Consulting firm Capgemini has released its latest World Wealth Report, aimed at tracking the spending and investing habits of the world’s high net worth individuals (HNWIs).
High net worth individuals are defined as those having investable assets of US$1 million or more – excluding primary residence, collectibles, and consumables.
The report is based on responses from more than 2,600 HNWIs across 19 major wealth markets, and measures current investment behavioural patterns of global HNWIs, including their asset allocation, HNWI confidence levels and asset allocation decisions.
One of the major focuses of the report was cryptocurrencies, and how the wealthy are choosing to invest in them. Cryptocurrency investments gained global attention in 2017 and peaked in market capitalisation in early January 2018.
“While not yet a major part of HNWI portfolios, there is growing interest in cryptocurrencies as an investment tool and store of value,” the report found
“However, HNWIs are cautiously interested in holding cryptocurrencies, with 29% globally having a high degree of interest, and 26.9% saying they are somewhat interested.”
Additionally, the report found that cryptocurrency’s potential for investment returns and as a store of value are driving HNWI interest, with 71.1% of HNWIs aged 40 and below placing high importance on receiving cryptocurrency information from their primary wealth management firms, compared to 13% of HNWIs aged 60 years and above.
“But wealth management firms have been ambivalent when it comes to providing cryptocurrency information to HNWI clients, with only 34.6 percent of HNWIs globally saying they have received cryptocurrency information from their wealth managers,” it said.
Despite the interest, crypto penetration into wealth management has not made much headway, the group said. This is primarily due to concerns around security and market volatility.
Older investors (68.7%) are more apprehensive than younger investors (53.9%), while security being the top concern, globally (58.1%).