{"id":90994,"date":"2015-06-20T15:00:20","date_gmt":"2015-06-20T13:00:20","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=90994"},"modified":"2015-06-19T17:22:52","modified_gmt":"2015-06-19T15:22:52","slug":"a-million-new-millionaires-enter-the-world-of-the-super-rich","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/90994\/a-million-new-millionaires-enter-the-world-of-the-super-rich\/","title":{"rendered":"A million new millionaires enter the world of the super-rich"},"content":{"rendered":"

Strong economic and equity market performance helped create nearly a million new millionaires globally in 2014, a new wealth report has shown.<\/p>\n

This means that High Net Worth Individuals (HNWIs – people with assets greater than $1 million) grew in both number and wealth in 2014, to 14.6 million and $56.4 trillion, respectively – an increase of about\u00a07%.<\/p>\n

These are the findings from the World Wealth Report 2015 (WWR) compiled by Capgemini and RBC Wealth Management.<\/p>\n

The wealth report is based on an insights survey that queried over 5,100 HNWIs in 23 major wealth markets across the world, including South Africa.<\/p>\n

Notably, the top four nations for HNWIs – the United States (4.3 million), Japan (2.4 million), Germany (1.1 million) and China (890,000) – account for 60.3% of the total global HNWI population.<\/p>\n

Of the 920,000 HNWIs added in 2014, 610,000 were added in these top four markets.<\/p>\n

Ultra-HNWIs (with assets greater than $30 million) account for 1.0% of the HNWI population, yet control 35% of the total wealth.<\/p>\n

According to a South Africa-focused wealth report by New World Wealth, at the end of 2014 there were approximately 46,800 HNWIs living in South Africa, with a combined wealth of US$184 billion.<\/p>\n

This equates to roughly 31% of South Africa\u2019s total individual wealth.<\/p>\n

\"Wealth<\/a>

Wealth breakdown<\/p><\/div>\n

Changing wealth landscape<\/h3>\n

North America continues to rank first overall for HNWI wealth at $16.2 trillion vs. Asia-Pacific\u2019s $15.8 trillion and Europe\u2019s $13.0 trillion.<\/p>\n

Asia-Pacific\u2019s wealth growth (11% vs. North America\u2019s 9% and Europe\u2019s 4.6%) is expected to continue, with the region expected to take top spot for HNWI wealth before the end of 2015, the report said.<\/p>\n

Total global HNWI wealth is expected to shoot past $70.5 trillion by 2017 at an average annual rate of 7.7%.<\/p>\n

Notably, this growth is expected to be driven by the Asia-Pacific region, where an annualised growth rate of 10.3% is anticipated, versus former driver, North America, expecting a more modest 7.0% rate.<\/p>\n

This means that by 2017, Asia Pacific is set to lead in terms of HNWI wealth, accounting for an estimated $21.2 trillion of total wealth, versus North America’s $19.9 trillion.<\/p>\n

Africa’s growth is expected to remain fairly low, when compared to other markets, with a 5.8% annualised growth rate into 2017. The only region below Africa is Latin America, which is expected to contract by 3.1%.<\/p>\n

African HNWI wealth is expected to account for $1.7 trillion of total HNWI wealth in 2017, only slightly larger than the $1.4 trillion in 2014.<\/p>\n

\"HNWI<\/a>

HNWI forecast<\/p><\/div>\n

How the rich are getting richer<\/h3>\n

Equities overtook cash as the preferred asset class of HNWIs in 2014, representing 27% of portfolios, according to the report.<\/p>\n

HNWIs continue to hold more than one-quarter (26%) of their wealth in cash, doing so primarily to maintain their lifestyle, or for security in case of market volatility.<\/p>\n

The balance of portfolios was allocated to real estate, fixed income, and alternative investments.<\/p>\n

The report also found that the use of credit in HNWI portfolios is widespread, with 18% of assets being financed through borrowed money.<\/p>\n

Credit is used largely as leverage for investments, followed by real estate.<\/p>\n

More on South Africa\u2019s 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","protected":false},"excerpt":{"rendered":"

Strong economic and equity market performance helped create nearly a million new millionaires globally in 2014, a new wealth report has shown.<\/p>\n","protected":false},"author":10,"featured_media":66890,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[8189,26,8191,7275],"class_list":["post-90994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-capgemini","tag-headline","tag-rbc-wealth-management","tag-wealth"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/90994","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=90994"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/90994\/revisions"}],"predecessor-version":[{"id":91002,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/90994\/revisions\/91002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/66890"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=90994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=90994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=90994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}