Post by jeffolie on Oct 2, 2007 15:18:53 GMT -6
.7% of world-9.6 million Millionaire families
Millionaire families grew by 14 per cent in '06: survey
Tue Oct 2, 2007 4:41pm EDT
NEW YORK (Reuters) - The numbers of millionaire households globally grew by 14 percent in 2006 from 2005 and now control a third of the estimated $100 trillion in wealth, a new study by Boston Consulting Group released on Tuesday found.
These 9.6 million families, comprising 0.7 percent of world's households, now control some $33.2 trillion, the BCG study found. About half are located in the United States and Canada, a quarter in Europe and a fifth in the Asia-Pacific region, it said.
The study is the latest to quantify a continued widening of the global gap between rich and poor, with the rich getting richer by saving and investing more.
The study, seventh in a series, found that assets held by non-wealthy households - defined as those with less than $100,000 in financial assets - declined slightly from 2001 to 2006. But assets held by households with more than $100,000 climbed from $51.4 trillion to $84.5 trillion during the same period.
"Assets under management was further concentrated among the wealthiest households, with the richest 0.1 percent - those with more than $5 million in assets under management - owning 17.5 percent of global wealth," the survey said.
The study attributed wealth gains mainly to two factors: increased savings and market gains for stocks, bonds and cash, reflecting wealth managers' long-held view that market investments are a key factor in building wealth.
"Stock markets grew, on average, by 20 percent worldwide, but their impact was most acute in North America, which had the highest rate of equity holdings as a percentage of assets under management," the study said.
The study found that overall global wealth grew 7.5 percent in 2006 to nearly $100 trillion, the fifth consecutive year of expanding wealth. The survey polled 111 brokerages, banks and private family investment offices that oversaw nearly $10 trillion in client assets and liabilities.
CHALLENGES FOR ASSET MANAGERS
The survey comes as major wealth managers including UBS AG, Merrill Lynch, State Street Corp., Goldman Sachs and others look to grab a bigger share of managing the world's wealth, both with organic growth and buying asset managers.
While the 111 wealth managers polled in the survey have a relatively high median pretax profit margin of 34.7 percent, the business faces challenges largely related to a commoditization of its services.
"Intensified competition has led to a range of issues including margin pressure, eroding prices, product commoditization and a tightening market for talent," it said.
The market is forcing wealth managers to keep ahead by building more fee-paying assets and keep costs low, it said.
www.reuters.com/article/businessNews/idUSN0242013020071002?feedType=RSS&feedName=businessNews&rpc=23&sp=true
The middle class grew by as much as the entire net worth of the ultra rich. So while the rich got richer, the middle class grew and the poor lessened.
Millionaire families grew by 14 per cent in '06: survey
Tue Oct 2, 2007 4:41pm EDT
NEW YORK (Reuters) - The numbers of millionaire households globally grew by 14 percent in 2006 from 2005 and now control a third of the estimated $100 trillion in wealth, a new study by Boston Consulting Group released on Tuesday found.
These 9.6 million families, comprising 0.7 percent of world's households, now control some $33.2 trillion, the BCG study found. About half are located in the United States and Canada, a quarter in Europe and a fifth in the Asia-Pacific region, it said.
The study is the latest to quantify a continued widening of the global gap between rich and poor, with the rich getting richer by saving and investing more.
The study, seventh in a series, found that assets held by non-wealthy households - defined as those with less than $100,000 in financial assets - declined slightly from 2001 to 2006. But assets held by households with more than $100,000 climbed from $51.4 trillion to $84.5 trillion during the same period.
"Assets under management was further concentrated among the wealthiest households, with the richest 0.1 percent - those with more than $5 million in assets under management - owning 17.5 percent of global wealth," the survey said.
The study attributed wealth gains mainly to two factors: increased savings and market gains for stocks, bonds and cash, reflecting wealth managers' long-held view that market investments are a key factor in building wealth.
"Stock markets grew, on average, by 20 percent worldwide, but their impact was most acute in North America, which had the highest rate of equity holdings as a percentage of assets under management," the study said.
The study found that overall global wealth grew 7.5 percent in 2006 to nearly $100 trillion, the fifth consecutive year of expanding wealth. The survey polled 111 brokerages, banks and private family investment offices that oversaw nearly $10 trillion in client assets and liabilities.
CHALLENGES FOR ASSET MANAGERS
The survey comes as major wealth managers including UBS AG, Merrill Lynch, State Street Corp., Goldman Sachs and others look to grab a bigger share of managing the world's wealth, both with organic growth and buying asset managers.
While the 111 wealth managers polled in the survey have a relatively high median pretax profit margin of 34.7 percent, the business faces challenges largely related to a commoditization of its services.
"Intensified competition has led to a range of issues including margin pressure, eroding prices, product commoditization and a tightening market for talent," it said.
The market is forcing wealth managers to keep ahead by building more fee-paying assets and keep costs low, it said.
www.reuters.com/article/businessNews/idUSN0242013020071002?feedType=RSS&feedName=businessNews&rpc=23&sp=true
The middle class grew by as much as the entire net worth of the ultra rich. So while the rich got richer, the middle class grew and the poor lessened.