UBS says portfolios of 77% of richest investors who had average fortunes of $1.6bn (£1.25bn) are performing in line with or above target. The rising fortunes of the super-wealthy come as separate research shows that it is the poorest people in society who are mostly likely to be losing their jobs and suffering the biggest percentage fall in income.
More than three-quarters of the world’s richest people have reported an increase in their already vast family fortunes, despite the coronavirus pandemic.
Research into the family offices of the super-rich found that the vast majority were able to “ride out 2020’s storm in financial markets”, while many less wealthy people have lost their jobs and seen the value of their savings and pensions collapse.
More than three-quarters of the world’s richest people have reported an increase in their already vast family fortunes, despite the coronavirus pandemic.
Research into the family offices of the super-rich found that the vast majority were able to “ride out 2020’s storm in financial markets”, while many less wealthy people have lost their jobs and seen the value of their savings and pensions collapse.
Of the 121 family offices included in the survey, 93 had met or exceeded their financial targets in the year to May 2020. They achieved this despite most countries in the world suffering their worst economic contractions in decades. Some 24 of the family offices in the survey managed private fortunes of more than $3bn.
Josef Stadler, head of UBS’s ultra-high net worth unit, said the world’s richest people had been able to increase their fortunes during the crisis because they had enough money to “embrace and manage risk like no other investor”.
More than 500,000 people in the world are classed as “ultra-wealthy”, with fortunes of more than $30m (£26.5m). That means there are more ultra-wealthy people than the populations of Iceland or Malta
A report by the Institute for Fiscal Studies found last month. “Households in the poorest fifth – as measured by their pre-crisis income – have been hit hardest in terms of earnings, with a fall in their median household earnings of around 15% (or around £160 per month).”
Ana Arendar, head of inequality campaigns at Oxfam, said: “Whilst those with great wealth are able to reallocate their investments to insulate themselves from the economic impacts of Covid-19, most poor people in developing and developed countries cannot take similar action to protect their limited wealth.
No comments:
Post a Comment