February 27, 2021

The rich lose 3% of their fortune

The World Wealth Report 2019 or WWR, published today by Capgemini, reveals that, after seven years of continuous growth, The wealth of the great fortunes decreased by 3% in 2018 worldwide. Consequence in large part for a decline in the wealth of the Asia-Pacific region (especially China), this reduction is equivalent to the loss of 2 billion dollars worldwide. Despite this, the wealth management firms maintained stable levels of satisfaction and confidence of their customers, although the improvement of personal relationships is still key for these entities, something they can achieve through an effective use of technology. Next Generation.

Asia-Pacific registers the greatest decrease in wealth, which, in turn, grows in the Middle East

The number of millionaires around the world and their wealth have decreased, respectively, by 0.3% and 3%, with Asia-Pacific accounting for the largest reductions. Asia-Pacific represents 1 trillion USD of the global fall, after reducing its population of millionaires by 2% and the wealth that they concentrate, by 5%. Only China has been responsible for more than half (53%) of the loss of wealth in Asia-Pacific and more than 25% worldwide.

In Spain, the number of millionaires remained practically unchanged, at about 224,000. Specifically, it closed 2018 with 224,300, which represents an increase below 0.1% with respect to the figure of 224,200 in 2017. Spain remains in the fourteenth place in the world ranking of countries in terms of millionaire population behind India (256,000) and Korea (235,000) and ahead of Russia (200,000) and Saudi Arabia (191,000) – and seventh in Europe (formerly Germany, France, United Kingdom, Switzerland, Italy and the Netherlands and later, Norway and Sweden).

The wealth of great fortunes also recedes in almost all other regions. In Latin America, it fell by 4%; in Europe, 3% and in North America, 1%. But nevertheless, in the Middle East, the trend reversed: the wealth of the great fortunes grew by 4% and the number of millionaires by 6%, driven by solid GDP growth and the evolution of financial markets. In line with the previous year, the markets with the highest volume of millionaires – the United States, Japan, Germany and China – represent 61% of the total world population of great fortunes.

The ultra-billionaires register the greatest economic loss. In 2018, the population of ultrarricos (fortunes exceeding 30 million USD) was reduced by 4% and their wealth decreased by around 6%. These losses represent 75% of the total decrease in wealth worldwide. The segment of middle-level millionaires (fortunes of between 5 and 30 million USD) represents 20% of the total global loss -reduced its heritage by 2.6 %-, while the lower segment of millionaires (between 1 and 5 million of USD and that represents almost 90% of the HNWI population) is the one that was least affected, since its wealth decreased less than 0.5%. This means that most of the reduction both in the number of millionaires and in the wealth they concentrated in the highest segments (ultra-millionaires and middle-level millionaires).

On the other hand, the composition of investment portfolios has changed significantly: cash has replaced equity as the asset class most used as an investment in the first quarter of 2019 and represents 28% of the financial assets of large companies. fortunes, while stocks have moved to a second position, with about 26% (5 percentage points less than the previous year). Volatility in the stock markets led to a slight increase in alternative investments, which reached 13%, 4 percentage points more than twelve months earlier.

. (tagsToTranslate) h. huntsman

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