Capgemini announces new Metro Wealth index for U.S. cities
2008 Index finds a 15.7% decrease among populations of High Net Worth Individuals in top ten metropolitan statistical areas.
14 July 2009
Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services today announced the availability of the Capgemini U.S. Metro Wealth Index, a new customisable wealth management analysis tool which monitors populations of High Net Worth Individuals (HNWIs) within United States metropolitan statistical areas (MSAs).
A recent analysis using the Capgemini U.S. Metro Wealth Index focusing on HNWI populations in the top 10 U.S. MSAs shows a decline among HNWI populations at 15.7%, or nearly 300,000 HNWIs, which is less than the total national U.S. HNWI population decline at 18.5%. Cities in the top 10 MSAs have long been the primary areas of wealth in the U.S. While these areas were affected by the downturn, the impact was less as compared to other large cities where factors such as the real estate market crash were heavily felt.
The Capgemini U.S. Metro Wealth Index leverages Capgemini’s custom market sizing modeling capability and is designed to help wealth management firms understand the scale and potential of different markets in order to identify new growth opportunities or adjust an existing footprint in specific regions. Wealth management firms can benefit from such analysis as it provides details on the dynamics and growth of potential markets and client segments, as well as insights on future trends.
“Despite a challenging year in 2008, significant growth opportunities still exist within the wealth management market,” said William Sullivan, Head of Global Financial Services Market Intelligence, Capgemini Financial Services. “With increasing client demands and cost pressures, firms need to be focused on making targeted investments to determine markets with the greatest opportunity for growth, and markets that may require reevaluation for entry or exit. The Capgemini U.S. Metro Wealth Index provides firms with both historic data and future projections to help evaluate these important decisions.”
In addition to the top ten MSAs, the modeling capability behind the U.S. Metro Wealth Index can size any specific geography within the United States – at the county, city or state level – as well as the U.S. itself. For example, in 2008, Orlando (#30 MSA) lost 42% of its HNWI population; Las Vegas (#29 MSA) lost 38%; and Phoenix (#22 MSA) lost 34%. Interestingly, areas where the HNWI population declined drastically in 2008 experienced strong HNWI population gains in the preceding years. These above average declines were largely due to real estate value declines and other economic factors such as a decrease in tourism in 2008.
The complete results for the top ten U.S. MSAs are included in the visual below. Capgemini has more than a decade of market sizing experience through client projects and on the industry leading World Wealth Report. For more information on market sizing engagements, please contact wealth@capgemini.com.
Source: Capgemini Analysis, 2009
| 2008 Rank
(by number of HNWIs) | U.S. Metro Area Adult Population (k) | 2007 HNWI Population (k) | 2008 HNWI Population (k) | 2007-2008 HNWI Population Decrease (%) |
| 1 | New York
(15,189.6) | 650.1 | 561.8 | -13.6% |
| 2 | Los Angeles
(10,130.7) | 253.3 | 208.2 | -17.8% |
| 3 | Chicago
(7,542.4) | 205.4 | 172.2 | -16.2% |
| 4 | Washington D.C.
(4,298.6) | 151.9 | 127.7 | -15.9% |
| 5 | San Francisco
(3,449.5) | 142.6 | 120.8 | -15.3% |
| 6 | Boston
(3,672.5) | 107.9 | 89.4 | -17.1% |
| 7 | Philadelphia
(4,714.4) | 106.3 | 86.7 | -18.4% |
| 8 | Detroit
(3,562.4) | 94.5 | 79.5 | -15.9% |
| 9 | San Jose
(1,434.0) | 80.7 | 69.5 | -13.9% |
| 10 | Houston
(4,383.0) | 86.7 | 68.4 | -21.1% |
Note: Numbers are rounded; By ‘Metro Area’ we refer to an MSA - a Metropolitan Statistical Area; HNWI is a High Net Worth Individual with investable assets of $1m or more; We do not publish individual names of HNWIs by city
Source: Capgemini U.S. City Sizing Model and Analysis
About Capgemini
Capgemini, one of the world’s foremost providers of consulting, technology and
outsourcing services, enables its clients to transform and perform through technologies.
Capgemini provides its clients with insights and capabilities that boost their
freedom to achieve superior results through a unique way of working - the Collaborative
Business Experience - and through a global delivery model called Rightshore®,
which aims to offer the right resources in the right location at competitive cost.
Present in more than 30 countries, Capgemini reported 2008 global revenues of
EUR 8.7 billion and employs over 90,000 people worldwide. More information is
available at www.capgemini.com.
Capgemini’s Financial Services Global Business Unit (FS GBU) brings deep industry experience, enhanced service offerings and next generation global delivery to serve the financial services industry. With a network of 12,000 professionals serving over 900 clients worldwide, the FS GBU collaborates with leading companies in banking, insurance, and capital markets to create tangible value. For more information please visit www.capgemini.com/financialservices.
Press Contact:
Jenny Grendel (North America)
Weber Shandwick for Capgemini
jgrendel@webershandwick.com
+1 212 445 8187
