September 15, 2009 - 7:30am
According to a recent report by Boston Consulting Group global financial crisis resulted in a substantial decrease in assets under management in nearly a decade. The study showed that wealth dropped 11.7% to $92.4 trillion.
The report reveals that it will take about six years to return to $108.5 trillion, a 2007 level of wealth.
According to the data in the report North American region, and USA in particular, was hit hardest with 21.8% decline in wealth firms' assets under management to $29.3 trillion, primarily because of the beating U.S. equities investments took in 2008.
Besides, off-shore wealth centers, like Switzerland and the Caribbean, also didn’t evade the adverse implications of the worldwide recession. Here assets dropped to $6.7 trillion in 2008 from $7.3 trillion in 2007, an 8% decline.
Meantime, Europe reported a little higher $32.7 trillion of assets under management edging out North America for the wealthiest region, though the total wealth in region dropped 5.8%.
Only Latin America showed increase in assets under management with 3% posted as an increase from $2.4 trillion in 2007 to $2.5 trillion in 2008.
The crisis has also impacted heavily rich people across the globe with the number of millionaires reduced 17.8% to 9 million.
Europe and North America reported 22% decrease with the US having 3.9 million millionaires. Singapore had the highest density of millionaires at 8.5% of the population. Other countries included Switzerland, at 6.6%, Kuwait, at 5.1%, United Arab Emirates, at 4.5%, and the United States, at 3.5%.
The report reveals that it will take about six years to return to $108.5 trillion, a 2007 level of wealth.
According to the data in the report North American region, and USA in particular, was hit hardest with 21.8% decline in wealth firms' assets under management to $29.3 trillion, primarily because of the beating U.S. equities investments took in 2008.
Besides, off-shore wealth centers, like Switzerland and the Caribbean, also didn’t evade the adverse implications of the worldwide recession. Here assets dropped to $6.7 trillion in 2008 from $7.3 trillion in 2007, an 8% decline.
Meantime, Europe reported a little higher $32.7 trillion of assets under management edging out North America for the wealthiest region, though the total wealth in region dropped 5.8%.
Only Latin America showed increase in assets under management with 3% posted as an increase from $2.4 trillion in 2007 to $2.5 trillion in 2008.
The crisis has also impacted heavily rich people across the globe with the number of millionaires reduced 17.8% to 9 million.
Europe and North America reported 22% decrease with the US having 3.9 million millionaires. Singapore had the highest density of millionaires at 8.5% of the population. Other countries included Switzerland, at 6.6%, Kuwait, at 5.1%, United Arab Emirates, at 4.5%, and the United States, at 3.5%.