Wealth no longer wilting, just tilting | FT Alphaville

Wealth no longer wilting, just tilting

Below are a few slides, charts and graphs that piqued our interest from the Boston Consulting Group’s latest annual wealth report — see the press release if you just want the main points.

1) Rich people: “We back!” Global wealth was up last year, and is projected to keep climbing:

The report notes the especially large contribution coming from Apac:

Private wealth grew at more than double the global average in Asia-Pacific (ex Japan) in 2010, propelled by the region’s vibrant economies. The two most prominent of those—China and India—had exceptional growth in AuM at 29.0 percent and 21.6 percent, respectively.

2) Thanks Ben! An intriguing graph showing the impact of fluctuating exchange rates against the dollar, though we think the first of two “major observations” at the bottom is a tad exaggerated. We’ll also quickly mention that the depreciation of the dollar against many of these currencies was a less-than-welcome development in most of the countries that “benefitted”.

3) Of monarchies and cuckoo clocks* If you were wondering about the answer to the trivia question — In what category are Saudi Arabia and Switzerland ranked first and second, respectively? — here it is:

4) Let’s not talk about Gini coefficients. A breakdown by region of household wealth and corresponding assets under management:

What you’re seeing on the right side (click to enlarge for a closer look) is that a much smaller share of households in emerging markets are categorised as “wealthy”, “emerging wealthy”, and “affluent”.

The vast majority, 95 per cent or more in all three emerging regions, are in the “nonwealthy” category.

That’s to be expected, of course, though it’s startling to see the extent to which the “established wealthy” in these countries own a disproportionate share of assets.

* Yes, we’re aware that Switzerland wasn’t responsible for the cuckoo clock, and that Orson Welles just made it up.

Related links:
China: it’s simply because people are rich now – FT Alphaville
What do Saudi Arabia and Switzerland have in common – FT Tilt