Ï ®Dubai: Private wealth booked across borders reached
"Offshore wealth is projected to grow at a solid compound annual growth rate (CAGR) of 6.8 per cent to reach
"The offshore model will continue to thrive as wealth management clients leverage the differentiated value propositions that offshore centres provide. These include access to innovative products, highly professional investment and client relations terms, and security (which is most relevant for emerging markets)," said
According to BCG's global wealth report, global private financial wealth grew reached a total of
The total number of millionaire households (in U.S. dollar terms) reached 16.3 million in 2013, up strongly from 13.7 million in 2012 and representing 1.1 per cent of all households globally. The US had the highest number of millionaire households (7.1 million), as well as the highest number of new millionaires (1.1 million).
Robust wealth creation in
"The growth of private wealth accelerated across most regions in 2013, although it varied widely by market," said Massi. "As in 2012, the
Despite the growing regulatory pressures on offshore centres, most of the leading offshore assets booking centres continue to report brisk business. Last year
BCG study has forecast that in the long run,
Assets booked in
BCG benchmarked the performance of more than 130 institutions — either pure private banks or wealth management units of large universal-banking groups. Wealth managers globally had another year of excellent growth in 2013, with assets under management (AUM) rising by 11 per cent. This performance, which followed assets under management growth of 13 per cent in 2012, was driven mainly by asset appreciation owing to rising equity markets. Yet despite sizeable AUM growth, profit margins remained largely flat as wealth managers continued to grapple with rising costs, notably those related to regulatory compliance.
The continuing development and adoption of digital communication will reshape the way products, services, and advice are provided to wealth management clients. Technology can change the dynamics of what constitutes competitive advantage. Yet many players have been unable to leverage digital technologies in a way that truly enhances their overall offering. As client expectations continue to rise, wealth managers must put a higher priority on developing sophisticated digital capabilities and integrating them seamlessly into their current channels and business models.
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