This is a decline of 3.3% faced against last year, while the fortunes of the remaining millionaires have fallen by 3.6%, their collective wealth now being worth 83 billion dollars.

The North America region suffered the sharpest decline in its riches (7.4%), followed by Europe at 3.2% and Asia-Pacific at 2.7%. On the other hand, as a result of high performance from the petroleum and gas sector, Africa, Latin America and the Middle East saw growth in their numbers over 2022.

The World Wealth Report 2023 covers 71 countries, responsible for over 98% of the world’s GDP and 99% of the market cap. Over 3171 stockholders in 23 big markets in North and Latin America, Europe, the Middle East and Asia Pacific were inquired for the report, while the Capgemini 2023 Global Affluent Insights Survey asked 3203 individuals with stakes in 11 big markets in North America, Europe and Asia Pacific. To amplify other perspectives, the Wealth Management Executive Survey 2023 also attained 90 answers from Wealth Management firms, universal banks, independent dealers and family enterprises in 14 markets. The Relationship Manager Survey 2023 gathers another 800 answers from 9 markets.

Despite the uncertain economic environment, with only 23% of stockholders reporting gains in ESG-related holdings, interest in ESG remains. 41% of the inquired said that the impact of ESG investment rating is one of their main priorities, while 63% of stockholders revealed to have asked for ESG classifications for their active stocks. Meanwhile, however, only a few fortune management companies consider ESG data analysis to be their main priority, at 52%.

Around 40% of fortune managers asked affirmed that they need more data in order to understand the impact of ESG, and nearly half say they need more information before they can treat the topic effectively with clients.

According to the study, a lack of digital tools currently impedes client managers from offering adequate financial advice and a worthwhile experience, and thus results are affected.

On average, only one in three companies that were asked classified digital maturity as a strength for their company. 45% of them also said the cost per client manager is increasing, mostly due to inefficiencies that have been noted along the value chain.

The study concludes that a lack in up-to-date digital preparation as well as deficient omnichannel platforms increase the time wasted by client managers on non-essential activities, leaving only a third of their available time for pre-sale efforts and client interaction, which creates an atmosphere of tension that’s felt by all involved in the process. 56% of stockholders inquired in the study confirmed the offer of these services influences their choice of portfolio management firms. However, only one in two admitted to being satisfied with the services provided by their client manager. Almost 31% revealed they’d probably be moving service provider in the next 12 months.

Regionally, North America and Asia Pacific withhold the largest collections of wealth, both in number and overall wealth of millionaires, at 46% and 32% for each region, respectively. Despite holding almost 27 billion dollars in active stocks (almost 32% of the total wealth of stockholders), 34% of stock managing companies don’t explore this section of the market.

Author

Star in the 2015 music video for the hit single “Headlights” by German musician, DJ and record producer Robin Schulz featuring American singer-songwriter Ilsey. Also a journalist.

Jay Bodsworth