Ih has become rather fashionable to speak about the rise of China in particular and Asia in general as an economic powerhouse. The latest such indicator about the passing of the baton, if you will can be seen in a recent report by Thompson Reuters about the geographical distribution of the high net individuals, the most highly sought after group of consumers in the world.
Asia's Wealthy Surpass North Americans for First Time
WEALTHY,
RICH, BILLIONAIRE, MILLIONAIRE, ASIA, GLOBAL, STUDY, POPULATION, STOCK
MARKET, VALUATIONS, NET WORTH, ULTRA HIGH NET WORTH, UHNW, ASSETS, NORTH
AMERICA, CANADA, US
Reuters
| 19 Sep 2012 | 05:34 AM ET
The
number of rich Asians surpassed North Americans for the first time last
year, but their fortunes shrank slightly and still trailed total wealth
on the other side of the Pacific, Capgemini and RBC Wealth Management
said on Wednesday.
The Asia-Pacific region
is now home to 3.37 million high net worth individuals (HNWI) — people
with $1 million or more to invest — compared with 3.35 million in North
America and 3.17 million in Europe, the firms said in a report.
Asia's wealthy — 54 percent of whom are concentrated in Japan, almost 17 percent in China and more than 5 percent in Australia - saw their total fortunes slip to $10.7 trillion last year from $10.8 trillion in 2010, and lag North America's $11.4 trillion.
The Asia-Pacific Wealth Report, compiled by Capgemini and RBC Wealth Management, is closely watched by wealth managers, high-end property agents, luxury goods retailers and other businesses for signs of how and where the ultra-wealthy are investing and how their fortunes are faring.
Many of Asia's rich made their millions and billions through family businesses and property.
"We don't see massive shifting in the allocations of portfolio management," Claire Sauvanaud, vice president of Capgemini Financial Services, told a news
conference.
Wealth fell most significantly last year in Hong Kong (20.1 percent) and India (18 percent) and grew most strongly in Thailand (9.3 percent) and Indonesia (5.3 percent). Growth was more modest in Japan (2.3 percent) and in China (1.8 percent).
Weakness in Europe and other global trends played their part in the slight fall in total Asian wealth, the report said, but the "region grappled with its own economic challenges, including inflation, slowing growth and capital outflows."
Asia's wealthy — 54 percent of whom are concentrated in Japan, almost 17 percent in China and more than 5 percent in Australia - saw their total fortunes slip to $10.7 trillion last year from $10.8 trillion in 2010, and lag North America's $11.4 trillion.
The Asia-Pacific Wealth Report, compiled by Capgemini and RBC Wealth Management, is closely watched by wealth managers, high-end property agents, luxury goods retailers and other businesses for signs of how and where the ultra-wealthy are investing and how their fortunes are faring.
Many of Asia's rich made their millions and billions through family businesses and property.
"We don't see massive shifting in the allocations of portfolio management," Claire Sauvanaud, vice president of Capgemini Financial Services, told a news
conference.
Wealth fell most significantly last year in Hong Kong (20.1 percent) and India (18 percent) and grew most strongly in Thailand (9.3 percent) and Indonesia (5.3 percent). Growth was more modest in Japan (2.3 percent) and in China (1.8 percent).
Weakness in Europe and other global trends played their part in the slight fall in total Asian wealth, the report said, but the "region grappled with its own economic challenges, including inflation, slowing growth and capital outflows."
"Nevertheless,
Asia-Pacific is expected to continue showing stronger growth than other
regions going forward, and its HNWI population and wealth are likely to
keep expanding," it said.
As part of that, Asia's rich are looking more to offshore wealth centres close to home, such as Singapore and Hong Kong, in search of wider access to products and services, tax advantages and financial confidentiality, the report said.
Challenges for the offshore wealth management industry include a scarcity of skilled talent, lower profitability, and the costs of compliance and restrictions on services due to higher regulatory scrutiny, it said.
Diversity of the backgrounds and expectations of rich clients means there is more demand for tailored products and a greater desire to play an active role in managing their portfolios, the report added.
As part of that, Asia's rich are looking more to offshore wealth centres close to home, such as Singapore and Hong Kong, in search of wider access to products and services, tax advantages and financial confidentiality, the report said.
Challenges for the offshore wealth management industry include a scarcity of skilled talent, lower profitability, and the costs of compliance and restrictions on services due to higher regulatory scrutiny, it said.
Diversity of the backgrounds and expectations of rich clients means there is more demand for tailored products and a greater desire to play an active role in managing their portfolios, the report added.
11 comments:
Aisa wealth has over come america wealth from the high education and more education time of there young students. even though ther isnt massive shift in there allocations there are many family businesses and properties that the past generations are leaving to there very well educated and responsible young adults. It even showen in studies that in certain countries (China and Japan) that there young students and citizens are more educated than americas and that a problem. America has to try harder in the education department and has to become less lazy in our school work or these numbers will gwt high for asia and start to shink for America, till the point where asia is over whelmingly more wealthy than america and the rest of the world
In my opinion this isn't the biggest issue in the world. This just shows how bad we are in terms of our economy. So what if we don't have the most amount of wealthiest people in the world? we should worry about ourselves before worrying about how we compare to everyone else. It says that most of these Asian people get rich from family businesses and property owning. Maybe this means that we should let the market fix itself without government interference?
I believe most of the problems that occur here in the united states, relative to asia, happen because of healthcare. How many 250 pound people in Asia do you see walking into a Mcdonald's or Burger King? We cannot really compare ourselves economically right now. Smoking is a problem in Asia, yet in the United States it is a much greater problem. Yet, with all the obesity and other problems surrounding the United States, we still have the highest life expectancy out of all the countries around. I do not know about anyone else but I'd rather be healthy for the rest of my life than rich and stuck up.
Im not suprised that Asia surpassed North America. The about of work and dedication to work that people in Asia have is much higher than that of North America. Lazzyness doesn't really exist there. The government is also completely opposite. When government involvement is higher than the voice of the people, thingss tend to run more efficient, as i've learned.
Asia surpassed North America for several reasons. One being which is that they are a lot harder workers for the most part. They aren't as lazy or content as most of the people in north america are. Even at an earlier age they are taught to be more efficient than their counterparts in north america. I think to a certain degree this isn't the biggest problem we are facing, it makes no difference if they have more wealthy people in their country we have bigger problems to correct.
And what do these Asian countries have that US does not or what are they doing different than US?
1- They have Universal socialized health care, which means while all their people have health care they spend a small fraction of what US businesses and Government spend on health care.
2- They have Universal Education for children 6-14, which means you can go up to your PhD without having to worry about racking up huge debt.
3- They do not spend Trillions of Dollars on a Military and unnecessary Wars and covering thier borders from illegal immigrants. The United States, does however do this. I'm not saying we waste all this money, but Asia doesn't have this issue as much.
I really do not see the point n trying to comparing wealth of countries. It is not a big deal if the US does not have the largest amount of wealthiest people in the world. It is no surprise though that Asia has more wealthy people than the US because face it in Asia people are not lazy and believe it ore not people in America are becoming very lazy, nobody wants to work hard anymore. Getting a higher eduaction in the US is hard because of the lack of money however n Asia there is Universal education meaning people can go up t their PHD. This makes it much easier for someone to become wealthy.
I really do not see the point n trying to comparing wealth of countries. It is not a big deal if the US does not have the largest amount of wealthiest people in the world. It is no surprise though that Asia has more wealthy people than the US because face it in Asia people are not lazy and believe it ore not people in America are becoming very lazy, nobody wants to work hard anymore. Getting a higher eduaction in the US is hard because of the lack of money however n Asia there is Universal education meaning people can go up t their PHD. This makes it much easier for someone to become wealthy.
I really do not see the point n trying to comparing wealth of countries. It is not a big deal if the US does not have the largest amount of wealthiest people in the world. It is no surprise though that Asia has more wealthy people than the US because face it in Asia people are not lazy and believe it ore not people in America are becoming very lazy, nobody wants to work hard anymore. Getting a higher eduaction in the US is hard because of the lack of money however n Asia there is Universal education meaning people can go up t their PHD. This makes it much easier for someone to become wealthy.
I really do not see the point n trying to comparing wealth of countries. It is not a big deal if the US does not have the largest amount of wealthiest people in the world. It is no surprise though that Asia has more wealthy people than the US because face it in Asia people are not lazy and believe it ore not people in America are becoming very lazy, nobody wants to work hard anymore. Getting a higher eduaction in the US is hard because of the lack of money however n Asia there is Universal education meaning people can go up t their PHD. This makes it much easier for someone to become wealthy.
Post a Comment