Managers Need To Meet Shifting Needs Of Clients

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    Global private wealth grew sluggishly last year, with some markets seeing significant slowdowns, leaving wealth managers searching for innovative ways to meet the shifting needs of diverse client segments, says Boston Consulting Group. In its 16th annual study, ‘Global Wealth 2016: Navigating the New Client Landscape,’ BCG outlines the evolution of private wealth from both a global and a regional perspective, addresses key industry trends, and explores evolving client needs. It notes the needs particularly of underserved, non-traditional segments such as female investors and Millennials, whose investment goals are not necessarily well-addressed by the standard net-worth-based service approach. Global private financial wealth grew by 5.2 per cent in 2015 to US$168 trillion. The rise was less than a year earlier, when global wealth rose by more than seven per cent. All regions except Japan experienced slower growth than in 2014. Unlike in recent years, the bulk of global wealth growth in 2015 was driven by the creation of new wealth, such as rising household income, rather than by the performance of existing assets as many equity and bond markets stayed flat or even fell. Assuming that equity markets regain momentum, private wealth globally is expected to rise at a compound annual growth rate of six per cent over the next five years to $224 trillion in 2020.