A bare 0.004% of the world’s adult population controls nearly $30tn in assets, 13% of the world’s total wealth, according to a new study released Thursday.
This means if all the wealth of the world was worth $100, and the population of the world was 100,000, four people among the 100,000 owned $13. The rest of the worlds 99,996 people owned $87 all-together.
And perhaps unsurprisingly, the study by the Swiss bank UBS and luxury industry consultant Wealth-X said the concentration of money in the hands of the ultra-rich is growing. Average wealth of uber-rich individual has risen to $139.4m, up $1.8m since last year, a more than 77% increase.
The report said 211,275 people qualify as “ultra-high net worth” (UHNW) – those with assets above $30m. Of them, 2,325 have more than $1bn, reports AFP.
Their numbers grew 6% over the past year, but their wealth grew 7% as asset markets like stocks and property soared in many places around the world.
The fastest growth, indeed, came in the “demi-billionaire” group worth a half-billion to a billion dollars apiece, the study said.
“Even amid geopolitical conflicts, socio-economic strife, and volatile currency markets, the world’s equity markets displayed strong performances, thereby enabling UHNW individuals’ wealth to increase and their influence across industries and sectors to grow – from their importance in wealth management to their consumption of luxury goods,” it said.
“Such a large concentration of wealth in the hands of these few individuals means that they tend to have a large degree of influence, whether on global equity markets or specific industries.”
Of the nearly $30tn this elite group controls, just over one-third is in the hands of tycoons in North America, more than one-quarter in Europe, and almost a quarter in Asia.
Of them, 87% are men, of the average age of 59, and nearly one-quarter of them were in banking. Of them, 68% were “self-made” rich, 13% rich by inheritance, and the rest a combination of the two.
The average ultra-rich woman was 57 years old, and more likely to be involved in non-profit and social organisations (19%) than any other sector. Nearly half became wealthy through inheritance, while one-third made their fortunes themselves.
The average uber-rich spends $1m a year on luxury goods and services. Yet, the study points out, luxury items can be “part and parcel of their lifestyle and are not necessarily considered a ‘luxury.’”
“For example, UHNW individuals with private jets use their aircraft not only for leisure, but also for business purposes. On the other hand, while yachts, and particularly superyachts, are usually a non-necessity.
