Bull market drive millionaires wealth in 2017; Half of worlds personal wealth own by Super-rich
As per the report, main drivers were the bull market environment in all major economies-with wealth in equities and investment funds showing by far the strongest growth-and the significant strengthening of most major currencies against the dollar.
Investor and Philanthropist Warren Buffett once rightly said, “Price is what you pay, value is what you get.” Looks like this quote is very true for millionaires across world, as they continue to get richer and a lot faster. According to a Boston Consulting Group’s Global Wealth 2018 report, global personal financial wealth grew by 12% in 2017 to $201.9 trillion in US dollar terms. This total, roughly 2.5 times as large as the world’s GDP for the year ($81 trillion), more than doubled the previous year’s rate, when global wealth rose by 4%. This also represented the strongest annual growth rate in the past five years in dollar terms.
As per the report, main drivers were the bull market environment in all major economies—with wealth in equities and investment funds showing by far the strongest growth—and the significant strengthening of most major currencies against the dollar.
Among the total share of global wealth, millionaires increased to almost 50% in 2017 compared with just under 45% in 2014, driven mainly by higher-wealth individual investing in higher-return assets.
Residents of North America held over 40% of global personal wealth, followed by residents of Western Europe, with 22%. The strongest region of growth was Asia, which posted a 19% increase, highlighted the report.
It added, “All wealth segments grew robustly, but high growth rates were especially prevalent in the uppermost wealth segments.”
In terms of asset classes, $121.6 trillion (60%) of global wealth took the form of investable assets—mainly equities, investment funds, currency and deposits, and bonds—with the remaining $80.3 trillion (40%) held in non-investable or low-liquidity assets such as life insurance, pensions funds, and equity in unquoted companies.
The Middle East accounted for the highest share of wealth held in investable assets, while residents of Oceania had the lowest share.
The analysis on annual market-sizing encompassed 97 countries that collectively account for over 98% of global GDP, and whereas annual benchmarking study stemmed from a survey of more than 150 wealth managers, involving more than 1,500 performance indicators.
BCG expects personal finance wealth to rise at a CAGR of about 7% from 2017 to 2022.
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