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Timetric: Number and wealth of U.S. HNWIs set to increase, as well as their investments in alternatives

Thursday, April 04, 2013
Opalesque Industry Update - Although the global economic crisis had a significant adverse effect on US High Net Worth Individuals (HNWIs), recovery is already evident and substantial growth is forecast to 2016.

The American Dream Disturbed

Whilst the US still accounted for 30% of the global total of HNWIs in 2011, the global financial crisis, compounded by weak property and global equity markets, saw the number of US HNWIs decrease by 3.1% since 2007 – from 5.3 million to 5.1 million. Furthermore, HNWI pension fund assets declined from $2.0 trillion in 2007 to $1.9 trillion by 2011.

Sweet Dreams Forecast for US HNWIs

Despite the decline in US HNWIs to 2011, 2012 saw a marked recovery: HNWI numbers rose by 3.9%, whilst HNWI wealth rose by 4.7%. New research released by Timetric suggests that this trend is set to continue, with the total number of US HNWIs to grow by 19.4% to reach 6.1 million in 2016. It suggests that HNWI wealth increase will be even greater, growing by 25% to reach $23.5 trillion by 2016.

Alternatives are expected to be the top-performing asset class for HNWIs during this period, followed by equities and fixed income products. Consequently, there will be a movement away from cash and towards alternatives.

Additionally, US HNWIs are expected to decrease their level of investment in Europe to 20% by 2016, as a result of ongoing concerns regarding the Euro, and a possible double-dip recession in the region.

For further information:
Timetric’s report, ‘United States 2012 Wealth Book: The American Dream Revisited’ is available at: timetric.com/research/report/WI0071MR

Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and comment.

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