Photo: Fcb981. MexDer Announces the Launch of a New 10-Year M Bono Future Contract
The Mexican Derivatives Exchange (MexDer) has announced the launch of a new instrument, the 10-Year Federal Government Bonds Futures (Bond M241205). The Specific Bond Future is an innovative product that has the most liquid Bond in the Mexican fixed income market as underlying, with approximately 25% of the total daily volumen.
This Futures contract is an ideal instrument for institutional investors to optimize portfolios that are looking for exposure in the attractive Mexican Bond market. Among other key benefits the investors will know at any time which bond will be received upon delivery at maturity.
In addition it complements the hedging alternatives that the Mexican and foreign investors can find in MexDer; it is the perfect hedging tool for the Bonds traded in the spot market -both have the same sensitivity- plus the arbitrage opportunity it provides against the Treasury Bond Market. Furthermore this contract allows high leverage, creation of short positions and an efficient capital use, a relevant factor worldwide to maximize returns with less market and counterpart risks, since all the trades are cleared in Asigna, the “AAA” Central Counterpart of MexDer.
“Besides the benefits for the local market: Banks, Brokerage Houses, Pension Funds (Afores), Mutual Funds and other institutional investors, the launch of this product is quite attractive for the International participants as well”, said Jorge Alegria, CEO of MexDer, “since 50% of the underlying asset is in foreign hands. Therefore the 10-year M Bond Future will be a very useful hedging and investment tool for them, which will attract new participants to MexDer”, he added.
This contract will be available through MexDer Trading Members, through Clearing Members and through the order routing agreement with CME Group via Globex.
Photo: Diego Delso. Avenida Capital Closes Fundraising of Avenida Colombia Real Estate Fund I
Avenida Capital, the Latin American real estate investment firm with offices in Bogota and New York, has announced that it successfully completed its inaugural fundraising effort for its Avenida Colombia Real Estate Fund I.
A total of USD $140 million was raised from pension funds, foundations and institutions in the United States, Canada, Europe and Latin America, with the fund closing above its initial target amount. The fund primarily invests in the development of retail and residential projects across Colombia.
“We are very pleased with the quality of the global real estate investors that chose to invest with us in CREF I. I believe they recognized the strength of our team and valued our ability to select attractive investment opportunities in the main and secondary cities,” said Alexander Chalmers, Managing Director at Avenida, who led the fundraising effort. “Colombia’s economy continues to grow at a steady pace, and we believe we are well positioned to capture the market opportunity with our local partner relationships.”
“With five cities over one million people and over 25 cities with a population greater than 250,000, we believe the country has capacity for investment well into the future,” said Michael Teich, Managing Director and Founder of Avenida. “The emerging middle class is driving increased consumption for retail goods as well as demand for new housing and we are seeing great opportunities for investment as a result.”
To date, the fund has invested in ten projects in nine different cities across the country. The closing makes Avenida one of the largest independent real estate fund managers in Colombia.
Wikimedia CommonsPhoto: Elyyo. The Renminbi's New Normal
The gyrations in Chinese money markets in the last few weeks have caused much alarm in the financial press. The moves in these markets are not only inline, but healthy for an economy looking to increase the role of the market in allocating resources. Those who believe these moves indicate financial stress, or draw parallels between the recent volatility and that which preceded the subprime crisis in the U.S., might be looking through the wrong end of the telescope.
First, let’s put the recent volatility in context. The renminbi (RMB) depreciated 1.4% relative to the U.S. dollar (USD) in February, making it the worst performing currency in Asia. The recent weeks have certainly been one of only a handful of periods of sustained depreciation. Such a historical comparison seems inappropriate, however, especially since the RMB is shifting to a more flexible exchange rate regime. Shouldn’t China’s central bank be managing the currency with an eye toward the future, rather than toward the past? Indeed, the experience of countries that have successfully transitioned from a fixed to a flexible exchange rate regime suggests that it is the job of authorities to foster a sense of two-way risk—meaning the currency could appreciate or depreciate to encourage investors to take both long and short positions. In other words, a successful evolution from a tightly managed currency to a more flexible regime actually seems to necessitate a rise in volatility. Even after the gyrations of recent weeks, the implied volatility of the RMB is still only at about half that of the Singaporean dollar, another managed currency; and about a quarter that of the Japanese yen, which is one of the most freely traded currencies in the world. Again, I believe this is healthy and also necessary in achieving China’s goal of further liberalizing its capital markets. Consider it the new normal.
So why are market participants so surprised? Because being long the RMB—expecting that the currency should appreciate—has been the “no brainer” trade for many years. And for the past few years, people have not been using their brains when buying the RMB. They seem to be forgetting cause and effect. Currency appreciation, in and of itself, is neither a noble nor desirable goal. Managing the value of the currency is merely a means to an end. What might that “end” be?
One such “end” might have been to rein in inflation. An appreciating currency is a handy tool to slow inflation through lower import prices. Assume for a moment that the price of oil is constant at US$100 per barrel. That same barrel of oil would be 20% cheaper with an exchange rate of 6 RMB to the US$1 than 8 RMB/USD. In fact, there is an uncanny correlation between inflation and RMB appreciation ever since Chinese authorities transitioned from a fixed exchange rate to a managed band in 2005:
When wages could not keep pace with inflation, an ever-appreciating currency was necessary to help make imports cheaper, keeping inflation in check. But now that wage growth is surpassing inflation, there is less of a need to appreciate the currency. Indeed, the Chinese economy has arrived at a point where a continually rising RMB is not desirable. Consider the position of Chinese exporters. While the RMB has appreciated 9% relative to the USD in the last three years, it has appreciated an astounding 14% on a trade-weighted basis. In a world of quantitative easing, whereby three of the world’s four largest currency blocks are racing to debase their currencies, the RMB stands at a competitive disadvantage.
And last, but certainly not least, the one-way appreciation of the currency has encouraged risky behavior, which together has heightened systematic risk in the Chinese economy. Among those engaged in one-sided bets are the global hedge funds that have raked in profits by being systematically short on the USD versus the RMB. Chinese companies also need to be weaned from the notion of a one-way appreciation that use offshore subsidiaries to borrow USD at low rates and then repatriate the proceeds disguised as RMB payment for goods that its parent firm invoices. The cash then gets invested in cash wealth management products yielding double digits. As we know, any product that offers a yield substantially higher than prevailing money market rates are neither cash equivalents nor risk-free. Then there are numerous chief financial officers who have told me that they believe issuing a five-year bond at 10% in USD is really only costing them 5% because they think the RMB is going to continue to rise 5% every year. These represent just a sample of individuals and companies with deeply vested interests in a rising RMB. By letting volatility creep into the currency movements, Chinese authorities are sending a wake-up call to those vested interests.
According to a Confucian proverb, bamboo does not break because it bends with the wind. Similarly, more volatility in China’s currency should be welcomed instead of shunned if the country is to fulfill its ambition toward a liberalized economy.
Teresa Kong, CFA, Portfolio Manager at Matthews Asia
The views and information discussed represent opinion and an assessment of market conditions at a specific point in time that are subject to change. It should not be relied upon as a recommendation to buy and sell particular securities or markets in general. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Matthews International Capital Management, LLC does not accept any liability for losses either direct or consequential caused by the use of this information. Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. In addition, single-country funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific geographic location. Investing in small- and mid-size companies is more risky than investing in large companies, as they may be more volatile and less liquid than large companies. This document has not been reviewed or approved by any regulatory body.
Despite the impressive tightening of peripheral government bond spreads, ING IM still like this asset class. Thay have even added to their overweight position recently. They also have a preference for peripheral equity markets, as they expect them to outperform the broader market as peripheral economic data improve further.
The market correction in January has already shown that EM turmoil itself is not enough to create significant uncertainty in the periphery, even though some countries have both a trade and financial exposure to the emerging world. Spain for instance is particularly vulnerable to shocks in Latin America.
Italian and Spanish spreads hardly affected during sell-off
Peripheral government bonds have held up well
During the emerging market (EM)-driven financial market turmoil of a few weeks ago, not only EM assets came under pressure. Also risky assets in developed market (DM) space were confronted with a sell-off. For instance, spreads of High Yield credits widened. One category that held up quite well during the correction were government bonds of the peripheral Eurozone countries. The chart shows the very limited spread widening that took place for Italian and Spanish 10-year bonds (over German 10-year bonds) during this phase of increased market volatility.
Peripheral equities expected to catch up
Next to peripheral debt, ING IM also has a positive view on peripheral equity markets. “Despite strong performances in the past twelve months, peripheral equity markets have not yet caught up with the rapid spread tightening of peripheral bond markets. We expect equity markets to catch up further as peripheral economic data improve. Peripheral equities versus core equities is one of our preferred regional trades for this year”.
It was striking to see – and a nice example of the turnaround in sentiment towards the peripheral countries – that during the recent correction, stock markets of countries like Spain and Portugal acted as defensive ones, while markets of core countries such as Germany, France and the Netherlands suffered bigger losses. One explanation for this could be that big German and Dutch companies with a relatively large share of revenues derived from emerging markets are seen as more vulnerable to turmoil and slowing economic growth in emerging markets.
“In our tactical asset allocation we have an overweight position in European equities, with a preference for the peripheral countries”.
To view the complete story, click the on the attached document.
Photo: NASA. Banco Santander Chile, First Latin American Bank to Access the Australian Debt Market
Banco Santander Chile issued its first “Kangaroo Bond” (bonds issued by a foreign-denominated Australian dollars under Australian Law), which is in turn, the first of a Latin American bank in that format. The issuance was for AUD 125 million, which is equivalent to about US$ 115 million, with a maturity of 3 years and a coupon rate of 4.5%.
According to Pedro Murua, Manager of Financial Analysis and Structuring at Banco Santander Chile: ” This transactions allows us to continue diversifying our funding base and reflects the fact that investors recognize Chile and Banco Santander Chile, as a safe and reliable place where to invest .”
The joint book runners were Deutsche Bank and Bank of America Merrill Lynch.
The addition of Christoph Schaer brings to 41 the total number of financial advisors at Biscayne Capital. Biscayne Capital Hires Former UBS Senior Banker as Managing Director in Its Zurich Office
Biscayne Capital has announced the addition of another experienced banker to its burgeoning team of financial advisors. Christoph F. Schaer, a 15-year veteran of the private banking industry in Switzerland and Brazil, joins Biscayne Capital as Managing Director of Biscayne Capital (Switzerland) AG in Zurich.
Prior to joining Biscayne Capital, Christoph was a Managing Director for ultra-high net worth clients at UBS AG for theBrazilian market, where he also served as a member of the Regional Management Committee. Previously, Christoph worked for Credit SuisseGroup in Brazil, where for six years he represented Credit Suisse Group companies vis-à-vis the Brazilian Central Bank. Prior to that, he held positions at JFE Hottinger & Co. and worked for four years at Goldman, Sachs & Co.
“We are excited to have Christoph joiningour team,” said Roberto Cortes, co-founder and CEO of Biscayne Capital. “He exemplifies the kind of in-depth market knowledge and independent thinking that sets Biscayne Capital apart.”
The addition of Christoph Schaer brings to 41 the total number of financial advisors at Biscayne Capital, which is headquartered in Montevideo, Uruguay and has offices in Zurich, Switzerland and Nassau, Bahamas. Biscayne Capital currently has over $1 billion in assets under management. It is one of the fastest growing, independent private banking firms in Latin America.
Christoph is a graduate of the Wharton Business School. He holds a Master of Law from the University of Pennsylvania Law School and a business/law degree from the University of St. Gallen. Christoph speaks German, French, English, Spanish and Portuguese.
Winnie Chwang, Senior Analyst at Matthews Asia. "China’s Growth Might be Slower, Albeit of Higher Quality and More Sustainable in the Years Ahead”
Many consider China the main force behind the future of the global economy. Last year’s Third Plenary Session resulted in very important reforms which the government must implement to shift China from an export oriented economy to a domestic consumption country. This change may lead to slower growth in the future which is, in turn, one of the main issues for most economists regarding 2014. Winnie Chwang, Senior Analyst at Matthews Asia, answers Funds Society’s questions as a preview to her visit to Miami this week, in which she will discuss China as an investment opportunity with institutional and professional investors.
1. China’s growth is slowing – What is behind this lower growth?
China has sustained double-digit economic growth over the last two decades, driven by investments and exports. However, this pace is not likely to be sustainable going forward, and the government acknowledges a transition is taking place within the Chinese economy; where growth will increasingly be led by domestic consumption. It is widely accepted that this transition will translate to more moderated growth, albeit of higher quality, and more sustainable in the years ahead.
2. Where can we find the new sources of growth? What 3 main growth drivers would you highlight for the next 5 years?
At Matthews, we have been focused on the consumption story, which is one that continues to evolve with changing behavior amid rising income levels. The next decade should be no different, and we believe that increased domestic consumption will be a key theme for economic growth. In particular, we highlight consumer growth as the catalyst for a number of service-oriented industries. Three, in particular, are companies operating within tourism, information technology and health care; all of which are expanding on the back of increased consumer demand.
3. Which is, in your view, the most importanteconomic reform approved in the Third Plenary Session, whichtook place last November?
It would be difficult to pinpoint the most significant reform since there were numerous important initiatives that came out of the Third Plenary Session. However, the most important theme is clear—the government wants to continue to encourage a market economy and support the role of the private sector. This translates positively to a more efficient and market-driven economy, whichpromotes increased productivity and profitability for commercial enterprises in the long run.
4. Regarding valuation, where do you see the best pockets of value for the Chinese markets?
In the past two years, the consumer discretionary sector in China has seen meaningful corrections in light of an overall weaker macro economy as well as the initiation of the government’s anti-frugality campaign. As a result, valuations have trended down to a low double-digit level. However, our on-the-ground visits to China lead us to believe that underlying demand remains strong and once the macro sentiment turns, this will be a sector that stands to recover nicely.
One thing to point out here is that as with allour investments, we believe inthe value of bottom-up stock picking. We do not rely solely on valuations in our decision process. We continue to look for the best-run companies with solid business models that are positioned to excel over the long run.
5. What would be the main risk for an investor in Chinese equities?
The main risk for an investor in Chinese equities is policy risk. We tend to stay away from companies that are beholden to government policies, as they tend to change quickly. Instead, we focus on private companies that are able to operate successfully in a competitive market environment.
Certain industries, such as the banking sector, face impending scrutiny due to substantial quality concerns around off balance sheet exposure. We also remain concerned that future reforms for the financial services industry, such as interest rate deregulation, may not benefit these banks. As a result, we are generally cautious and underweight the banks in our portfolio as compared to the benchmark.
6. How important is corporate governance when investing in China?
As long-term investors, we consider corporate governance to be critical when assessing companies. Many of our investments span across three to five years—or longer. So it is important that we are confident that management demonstrates strong stewardship for our investments. Our process assesses the soundness of corporate structures as well as management’s governance ability over time. Our due diligence process emphasizes on-the-ground visits when examining potential investment ideas. We vet information we receive from managers with what we hear from their peers, customers, suppliers or other industry experts. Understanding the entire value chain helps us determine how much weight we can give to what managers tell us and what the true growth prospects are. Overall, we are encouraged to see corporate governance improving in China.
Jan Koum, Whatsapp co-founder. Can that Cool App I Created Make Me a Billionaire, Too?
Just about everyone is entranced with the recent news out of Silicon Valley about billions of corporate dollars being used for acquisitions. Many of the buyouts we’re hearing about are software companies that were startups just a few years ago. There is almost an 1849 Gold Rush mentality now in California. Who can think of the next software application that can be sold to a big Internet company for billions of dollars? Basement and garage software entrepreneurs work feverishly, hoping their ideas can make it big.
But what do company takeovers and buyouts mean for those of us who invest in the market? The first question is always fundamental. Are we witnessing mergers and takeovers that add value? If most of the M&A activity is being undertaken to improve cash flow growth in the long run, everyone should be better off. Usually, however, this isn’t the case.
While many types of acquisitions can add to shareholder value, many others don’t. Some company transactions are deliberately designed to spread another revenue stream over a fixed cost base. If these transactions are executed well, shareholders stand to benefit from higher margins and higher returns on capital. One example of this might behorizontal integration — buying a similar company in a similar business and keeping the revenues but not duplicating the costs.
Another case might be vertical integration — buying another company along the supply chain to obtain ease of control. Some examples include a manufacturer acquiring a sales company, an energy extractor purchasing a gasoline refinery or an Internet retailer obtaining a money transfer firm to help control the financing aspect of selling goods and services online.
A third type of positive takeover could be carried out for diversification. Just as investors often seek to balance the risk in their portfolios by diversifying their holdings, companies may want do the same by diversifying their business lines. Buying other companies may be able to buffer the effects of the economic cycle, smoothing out earnings as one business does better while another is flagging.
All three of these fall into my category of legitimate or worthwhile motivations for M&A. How do we detect if the reasons to take over a company are not so legitimate?
First, look at the motivation behind the acquisition. When a company exhausts its own organic growth, or stalls in its internal growth, management may be tempted to reach out and buy growth. The academic literature suggests that these growth acquisitions often involve overpayment and widespread destruction of shareholder value. Other companies use acquisitions to take out the competition or to find ways of getting around investing in their own businesses. In these cases, the less than noble outcome is typically that management is enriched, but not shareholders.
Second, consider what companies are paying for their acquisitions. During typical cycles, the price paid to take over another company must involve a premium to get existing shareholders to willingly part with their shares. Again, academic research shows that in many buyouts and takeovers, the buyer pays too much and the result is grief for the shareholders of the acquiring firm. Typically the premium paid is 30% or 40% over the current market price.
These are things to look for when selecting individual companies.
In a broader sense, I like to watch M&A activity for its ability to indicate trouble ahead for the market or to confirm that a market peak is approaching. Looking back over history, we see that market peaks and recessions have frequently been preceded by periods of wild or excessive M&A transactions. Takeovers in these euphoric periods typically reach 7% of the names traded in the public marketplace. Now, takeovers are running at only 3% of publicly traded names.
We are definitely seeing some marquis takeovers and glittery deals, and most of them are taking place in the rapidly changing world of technology. There is a scramble across that sector to chase after global audiences for more advertising revenues.
Despite these high-priced deals, there is not yet a broad-based wave of mergers going on in the rest of the market. In fact, the rate of mergers is at or below historical averages. And on the valuation front, the current premium or buyout price paid for the average non-technology takeover is also below the historical norm.
We are watching this M&A trend, and right now it’s anyone’s guess if the cash-rich giants of Silicon Valley are making wise takeover decisions. But until the mania spreads — and we see high price tags in other sectors of the market, such as energy, consumer discretionary and staples — the time for worry hasn’t yet arrived. Based on historical averages, the M&A indicator is rising, but remains well below the danger threshold for the market as a whole.
Column by James Swanson, MFS Chief Investment Strategist
Photo: Covilha, Flickr, Creative Commons.. Are Gold and Gold Equities Showing Signs of Recovery?
Gold is up 10.5% this year and up 11.9% (1) since it bottomed in December 2013 following the US Federal Reserve’s (Fed) decision to begin tapering its quantitative easing (QE) program. Gold continues to rally despite the Fed announcing after its meeting in January that it will be reducing its QE program by another US$10 billion.
Porfolio managers Bradley George – Head of Commodities and Resources- and Scott Winship –Global Gold strategy-, at Investec Asset Management, answer some questions about the recent recovery of gold, and gold equities.
What has triggered gold’s rally?
We believe that the gold price has rallied because:
Tapering has started and the announcement of the tapering program on 18 December 2013 was orchestrated to maintain a stable market environment.
Exchange-traded fund (ETF) net outflows have stopped. There are now 56moz in global gold ETFs, and we are starting to see small net inflows.
Physical buying continues to be strong out of China — now the world’s largest gold consumer.
An article written by Simon Rabinovitch titled ‘China’s 500-tonne gold gap fuels talk of stockpiling’, which was published in the Financial Times on 11 February 2014 (2), also caused some interest.
There is talk that India might relax some of the import duties that it implemented in 2013 (they currently stand at 15%) on the back of suggestions that the gold trade is still alive and well, albeit through back channels.
US 10 year Treasury rates have moved lower to 2.7% from its starting point of 3% at the beginning of 2014. As illustrated by the chart below, the dislocation between real rates and the gold price is still extreme.
US economic data in January and February has disappointed relative to expectations; non-farm payrolls, the ISM Manufacturing Index, retail sales and industrial production have all been poor. The obvious excuse is the weather — the US has been hit by snow storms and blizzards — so we will have to wait and see in the coming months if this was the case. With just about every analyst and forecaster expecting stellar US growth this year, better data must materialize.
US dollar weakness has also helped the gold price.
The precious metal sector has been a key underweight for long only funds and a short for hedge funds. Short covering is definitely occurring.
How are gold equities performing?
Gold equities are finally showing some beta to the upside. Gold equities this year are up 23%, which is just over 2x leverage, and more than the average 1.3-1.5x that we have seen recently. Coming from an undervalued position there was certainly ground to make up. Where we used to quote 30-40% upside for the equities, we now see 15-20%, so we believe there is still value to be had.
Fourth quarter results are currently being announced and the majority of companies are meeting forecasts and guiding positively. Production guidance is more or less in line with estimates, but importantly cost guidance is better. Currency tailwinds and general cutting of a fat cost base has helped return leverage to the bottom line. Capital discipline is much better than it once was.
Is now a good time to invest in gold?
These moves have been rapid, as the above factors have provided a good headwind for the metal. We have moved to $1335/oz in more or less a straight line, so there is an argument for a pause for reflection/correction. But technically gold has broken out (see the chart below) and has room to move. We believe that any retracement is a potential buying opportunity.
Historically gold has offered diversification and inflation hedge benefits, and we believe it still does. The economic recovery, in our view, is finely balanced and there are still significant debt issues and associated risk. In particular, we would point to stubbornly higher oil prices and believe that there will come a time when the world economy is viewed in a less favorable light. Furthermore, the valuation anomaly that exists in gold equities has seldom presented investors with such an opportunity for gold equity exposure. The brief rally we have seen barely registers on the chart below showing gold equities relative to gold bullion.
We believe gold companies that are disciplined with capital and focus on growing profitable production, not just ounces at any cost, will be rewarded in the long run. We continue to invest in these types of companies with approximately 30 high conviction holdings in the Investec Global Gold portfolios. The portfolio is further differentiated with its physically backed ETF positions in platinum and palladium. We believe that these metals not only provide diversification but have strong fundamentals as they are in deficit from a supply and demand perspective.
Photo: Oscar Urdaneta. London is Top Global City for UHNWI, but New York Poised to Take Crown
New York will overtake London as the most important city for the ultra-wealthy by 2023, according to Knight Frank’s Wealth Report, an annual analysis of wealth flows and property investment around the world.The report shows that three of the top five most important cities by 2024 will be in Asia, knocking Geneva from the top 5. New York is followed by Miami, Washington D.C, San Francisco and Toronto in North America.
Over the last year, the global response to the financial crisis continued to boost property markets in many parts of the world. The latest results from The Wealth Report’s Prime International Residential Index (PIRI) confirm that Asian markets, led by Jakarta, experienced the biggest price growth in 2013, followed by Auckland, Bali, Christchurch and Dublin.
Liam Bailey said: “History, location and their long-established wealth mean that London and New York’s positions look unassailable, at least for now. It is further down our leader board that the real city wars are being waged. The main battleground is Asia, where a handful of locations are slugging it out in the hope of establishing a clear lead as the region’s alpha urban hub”.
“By region, the Middle East top five includes Istanbul and Abu Dhabi, two centres from our “hotspots” list – cities that are set to rapidly increase their influence on Ultra High Net Worth Individuals* (UHWNI) – close behind Dubai in prime position. One legacy of the Arab Spring is the enhanced status of Turkey as a safe haven location for investors from the Gulf and North Africa.
“Although it still trails some way behind the top four cities in Asia-Pacific, Sydney is steadily growing in importance as a wealth hub for the region. Despite its geographical remoteness, it comes in as the fifth placed hotspot. Sao Paulo heads the current Latin American top five list -with Río, Buenos Aires, Mexico City and Santiago-. Current trends suggest that the city is also set to see its UHNWI population ranking rise from 11th to 8th position globally by 2023.”
In terms of property performance, locations that were hardest hit by the downturn, like Dubai, Dublin and now Madrid, are also bouncing back strongly.
The report also examines wealth creation across the world, finding that the number of ultra-wealthy individuals across the world rose by three per cent last year, despite continued economic turbulence. Exclusive data prepared for the Wealth Report, shows that the number of Ultra High Net Worth Individuals (UHNWIs) in 2023, who have $30m or more in net assets is set to grow by nearly 30% over the next decade.
Data from Wealth Insight, the global wealth intelligence firm, shows that while Europe will remain home to most UHNWIs, the biggest growth will be in Africa. The number of people with $30 million or more in assets will climb by 53% by 2023, underpinned by a 92 per cent rise in Nigeria and a 74 per cent rise in Kenya.
“The growth of UHNWIs in China and India coupled with an eye-catching 144 per cent increase in Indonesia and a stellar 166 per cent hike in Vietnam will help push the total number of UHWNIs up by 43 per cent t0 2023,” explained Liam Bailey.
