High Net Worth Individuals = $37T

♠ Posted by Emmanuel in at 7/01/2007 02:23:00 AM
Barry Ritholtz of the Big Picture tends to call a graphical presentation of data "infoporn." So, after talking about papal matters in the previous post, I am now presenting some "infoporn" on the financial services industry's favorite bit of client services, the so-called high-net worth individuals (HNWI) end. These are the folks who are worth $1 million and over. The following charts, by the way, are from a Capgemini report on HNWI. Among the report's findings are the following:
  • 9.5 million people globally hold more than US$1 million in financial asets, an increase of 8.3% over 2005
  • HNWI wealth totals US$37.2 trillion, representing an 11.4% gain since 2005
  • Wealth generation was driven by real GDP gains and continued market capitalization growth
  • Emerging markets registered strong advances in market capitalization, aiding wealth creation in regions such as Latin America, Eastern Europe, and Asia-Pacific
  • Singapore, India, Indonesia and Russia witnessed the highest growth in HNWI populations
First, have a look at the growing global population of millionaires:Next up is the distribution of wealth among the HNWI:
A separate category of ultra-HNWIs is also depicted consisting of those worth $30M and up:
Finally, it seems that private banking for the HNWI is becoming more focused on lifestyle choices of the HNWI as opposed to being merely portfolio-based. That is, the emphasis is becoming one of catering to the aspirational choices of HNWI clients.
It's interesting stuff, especially for those selling products and services to this market segment. The rest of the report is available from the Capgemini site, though you will need to register. Honestly, I am astounded by the sheer size of this market and the opportunities it may present to astute marketers. Luxury goods makers may never have had it so good. $37 trillion isn't something to sneeze at, no?