The Rich List
August 26th, 2010It may surprise some people that, despite perceptions to the contrary, wealth is no easy come, easy go phenomenon. Of course, there are exceptions, such as those who have heavily borrowed to create property empires. You will find a few have dropped off this year’s Rich List but others have joined. The country is not littered with abandoned mansions, repossessed yachts and collapsed businesses.
Private philanthropy – helped by permissive tax advantages – has largely continued. Tax changes in the budget to squeeze more from property owners will hurt corporates more than individuals. International wealth trends show the number of wealthy individuals continues to rise. The 2010 World Wealth Report says the number rose 17% to 10 million in 2009. Financial wealth increased 19% from 2008 levels to $US39 trillion after a drop of 24% in 2008. Among the super-rich, which includes many on the Rich List who do not have all their wealth tied up in a single business, the rebound was even greater at 21.5%.
The Wealth Report says the rich who had liquid assets adopted a standard strategy in a recession by favouring predictable returns and cashflow. They put more into bonds and into emerging markets in search of higher returns and geographic diversification. Equity holdings rose while cash holdings declined slightly. New Zealand was fortunate because it is economically integrated into the Asia Pacific region. The assets of this region’s wealthy surged 31% to $US9.7 trillion, more than erasing 2008 losses and surpassing the $US9.5 trillion in wealth held in Europe. This is a remarkable shift and will be a continuing source of further wealth as New Zealand businesses and investors gain a bigger share of the action.
Found and copied verbatim from New Zealand National Business Review Rich List 2010 Editorial.
August 30th, 2010 at 2:13 pm
What a fercokt world where we need the word “super rich.” How is that a thing, capitalism? You have problems, capitalism. Talk to me when you have your shit sorted out.
August 31st, 2010 at 5:34 pm
agreed