this month's LTX focus we take a fresh look at Private Wealth
There is such a lot of money!
Despite a presumably
temporary dip in asset values as a result of shell-shocked markets post
sub-prime, HedgeFund.net said recently that total hedge fund assets stood
at USD2.848tn at the end of March 2008.
of USD53.02bn during Q1 couldn't overcome performance losses of USD93.18bn,
resulting in total hedge fund assets experiencing a quarterly decrease
for the first time on record. The 1.4% decrease in Q1 2008 compares to
an increase of 11.5% in the first quarter of 2007.
the 12th annual World Wealth Report, released in June 2008 by Merrill
Lynch and Capgemini, the wealth of the world's high-net-worth individuals
(HNWIs1) increased 9.4 percent to US $40.7 trillion in 2007. The number
of HNWIs in the world increased 6 percent in 2007 to 10.1 million, the
number of ultra-high-net-worth individuals (Ultra-HNWIs2) increased by
8.8 percent, and for the first time in the history of the Report, the
average assets held by HNWIs exceeded US $4 million.
A study by consulting
firm McKinsey and Company published in January, 2007, estimated that the
value of total global financial assets, including equities, government
and corporate debt securities, and bank deposits, expanded to $140 trillion
in the 12 months to the end of 2005, an increase of $7 trillion from a
year earlier. That is a growth rate of 5.3%.
There are no
consolidated figures for the growth in offshore assets - many jurisdictions
simply don't release figures. But for those that do, it is clear that
the rate of increase in banking, trust and fund assets dramatically outpaces
McKinsey's global figure.
In Jersey, for
instance, banking and investment fund assets were approaching GBP500 billion
at mid-year, up 40% in the last two years. In Guernsey, bank deposits
rose 14% last year to GBP92 billion, and fund assets rose 45% to GBP210
billion in the year to June, 2008.
In the Isle
of Man, fund assets surpassed the $50 billion mark as at June 30, 2007,
bringing the total of assets just in the UK's near-shore islands to more
than US$2 trillion, up 30% in total over the previous two years.
So where does
it all come from?
From rich people,
They are the
new kids on the block, the new rulers of our world. They are going to
get richer, and there are going to be more of them. There are already
more than 10 million dollar millionaires in the world, and that number
has seen more than 10% annual growth in the last few years.
It is estimated
that the assets of these 10 million rich people top US$50 trillion. And
beneath them are tens of millions of 'mass affluent' people with free,
investible assets in excess of US$100,000. And beneath them . . .
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Headlines from Tax-News.com
Announces Major Tax System Review
by Mary Swire, Tax-News.com, Hong Kong Thursday,
August 07, 2008
government of Prime Minster Kevin Rudd has welcomed Wednesday's
launch of the Australia’s Future Tax System (AFTS) Discussion
Paper by Treasury Secretary Dr Ken Henry - claimed to be the
most comprehensive review of the country's tax system in fifty
Government Welcomes IMF Decision On Offshore Financial Centres
by Amanda Banks, Tax-News.com, London Thursday,
August 07, 2008
BVI Government has welcomed the recent International Monetary
Fund (IMF) decision to halt its discrimination between onshore
and offshore financial centres. [
Funds Under Management Continue To Grow
by Jason Gorringe, Tax-News.com,
London Thursday, August 07, 2008
under management and administration in Guernsey grew by GBP3.4bn
(1.7%) over the quarter ended June 2008 to reach a total of
GBP207.2bn, the Guernsey Financial Services Commission has announced.
Urges Russian Authorities To Stop 'Terrifying' Business
by Tatiana Smolenskaya, Tax-News.com, Moscow Wednesday,
August 06, 2008
President Dmitry Medvedev has urged state institutions to stop
'terrifying' private business with unwarranted inspections and
unnecessary bureaucracy in what is being seen by some observers
as a sign of a split between the President and Prime Minister
Vladimir Putin. [
Stock Exchange Establishes Supervisory Authority
by Jason Gorringe, Tax-News.com, London Wednesday,
August 06, 2008
Somers, Chief Executive of the Irish Stock Exchange (ISE) has
announced that, following an organisational review, the ISE
is to establish a new supervisory entity, and has appointed
a senior figure from the UK Financial Services Authority (FSA),
Mike Duignan, to lead the change. [
Of Stamp Duty Land Tax Could Result In Treasury Shortfall Of
Up To GBP7bn
by Robin Pilgrim, LawAndTax-News.com, London Wednesday,
August 06, 2008
business and financial adviser Grant Thornton has stated this
week that reports of plans by the Treasury to suspend stamp
duty land tax (SDLT) for all home buyers could help kick-start
the ailing property market, but would result in the Treasury
having to fund a tax short fall of up to GBP7bn from other sources.