The level of financial inequality around the world is staggering. According to a new Credit Suisse report, 45.9 percent of global household wealth is in the hands of just 0.7 percent of the world’s population. Those 36 million individuals control a mind-boggling $128.7 trillion, as can be seen from the following the pyramid.
Below that, 391 people own $111.4 trillion, 39.7 percent of global wealth, despite accounting for just 7.9 percent of the adult population. The base of the pyramid is the most poignant and it shows how 3.47 billion people (70 percent of the population) share a combined wealth of $7.6 trillion which is just 2.6 percent of total wealth.
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Billionaires around the world – Statistics &Facts
A billionaire, in countries that use the short scale number naming system, is a person with a net worth of at least one billion units of a given currency, usually major currencies such as the United States dollar. In 2016, the highest geographical concentration of billionaires was in Asia-Pacific region and in the United States. With 609 individuals worth more than one billion U.S. dollars in 2017, China was the country with the biggest billionaire population worldwide. Its capital, Beijing, alone had 94 billionaire residents, and it was the city with the most billionaires in 2017.
In 2015, most billionaires were self-made. The total net worth of the ten richest billionaires worldwide was estimated to be at over 505 billion U.S. dollars in 2016. Bill Gates, the richest man in the world, had a fortune of 75 billion dollars. Second on the list that year was Amancio Ortega, founder of Spanish clothing chain Zara. Ortega’s net worth amounted to 67 billion U.S. dollars in 2016. American business magnate and investor, Warren Buffett, worth about 61 billion dollars, ranked third.
When taking a closer look at the demographics of billionaires globally, about 87 percent were men in 2013. The world region with the highest female billionaire share was Europe, at 17 percent. In 2015, Angola was the only country with a 100 percent female billionaire population. According to 2015 data, over 85 percent of billionaires were married, and only 4 percent of billionaires stated their relationship status was single. When it comes to the attained education level of billionaires, more than 70 percent had a Bachelor’s degree and about 22 percent had earned a Master’s degree in 2015.
Private Wealth Management – Statistics & Facts
Private wealth management has developed significantly in the recent years as a result of growth of affluence worldwide. The number of millionaires in North America increased from 3.39 million in 2010 to 5.15 million in 2016. The recent developments in Fintech market help to open up new Private Wealth Management products and services to people with smaller amounts of disposable income. A similar trend has been observed in Europe as the number of millionaires grew from 3.13 million in 2010 to 4.5 million in 2016.
Wealth distribution globally
The largest amount of global private wealth, equal to 55.7 trillion U.S. dollars in 2016, was concentrated in North America. The value of private wealth in Western Europe and Asia Pacific in that year amounted to 40.5 trillion U.S. dollars and 38.4 trillion U.S. dollars respectively. According to the forecast, North America will remain in the lead in terms of private wealth value in 2021, but Asia Pacific will overtake Western Europe.
Wealth distribution in the United States
In the United States, there were 10.4 million households with net worth exceeding one million U.S. dollars in 2015.
Wealth management companies
The private banks worldwide with largest amount of assets under management in 2016 were UBS (2.07 trillion U.S. dollars), Bank of America (1.97 trillion U.S. dollars) and Morgan Stanley (1.95 trillion U.S. dollars). The largest wealth management companies in the United States in terms of managed assets as of September 2017 were Bank of America Global Wealth and Investment Management (1.2 trillion U.S. dollars), Morgan Stanley Wealth Management (1.1 trillion U.S. dollars) and JP Morgan Private Bank (0.7 trillion U.S. dollars).
Fintech companies in the robo-advisory segment only had 126 billion U.S. dollars in assets under management in 2016, but were forecasted to grow to over 1 trillion U.S. dollars in 2021. Market sizes on a regional and country level, business models and company profiles of the Fintech Private Wealth Management companies such as SoFi, Betterment, and Wealthfront.
Investment preferences among affluent investors
The asset classes most popular among the high net worth individuals in North America in 2016 were equities, cash and cash equivalents and fixed income.