Wealth Report: Europe
Providing insight into the nature, evolution and challenges facing European wealth owners today
The inaugural Julius Baer ‘Wealth Report: Europe’ provides insight into the nature, evolution, and challenges facing European wealth owners today. It also sheds light on a number of special topics related to wealth, and in some instances offers readers ‘tips and tricks’ on how to navigate some of the complexity related to managing wealth in Europe.
The key findings of this report are manifold. In 2013, European wealth exceeded its pre-crisis peak, reaching a new all-time high of EUR 56 trillion, up 1.7% on the previous year. However, the evolution of wealth across countries since the financial crisis in 2008 has differed substantially, with the likes of Switzerland and Germany adding over EUR 1 trillion and EUR 2 trillion in net wealth to their pre-crisis peaks, respectively, while peripheral European countries like Spain and Greece continue to suffer large losses in wealth.
Of Europe’s total wealth, the report also finds that over two-thirds of Europe’s wealth lies in the large core countries Germany, France, the UK and Italy. The picture changes slightly when considering average wealth-per-adult levels across Europe. In this context, the smaller core countries like Luxembourg and Switzerland exhibit the highest wealth-per-adult levels.
The report also looks at the role family-run firms have played as vehicles to build family wealth. Many of Europe’s most enduring family-led companies remain well positioned to drive economic progress (and family wealth) in the 21st century. And as long as capital returns exceed economic growth rates, European families owning capital are set to gain a larger slice of Europe’s expanding wealth cake. This trend should also have a number of implications, ranging from the wealth effect driving up the demand for (and prices of) luxury goods, to the growing importance of intergenerational wealth transfers, both in terms of scope and complexity.
In addition to analysing trends in wealth, the report also offers ‘tips and tricks’ to help readers navigate special topics like wealth and tax planning, investing for social impact as an alternative to philanthropy, and how best to get started in wine and art investing.
We at Julius Baer hope that this report will offer our readers some interesting new perspectives on wealth in Europe. Moving further into the 21st century, it will be critical that business leaders, policymakers, wealth holders and entrepreneurs work together to nurture an environment in which the active exchange of ideas forms the bedrock of social progress in Europe. We hope that this report can make a small contribution to this end.
Are you interested in learning more about the Julius Baer Wealth Report: Europe? Your relationship manager would be delighted to provide you with more detailed information.*
*Please note that access to the report may be restricted as investors’ and distribution criteria apply.