More people became billionaires in Asia last year than in any other region in the world, according to the latest Billionaire Census. The 2015-2016 survey by Wealth-X, released on Aug 8, shows Asia leading all regions in the growth of both the billionaire population at 15.2% and wealth at 19.6%, compared with 2014 figures.
This region accounted for “57% of all net billionaire additions and 70% of all new billionaire wealth in 2015. China and Asean countries led the increase”.
Asia-Pacific is poised to overtake the Americas, says the survey.
“With 678 billionaires, Asia-Pacific produced four times more billionaires than the Americas during 2015 and thus leads all regional groups in terms of growth rate of billionaire population and wealth, at 14.1% and 16.5% respectively.
“Comparatively, the Americas surpassed EMEA in total billionaire wealth, representing US$3 trillion, due to EMEA’s wealth declining by 0.8% year on year.”
Europe, the Middle East and Africa (EMEA) retained its position as the regional group with the most billionaires (1,013), while the Americas held on to second place with 782 billionaires.
Across the globe, there were a record 2,473 billionaires in 2015, with a combined wealth of US$7.7 trillion. These figures illustrate a 6.4% and 5.4% increase since 2014, respectively. This translates into one billionaire for every 2.95 million people.
According to the global wealth information provider, billionaires controlled 3.9% of the world’s total household wealth in 2015, slightly lower than the 2014 percentage. When compared with equity market capitalisation, this figure would trail only the New York Stock Exchange (US$17 trillion). If compared with gross domestic product, it would only come third, after the US (US$17.9 trillion) and China (US$11 trillion).
Intergenerational wealth transfers from baby boomers to their heirs continue to have a bearing on the world’s billionaire population. The survey showed billionaires with partially inherited wealth continue to be the fastest growing segment of this population, an increase of 29.9% year on year. The growth is responsible for nearly two-thirds of total billionaire additions.
The common key to growing their wealth lies in entrepreneurialism. In most cases, the survey said, achieving billionaire status requires more than just inheritance. A large number of billionaires (87%), made the bulk of their fortunes themselves, an increase from 81% in 2014.
Men dominate the new entrants to the billionaire population. There were 17.5 times more men than women in net billionaire additions, making up 140 of the total of 148 in 2015. In total, the survey says there are now 8.4 male billionaires for every female billionaire. This is an increase from a ratio of 8.1:1 in 2014.
But it is not just the numbers. Total wealth held by male billionaires also increased in 2015, making up 88.6% of total wealth, an increase from 87.2% in 2014.
While the female billionaire population and wealth decreased, they have shown themselves to become increasingly entrepreneurial. According to the survey, the number of female billionaires who inherited their wealth fell significantly in 2015, with 56% of female billionaires inheriting their wealth compared with 65.4% in 2014.
“Female billionaires are still more likely to inherit their wealth than males, however, they are increasingly using this inheritance as seed capital to pursue their own endeavours. Some 27.5% of female billionaires have partially inherited their wealth compared with 17.5% in 2014. Though the increase is encouraging, the chasm separating the male and female entrepreneurial participation rates remains large,” says the survey.
The 2015-2016 Billionaire Census provides detailed analysis of the billionaire profile with a focus on geography, lifestyle, social networks, philanthropic behaviours, motivations and legacy. Wealth-X defines billionaires as having a net worth of US$1 billion or more.
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