World's Wealthy Sitting On $10 Trillion In Investable Assets
Here's another possible bump in road to the global recovery: the wealthy are still sitting on trillions in cash.
The wealthy have kept a $10 trillion pile out of the world markets, according to a new report by wealth management firm Scorpio Partnerships.
The money management industry has only accessed 42 percent of the roughly $40 trillion of investable assets held by high-net worth individuals, the report notes.
"The total assets under the control of the industry is now set at $16.5 trillion...However, in our analysis of market conditions the real total HNW [high-net worth] market opportunity is set at $26 trillion...Critically, this implies there is approximately $10 trillion of HNW assets that could be advised by banks but is not currently in the sector."
To capture the $10 trillion up for grabs, wealth management firms and advisers must regain the trust of wealthy clients who took big hits during the downturn. At least in the U.S. -- where 31% of the world's high-net worth individuals reside -- this is no easy task.
In June, the latest Spectrem Affluent Investor Confidence Index, from Chicago's Spectrem Group, fell by the largest amount since June 2009, reports the Wall Street Journal. "The index, which measures the investment outlook of households with $500,000 or more in investable assets, is now back in in "mildly bearish" territory, according to Spectrem," writes the Journal.