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World's rich grow richer as bull markets roar on: study

Reuters  |  ZURICH 

(Reuters) - The pool of money held by the world's wealthiest people grew by 12 percent last year to nearly $202 trillion (£152.1 trillion) as bull markets and the dollar's weakening against most major currencies boosted global fortunes, an international advisory firm's study released on Thursday said.

Adjusted for exchange rate swings, wealth rose 7 percent, the (BCG) survey found.

While residents of held the greatest share of personal wealth at almost 43 percent, the fastest growth came in Asia, and the Most super-rich individuals lived in the United States, and

The business of providing advice to those super-rich is still strong in

However, such as Morgan Stanley, Lynch Wealth Management, UBS AG Group's Wealth Management in the and lost market share as less wealthy clients went elsewhere.

Legacy brokerages' market share fell to 37 percent in 2016 from 41 percent in 2012, while the portion held by direct channel firms such as and grew modestly to 21 percent from 20 percent.

More than 35 million Americans now have between $250,000 and $1 million, a wealth bracket the industry calls mass affluent. BCG said that many mass affluent savers hold a lot of their money in a retirement account, like a 401(k), which oftentimes are managed by a company like Schwab or

"(They have) a natural structural advantage" over legacy brokerages, Beardsley said.

BCG's annual study also showed remained the world's biggest centre for managing offshore wealth with $2.3 trillion, followed by Hong Kong with $1.1 trillion and with $0.9 trillion.

The two Asian centres have grown at yearly rates of 11 and 10 percent respectively over the past five years, more than three times the 3 percent rate has posted.

It is in the fast-growing markets that large wealth managers including Swiss banks UBS and are casting wider nets.

The Swiss secrecy from which they long profited has been weakened, meaning rich people from around the world can no longer easily use the Alpine Republic to stash wealth away from tax authorities at home.

The changes have put in fierce competition with faster-growing centres like Hong Kong and

(Reporting by and Elizabeth Dilts, Writing by Michael Shields; Editing by and Grant McCool)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 15 2018. 08:33 IST