RESULTS OF THE WEALTH REPORT ATTITUDES SURVEY 2011
At the end of 2011 The Wealth Report asked Citi Private Bank’s wealth advisors around the world to provide an insight into their clients’ attitudes to a wide range of subjects.
These included their personal wealth; their feelings on property, both as a home and an investment; and their investment decisions. The results of the survey, which represent the attitudes of over 4,000 individuals worth on average over $100m each, are summarised here.
WEALTH TRENDS AND THREATS
How HNWI net worth changed in 2011
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Decreased a lot |
5% |
0% |
0% |
14% |
0% |
6% |
| Decreased a little |
26% |
5% |
40% |
38% |
20% |
27% |
| No Change |
18% |
15% |
20% |
21% |
25% |
9% |
| Increased a little |
47% |
75% |
27% |
24% |
55% |
55% |
| Increased a lot |
4% |
5% |
13% |
3% |
0% |
3% |
How HNWIs feel about their future wealth prospects
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Very pessimistic |
1% |
0% |
0% |
0% |
0% |
3% |
| Pessimistic |
23% |
25% |
27% |
36% |
25% |
9% |
| Neither optimistic nor pessimistic |
42% |
45% |
40% |
35% |
45% |
46% |
| Optimistic |
32% |
25% |
33% |
29% |
30% |
39% |
| Very optimistic |
2% |
5% |
0% |
0% |
0% |
3% |
WHAT HNWIs THINK ARE THE BIGGEST THREATS TO FUTURE WEALTH CREATION
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Global economic factors |
91% |
100% |
87% |
93% |
80% |
94% |
| Local economic factors |
61% |
85% |
33% |
55% |
75% |
55% |
| Local political instability |
54% |
65% |
67% |
38% |
70% |
45% |
| Global political instability |
52% |
90% |
33% |
52% |
40% |
45% |
| Terrorism |
6% |
25% |
0% |
0% |
5% |
3% |
| Climate change |
2% |
0% |
0% |
0% |
10% |
0% |
Locations and second-homes
ATTRIBUTES HNWIs THINK A CITY NEEDS TO BE CONSIDERED GLOBALLY IMPORTANT
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Personal security and safety |
63% |
50% |
92% |
60% |
68% |
62% |
| Economic openness |
60% |
56% |
58% |
60% |
50% |
69% |
| Social stability |
51% |
56% |
67% |
38% |
36% |
64% |
| Availability of luxury housing |
27% |
17% |
25% |
29% |
55% |
16% |
| Presence of other HNWIs |
25% |
44% |
17% |
26% |
32% |
16% |
| Excellent education systems |
21% |
6% |
8% |
29% |
27% |
20% |
| Political influence |
17% |
28% |
8% |
14% |
9% |
22% |
| Internationally diverse residents |
16% |
6% |
0% |
12% |
36% |
18% |
| Easy access to other cities |
14% |
0% |
25% |
19% |
23% |
9% |
| Excellent healthcare services |
13% |
11% |
8% |
19% |
9% |
11% |
| Excellent transport network |
12% |
11% |
8% |
14% |
9% |
13% |
| Vibrant arts scene |
6% |
0% |
8% |
12% |
5% |
2% |
| Freedom of speech/press |
3% |
0% |
0% |
5% |
5% |
2% |
MOST IMPORTANT FACTORS TO HNWIs WHEN CHOOSING SECOND-HOME LOCATIONS*
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Lifestyle |
67% |
90% |
86% |
73% |
60% |
45% |
| Investment |
55% |
50% |
50% |
50% |
50% |
67% |
| Safe haven for capital |
40% |
30% |
36% |
46% |
55% |
33% |
| Education |
12% |
0% |
7% |
4% |
15% |
24% |
| Tax |
6% |
5% |
0% |
8% |
0% |
12% |
*Respondents were asked to choose two factors
POTENTIAL CHANGE TO SIZE OF HNWIs’ RESIDENTIAL PROPERTY PORTFOLIOS IN 2012
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Decrease a lot |
2% |
0% |
0% |
8% |
0% |
0% |
| Decrease a little |
11% |
5% |
7% |
8% |
0% |
24% |
| No change |
30% |
60% |
8% |
28% |
10% |
34% |
| Increase a little |
50% |
30% |
64% |
52% |
74% |
42% |
| Increase a lot |
7% |
5% |
21% |
4% |
16% |
0% |
HNWI SKI CHALET OWNERSHIP TRENDS
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Already own one |
16% |
24% |
16% |
18% |
16% |
4% |
| Interested in owning |
12% |
14% |
11% |
17% |
8% |
11% |
HNWI BEACHFRONT PROPERTY OWNERSHIP TRENDS
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Already own one |
40% |
44% |
38% |
52% |
38% |
24% |
| Interested in owning |
23% |
22% |
43% |
20% |
19% |
18% |
MOST POPULAR SECOND-HOME LOCATIONS FOR HNWIs
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| 1 |
US |
US |
US |
UK |
UK |
UK |
| 2 |
UK |
UK |
Spain |
France |
France |
US |
| 3 |
France |
France |
Mexico |
US |
US |
S’pore |
| 4 |
Spain |
Mexico |
UK |
Spain |
UAE |
HK |
| 5 |
S’pore |
Caribbean |
France |
Italy |
Saudi A. |
China |
PROPERTY INVESTMENT SECTORS HNWIs BECAME MORE INTERESTED IN DURING 2011*
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Residential |
76% |
94% |
62% |
63% |
100% |
69% |
| Offices |
59% |
65% |
69% |
42% |
75% |
56% |
| Retail |
31% |
29% |
62% |
21% |
20% |
34% |
| Hotels |
22% |
35% |
8% |
13% |
15% |
31% |
| Farmland |
18% |
24% |
8% |
29% |
5% |
19% |
| Logistics, eg warehouses |
13% |
29% |
38% |
4% |
0% |
9% |
| Healthcare |
8% |
18% |
0% |
4% |
15% |
3% |
| Infrastructure, eg airports |
6% |
18% |
8% |
4% |
5% |
0% |
*%age of HNWIs expressing an increased interest
MOST IMPORTANT STRATEGIC AIMS FOR HNWIs WHEN INVESTING IN PROPERTY*
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Capital growth |
51% |
47% |
33% |
43% |
60% |
59% |
| Wealth preservation |
42% |
18% |
58% |
52% |
55% |
34% |
| Performance stability |
31% |
53% |
42% |
17% |
25% |
28% |
| Other |
2% |
0% |
8% |
4% |
0% |
0% |
*Respondents could select two
HOW HNWIs FUND PROPERTY INVESTMENTS
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Mainly cash |
11% |
13% |
0% |
5% |
10% |
19% |
| Cash and borrowing |
86% |
87% |
92% |
90% |
90% |
78% |
| Mainly borrowing |
3% |
0% |
8% |
5% |
0% |
3% |
Traditional and alternative investments
How HNWI asset portfolios are invested
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Property |
23% |
20% |
13% |
16% |
29% |
31% |
| Equities |
21% |
18% |
23% |
19% |
21% |
24% |
| Bonds |
21% |
24% |
34% |
20% |
20% |
16% |
| Gold |
3% |
3% |
3% |
2% |
3% |
2% |
| Commodities |
2% |
4% |
2% |
2% |
1% |
2% |
| Currencies |
3% |
2% |
2% |
2% |
3% |
4% |
| Cash |
15% |
14% |
11% |
15% |
14% |
19% |
| Other |
12% |
15% |
12% |
24% |
9% |
2% |
CHANGe* IN HNWI ASSET ALLOCATION IN 2011
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Property |
19% |
37% |
46% |
-4% |
45% |
0% |
| Equities |
-77% |
-72% |
-62% |
-88% |
-80% |
-76% |
| Bonds |
65% |
58% |
77% |
48% |
85% |
67% |
| Gold |
47% |
50% |
62% |
52% |
32% |
45% |
| Commodities |
10% |
50% |
31% |
-13% |
-11% |
6% |
| Currencies |
23% |
29% |
-15% |
45% |
5% |
29% |
| Cash |
60% |
37% |
69% |
76% |
70% |
52% |
* Change = difference between % of HNWIs increasing their allocation to sectors
and % decreasing their allocation
MOST IMPORTANT STRATEGIC AIMS FOR HNWIs WHEN MAKING INVESTMENT DECISIONS*
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Wealth preservation |
52% |
53% |
42% |
52% |
55% |
53% |
| Capital growth |
50% |
59% |
67% |
48% |
40% |
47% |
| Regular income/ dividend |
39% |
35% |
42% |
35% |
40% |
44% |
| Performance stability |
30% |
29% |
17% |
26% |
50% |
25% |
*Respondents could select two
PERCENTAGE OF HNWIs ALREADY INVESTING IN ALTERNATIVE ASSET CLASSES
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Wine |
37% |
64% |
11% |
29% |
13% |
50% |
| Fine art/collectables |
59% |
89% |
42% |
67% |
30% |
62% |
| Jewellery |
52% |
67% |
30% |
44% |
29% |
73% |
| Renewable energy |
21% |
25% |
22% |
28% |
0% |
29% |
| Venture capital |
49% |
67% |
54% |
39% |
35% |
52% |
| Sporting teams |
20% |
61% |
13% |
6% |
0% |
11% |
PERCENTAGE OF HNWIs EXPRESSING AN INCREASED INTEREST IN ALTERNATIVE ASSET CLASSES DURING 2011*
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Wine |
11% |
8% |
11% |
0% |
-8% |
29% |
| Fine art/collectables |
25% |
53% |
25% |
13% |
5% |
32% |
| Jewellery |
7% |
7% |
0% |
0% |
7% |
14% |
| Renewable energy |
24% |
27% |
44% |
28% |
7% |
22% |
| Venture capital |
1% |
18% |
46% |
-13% |
-10% |
-12% |
| Sporting teams |
-1% |
24% |
0% |
-12% |
-15% |
-6% |
* Difference between % of HNWIs expressing increased interest and % expressing
decreased interest
PERCENTAGE OF HNWIs WHO WOULD CONSIDER INVESTING IN ALTERNATIVE ASSET CLASSES
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Wine |
22% |
21% |
22% |
41% |
0% |
23% |
| Fine art/collectables |
28% |
11% |
50% |
33% |
30% |
24% |
| Jewellery |
25% |
13% |
20% |
38% |
43% |
14% |
| Renewable energy |
59% |
63% |
56% |
56% |
81% |
43% |
| Venture capital |
32% |
28% |
23% |
22% |
60% |
26% |
| Sporting teams |
16% |
28% |
0% |
18% |
14% |
11% |
PHILANTHROPY AND SUCCESSION
HOW HNWIs PLAN TO PASS ON THEIR WEALTH
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Most passed on via wills and succession plans |
70% |
95% |
87% |
68% |
65% |
52% |
| Gradually handed over to successors during their lifetime |
25% |
5% |
13% |
29% |
20% |
42% |
| Not sure/other |
5% |
0% |
0% |
3% |
15% |
6% |
PERCENTAGE CHANGE IN LEVEL OF HNWI CHARITABLE DONATIONS IN 2011 COMPARED WITH 2010
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
| Decreased a lot |
2% |
0% |
7% |
4% |
0% |
0% |
| Decreased a little |
9% |
10% |
0% |
11% |
10% |
9% |
| No change |
46% |
45% |
67% |
54% |
60% |
21% |
| Increased a little |
20% |
40% |
7% |
11% |
5% |
30% |
| Increased a lot |
1% |
0% |
0% |
0% |
0% |
3% |
| Unknown |
23% |
5% |
20% |
21% |
25% |
36% |
PERCENTAGE OF WEALTH HNWIs WILL GIVE AWAY IN CHARITABLE DONATIONS AND VIA PHILANTHROPY DURING THEIR WHOLE LIFETIME AND AT DEATH
|
All
HNWIs |
North
America |
Latin
America |
Europe
& Russia |
Africa &
Middle East |
Asia
Pacific |
|
11% |
21% |
9% |
9% |
7% |
9% |