Global dollar millionaires' wealth surges to $86.79 trillion in 2023 World Wealth Report by Capgemini finds

The collective wealth of the world's dollar millionaires reached a historic high of $86.79 trillion in 2023, representing a notable 4.7% increase over the previous year, according to the latest World Wealth Report by Capgemini.

This remarkable growth was buoyed by several favourable factors, including a reduction in inflationary pressures and a robust recovery of global markets. Notably, this resurgence in wealth not only reversed the slight decline experienced in 2022 but also exceeded the record level set in 2021, which stood at nearly $86 trillion.

The report underscores a compound annual growth rate (CAGR) of 4.6% for the period spanning 2016 to 2023.

In tandem with this surge in wealth, the number of high-net-worth individuals (HNWIs) saw a significant uptick, rising by 5.1% in 2023 to reach a total of 22.828 million individuals.

Regionally, North America witnessed a notable increase in wealth, soaring by 7.2% to reach $27.5 trillion. Similarly, Europe and Asia experienced substantial growth, with wealth in Europe rising by 3.9% to $18.9 trillion and in Asia by 4.2% to $25.7 trillion. However, wealth in Africa faced a marginal decline of 1%, settling at $1.8 trillion.

In terms of the HNWI population, North America experienced a robust 7.1% growth, while Latin America saw a modest rise of 2.7%. Europe, the Middle East, and Asia all registered increases ranging from 2.1% to 4.8%. Meanwhile, Africa's HNWI count remained relatively stable.

The composition of millionaires' wealth in the first quarter of 2024 underwent a notable shift, with 21% allocated to equities, 25% to cash and cash equivalents, 20% to fixed-income assets, 19% to real estate, and 15% to alternative instruments.

Contrary to conventional wisdom, the Capgemini survey revealed that wealthy individuals are not immune to biases in their investment decisions. Over 65% of respondents admitted to being influenced by biases, particularly during significant life events such as marriage, divorce, or retirement.