The Strategist

Report: The Richest People in the World Have Become Even Richer



06/19/2015 - 17:51



According to the World Wealth Report, an annual study of global wealth, the number of the wealthiest people in the world, together with the amount of assets that they control, have reached a new record in 2014.



French consulting company Capgemini, together with the management company RBC Capital Management, a division of Royal Bank of Canada, have published a new report on global welfare. The study focuses on the evaluation of the assets that belong to private persons with large fortunes (high net worth individuals, HNWI).

The report notes that in 2014, 920 thousand of new dollar millionaires came up in the world. The number of the most affluent people rose to 14.6 million people. However, their states have grown to $ 56.5 trillion, an increase of 7% compared to 2013.

In general, a tiny portion of the world's population controls more than a fifth of the wealth accumulated by mankind: 0.2% of the world population owns 21.4% of created financial wealth.

According to Capgemini press release, , North America is holding its position as the richest region in the world. The aggregate amount of wealth in North America last year amounted to $ 16.23 trillion. The Asia-Pacific region is in second place with the total private wealth at $ 15.82 trillion. On the third - Europe with the private wealth of $ 12.97 trillion.

At the same time, the report notes that North America has lost the lead in the number of the most wealthy people. The number of rich people in the Asia-Pacific region in 2014, according to experts, was 4.89 million people (compared with 4.88 million in North America). Analysts predict that by the end of 2015, Asia will overtake North America in the volume of private wealth, too.

The report also identified the percentage of various assets in states of rich people. According to experts, the equities, with a share of 27% in the portfolios of wealthy people, came in the first place. Cash and deposits moved into second place (26%). Following are investments in real estate - 18% of bonds, debt instruments with fixed income with a share of 17%; alternative investments  - 13%.
In his comments to the report, Andrew Lees, head of global sales department Capgemini Global Financial Services, said:

- The trend of increasing investments in equities reflects the relatively slow-growing appetite for risk, as riches are showing an increasing interest in the shares in their portfolios against growth of stock markets.

According to forecasts of Capgemini and RBC Wealth Managment, the amount of global wealth of the richest people in the coming years will continue to grow. Experts predict an increase to its $ 70.5 trillion in the period 2015-2017. This will help Asia lead in terms of growth: average annual growth rate of private wealth in the region will account for 10.3%. In the next few years, Europe will overtake North America in this indicator with the annual rate of private wealth growth among the richest people in the 8.4% to 7%, respectively.


 




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