Nearly 20,000 new millionaires were minted in Switzerland last year on economic growth and stock market gains.

Last year, several Swiss wealth managers reported record new money inflows and assets under management, helping expand the ranks of the country's millionaires, or high net worth individuals (HNWIs), according to the Capgemini World Wealth Report 2022, published today.

There were 478,900 «dollar millionaires», or HNWIs, in Switzerland last year which is 4.3 percent higher than the year before. The overall investable assets of those individuals were 5.2 percent higher, rising to $1.48 trillion from $1.41 trillion.

Wealth Drivers 

Among the drivers of Swiss wealth, last year was a GDP gain of 3.7 percent in real terms, along with an increase in national savings as a percentage of GDP of 30.7%. In addition, market capitalization grew by 16.3 percent, while real estate prices witnessed a 1.5 percent gain last year.

Global Wealth

So how did the rest of the world do? Globally, the number of HNWIs increased by 7.8 percent with a corresponding increase in wealth of 8 percent  «owing to recovering economies being boosted by the stock market,» the report said.

The United States, Japan, Germany, and China retained their top-four positions and collectively have around 64 percent of the HNWI population globally.

Among sectors, the ultra-HNWIs, those with assets over $30 million, gained the most, with their ranks increasing by 8.1 percent and their corresponding wealth by 9.6 percent. Their poorer counterparts, known as the «millionaires next door» fared the worst among the HNWI group. Still, their population grew by 7.7 percent and their wealth by 7.8 percent.

Across the various wealth bands, the growth gap is shrinking which indicates a more level playing field as the result of improved information and the democratization of asset classes.

Changing Demographics

The report also highlighted a changing demographic which continues to evolve with more women, LGBTQ+, millennials, and Gen Z individuals seeing wealth management services. They have their own needs and preferences which many wealth management firms are currently not equipped to offer services. Many therefore change to a competitor or a smaller family office.

Looking ahead, the report goes on to say the wealth management sector is seeing a diversification of options from sustainable investing to digital assets. As the imperative for ESG investment grows, firms need to offer educational support and wide-ranging product selection available to HNWIs as a mainstay of their strategies. 

While some 55 percent of HNWIs globally say it is critical to make investments with a positive ESG impact, 40 percent of wealth managers find it challenging to showcase ESG impacts.

«Wealth managers and private banks face the challenge of meeting their needs in new client segments, such as women, but also LGTBQ+, according to their needs,» says Carina Schaurte, Vice President of Financial Services Switzerland, Capgemini Invent.

«In this context, the growth in the family offices segment shows very clearly how important personal and comprehensive support and individual solutions are. The continued growth in the area of sustainability is also a clear sign that issues around purpose and responsibility for society are a key criterion, especially among the next generation of clients,» she continues.

Investable Assets

Investable assets, including private equity holding, the book value of publicly quoted securities, and cash deposits.  exclude things such as collectibles. Excluded are collectibles, consumables, consumer durables, and primary real estate residences. Offshore investments are based on estimates that each market provides regarding their citizens' flow of property and investments into and out of that jurisdiction, and accounting for undeclared savings.