How useful are global wealth management reports to the industry?
A comparison between reports by Capgemini and Julius Baer on private banking reveals different vantage points with only one living up to its promise. October 10, 2012 | ResearchThe financial services industry is awash with wealth management reports. We look at two of the most prominent ones – “Wealth Report: Asia” by Julius Baer, released in September 2012, and World Wealth Report by Capgemini (in cooperation with Royal Bank of Canada) – to assess if either adds significant value to our understanding of the issues and trends in private banking. Capgemini, now in its seventh year, presents a data-rich, multi-layered take on the pulse of the global industry. It is a market and growth driven report that lays out the challenges private banks face in a post-crisis era. The Julius Baer report presents an Asian perspective, paying particular attention to China, India, Indonesia and its regional variations on income and growth, countries Julius Baer believes are at the frontier of wealth creation. The Julius Baer report is written from a high-net-worth individual (HNWI) perspective which we believe provides a very powerful insight if mapped properly. It provides a “representative” consumption basket for Asia’s HNWI which includes investments of passion (IoP)— items on which HNWI spend on considerably—an aspect which has implications on required investment returns, but one which is often dismissed or neglected in other publications. Both Capgemini and Julius Baer agree that Asia is important now and in the future for private banking, given the rate of wealth creation. They are of the opinion that Asian economies are robust enough to withstand the current threats from Europe and the US, and that policymakers in Asia have the macroeconomic tools to mitigate the threats of inflation and contagion. But this is where the commonalities end. As a start, both studies differ significantly on the number of HNWI and their combined wealth, which we believe is based on different input variables. “Nominal GDP, real estate, equity markets and currency assumptions are the key inputs and out of these four, the currency assumptio... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Retail Banking, Wealth Managementretail,Wealth Management, Retail Banking,Wealth Management, Keywords:Julius Baer, RBC, Capgemini, HNWI, IoP, Private Banking, Stefan Hofer, AuM Julius Baer, RBC, Capgemini, HNWI, IoP, Private Banking, Stefan Hofer, AuM
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