Status of Wealth (and the Wealthy) in the world

Let me dazzle you a bit with some stats on the Rich and Famous (largely) across the world. The below comes largely from Cap Gemini’s World Wealth Report of 2012, with stats as of end 2011. High net worth individuals (HNWIs) here are defined as families with >1mn$ of net-worth excluding primary residence.

• The world’s population of high net worth individuals (HNWIs) was little changed in size at 11.0 million in 2011, but HNWIs’ aggregate investable wealth as measured by asset values slid 1.7% to US$42 trillion.

• Of the 11mn HNWIs in the world, there are 3mn HNWI families in the USA, 1.8mn in Japan, 1.8 mn in Germany-UK-France, 560k in China. Total of 8.5mn HNWIs in top 13 countries, India being 13th with 125k HNWIs

• Indian HNWIs dropped from 150k to 125k, making India ranked No. 13 across the world

• The number of Asia-Pacific HNWIs hit 3.37 million in 2011, compared to 3.35 million in North America, and 3.17 million in Europe; wealth of 10.5tn $, 11tn and 10tn resp

• 90% of global HNWIs are in the 1-5mn $ segment

• Investable wealth had gained 9.7% and 18.9% respectively in 2010 and 2009; it fell by 1.7% in 2011 to US$42 trillion.

• Ultra-HNWIs (>30mn$) dropped from 102k to 100k families

• Global equity market capitalization ended the year at US$43.1 trillion, down 18.7% from US$53.0 trillion a year earlier, and well below the high of US$61.5 trillion seen in 2007 before the “new normal”. Equities were the major cause for the fall in global wealth of HNWIs.

Now, the macro-picture. With 7bn population in the world, am guessing there would be about 2bn families. That makes the above 11mn HNWIs about 0.5% of the total families. These 0.5% families control about 80% of the global wealth. No 20-80 rule here, guys…actually, this is the 1% that Occupy Wall Street guys are talking about…but that’s another story !!

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