dlk001
Executive Member
More millionaires, more misery for the poor!
6400 new members joined the ranks of the elite in the past year, writes Marcia Klein.
The number of South Africans with over a million US dollars increased by almost 14% — or more than 6400 people — to 55000 last year.
The 2008 Capgemini Merrill Lynch World Wealth Report shows that the growth in the number of South African dollar millionaires far outstripped the global average increase of 6%.
Those South Africans in the prestigious club each had financial assets (only investible assets and excluding property, collectibles and belongings) of R7.9-m illion or more at the current exchange rate.
The Capgemini Merrill Lynch report showed that the rich in emerging markets grew their wealth far faster than those in developed economies and, for the first time, dollar millionaires totalled more than 10 million individuals worldwide.
The report showed a 10% increase in the number of millionaires in Africa — so South Africa also beat the continental average.
However, the biggest increase in dollar millionaires was in the Middle East, where the number was up by 15.6%. In Europe and North America, there was a minimal increase in millionaires — or in their wealth.
Among the ultra-rich, who the researchers said were worth more than 30-million, the biggest increase was in Latin America, followed by Africa.
According to the report:
There are just over 10million people in the world who have financial assets in excess of 1-million. This was 6% higher than the previous year.
ý The combined wealth of the 10 million people who had financial assets in excess of 1-million, was 40.7- trillion, 9.4% up on the previous year. The increase in the wealth of the rich was well ahead of the 5.1% growth in the global economy.
ý The ultra-wealthy grew in both number and wealth — 8.8% more in number and 14.5% in accumulated wealth.
ý The growth in emerging-market wealth was strongest in the Middle East and Latin America, with India, China and Brazil showing the biggest increase in numbers of wealthy people.
ý The world’s millionaires are expected to have a combined wealth of 59.1-trillion by 2012, their wealth growing by about 7.7% a year.
ý The biggest increase in the number of millionaires in 2007 was in India, a startling 22.7%, with China second at 20.3%.
ý The world’s millionaires “assumed a more defensive approach” in a volatile economic climate, opting for safer investment options.
Andrew McGregor, managing director of Who Owns Whom, which compiles the Sunday Times Rich List, said the Capgemini report attributed the disproportionate increase in the number of wealthy in emerging markets to growth in the gross domestic product, “but a further South African nuance is the regulatory impact of state black economic empowerment objectives.
“In the late ’90s, Who Owns Whom identified only eight significant empowerment groups — including Kagiso, Pamodzi, Royal Ba***eng, Shanduka and Thebe — but this year there are 98.”
McGregor said people like mining magnate Patrice Motsepe, who was third on last year’s Sunday Times Rich List with R13.5-billion; the CEO of cellphone company MTN Phuthuma Nhleko (R1.6-billion, ranked 16) and businessman Tokyo Sexwale (R1.3-billion, ranked 20) were probably included in the Capgemini calculation.
He added that an interesting aspect of the report was the burgeoning wealth in the Asia Pacific region, given the recent classification of Chinese South Africans as black for the purposes of empowerment.
“The Who Owns Whom TakeOver Talk database recorded 421 ownership and investment transactions in 2007, of which 59 were empowerment transactions valued at a total of R101-billion. It will be interesting to see what Chinese financial backing does to that trend,” he said.
The report said that trends during 2007 included strong economic growth in the first half and “heightened uncertainty and instability” in the second.
In the second half there was “a distinct and growing divergence between mature and emerging economies — with the advantage going to emerging nations”.
Millionaires hold a significant portion of their wealth on stock exchanges, but the wealthy have become more cautious, moving to safer investments. Deposits and income made up 44% of their assets, well up on the previous year. Internationally, the wealthy continued to decrease their holdings in North America. They increased investments in their own markets, preferring to stick with what was familiar to them.
The wealthy are also turning to green investments, supporting research and development into alternative fuels, renewable energy and other advanced technologies, the research showed.
About 12% of millionaires and 14% of the ultra-rich around the world allocated part of their investment portfolio to green technologies and alternative energy.
They also spent a significant portion on “investments of passion”, including art collections, luxury cars, yachts, sports teams, memorabilia, wine and luxury travel. And the rich remained largely unaffected by the international financial turmoil. Those from emerging markets “demonstrated significant influence in the global luxury marketplace”.
For the first time, orders for Gulfstream jets from overseas buyers surpassed those of North Americans. Russians, meanwhile, became important clients for yacht-builders, while the wealthy in the Middle East and Asia were the biggest buyers of jewellery, gems and watches.
The report quoted David Norman, co-chair of Sotheby’s Impressionist and Modern Art Department, as saying: “We used to think in terms of hedge funds when targeting new customers. Now, we look for barrels of oil.”
According to the report, most of the rich use wealth management companies, but they look for advisors “who understand both the global financial markets and nuances of the local culture”.
6400 new members joined the ranks of the elite in the past year, writes Marcia Klein.
The number of South Africans with over a million US dollars increased by almost 14% — or more than 6400 people — to 55000 last year.
The 2008 Capgemini Merrill Lynch World Wealth Report shows that the growth in the number of South African dollar millionaires far outstripped the global average increase of 6%.
Those South Africans in the prestigious club each had financial assets (only investible assets and excluding property, collectibles and belongings) of R7.9-m illion or more at the current exchange rate.
The Capgemini Merrill Lynch report showed that the rich in emerging markets grew their wealth far faster than those in developed economies and, for the first time, dollar millionaires totalled more than 10 million individuals worldwide.
The report showed a 10% increase in the number of millionaires in Africa — so South Africa also beat the continental average.
However, the biggest increase in dollar millionaires was in the Middle East, where the number was up by 15.6%. In Europe and North America, there was a minimal increase in millionaires — or in their wealth.
Among the ultra-rich, who the researchers said were worth more than 30-million, the biggest increase was in Latin America, followed by Africa.
According to the report:
There are just over 10million people in the world who have financial assets in excess of 1-million. This was 6% higher than the previous year.
ý The combined wealth of the 10 million people who had financial assets in excess of 1-million, was 40.7- trillion, 9.4% up on the previous year. The increase in the wealth of the rich was well ahead of the 5.1% growth in the global economy.
ý The ultra-wealthy grew in both number and wealth — 8.8% more in number and 14.5% in accumulated wealth.
ý The growth in emerging-market wealth was strongest in the Middle East and Latin America, with India, China and Brazil showing the biggest increase in numbers of wealthy people.
ý The world’s millionaires are expected to have a combined wealth of 59.1-trillion by 2012, their wealth growing by about 7.7% a year.
ý The biggest increase in the number of millionaires in 2007 was in India, a startling 22.7%, with China second at 20.3%.
ý The world’s millionaires “assumed a more defensive approach” in a volatile economic climate, opting for safer investment options.
Andrew McGregor, managing director of Who Owns Whom, which compiles the Sunday Times Rich List, said the Capgemini report attributed the disproportionate increase in the number of wealthy in emerging markets to growth in the gross domestic product, “but a further South African nuance is the regulatory impact of state black economic empowerment objectives.
“In the late ’90s, Who Owns Whom identified only eight significant empowerment groups — including Kagiso, Pamodzi, Royal Ba***eng, Shanduka and Thebe — but this year there are 98.”
McGregor said people like mining magnate Patrice Motsepe, who was third on last year’s Sunday Times Rich List with R13.5-billion; the CEO of cellphone company MTN Phuthuma Nhleko (R1.6-billion, ranked 16) and businessman Tokyo Sexwale (R1.3-billion, ranked 20) were probably included in the Capgemini calculation.
He added that an interesting aspect of the report was the burgeoning wealth in the Asia Pacific region, given the recent classification of Chinese South Africans as black for the purposes of empowerment.
“The Who Owns Whom TakeOver Talk database recorded 421 ownership and investment transactions in 2007, of which 59 were empowerment transactions valued at a total of R101-billion. It will be interesting to see what Chinese financial backing does to that trend,” he said.
The report said that trends during 2007 included strong economic growth in the first half and “heightened uncertainty and instability” in the second.
In the second half there was “a distinct and growing divergence between mature and emerging economies — with the advantage going to emerging nations”.
Millionaires hold a significant portion of their wealth on stock exchanges, but the wealthy have become more cautious, moving to safer investments. Deposits and income made up 44% of their assets, well up on the previous year. Internationally, the wealthy continued to decrease their holdings in North America. They increased investments in their own markets, preferring to stick with what was familiar to them.
The wealthy are also turning to green investments, supporting research and development into alternative fuels, renewable energy and other advanced technologies, the research showed.
About 12% of millionaires and 14% of the ultra-rich around the world allocated part of their investment portfolio to green technologies and alternative energy.
They also spent a significant portion on “investments of passion”, including art collections, luxury cars, yachts, sports teams, memorabilia, wine and luxury travel. And the rich remained largely unaffected by the international financial turmoil. Those from emerging markets “demonstrated significant influence in the global luxury marketplace”.
For the first time, orders for Gulfstream jets from overseas buyers surpassed those of North Americans. Russians, meanwhile, became important clients for yacht-builders, while the wealthy in the Middle East and Asia were the biggest buyers of jewellery, gems and watches.
The report quoted David Norman, co-chair of Sotheby’s Impressionist and Modern Art Department, as saying: “We used to think in terms of hedge funds when targeting new customers. Now, we look for barrels of oil.”
According to the report, most of the rich use wealth management companies, but they look for advisors “who understand both the global financial markets and nuances of the local culture”.
