfolds,thetimehascomeforwealthmanagementfirmstodivedeepintoclients’evolvingbehaviorandexpectations,andtoprioritizemeaningfulandtimelyengagements.Theroadaheadisn'twithout

hurdles:macroeconomicuncertainty,geopoliticaltensions,regulatoryagendaandariseinoperatingcostsaresqueezingthebottomline.

Likeinallothersectors,artificialintelligence(AI)isfastemergingasatransformativeforcetoenhanceclientintimacyinwealthmanagement.Fromcreatingandthen

regularlyupdating360-degreeclientprofilestoleveragingbehavioralfinance

techniques,AIispromisingtohelprelationshipmanagersrecognizepsychologicalbiasesthatmayinfluenceinvestmentdecision-making.Moreover,generativeAIcanenable

hyper-personalization,allowingfirmstotailorservicetouchpointstoclients'unique

needs,preferences,andlifeevents.Theresult?Moments-that-matterengagementandthefoundationsofsolid,long-lastingrelationships.

Morethanever,wealthmanagementfirmsseeksustainedprofitability,andthehighly

concentratedultra-HNWIsegment–individualswithmorethanUSD30millionin

investableassets–presentsahighlylucrativeopportunity.However,familyofficesmaybebetterpreparedtoplaytheorchestratorroleandhandlethemulti-generationalandmulti-jurisdictionalneedsofthispopulation,throughabroadrangeoffinancialandnon-financialvalue-addedservices.Sothegameison:whocanbethebestproviderofthe

one-stop-shopservicesuiteneededtobestservetheultra-wealthy?Whilecompetingisoneoption,collaboratingorservicingisanother–andwealthfirmsthatstrikea

competitiveandcollaborativebalancewithfamilyofficescanforgerevenue-generatingbusinesspartnershipssupportingthefamilyfirms.

Ihopeourreportoffersapathtohelpyougetstarted.

AnirbanBose

FinancialServicesStrategicBusinessUnitCEO

&GroupExecutiveBoardMember,Capgemini

4

WorldWealthReport2024

ExecutiveSteeringCommittee

WealthManagementFirms

MichelleOwen

GlobalHeadofDistribution,GlobalPrivateBanking

HSBC

PierreRamadier

CEO,WealthManagementInternationalMarkets

BNPParibas

RaymondAng

GlobalHead,Private

BankandAffluentClients

StandardChartered

BarryMetzger

ManagingDirector,

IncomeandWealthSolutions

CharlesSchwab

KabirSethi

WealthManagementLeader

Ex-LPLFinancial

GregGatesman

HeadofInternational

ClientDevelopment,

WealthManagementAmericas

UBS

NicDreckmann

CEOa.i.

JuliusBaer

MichelLonghini

GroupHead,

GlobalPrivateBanking

FirstAbuDhabiBank

RanjitSSamra

HeadofProduct&Experience

J.P.MorganWealth

Management

FamilyOffices,IndustryBodies,andExperts

PhilippePerles

CommitteeMember

AssociationofSwiss

AssetandWealth

ManagementBanks

UrsBolt

WealthTechExpert

BoltMoney

YannGalet

MFOFounderand

FamilyOfficer

GConsultFinances

ChristianStadtmüller

ManagingDirector

HQTrust

SébastienCapt

CEO

PrimePartners

WealthTechsandTechLeaders

ChristineCiriani

HeadofInternational

DigitalWealth

InvestCloud

TobyBrown

HeadofGlobal

BankingSolutions

Google

NoahKraehenmann

GlobalMD

WealthManagement

Temenos

ArnaudPicut

CEO

Aixigo

WorldWealthReport2024

5

Executivesummary

Theglobaleconomycontinuestorecoverfrom2022challenges.Althoughinterestratesremainelevated,centralbankssignaledanendtoratehikesinH2

2023,withprospectsofratecutslatethisyearorinearly2025.

NavigateHNWIwealthrecoveryduringuncertaintimes

Buoyedbyaresurgingequitymarketandimproving

macroeconomics,globalhigh-net-worthindividual

(HNWI)wealthandpopulationroseby4.7%and5.1%in2023.NorthAmericapostedthemostrobustrecovery,expandingby7.2%inHNWIwealthand7.1%inHNWI

population.Asia-Pacificexperienced4.2%HNWI

wealthgrowthanda4.8%riseinHNWIpopulation.EuropeanHNWIwealthandpopulationgrewmoremodestly,at3.9%and4.0%,respectively.

Despiteongoingmarketunpredictability,HNWIsarerebalancingtheirportfoliostomeetgrowthgoals.InJanuary2024,cashholdingsnormalizedto25%,downfrommulti-decadehighs.Allocationstoalternative

assetsroseto15%from13%in2023,reflectinginvestordesiretodiversifyintohigh-returnassetclasses.

However,wealthmanagementfirmscontinueto

strugglewithprofituncertaintybecauseofescalatinggeopoliticalconflicts,electionsinmajoreconomies,

recessionworries,evolvinginterestrates,andchoppystockmarkettrading.Further,netinterestincome,

whichhasbeenhighinrecentyears,isexpectedto

decline,andassetpricesareunlikelytogrowasrapidlyasinthepastdecade.Asaresult,wealthmanagementfirmsseekingtosustainbusinessgrowtharefocusingstrategicallyonwinningultra-wealthyinvestors’mindshareandshareofwallet.

LeveragingbehavioralfinancetoreconnectwithHNWIs

Behavioralfinancetechniquescomeintoplayduringmarketvolatilityasrelationshipmanagersworktobalanceclients’emotionsandcognitivebiaseswhileatthesametimeofferingpersonalizedadvice.Morethan65%oftheHNWIswepolledsaidbiasesimpacttheirdecision-making.Wealthfirmsareoften

datarich,buttheystruggletofullyleverageclientinformationbecauseoftheirrelianceonprimarysourcesandoutdatedinvestorprofiles.

Moreandmore,wealthmanagementfirmsareintegratingbehavioralfinanceconceptswithartificialintelligencetoenableadata-centricapproachthatgeneratessuperior

clientexperiences.Amongthewealthmanagementfirmswesurveyed,49%currentlyuseAIinsomeareas,and

73%ofthemplantoincreaseadoptionattheenterpriselevelwithinthenextonetotwoyears.GenerativeAI

furtherelevatesthesecapabilities,pavingthewayfor

hyper-personalizedengagement.Behavioralfinance/

AIintegrationhasthepotentialtorevolutionizethewealthmanagementvaluechain,enhancingcustomerintimacyandimprovingadvisorefficiencywithintelligentcapabilities.

Ultra-HNWIs:Themostlucrativesegmenttoattractandretain

Withagrowingpopulationofyounger,self-made

ultra-high-net-worthindividuals(UHNWIs),investmentstylesareshiftinginfocustolong-termwealthgrowthdespitecontinuedmarketuncertainty.Aswealthgrows,complexityincreases,andvalue-addedservicesbecomeacrucialdifferentiatorforUHNWIinvestors.78%of

surveyedultra-HNWIsconsidervalue-addedservicesessentialtowealthmanagementfirmrelationships.

Wealthmanagementfirmstypicallyfocusonfinancial

value-addedservices,whilefamilyofficesenjoyanedgeinnon-financialvalue-addedservices.Increasingly,familyofficesearnclientfamilyloyaltythroughcloseinteractionsandgenerationalrelationships.Andforincumbentwealthmanagementfirms,thatmeansgrowingcompetitionforUHNWIwallets.Accordingtooursurvey,thenumberof

UHNWIwealthmanagementrelationshipsincreasedfromthreein2020tosevenin2023.

Basedonourreport’sresearchfindingsandanalyses,werecommendthatwealthmanagementfirms

becomeone-stopshopsprovidingafullsuiteof

productsandservices.Thistransformationwillrequireintegratinginternalteamswiththird-partypartners

toorchestrateabroadandefficientecosystem

thatconvenientlydeliversservicesthroughclients’preferredchannels.

Whilein-personinteractionscontinuetobecrucial,theimportanceofdigitalchannelsisgrowing,andclient-centricwealthmanagementfirmsneedtoprovide

omnichannelandhyper-personalizedexperiences.

Strategiccollaborationwithfamilyofficesoffers

wealthfirmsapathtotailoredservicesthatcanunlocknewrevenuestreams.

6

WorldWealthReport2024

NavigateHNWIwealthrecoveryduringuncertaintimes

WorldWealthReport2024

7

Macroeconomicuncertaintyand

geopoliticaltensionsledtosignificantdeclinesinhigh-net-worthindividual(HNWI)wealth(3.6%)andpopulation(3.3%)in2022.However,2023broughteconomicgrowthandimproved

fortunesformajorinvestmentsectorstoreversethefalloff.Despiteongoing

interestrateuncertaintyandrisingbondyields,equitiessurgedalongwiththe

techmarket,fueledbyenthusiasmforgenerativeAIanditspotentialimpactontheeconomy.

Thoughinterestratesremainelevated,

centralbankssignaledanendtoratehikesinH22023,withprospectsforratecutsin2024.Switzerlandbecamethefirstmajoreconomytohittherate-cutbuttonin

March2024,announcinga25basispointreduction.1ApollbyReutersinApril2024showedthatthemajorityofsurveyed

economistsexpectamaximumoftwo

ratecutsin2024.2Similarly,theEuropeanCentralBank(ECB)announcedratecutstobegininJune2024.3Equitymarkets

improvedin2023,andglobalindices

exhibitedresiliencedrivenbybetter-than-expectedcorporateearnings,economic

recoveryinsomekeymarkets,andsignalsofmoreaccommodatingmonetarypolicies.

Themacroeconomicclimatein2023

sparkedtheequitymarketupswing,withglobalindicesindicatingabullmarket.

?TheMSCIAllCountryWorldIndexwas

upnearly23%in2023,poweredby

outsizedcontributionsfromtheso-

calledUS“MagnificentSeven”tech

stocks(Alphabet(GOOGL),Amazon,

Apple,Meta,Microsoft,Nvidia,and

Tesla).Thesestockscontributednearly40%ofthetotalreturnoftheMSCIAllCountryWorldindex.4Sincethe

beginningof2024,someofthe

magnificentsevenstockshavefallen,

withreturnsin2024ledbytheso-called"FabFour"stocks:Nvidia,Meta,Amazon,andMicrosoft.5

?IntheUnitedStates,theS&P500endedtheyearwitha24%gain,whilethe

NasdaqCompositewasupnearly43%,

drivenbyrevitalizedtechstocks.6InterestinAIcatalyzedthetechrally,bolstering

USequities.

?InEurope,theCAC40inFranceendedtheyearwithanearly17%gain,drivenbystronggrowthinthecountry’sluxurygoodsmarket.Theluxurygoods

conglomerateLVMH,owneroftheLouisVuittonbrand,reportedovera9%gaininrevenuesin2023,andtheFrench

luxurybrandHermessawitssharepriceincreaseby38%in2023.789TheUK

domestic-focusedFTSE250saw

relativelymodestreturns,gainingonly4.5%throughtheyear,against

headwindsincludingalackoftechcompanies,asluggisheconomy,andpoliticaluncertainty.1011

?TheAsia-Pacificmarketgeneratedmixedreturns,withtheJapaneseNikkei

witnessinga28%returndrivenby

impressivereturnsbyautomotive

stocks.12Meanwhile,inChina,the

ShanghaiCompositedeclinedbynearly4%:13adisappointingeconomicrecoveryandatroubledpropertysectorledto

China’spoorperformance.

Wehaveobserved

continuedmarketvolatilityin

2024,emphasizingtheneedfor

sophisticatedinvestmentstrategiestonavigateuncertainties.Whileriskspersist,opportunitiesremainamidstevolvingmarketdynamics.”

GregGatesman

HeadofInternationalClientDevelopment,WealthManagementAmericas,UBS,USA

HNWI?nancialwealthinUSDtrillions

HNWIpopulationinmillions

8

WorldWealthReport2024

Liftedbyreboundingstockmarketsanda

brightereconomicoutlook,globalHNWIwealthexpandedby4.7%in2023

(Figure1).Mirroringthewealthrecovery,theHNWIpopulationroseby5.1%

(Figure2),erasing2022declinesof3.6%

and3.3%,respectively,andputtingHNWI

trendsbackonagrowthpath.

Figure1.HNWIwealthrecoversfrom2022losses

CAGR2016–2023:4.6%Annualgrowth2022–2023:4.7%%change2022–2023

86.8

83.0

1.9

9.4

9.2

3.5

3.4

3.2

8.7

18.9

18.2

17.5

16.7

15.9

14.7

25.7

24.7

35

22.2

21.6

18.8

18

27.5

21.7

0

20162017201820192020202120222023

Source:CapgeminiResearchInstituteforFinancialServicesAnalysis,2024.

Note:Chartnumbersandquotedpercentagesmaynottotal100%duetorounding.

Africa-1.0%LatinAmerica2.3%MiddleEast2.9%Europe3.9%Asia-Paci?c4.2%

NorthAmerica7.2%

86.0

1.8

9.0

3.4

18.8

68.1

1.6

8.4

2.6

15.4

63.5

1.5

8.0

2.4

74.0

1.7

8.8

2.9

79.6

1.7

8.8

70.2

1.7

24.0

20.6

24.3

25.3

25.6

27.7

19.8

19.6

18.0

2.5

1.8

88

70

53

Figure2.2023GlobalHNWIpopulationsurpasses2021highs

CAGR2016–2023:4.7%Annualgrowth2022–2023:5.1%%change2022–2023

22.8

0.2

0.6

0.9

0.9

5.8

5.4

Europe

Asia-Paci?c

7.4

NorthAmerica

6.5

6.2

5.5

7.9

6.3

20162017201820192020202120222023

Source:CapgeminiResearchInstituteforFinancialServicesAnalysis,2024.

Note:Chartnumbersandquotedpercentagesmaynottotal100%duetorounding.

Africa

LatinAmerica

MiddleEast

-0.1%

2.7%2.1%4.0%4.8%

7.1%

19.6

0.2

0.6

0.8

5.2

16.5

0.2

0.6

0.6

4.5

18.1

0.20.6

0.7

4.8

18.0

0.20.6

0.7

4.8

22.5

0.2

0.6

0.9

20.8

0.20.6

0.8

21.7

0.20.6

7.0

6.9

7.2

7.9

5.2

6.1

5.6

7.4

7.1

5.7

5.7

5.7

20

25

10

15

0

5

WorldWealthReport2024

9

NorthAmericaretaineditstopspotinHNWIwealthandpopulation

NorthAmericanHNWIstatistics

vigorouslyrecoveredin2023,withyear-

over-yeargrowthof7.2%forwealth

and7.1%forpopulation.Solideconomicresilience,coolinginflationarypressures,andaformidableUSequitymarketrallyalldroveupwardmomentum.

TheUSHNWIsegmentexperienced7.4%wealthexpansionand7.3%population

growth.USequitymarketsregistered

strongreturnsin2023,drivenmainlybyfinal-quartergains:theS&P500postedareturnofover24%in2023,gaining11.2%inQ4alone.AtechstockrallydroveS&Pindexreturns,includingNvidia(239%

growth)andMeta(up194%).14

?AslewofUSgovernment-ledspendinginitiativestoboostonshore

manufacturingcontributedtocapital

growth.TheCHIPSActandtheInflationReductionAct,announcedinAugust

2022,ledtooverUSD230billionin

private-sectorspendingforthe

semiconductormanufacturingindustryandUSD201billioninconstruction

spending.1516USgovernmentspendingin2023alsospurredmanufacturing

investmentactivityintheprivatesectorandhelpedaugmentGDP.

?TheUSGDPgrewatanannualizedrateof3.3%inthelastquarterof2023,wellabovethe2%growththateconomists

hadexpected.Inflationalsofellfrom9%inJune2022to3.4%inDecember2023.17TheaccommodativestancetakenbytheUSFederalReserveSystemcould

potentiallysteertheUSeconomytoasoftlanding.

InCanada,HNWIwealthgrewby3.8%andtheHNWIpopulationclimbedby3.6%.

TheCanadianS&P/TSXindexrecoveredfromits2022tumbleandpostedan8%2023return.ThetechsectorledTSX

gains,soaringnearly57%.18

YettheS&P/TSXindexperformancewasmodestascomparedwiththeUSS&P

becauseofthelacklusterperformanceincyclicalindustries–includingthematerialssector,whichdroppednearly

3%duringtheyear.19

In2024,weanticipateaslight

globaleconomicslowdown,ledby

weaknessintheUSinthesecond

half.Despitethis,sentimenttowardsinvestinghasbeenpositivesofar

thisyear,withclientsshowing

significantinterestinincreasingtheirinvestments,awarethatinterest

rateshavelikelypeaked.However,aswemoveintothelatterhalfof

theyear,especiallywithvarious

electionstakingplaceglobally,theremaybeincreaseduncertaintyfor

clients.Whilethefirsthalfappearspromising,thesecondhalfcould

bringaboutmoreunpredictability.”

RaymondAng

GlobalHead,PrivateBankandAffluent

Clients,StandardChartered,Singapore

ModerateAPACwealthandpopulationgrowthwidenedthegapwithNorthAmerica

TheAsia-Pacific(APAC)HNWIsegmentexperienceda4.2%wealthgrowthanda4.8%populationgrowthin2023.APACequitymarketreturnsweremixed,withsomemarketsreportingrecoverieswhileothersdeclined.

?TheMSCIAsiaPacificindex,whichtracksAsianfirmsacrossdevelopedand

emergingcountries,posted2023growthofabout12%,evenasdisappointing

Chinesestocksdraggeddownreturns.20China’sblue-chipCSI300indexfellmorethan11%in2023,whileHongKong’s

HangSeng(abarometeroftheHong

Kongequitymarket)fellalmost14%.

WithmanycompaniesintheHongKongequitymarketleveragedtoeconomic

growthinChina,theindexreturns

mirroredChinesemarketshortfalls.TheHongKongCentralBank’sinterestratehikeexacerbatedthesituation.

?AmongthebestperformersintheAPACregionwereIndiaandAustralia,which

recordedHNWIwealthgrowthof12.4%

10

WorldWealthReport2024

and7.9%,andHNWIpopulationgrowthof12.2%and7.8%,respectively.Wealthgrowthinbothofthesecountrieswas

drivenbyaresilienteconomyandrobustperformanceoftheequitymarkets:theIndianbenchmarkindex,theSensex,

climbedbyover18%in2023,21andthe

AustralianS&P/ASX200indexgained7.8%duringtheyear.22

?Japan’sHNWIwealthandpopulation

bothincreasedin2023,by6.5%and6.4%,respectively,drivenbyacautiousstancebytheBankofJapan,asteadyflowof

foreigninvestmentintothemarket,androbustearningsbyJapan’sautomotive

sector.TheJapaneseNikkei225emergedasthetopAsianperformerin2023,

surgingover28%tohita33-yearhighinJanuary2023.23

Europeangrowthcurtailed

bypersistentmacroeconomicchallenges

EuropeanHNWIwealthandpopulation

grewmodestlycomparedwithNorth

AmericaandAPACin2023.European

HNWIwealthrose3.9%,whilethe

populationgrew4.0%.Highbutcoolinginflation,alowGDPgrowthrate,and

decliningdomesticdemandwerelimitingfactorsintheregion’sHNWIwealth

andpopulationgrowth.Againstseveralheadwinds,somerespitewasprovidedby

equitymarketoutperformance,steadily

decliningenergyprices,andapauseinratehikesbytheEuropeanCentralBank(ECB).

?Despiteastrongshowingintheequity

market,withtheSTOXXEurope600

indexgainingnearly13%in2023,the

eurozoneeconomyfacescontinued

challenges.24ThecompositePurchasingManagers’Index(PMI),akeyindicatorofbusinessactivity,fellto47.0inDecember2023,markingaseven-monthdeclineandsignalingaeuroareacontraction.25

?NotableoutlierstothemodestHNWI

wealthandpopulationgrowthinEuropewereItaly,wherewealthgrewby8.5%

andpopulationby8.4%,drivenbyequitymarketreturnsandatourismuptick,26

andFrance,wherewealthandpopulationgrew6.5%and6.4%,respectively,

benefitedfromarecordyearfortourism,stronggrowthintheluxurygoods

industry,andanuptickinexports.2728

?HNWIwealthalsoexpandedinSwitzerland

(5.6%),Denmark(4.5%),theUnited

Kingdom(2.9%),andGermany(2.2%).

Suboptimal2023outcomesinAfrica,LatinAmerica,andtheMiddleEast

LatinAmericaandtheMiddleEast

recordedlimitedHNWI2023growth,withwealthup2.3%and2.9%,andpopulationup2.7%and2.1%,respectively.Inthe

MiddleEast,fallingcrudefuturesprices,

geopoliticaltensionsleadingtosupply

disruptions,andweakeningdemandfor

OPECcrudeinglobalmarketsdrovethe

mutedgrowth.29Year-over-yearoilfuturesdipped10%+ascomparedwith2022.30

A2023anomaly,AfricawastheonlyregionwhereHNWIwealth(-1.0%)andpopulation(-0.1%)fell–drivenbyfallingcommodity

pricesanddecliningforeigninvestmentsandexports.InSouthAfrica,anenergy

crisissparkedbypersistentpoweroutagesledtoafalloffinmanufacturingoutput,

resultinginameager0.6%GDPgrowth.31WithAfricaninvestmentandbusiness

activitycloselylinkedwithChina,the

ChineseslowdownrippledacrossAfricanmarkets,too.32

HNWIwealthandpopulationgrewacrossallwealthbands

In2022,HNWIwealthandpopulationfellacrosswealthbands,withtheultra-high-net-worthindividual(UHNWI)segment

takingthebruntofthehit–itspopulationwasdown4.6%anditstotalwealthdown3.7%.However,the2023recoveryled

toarevivalofwealthandpopulation

totalsacrossalloftheHNWIwealthbandpyramid(Figure3).

Growthwashighestforthe“millionaires

nextdoor”wealthband(individuals

holdingwealthofUSD1millionto5

million),whileUHNWIs(thosewithUSD30million+inassets)experiencedthehighestrecoveryindollarterms,with3.9%growth.UHNWIsarealsothemostconcentrated

1%

ofthetotalHNWIpopulationholds34%ofglobal

wealth

WorldWealthReport2024

11

amongthewealthbands,holdingover34%oftotalHNWIwealthandjustover1%ofthetotalHNWIpopulation.Therefore,UHNWIsrepresentpotentiallythemostlucrative

segmentforwealthmanagementfirms.

HNWIsareshiftingfromwealthpreservationtogrowthobjectives

OurJanuary2024surveyofover3,000

HNWIsacross25marketsfoundthattheirprimaryassetallocationshadchanged

frompreservationtogrowth.Twofactorsdrovetheshift:

?Governmentaleffortstocontrolinflationandrisinginterestrates,despitehintsofpotentialratecutsinthefuture

?ChangingeconomicconditionsalongwithaturninhowHNWIsviewassetswith

highgrowthpotential,notwithstandingongoingmarketvolatility

Early2024datarevealanormalizationofcashholdingsto25%ofportfoliototals,astarkcontrasttothemulti-decadehighsof34%seeninJanuary2023,wheninvestorssoughtsafetyamidmarketuncertainty.

HNWIshavebeguntochanneltheircashintohigher-returnassetstoleverage

possiblefuturegrowthopportunities.

GlobalHNWIfixed-incomeportfolio

allocationsincreasedto20%in2023,a

fivepercentagepointjump,yearoveryear.Fixed-incomeassetswerecomplicatedin2023,ashighinflationdilutedinflation-

adjusted(real)returnsfromfixed-incomeassetsevenasinterestrateswerehigh,makingthemlesslucrativeforHNWI

investors.However,thetidebegan

toturnbyQ4,andcoolinginflation

boostedfixed-incomerealreturns.HNWIinvestorsexpectinflationtotonedownfurtherin2024,evenaselevatedinterestratescontinue,makingfixedincomeanattractiveassetclass.

HNWIs,especiallythosewith

USD10millionandabove,prioritizeutilizingfixedincomeinstrumentsandtaxoptimizationintheirwealthmanagementstrategies.They

engageinbondladdersandseekspecializedadvicetoleveragetaxruleseffectively.”

BarryMetzger

ManagingDirector,IncomeandWealth

Solutions,CharlesSchwab,USA

Figure3.AllHNWIwealthbandsexperiencedgrowthinwealthandpopulation

Numberofindividuals

(asofDec2023)

ShareoftotalHNWIwealth

220k

34%

2,075k

23%

20,533k

(89.9%oftotal)

43%

Source:CapgeminiResearchInstituteforFinancialServicesAnalysis,2024.

Note:Chartnumbersandquotedpercentagesmaynottotal100%duetorounding.

HNWI

populationgrowth

2022-2023

HNWI

wealthgrowth

2022-2023

5.0%

3.9%

5.0%

4.9%

5.2%

5.2%

MillionairesnextdoorUSD1–5million

Mid-tiermillionairesUSD5–30million

(1.0%oftotal)

(9.1%oftotal)

Ultra-HNWI

USD30million+

12

WorldWealthReport2024

The2023realestatemarketpresented

apictureincontrasts.Whilecommercial

propertyvaluationsdipped,theluxury

homesegmentthrived.GlobalHNWIs

increasedtheirrealestateholdingsbyfourpercentagepoints,bringingtheirportfolioallocationupto19%.Attractivevaluationsincommercialrealestateandarenewed

interestinacquiringsecondaryhomesasalong-terminvestmentfueledthisshift.

Despiterisingmortgagerates,global

luxuryrealestatemarketssurged.PrimelocationslikeLondon,NewYork,and

Dubaiwitnessedluxurypropertysales

averagingoverUSD20million.NewYorksawasolidshowingwitha9%increaseinhigh-enddealsinthefinalquarterof2023,comparedtothesameperiodin2022.

Londonexperienceda25%year-on-yearincrease,whileDubaidoubleditssalesofultra-luxuryhomes.3334

HNWIinvestorsreducedequityholdings,droppingtheirallocationto21%–a

twopercentagepointdeclinefromthepreviousyear–doingsodespiteoverall

solidstockmarketperformance.The

reason?Highborrowingcosts,geopolitical

tensions,andcontinuedmarketvolatility

dampenedinvestorenthusiasmfor

equities.EvenastheMagnificentSeven

outperformedthebroadermarket,the

S&PIndexnotincludingthesestocks

yieldedareturnofonly11.6%in2023.35

Risinginterestratesmadetraditionallysafe

assetslikebondsmoreattractive.Therefore,

the“hurdlerate”shifted:theminimumreturn

neededtojustifyequities’riskchanged.As

aresult,fewerstocksofferedreturnsthat

outweighedpotentialvolatility.

Finally,adesiretodiversifyintohigh-

returnassetclassesisdrivingincreased

HNWIinterestinalternativeinvestments–

includingcommodities,currencies,private

equity,hedgefunds,structuredproducts,

anddigitalassets–withoverallallocations

risingto15%,from13%in2022(Figure4).

Figure4.2024HNWIassetmixisrebalancingbetweenpreservationandgrowth

Changeinassetallocation

(Jan2002-Jan2024)

13%

25%

26%

18%

16%

24%

18%

21%

28%

14%

Jan2006

CashandcashequivalentsFixedincomeRealestateEquitiesAlternativeinvestments

Representsacrisisyear#Changeininvestments(%)

Alternativeinvestmentsincludecommodities,currencies,privateequity,hedgefunds,structuredproducts,anddigitalassets

Fixedincomeincludesbonds,?xedannuities

Cashandcashequivalentsinclude