• 11/5/2014
     WEALTH DISTRIBUTION

    WEALTH DISTRIBUTION

     

    WEALTH DISTRIBUTION

    AS THE IMPACT OF THE ECONOMIC DOWNTURN SLOWLY STARTS TO RECEDE, WE ANALYSE DATA FROM MORE THAN 90 COUNTRIES TO GIVE A DETAILED PICTURE OF CURRENT AND FORECAST FUTURE GLOBAL WEALTH DISTRIBUTION

    GLOBAL WEALTH DISTRIBUTION BY REGION AND FOR SELECTED COUNTRIES

    Since its inception in 2007, The Wealth Report has monitored changing trends in global wealth distribution.

    This year we are delighted to have joined forces with leading wealth intelligence firm WealthInsight to provide data on more locations – over 90 countries and almost as many cities - than ever before.

    To provide readers with as much insight as possible into wealth distribution trends - historic, current and future – we have provided wealth population data for 2003, 2012, 2013 and forecasts for 2023.

    This data is broken down by numbers of UHNWIs (those with US$30m of assets excluding their main residence), numbers of centa-millionaires and, finally, numbers of billionaires.

    All the numbers and detailed analysis are included in the downloadable version of The Wealth Report 2014, but as a taster some of the key findings are highlighted in the tables below.

    GLOBAL WEALTH TRENDS

    Wealth Bracket2003201220132023 forecast10-year growth1-yearh growth10-yeah forecast growth
    UHNWIs105,641162,968167,669215,11359%3%28%
    Centra- millionaire22,95833,98737,10448,47362%35%31%
    Billionaire9341,6411,6822,31580%2%38%

    REGIONAL UHNWI WEALTH TRENDS

    Wealth region2003201220132023 forecast10-year growth1-yearh growth10-yeah forecast growth
    Africa8131,8441,8682,85813%1%53%
    Asia21,75340,11641,11458,58889%2%43%
    Australasia1,5273,7913,8284,526151%1%18%
    Europe42,00758,54960,50473,39644%3%21%
    Latin America3,9349,6359,67713,711146%0%42%
    Middle East3,2586,8917,0529,498116%2%35%
    North America32,34942,14243,62652,53635%4%20%

     

    THE NUMBER OF UHNWIS ACROSS THE GLOBE ROSE BY 3% LAST YEAR, TAKING THE NUMBER OF PEOPLE WITH MORE THAN US$30M IN ASSETS TO OVER 167,000 WORLDWIDE

    The number of UHNWIs across the world has ballooned by 59% since 2003, more than doubling in the Middle East, Latin America, Australasia and Africa.

    The number of centamillionaires – those with US$100m in net assets – has risen by 62%, while the tally of billionaires has climbed by 80% to 1,682, according to WealthInsight, a leading wealth intelligence firm.

    While UHNWI numbers in North America and Europe remain slightly below the levels seen back in 2007, these regions saw the strongest rates of growth last year.

    An additional 1,500 individuals boosted their net value beyond US$30m in North America during2013, a 3.5% rise.

    The number of UHNWIs in Europe increased by 3.3%, or almost 2,000 people, over the same period. Asia gained nearly 1,000 UHNWIs during the year, taking the region’s total to 41,114, only slightly fewer than in North America.

    This wealth creation and conservation came even as political, fiscal and economic headwinds buffeted some of the world’s biggest economies.

    Emerging economies, which have been the engines of growth since the financial crisis, faced upheavals during the year, and this took a toll on total global growth, which dropped to the lowest level seen in four years.

    WEALTH INSIGHT

    Yet the accommodative monetary policies adopted in many countries, coupled with a return in investors’ appetite for risk, saw equity markets spring back to life in 2013. The MSCI World Index rose by 23%, while the Standard & Poor’s 500 rose by 30% and the FTSE 100 ended the year up over 14%, helping to boost wealth across many regions.

    However, investors who veered towards gold, seen as the safest of safe haven investments, would have felt the impact of a sharp drop in prices during the year – the first annual decline since 2000. In dollar terms, gold fell by 28% in 2013, again reflecting investors’ increased appetite for risk.

    But the recovery of equity markets was not universal. Latin American markets had a turbulent time during 2013 and weakening currencies took their toll on the region’s performance. One of the exceptions was Venezuela, where the benchmark IBC index surged by more than 480% during 2013. However, this massive growth was underpinned by fears that the currency would be devalued, and is likely to be unsustainable. GDP growth in Latin America was slower than forecast in 2013, as external and domestic demand decelerated.

    These challenges were reflected in the low rate of UHNWI growth during the year, with fewer than 50 people joining the US$30m+ wealth band.

    The results of The Wealth Report’s annual Attitudes Survey of wealth experts and private bankers also indicated that more than one in 10 Latin American UHNWIs had seen their wealth eroded in 2013, a higher proportion than in any other global region.

    More than a third said the local economy was having a negative impact on their clients’ financial situation.

     - See more at: http://www.thewealthreport.net/wealth-distribution/default.aspx#sthash.Z3Z2yvoY.dpuf