New rich continue to emerge in the world. There are already 19.6 million people who have great fortunes across the planet, valued at a total of $ 74 trillion, according to consultancy Capgemini. But what do these personalities invest in? The answer varies depending on their origin, but a common feature is that they dedicate approximately 30% of their assets to the stock market and maintain 25% in liquidity. For what may happen or to take advantage of purchase opportunities.
The rest of its portfolio is divided between fixed income (17%), real estate assets (14.5%) and other alternative investments (13%). But this still photo of your investments It is a global average, which leaves different realities depending on the origin of the heritage.
By assets and regions, the ultra wealthy who invest the most in stocks are the North Americans, almost 39%, and the least the Latin Americans, only 22%, approximately. As for liquidity, the great fortunes that treasure the most are Japanese, 29%, while Latin Americans only keep 22% in cash, according to the Capgemini study.
The wealth of great fortunes grew by around 9% in 2019 despite the global economic slowdown, the trade war between the United States and China, which ended up splashing Europe, and geopolitical tensions. The North American and European regions, accounting for around 11% and 9% of growth, respectively, have overtaken the Asia-Pacific region (accounting for 8%) for the first time since 2012.
Wealth continues to grow, although it is also concentrated. The four countries with the highest number of ultra-wealthy -The United States, Japan, Germany and China- account for 61.6% of the millionaire population. This trend has been going on for several years. In 2012, the percentage was 58.4%, although last year it had already risen to 61.1%.
THE DANGER OF COMMISSIONS AND THE ‘BIGTECHS’
Like the rest of mortals, the rich also "hurt" money. High commissions in a world where much of it has 0% interest rates may soon be a thing of the past. Large fortunes are starting to become more critical of the fees charged by wealth managers, and 33% say they are not comfortable with rates in 2019. Predictably, this rejection will increase as a result of the volatility of the markets, affirm the consultant's analysts. According to the report, nearly two in five big fortunes could change signatures next year due, as the main reason for 42% of large fortunes, to the high amount of commissions.
The ultra-rich also claim that they prefer the application of commission based on goals and service to those based on assets, which “indicates a higher level of demand regarding the value offered by the commissions charged”.
The challenge for wealth managers to adjust fees downward or offer a better and broader service for the same cost comes at a crucial time for the investment industry, fully threatened by the Trojan horse of the 'bigtechs '. 74% of the great fortunes assure that they could consider the contracting of wealth management services of the big technology companies, and up to 94% of the 22% of large fortunes that they claim could look for a new wealth management firm in the next 12 months.
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