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The Annual billionaires report reveals billionaires overall wealth is declining - Alldamoney

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The Annual billionaires report reveals billionaires overall wealth is declining



The Second Gilded Age has stalled after about 20 years of unprecedented wealth creation notable significant headwinds that eat into an asset transfer within families include commodity price deflation and an appreciating US dollar.

Markets covered in 2015 saw 160 billionaires dropped off and world's billionaire total wealth fall from USD 5.4 trillion to USD 5.1 trillion. In 2014 the average wealth fell from USD 4 billion to USD 3.7 billion in 2015.
The joint annual billionaires report presented by UBS Group AG and PwC Zurich shows that 2015 saw a pause as total billionaire wealth fell by USD 300 billion to USD 5.1 trillion.
The Average billionaire wealth while the US added only five net new billionaires in 20151. However, one billionaire every three days was produced in Asia, with China accounting for over half of the 113 additions alone.

The question is “Are billionaires feeling the pressure?” the result and findings of billionaire Wealth creation examined in 2015 by the UBS/PwC's states that over a period of just 20 years the world will witness the greatest transfer of wealth in human history, Roughly 460 billionaires will transfer USD 2.1 trillion, almost the size of India’s GDP, to their heirs.
This will be the first-ever handover of billionaire wealth for majority of Asia’s young economies, where over 85% of billionaires are first-generation.
According to Josef Stadler, Head Global Ultra High Net Worth “The findings of this report will help us stay ahead of the issues that matter to better advise our clients, which include over half the world’s billionaires and three out of every five billionaires in Asia. Even as China’s growth moderates, it is the bright spot for great wealth growth.
And Global Wealth Leader at PwC US Michael Spellacy said: “As the shockwaves from the regulatory upheaval in the EU continue to trigger global currency fluctuations, strategic planning become even more crucial for wealth preservation. Those who control assets face tough investment questions.
“Encouragingly, this year's report shows that Europe's billionaires were the most resilient with many of the 60 individuals from Europe inheriting their fortunes in 2015 for the first time.
“The US, which boasts the biggest collection of billionaires by region, set the trend. Total US billionaire wealth fell, but 'new money' fared better than older money falling by just 4%, from an average of USD 4.7bn per individual to USD 4.5bn.”
Crucial findings from the report are:
A USD 2.1 trillion inheritance
The past 20 years of exceptional wealth creation will soon be followed by the largest-ever wealth transfer. We estimate that less than 500 people (460 of the billionaires in the markets we cover) will hand over USD 2.1 trillion, a figure equivalent to India’s GDP, to their heirs in the next 20 years. For most of Asia’s young economies, where over 85% of billionaires are first generation, this will be the first-ever handover of billionaire wealth.
Old legacies’ lessons for new billionaires
Of all billionaire's’ fortune that fell below the billion dollar mark since 1995, 90% were not preserved beyond the first and second generations. At a time of economic misfortune and imminent wealth transfer, Europe’s old legacies are a model for new billionaires to avoid this fate. Germany and Switzerland, in particular, are the countries with the greatest share of ‘old’ wealth. Asia’s family- orientated billionaires may wish to adapt the European model of wealth preservation to their own needs.



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