Growing ranks of high net-worths committed to social investment
Friday, June 20, 2014
The number of high net-worth individuals (HNWI), those that have $1 million (£0.6m) or more of investable assets, has grown worldwide by 15% in the last year and the overwhelming majority are seeking to use their money to have a positive social impact.
The 18th annual edition of The World Wealth Report, from Capgemini and RBC Wealth Management, found that an improving economy and equity market performance helped add 1.76 million to the global HNWI population. The 15% increase in HNWI population, when compared to 2013, is the second largest since 2000, surpassed only by immediate post-crisis catch-up growth in 2009.
Collectively HNWI now have investable wealth of $52.62 trillion (£30.91tn), a 15% increase on the previous year. Confidence among the world’s wealthiest has also improved, with the group increasingly taking a global mindset of their wealth and allocating more and more of their assets outside their home region.
The growing ranks of HNWI continue to place a strong emphasis on driving positive social impact, with 92% saying that investing their time, money or expertise to create positive outcomes was important to them. Over 60% described it as extremely or very important.
Whilst the desire to do good with their money features prominently across most NHWI, it is particularly evident in emerging economies and in those under 40. The findings are likely to be linked to wanting to make their local areas better places and the growing interest in the sector in recent years.
The biggest drivers behind the desire to have a positive impact was family, with 87% saying it reflected their personal or family values and 80% were driven by a desire to instil social values in their family and children. In addition, over a three-quarters of survey participants said they felt it was their responsibility to give back.