BNP Paribas Wealth Management: 2020 Year in Review
Building a sustainable and harmonious future with our clients
A constantly changing world is a major source of challenges. These challenges, often complex and occurring fast, also give us opportunities to improve ourselves and to make changes through strong and responsible action.
The mission of BNP Paribas Wealth Management has always been to transform complex challenges into opportunities. This is what we do for our clients every day. Our clients, with their investment and business decisions, can have a positive impact around them. When we combine our individual and collective expertise with our clients’ potential for impact, we can build a sustainable and harmonious future for all of us.
Our purpose underlines not only the contribution we can make to our clients, but the responsibility that we have to each other in our local communities and to society as a whole. This is the unifying factor which we all share collectively.
A growing appetite among our customers for sustainable investment
This year, BNP Paribas Wealth Management's Entrepreneur Report highlights that 70% of entrepreneurs are more willing today than they were 18 months ago to invest in a sustainable way. Promoting sustainability and providing our customers with the opportunities and tools to achieve their positive impact objectives are at the heart of our culture and part of our “Purpose” as a private bank. To this end, BNP Paribas Wealth Management continues to strengthen its offer of sustainable and impact investments. The myImpact digital tool offers each client the opportunity, through an interactive journey to be carried out alone or with his private advisor, to define his priorities in terms of sustainable development and philanthropy. With the information gathered, the private banker can work out a strategy with him and propose solutions that meet her/his values and priorities. The new sustainability rating, or "Clover Methodology", assesses the sustainability of recommended products across all asset classes. This rating facilitates clients’ ability to identify and select sustainable investments in order to better support them in their search for positive impact.
Development of private equity and real estate supply
Our major clients are looking for investment opportunities in Private Equity and Real Estate. In the latest BNP Paribas Entrepreneur report 2020, it appeared that 75% of Elite entrepreneurs already hold investments in Private Equity. For real estate, they expect to increase their investment from the current 10% of their total assets to almost 18% over the next 12 months. BNP Paribas Wealth Management has significantly strengthened its offer. Our private clients have thus been able to take advantage of our historical relationship with some of the best-known Private Equity funds to gain access to unique investment opportunities traditionally reserved for institutional investors. The new solutions proposed this year have satisfied our customers who want to invest in real assets and contribute to the real economy. BNP Paribas Wealth Management has been supporting its clients since 1998 to diversify their wealth in these asset classes.
2020 Agrifrance report: focus on the organic wine market
For over 20 years, Agrifrance has published its annual economic outlook and shed light on investment in rural land. In 202O, the study focuses on the fast growing market for organic wines and its dynamics across the main producing regions across Europe and globally. Organic farming accounts for less than 5% of the world's cultivated surface area, but is growing at a spectacular pace! In France, organic winegrowing areas increased fourfold in ten years. Today, organic vines occupy one in ten hectares, and by 2023 French organic wine production is set to double.
A strong commitment to support large families and entrepreneurs
As the main engines of economic growth, entrepreneurs and large families are at the heart of our business. In order to strengthen our proximity and deepen our knowledge of their professional and personal needs, a new team was created: This new structure, at the heart of Wealth Management, is a gateway to all the services provided by the BNP Paribas Group and capitalizes on the synergies brought by the Group through its retail and investment banking activities, and other businesses such as real estate. In order to anticipate the expectations of our clients, we are conducting international studies: the BNP Paribas Entrepreneurs Report 2020 examines the trends of Elite entrepreneurs in investment strategy, their appetite for private equity and sustainable investment; the new “Nextgen” report aims at better understanding the expectations of new generations of wealthy clients in Asia.
The new BNP Paribas Wealth Management report on Asian NextGen
BNP Paribas Wealth Management in Asia collaborated with Campden Research to develop this report to better understand the key drivers and motivating factors at play with the ultra-high networth NextGen community in Asia. The report sheds light on Asia’s next generation of ultra-high networth individuals, their aspirations for the future and expectations on a diverse set of topics. The report also assessed in detail their views on private banking and their expected relationship with private bankers in the future. Surveying future leaders from the Asia Pacific region with an average age of 38 years and with families representing a mean net worth of $640m, the report offers a unique outlook on the investment perspectives of a generation on the verge to assume great responsibilities.
2020 BNP Paribas Global Entrepreneur Report: Deep-dive into the market perspectives of the most successful entrepreneurs
For the past six years, the BNP Paribas Global Entrepreneur Report has been surveying leading entrepreneurs around the world about their personal investment strategies. In 2020, the report focused on their global asset allocation strategy, as well as on Private Equity and real estate trends, and their growing appetite for sustainable investment. This new report provides a unique insight into the investment preferences and market prospects of successful entrepreneurs worldwide.
Major technological and digital innovations
For some years now, we have co-created digital solutions with our clients. We work continuously to innovate and take advantage of technology to better support and serve our clients. The health crisis has accelerated their digital expectations resulting in increased use of key digital solutions. Thus myWealth, one of our main portals for access to BNP Paribas Wealth Management’s digital services, saw its use increase significantly, offering our clients unprecedented agility. This year was also marked by the deployment of myMandate in France in collaboration with the Fintech Gambit, a robo-advisory offering that allows clients who so wish to have a mandated management solution based on high-profile algorithmic research. Finally, myFamilySafe is an innovative digital solution that allows for the sharing of legal, tax and estate information between members of the same family, or to authorised third parties (e.g. notaries), facilitating, for example, the settlement of the estate for the heirs by collecting all relevant documents and contacts.
BNP Paribas Wealth Management releases its 10 investment themes for 2021
The Investment Strategy Team at BNP Paribas Wealth Management publishes an annual list of 10 major investment themes. These themes enable investor clients to structure a short-, medium- and long-term approach to their asset allocation through the short- and medium-term impact of the Covid19 crisis and investment strategies, as well as through long-term structural trends in the economy and society.
An Impact Journey with Craig Leeson
As part of the long-term partnership with Australian filmmaker Craig Leeson, BNP Paribas Wealth Management is committed to addressing two of the world’s major crises: climate change and single-use plastics. Craig Leeson is an award-winning documentary producer and a strong advocate of sustainable development. At a virtual conference in December 2020, Craig shared with our clients his vision of a necessary transition to a more sustainable society and economy. It was also an opportunity to discuss the role of finance and investors. By combining our individual and collective expertise with the influence of our clients, we can build a sustainable and harmonious future for all of us.
Resilience of our operations and our operating position
In these exceptional circumstances, combining the health crisis with high financial market volatility, BNP Paribas’ Wealth Management teams have mobilized to stay as close as possible to clients. For example, Executive Management, product experts and the network of market strategists around the world have mobilized to regularly inform customers of market developments. Exchanges have taken the form of virtual conferences, podcasts, or articles on the Web and social networks. This proximity has enabled BNP Paribas Wealth Management to deliver first-class services, resulting in the bank having €380 billion in assets under management.