For the first time, Asia-Pacific (excluding Japan) has overtaken Europe to become the world's second-wealthiest region with $47 trillion, according to a new report by The Boston Consulting Group (BCG) - 'Global Wealth 2015: Winning the Growth Game'.
With a projected $57 trillion in 2016, Asia-Pacific is expected to surpass North America (a projected $56 trillion) as the world's wealthiest region, and is further projected to hold one-third of global wealth in 2019. Over the next five years, total private wealth globally is projected to post a compound annual growth rate of 6 per cent, to reach an estimated $222 trillion in 2019.
According to the report, global private financial wealth grew by nearly 12 per cent in 2014 to reach a total of $164 trillion. Almost three-quarters i.e. 73 per cent or $13 trillion of private wealth growth was generated by the market performance of existing assets, with the balance 27 per cent (or $5 trillion) generated by newly created wealth. North America, with $51 trillion in private wealth, remained the world's wealthiest region in 2014.
The report says that the total number of millionaire households, who hold more than $1 million in private wealth globally reached $17 million in 2014, up strongly from $15 million in 2013. The increase was driven primarily by the solid market performance of existing assets, both in developed and emerging markets.
Millionaire households held 41 per cent of global private wealth in 2014, up from 40 per cent a year earlier, and are projected to hold 46 per cent in 2019.
The US still had the highest number of millionaire households in 2014 (7 million), followed by China (4 million). Private wealth held by ultra-high-net-worth households i.e. those with above $100 million, grew by a strong 11 per cent in 2014.
According to BCG's bench marking of more than 200 wealth managers, who were rated on more than 1,000 data points, the most successful players over the past three years possess five key characteristics. These attributes include - specific value propositions and coverage models, rigorous price realisation in target client segments, a differentiated advisory offering, a focus on front-office excellence, and the ability to measure and manage profitability.