Five-Year Trend Shows High Net Worth Population and Wealth Growth in Asia-Pacific Far Outpacing Other Regions.
Asia-Pacific is poised to become largest wealth market as early as 2014, finds the Asia-Pacific Wealth Report 2013 (APWR), published byCapgemini and RBC Wealth Management.
The population and wealth of Asia-Pacific’s high net worth individuals (HNWIs) increased at double and triple the rates of HNWIs in the rest of world over the last five years (2007-2012). Asia-Pacific built on this trend of strong performance in 2012, its HNWI population expanding by 9.4 percent to reach 3.68 million and their wealth by 12.2 percent to reach US$12 trillion, contributing to record high levels of global HNWI wealth.
North America edged out Asia-Pacific as the largest wealth market by HNWI population, growing by 11.5 percent to reach 3.73 million. However, the report notes that Asia-Pacific is expected to reclaim the top spot in the near future, driven by strong projected HNWI wealth growth at 9.8 percent annually to reach an anticipated US$15.9 trillion by 2015.
Hong Kong and India experienced the most significant gains in HNWI population and wealth in 2012, following steep declines in 2011. Hong Kong’s HNWI population grew by 35.7 percent and their wealth by 37.2 percent, while India’s population grew by 22.2 percent and their wealth by 23.4 percent.
Japan and Taiwan were the only markets to experience single-digit increases in HNWI population, though both still showed steady growth at 4.4 percent and 7.0 percent respectively. Growth in Asia-Pacific’s Ultra-HNWI population and wealth, at 15.4 percent and 17.8 percent, was the highest among all wealth bands. It significantly exceeded gains made by Ultra-HNWIs in the rest of the world, who expanded in number by 9.7 percent and wealth by 9.4 percent.
“The Asia-Pacific market is clearly one to watch. Its leadership in global high net worth wealth growth positions it to become the largest wealth market by population as early as 2014,” said M. George Lewis, Group Head, RBC Wealth Management & RBC Insurance. “Asia-Pacific’s robust growth in 2012 builds on over five years of consistent outperformance. The region’s high net worth population and wealth has increased by 31 percent and 27 percent respectively since 2007, far outpacing growth in the rest of the world of 14 percent and nine percent.”
HNWIs are defined as those having investable assets of US$1 million or more, excluding primary residence, collectibles, consumables, and consumer durables. Ultra-HNWIs are defined as those having investable assets of US$30 million or more, excluding primary residence, collectibles, consumables, and consumer durables.