The world’s wealthiest individuals are once again increasing their wealth, with Canadians among them

The wealth of high-net-worth individuals globally has reached almost $87 trillion, according to a recent report by consulting firm Capgemini. The report states that the wealth of these individuals grew by 4.7% last year, reaching $86.8 trillion, with their numbers increasing by 5.1% to nearly 23 million.

This growth marks a significant turnaround from the previous year when both wealth and numbers of high-net-worth individuals declined. The report categorizes these individuals into different groups, including “the 1%” who hold 34% of the world’s wealth, mid-tier millionaires with assets ranging from $5 to $30 million, and “millionaires next door” with fortunes between $1 million to $5 million.

North America saw the largest gains in wealth, with high-net-worth individuals in the region experiencing a 7.2% increase in wealth and a 7.1% growth in population. The United States played a significant role in this growth, driven by the performance of tech stocks and a strong economy.

In Canada, high-net-worth individuals saw a 3.8% increase in wealth and a 3.6% growth in population. The report attributes this growth to the performance of the TSX, which posted an 8% return in 2023, led by the tech sector.

The report also highlights a shift in the investment preferences of the wealthy, with a decrease in equity holdings and an increase in alternative investments such as commodities, currencies, private equity, hedge funds, and digital assets. Cryptocurrencies and real estate have also become popular investment choices among high-net-worth individuals.

Looking ahead, the report notes that aging generations are expected to transfer over $80 trillion in wealth over the next 20 years. This presents a new challenge for the wealthy and their advisors in terms of wealth management and inheritance planning.

Overall, the report paints a picture of a growing and evolving landscape of wealth among high-net-worth individuals globally, with changing investment preferences and a focus on long-term wealth preservation and growth.