Asia-Pacific tycoons wealthier than ever

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This was published 12 years ago

Asia-Pacific tycoons wealthier than ever

Millionaires in the Asia-Pacific region overtook Europe in terms of population and wealth for the first time in 2010, as tycoons in China and India benefited from strong economic growth.

The wealth of 3.3 million high-net worth individuals in Asia Pacific climbed 12.1 per cent last year to $US10.8 trillion ($10.2 trillion), exceeding the $US10.2 trillion accumulated by 3.1 million people in Europe, according to the 2011 World Wealth Report from Capgemini SA and Bank of America.

A Mercedes Benz car on display at the Moscow Millionaire Fair in Russia.

A Mercedes Benz car on display at the Moscow Millionaire Fair in Russia.Credit: Bloomberg

Global wealth held by people with at least $US1 million of investable assets climbed 9.7 per cent to $US42.7 trillion.

“Regionally, Asia-Pacific was the real star of the growth story,” John Thiel, head of US wealth management for Bank of America's Merrill Lynch Global Wealth Management unit, said at a press briefing in New York. Stock-market returns and increases in the value of real estate in the region were major contributors, he said.

Zong Qinghou, chairma of Hangzhou Wahaha Group, is China's richest man.

Zong Qinghou, chairma of Hangzhou Wahaha Group, is China's richest man.Credit: Louie Douvis

Markets rebounded following the financial crisis, with global equity market capitalisation rising 18 per cent in 2010, the report said. The MSCI AC World Index, which tracks global stocks in developed and emerging markets, returned 13 per cent in 2010 and the MSCI Asia Pacific Index returned 17 per cent, according to data compiled by Bloomberg.

Millionaire fragmentation

Africa showed the biggest increase in millionaires by region with growth of 11.1 per cent, while India entered the top 12 country rankings for the first time, with 153,000. The number of millionaires in China grew by 12 per cent to 534,500. China ranked fourth in the number of millionaires, trailing the US, Japan and Germany.

About 53 per cent of the world's millionaires, or individuals with at least $US1 million in investable assets excluding primary residences and collectibles, are found in the US, Japan and Germany, the report showed.

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“While over half of the global high-net-worth individuals still resides in the top three countries, the concentration is fragmenting,” said Herbert Hensle, vice president and head of Capgemini's Swiss office.

The number of millionaires in Switzerland increased by 9.7 per cent last year, supported by the Alpine nation's strong economy and real-estate market, the report said.

Swiss Franc

“Even though the Swiss franc went higher, the exports of companies here have been very successful,” Peter Schmid, chief executive officer and general manager of Merrill Lynch's Swiss private bank, said in an interview in Zurich. The Swiss currency advanced 11 per cent against the dollar in 2010, according to Bloomberg data.

Global ranks of ultra-high-net-worth individuals, defined as those with $US30 million or greater of investable assets, increased at a faster pace than millionaires, rising 10 per cent.

Growth in the number of global millionaires slowed from 17 per cent in 2009, when wealth rebounded following the credit crisis that sent stock indexes to their worst annual losses since the Great Depression and slashed the value of real-estate holdings, hedge-fund and private-equity investments.

The investment mentality of millionaires has changed as they search for increasing returns, the report said. Wealthy individuals are allocating a higher proportion of money to riskier assets, including commodities, and also made profits from emerging-market stocks and bonds.

Singapore Millionaires

On May 31, the Boston Consulting Group said the number of millionaire households increased 12 per cent to about 12.5 million. Singapore's millionaire population expanded the fastest, rising by almost 33 per cent, while the US had the most $US1 million-plus households, with 5.2 million, followed by Japan and China, the study found. Singapore also had the highest proportion of millionaire households at 15.5 per cent, followed by Switzerland and Qatar.

Singapore will displace Switzerland as the world's top wealth-management centre by 2013, according to a PricewaterhouseCoopers LLP survey of global wealth-management firms released earlier this week. The firms said they expect to increase their client base among international entrepreneurs and to decrease their base among clients with less than $US1 million in assets over the next two years, the study said.

Women Gain

Women and young millionaires account for an increasing portion of the world's rich, Merrill's World Wealth Report found. About 27 per cent of global millionaires were women in 2010, compared with 24 per cent in 2008. About 17 per cent of millionaires were age 45 or younger compared with 13 per cent in 2008, the report said.

Paris-based Capgemini and Merrill Lynch, a subsidiary of Charlotte, North Carolina-based Bank of America, compiled data from 71 countries representing 98 per cent of the world's gross national income.

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