Julius Baer releases 2021 World Wealth and Life-style report

In a broad index, Julius Baer tracks costs and shopper habits all over the world to gauge the worth inflation of a basket of products and companies consultant of the HNWI way of life in cities all over the world. On this approach, traders can estimate the portfolio returns obligatory to keep up, and even improve, their buying energy.

A focus of the most recent version is the affect of COVID-19 on high-end consumption: has the pandemic essentially reorganized the mindset of the worldwide shopper, or has it accelerated tendencies already engaged? The outcomes of the Julius Baer Life-style Index 2021 present the continuation of many underlying tendencies of current years, with COVID-19 having a robust affect on costs in particular areas associated to journey akin to flights and the aftermath of ‘resort.

Rajesh Manwani, Head of Markets & Wealth Administration Options APAC at Julius Baer, ​​commented: “Though there have been regional variations, general the worth of our basket reflecting the existence of rich folks all over the world doesn’t. rose only one.05 p.c. Asia stays the most costly area on this planet for prime internet value and really excessive internet value people – a testomony to the continent’s continued rise to energy.

Nicolas de Skowronski, Head of Wealth Administration Options and Member of the Board of Administrators of Julius Baer, ​​mentioned: “As in earlier years, knowledge from Julius Baer’s 2021 Life-style Index factors to 2 conclusions. clear for these looking for to protect their heritage. The primary is to take a position; inflation and different elements akin to trade charges and native rules can play an enormous position within the buying energy of your wealth. Understanding your native and even private inflation charges and secondly, adopting the correct wealth planning and administration methods are important to keep away from an actual erosion of wealth over time. “

A notable rising international pattern talked about within the earlier version of the World Wealth and Life-style Report was the rise of conscious consumption. This 12 months, the motion has unfold, turning into a central theme in virtually each trade.

The primary findings embrace:

· COVID-19 has elevated shopper engagement and consciousness to buy ethically and sustainably. There may be ample proof that consumption patterns and preferences are altering quicker than ever. Customers all over the world are an increasing number of conscious and the pattern is admittedly taking off.

Even with regards to high-end merchandise and the high-end service sector, customers within the costlier cities on totally different continents are transferring in direction of extra acutely aware decisions, which can lead to fairer costs for the producers.

This pattern can also be mirrored within the habits of HNWIs with regards to managing their wealth, in accordance with Nicolas de Skowronski: “Increasingly more, we see our purchasers attempting to make their property work for future generations – their very own descendants, however doubtlessly. additionally for the world at giant, whether or not via ahead planning, affect investing, sustainable options or philanthropy. It’s our position as asset managers to help this optimistic shift by serving to them to make knowledgeable decisions and to raised perceive the broader implications of their investments. “

Key Findings of the Julius Baer Life-style Index 2021

Our Life-style Index is evolving to mirror the altering world of high-end consumerism. This 12 months’s modifications to the basket of products and companies have significantly benefited folks dwelling in Asia-Pacific international locations, the place new gadgets are usually cheaper.

Regardless of this, Asia stays the most costly area partly because of the area’s fast restoration from the worldwide well being disaster, foreign money stability and value resilience of index gadgets. Shanghai is now the most costly metropolis within the index, taking first place in Hong Kong. Tokyo and Hong Kong are the second and third most costly cities, respectively – however the image stays blended, with Mumbai nonetheless being one of many locations the place wealth goes furthest.

The Americas is essentially the most inexpensive area to dwell a luxurious way of life this 12 months. That is primarily because of the fall within the value of US and Canadian {dollars} towards different main world currencies and a pointy devaluation of currencies in Latin America. Mexico Metropolis and Vancouver are among the many most inexpensive cities on the index. Just one metropolis – New York – stays within the prime 10. This area is the most costly place for well being care, however private know-how stays inexpensive, as the USA is dwelling to lots of the world’s tech titans. .

Johannesburg has develop into essentially the most inexpensive luxurious location within the 2021 index. It’s the solely African metropolis represented within the index and one of many few cities to have skilled important value drops up to now 12 months. , the South African rand depreciating significantly. All different cities within the EMEA zone rose within the rankings, buoyed by the power of the euro and the Swiss franc, excluding London, because of the uncertainty of Brexit.

The collapse of world tourism in 2020 had a big affect on this 12 months’s index. In Asia, Bangkok and Singapore each slipped to the underside of the rankings, whereas shortages of vacationers additionally hit many European cities.

The posh classes that noticed the largest value declines in USD had been ladies’s footwear (-11.7%) and resort suites (-9.3%). The largest beneficial properties concern enterprise class flights (+ 11.4%) and whiskey (+ 9.9%).



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