{"id":86808,"date":"2015-05-08T00:05:12","date_gmt":"2015-05-07T22:05:12","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=86808"},"modified":"2015-05-20T08:35:55","modified_gmt":"2015-05-20T06:35:55","slug":"how-sas-multi-millionaires-make-their-money","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/86808\/how-sas-multi-millionaires-make-their-money\/","title":{"rendered":"How SA’s multi-millionaires make their money"},"content":{"rendered":"

Financial services is the main industry from which South African multi-millionaires,\u00a0 individuals with net assets of US$10 million or more, have acquired their wealth.<\/p>\n

This is according to a report published by New World Wealth which revealed the industry from which the country’s super rich have acquired their wealth.<\/p>\n

Despite being only the fifth-largest country in Africa in terms of population, and ninth-largest by land area, South Africa is by far the most advanced and richest country on the continent.<\/p>\n

At the end of 2014, there were approximately 46,800 HNWIs living in South Africa, with a combined wealth of US$184 billion. This equates to roughly 31% of South Africa\u2019s total individual wealth.<\/p>\n

According to NWW, South Africa is home to 2,060 multi-millionaires \u2013 high net worth individuals (HNWIs) worth US$10 million or more. These individuals boasted combined wealth of US$111 billion by the end of 2014.<\/p>\n

639 of these were UHNWIs (individuals with net assets of US$30 million or more) who had an accumulative wealth of US$73 billion. Of this total, there were 6 billionaires, 87 centimillionaires and 546 affluent millionaires.<\/p>\n

Centimillionaires are those HNWIs with net assets of between US$100 million and US$1 billion, while affluent millionaires are those with net assets of between US$30 million and US$100 million.<\/p>\n

Financial services is the primary source of wealth for 20% of local multi-millionaires. Other important industries for them include real estate & construction (16%), basic materials (14%) and diversified (12%).<\/p>\n

\"Multimillioniares<\/a>

Multimillioniares by industry<\/p><\/div>\n

According to New World Wealth, the fastest growing sectors for South African multi-millionaires is telecoms, insurance – part of financial services – and healthcare.<\/p>\n

The group said it expects the fastest growing sectors to be healthcare and media over the next several years.<\/p>\n

Asset Class<\/strong><\/p>\n

NWW defines wealth as the net value of assets, including both financial holdings and tangible assets.<\/p>\n

At the end of 2014, cash & bonds was the largest asset class for HNWIs in South Africa (30% of total HNWI assets), followed by equities (28%), real estate (20%), business interests (16%) and alternatives (6%).<\/p>\n

\"Asset<\/a>

Asset class<\/p><\/div>\n

South Africa: HNWIs \u2013 Allocations of HNWI Assets (%), 2007\u22122017<\/h3>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Asset Class<\/strong><\/td>\n2007<\/strong><\/td>\n2014<\/strong><\/td>\n2017<\/strong><\/td>\n<\/tr>\n
Hedge funds and other<\/td>\n4.7%<\/td>\n3.7%<\/td>\n3.4%<\/td>\n<\/tr>\n
Commodities<\/td>\n1.5%<\/td>\n1.7%<\/td>\n1.7%<\/td>\n<\/tr>\n
Collectables<\/td>\n0.6%<\/td>\n0.8%<\/td>\n0.9%<\/td>\n<\/tr>\n
Total alternatives<\/strong><\/td>\n6.9%<\/strong><\/td>\n6.1%<\/strong><\/td>\n6.0%<\/strong><\/td>\n<\/tr>\n
Local property<\/td>\n24.6%<\/td>\n18.0%<\/td>\n19.3%<\/td>\n<\/tr>\n
Foreign property<\/td>\n1.5%<\/td>\n2.0%<\/td>\n2.1%<\/td>\n<\/tr>\n
Total real estate<\/strong><\/td>\n26.1%<\/strong><\/td>\n20.0%<\/strong><\/td>\n21.5%<\/strong><\/td>\n<\/tr>\n
Local cash and bonds<\/td>\n16.8%<\/td>\n24.2%<\/td>\n24.2%<\/td>\n<\/tr>\n
Foreign cash and bonds<\/td>\n5.9%<\/td>\n5.8%<\/td>\n5.1%<\/td>\n<\/tr>\n
Total cash and bonds<\/strong><\/td>\n22.7%<\/strong><\/td>\n29.9%<\/strong><\/td>\n29.3%<\/strong><\/td>\n<\/tr>\n
Local equities<\/td>\n20.7%<\/td>\n19.8%<\/td>\n19.7%<\/td>\n<\/tr>\n
Foreign equities<\/td>\n7.7%<\/td>\n8.1%<\/td>\n8.2%<\/td>\n<\/tr>\n
Total equities<\/strong><\/td>\n28.4%<\/strong><\/td>\n27.8%<\/strong><\/td>\n27.9%<\/strong><\/td>\n<\/tr>\n
Business interests (local)<\/strong><\/td>\n15.9%<\/strong><\/td>\n16.1%<\/strong><\/td>\n15.4%<\/strong><\/td>\n<\/tr>\n
TOTAL<\/strong><\/td>\n100.0%<\/strong><\/td>\n100.0%<\/strong><\/td>\n100.0%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

South Africa: HNWIs \u2013 Wealth Holdings Growth (%), 2007\u20132017<\/h3>\n
\n\n\n\n\n\n\n\n\n
Asset class<\/strong><\/td>\n2007-2014<\/strong><\/td>\n2014-2017<\/strong><\/td>\n<\/tr>\n
Alternatives<\/td>\n-2%<\/td>\n19%<\/td>\n<\/tr>\n
Real estate<\/td>\n-16%<\/td>\n32%<\/td>\n<\/tr>\n
Cash and bonds<\/td>\n44%<\/td>\n20%<\/td>\n<\/tr>\n
Equities<\/td>\n7%<\/td>\n23%<\/td>\n<\/tr>\n
Business interests<\/td>\n11%<\/td>\n17%<\/td>\n<\/tr>\n
Total assets<\/strong><\/td>\n9%<\/strong><\/td>\n23%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

NWW believes that real estate is expected to be the top-performing asset class, followed by equities. As a result, there will be a movement away from cash towards these asset classes.<\/p>\n

More on South Africa’s rich<\/h3>\n

How South Africa\u2019s ultra-rich make their money<\/a><\/strong><\/p>\n

The best age to be rich and successful in SA<\/strong><\/a><\/p>\n

How many billionaires South Africa has<\/strong><\/a><\/p>\n

Where South Africa\u2019s richest people live<\/strong><\/a><\/p>\n

These are South Africa\u2019s richest people<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Financial services is the main industry from which South African multi-millionaires have acquired their wealth.<\/p>\n","protected":false},"author":10,"featured_media":74328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,9880],"tags":[26,6440],"class_list":["post-86808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","category-wealth","tag-headline","tag-new-world-wealth"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/86808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=86808"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/86808\/revisions"}],"predecessor-version":[{"id":86824,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/86808\/revisions\/86824"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/74328"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=86808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=86808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=86808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}