Author: Li Jiahui
SINGAPORE, Dec 26 (ANI): Billionaires around the world are looking to put more money into India and Southeast Asia due to strong growth in the region’s economies. On the sector side, they favor energy, likely due to today’s supply constraints and an accelerated long-term transition to renewable energy.
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This was revealed in the UBS Billionaire Ambition Report 2022 released earlier this month.
The report added that “North America, with its large domestic market and vibrant startup culture, remains a popular region. While still ahead of the rest of the world, mainland China lags behind these regions to some extent.” While Western Europe is A major global economic bloc, but few seem keen to invest in Western Europe.
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From an industry perspective, technology and health continue to attract interest from the billionaires surveyed, even as these sectors have recently suffered from declining valuations and interest in public equity markets.
This is UBS’ eighth report covering billionaires, focusing on their fortunes and aspirations in an era of historic wealth creation, business innovation and impact philanthropy. The report is based on surveys, questions and information from more than 2,500 billionaires in 75 markets conducted by UBS Evidence Lab.
While 58 percent of billionaire respondents chose India and Southeast Asia as their investment markets of choice, only 42 percent chose China, the world’s second largest economy. North America was chosen by 50% of respondents.
Compared with a year ago, China is not only down in terms of investment. The billionaire ranks also fell. After years of being the world’s fastest-growing large economy, mainland China’s zero-COVID policy has slowed growth. There are 540 billionaires, down from 626 a year ago. After a decade of remarkable growth, total wealth fell by a fifth (19.9%) to $2.0 trillion.
However, China is not alone. The number of billionaires worldwide has shrunk as markets have fallen. In March 2022, there were 2,688 billionaires worldwide worth $12.7 trillion, down from 2,755 and $13.1 trillion in 2021. The Asia-Pacific region has the largest number of billionaires in the world with 1,084 people and a combined wealth of US$4.2 trillion, compared with 1,143 and US$4.7 trillion a year ago. UBS noted that the total wealth and number of billionaires may have fallen further since March due to falling asset prices.
In stark contrast to the rest of the world, India has seen a surge in billionaires, surpassing the UK to become the fifth-largest economy by 2022. India has a younger workforce and has surpassed China as the fastest growing of the world’s major economies. Meanwhile, the number of Indian billionaires rose to 166 from 140 last year, and their combined wealth rose 25.7 percent to $749.8 billion.
The number of billionaires in the United States is also growing steadily, from 724 in 2021 to 735, home to about a third of the world’s billionaires. Total wealth rose 6.9 percent to $4.7 trillion.
It is worth noting that finance and investing has the most billionaires (392 in total) and is also one of the industries with the highest turnover. Their fortunes total $1.7 trillion. Fifty new billionaires were created during the year, while 30 fell off the list. The new billionaires include fintech disruptors, as well as private equity and hedge fund partners.
Technology, the second most populous industry, has also undergone considerable change. There were 41 new tech billionaires and 57 disappeared, leaving a total of 348 worth $2.2 trillion. This instability reflects the dynamism of an industry where barriers to entry are low and innovation is perpetual.
Finally, manufacturers are thriving on the huge demand for durable goods and the emergence of new electric vehicle and battery entrepreneurs. In 2022, there will be 338 manufacturing billionaires with a net worth of US$1.1 trillion, with 44 new additions and 37 exits.
A heartening revelation from this year’s UBS Billionaires Report is that 95% of the billionaires surveyed believe they should use their wealth or resources to help address global challenges. Two-thirds said they had a responsibility to “lead the way”, while nearly a third felt they should use their wealth or resources to help meet these challenges.
More than 40 percent of the billionaires surveyed see smart farming as one of the areas that goes hand-in-hand with clean water and poverty alleviation. While they also see opportunities in green energy and waste management and recycling, they see a larger potential role for governments in these areas.
“This year’s report highlights how many of society’s wealthiest people feel they have a responsibility to take the lead, using their wealth or resources to help address unprecedented environmental and social challenges,” said George Athanasopoulos, global head of household and institutional wealth at UBS, and Alice Page, head of the Ultra High Net Worth Solutions Group, said in a joint statement.
“The combination of sufficient long-term capital and innovation has the potential to create massive change and open up new opportunities for different ways of investing.”
“We are realistic about the ability of private capital to solve the world’s problems on its own. While we think this convergence is a clear trend, whether it will happen on a sufficient scale to help achieve the UN’s Sustainable Development Goals (SDGs) and The race to zero carbon emissions? There is reason to be optimistic, and institutions such as UBS, which can connect billionaires to global opportunities, are playing an important role in this trend.” (Arney)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)