Frothy tech stock returns helped mint 600,000 millionaires in 2024
The US alone added 562,000 millionaires as enthusiasm for AI and interest rate cuts drove huge advances in the US stock market. PHOTO: AFP
NEW YORK – Global wealth surged last year, with the number of millionaires across the world hitting a record 23.4 million.
The annual World Wealth Report from Capgemini, an IT services and consulting group, shows the number of people with at least US$1 million (S$1.3 million) in investable assets grew 2.6 per cent in 2024, driven in large part by gains in American stock portfolios.
The United States alone added 562,000 millionaires, a 7.6 per cent increase from the year prior, as enthusiasm for artificial intelligence and interest rate cuts drove huge advances in the US stock market. The gains were biggest among ultra-high net worth individuals – defined as having at least US$30 million in investable assets – with their wealth jumping nearly 12 per cent in the US.
Elsewhere, the Asia Pacific region saw a 2.7 per cent gain in millionaires, attributed to a strong equities market and easing monetary policy, and the Middle East saw a 2.1 per cent decline due to lower oil prices.
In Europe, market volatility and sluggish growth led to a consolidation of wealth at the very highest levels, with the number of individuals with US$30 million or more growing 3.5 per cent while the overall population of millionaires fell 2.1 per cent.
Across all high-net worth portfolios, Capgemini said cash holdings remained steady, as did a 15 per cent allocation for alternative assets like private equity and cryptocurrency.
Kris Bitterly, head of Citi Global Wealth at Work, said more investment exposure to alternatives could be key to unlocking future growth opportunities, especially with high-net worth individuals aiming to skirt lags in their local markets.
'Many investors, presently, when you look at their asset allocations, they're significantly underweight on alternatives,' Ms Bitterly said. Alternatives present 'unique opportunities that are not available in public markets that you want to express in your portfolio.'
Capgemini's survey, administered in January 2025, included input from dozens of wealth managers and more than 6,000 high-net worth individuals across 71 countries. BLOOMBERG
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