Asia and Global Wealth Growth Trends

2019-07-14T18:29:58+08:00By |Economy, Investing, News, Personal Finances, USA|

Global wealth is growing at a radical pace. Asia is at the forefront with the fastest growing number of millionaires. Don’t risk getting left behind! Gain insight into changing money trends.

 

Key Highlights

  • Millionaires (min US$1m) hold 50% of all global wealth.
  • Global millionaires est: 27.6m by 2023.
  • Growth of affluent segment ($250k-$1m): 76m with 5-year CAGR estimated at 6.2%.

 

2018

  • Worst performance in last 5 years (only +1.6%) for global wealth and worst equities performance (indices up to -20.0%) in last 10 years.
  • Decline caused by stock indices drop, high valuation levels, geopolitical risks, and challenges of returning to normal interest rate levels.
  • Direct equity and unit trusts: $45t (37.2% investable wealth); Bonds and debt securities: $7.2t (5.9%).

 

2019 & Next 5 Years Estimates

  • Fastest growing markets:
    1. Asia ex-Japan: 10.1%
    2. Africa: 9.8%
    3. Latin America: 9.1%
  • Fastest growing CAGR:
    1. Asia: 9.4%
    2. Latin America: 8.2%
    3. Africa & Middle-East: 7.7%
    4. Eastern Europe & Central Asia: 7.6%
    5. Oceania: 5.8%
  • Fastest growing cross-border global financial hubs by CAGR
    1. Hong Kong: 7.8%
    2. Singapore: 7.3%
    3. USA: 6.5%
    4. UAE: 6.4%

 

Challenges & Opportunities

  • Affluent market which is fastest growing with $18t assets are underserved.
  • Digital apps, FinTech players, and non-traditional players entering the market and battling for market share.
  • Backdrop of slowing global economy and cybersecurity risks.

 

Conclusion

  • More new millionaires than ever.
  • Opportunities with fastest growing affluent market segment.
  • Asia fastest growing market, CAGR, and financial hubs.

 

Data & Exhibit Sources: Global Wealth 2019 Report, BCG

 

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