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Largest concentration of wealth now rests with NWBs

The size of their assets and rate of growth will outstrip high net worth individuals and mass market segments

27 March 2015

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New wealth builders (NWB) have become the largest wealth segment in the world and they are also the fastest growing.

They currently hold $88trn in global assets and with an annual growth rate of 7.1 per cent, they will control $145trn by 2020, research from the Economist Intelligence Unit reveals.

NWBs are self-made individuals who have acquired their wealth roughly in the past decade, and have financial assets of $100,000 to $2m.

Erica Klein, editorial director of thought leadership at The Economist Group, commented: 'As self-made professionals and entrepreneurs, new wealth builders defy stereotypes. They make progress through hard work and philanthropy; they embody the positive aspects of globalization and travel regularly'.

By 2020 China will outstrip the US by two to one with $53trn in assets held by NWBs, versus $27trn held by those from the US.

The findings are representative of the almost unstoppable rise of Chinese entrepreneurs, however NWBs are a global phenomenon and not consigned exclusively to the US and China.

The research also reveals that although Latin American NWBs are behind in terms of their assets, their growth will outpace the whole of the Asia Pacific over the next decade, with growth rates of 11.1 per cent compared to 10.1 per cent.

Jonathan Larsen, global head of retail banking and head of consumer banking at Citi, Asia, who sponsored the research, commented on NWBs influence of the global economy.

'NWBs represent an increasingly important phenomenon in the world economy, driving growth in savings and economic activity more generally,' said Larsen.

'They are typically self-made, socially conscious and sharply focused on growth.'

NWBs are generally tech savvy, consider themselves to be global citizens and only three per cent of them would attribute their wealth to inheritance.


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Tax & Wealth structuring