World top ten: United States first
Despite the current geopolitical situation and driven by the post-Covid-19 economic recovery, between 2020 and 2021, global financial assets recorded double-digit growth rates for the first time in over 20 years. The first country in the world for wealth is the United States, followed by China, in third place is Japan, followed by the United Kingdom, Germany, France, and Canada in seventh. Italy is the eighth country for financial wealth. Australia and Taiwan complete the top ten. Financial wealth, pools of real assets and liabilities grew from 2016 to 2021, reaching a total of 13,200 billion US dollars. In the United States, financial wealth at the end of 2021 totaled $ 119 trillion. This includes all liquid financial assets (deposits, listed shares, private life and pension insurance, investment funds, fixed income and other minor asset classes) and all illiquid financial assets (unlisted shares of public companies which, however, are not are traded or other holdings in the form of limited liability shares, including holdings in partnerships, etc.) for both onshore and cross-border assets.
Italy in eighth position
The financial wealth of our country instead reached 6,000 billion US dollars, real assets 8,100 billion and liabilities 900 billion dollars. At the European level in 2021 the weight of our country in terms of financial wealth was 11.3%, 12.3% of real assets and 6.6% of Western European liabilities. 431 thousand Italian millionaires, that is, people who have assets of at least one million dollars in financial wealth, almost 1% of the adult population. If we then look at the Ultra High Net Worth segment, individuals who hold assets of over $ 100 million in financial wealth, in Italy there are 2,100.
The development of the sector
The development of the Wealth sector is extraordinarily resilient and, even in a context of geopolitical turmoil, the growth rate remains positive. While this stability offers tremendous opportunities for asset managers, they will need to make strategic choices to remain competitive. In fact, clients in the asset sector are always looking for innovative offers and services that take into account current changes: Net-Zero, cryptocurrencies, offer customization and digital. The question that asset managers face today is not which initiatives to prioritize, but how to best implement them all.
Net-Zero, an immediate imperative
Sustainable investments are growing three to five times faster than traditional investments and could represent 8% to 17% of privately invested wealth by 2026, up from 4% -11% today. While there is a tendency to think of net zero impact as a goal to be achieved by 2050, the report notes that wealth managers need to act immediately to integrate sustainable investments into the client’s entire lifecycle.
Crypto world little experienced by traditional managers
Crypto is a market not exploited by traditional managers. Non-traditional ones currently manage up to $ 1 trillion in cryptocurrency wealth, and the capitalization of this market could increase four to five times by 2030. The opportunity for wealth managers is clear: nearly 80% of clients respondents said they were open to considering increasing their holdings in cryptocurrencies if wealth managers offered consulting and training services. Two-thirds of clients who have outsourced their crypto investments to third parties didn’t think their wealth managers offered this type of service.
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