Although below the Latin American average, Chilean wealth grew in 2018, reaching US$500 billion. This meant that the country’s fortunes bulged by 3% versus 6% regional advance.
The Boston Consulting Group (BCG) report delivered comprehensive figures on wealth in the country: by 2023 It is estimated that Chilean wealth will grow at a compound annual rate of 8% to reach US$700 billion.
“For the next five years, BCG projects that private wealth in Chile will grow at a compound annual rate (CAGR) of 8%, the same rate it has experienced in the period 2013 to 2017,” the firm explained
Chile accounts for 10% of Latin America’s total personal wealth in 2018, with very unique characteristics in the region. “Wealth in Chile has a very particular behavior, relative to the rest of the countries in the region. Unlike globally and Latino, Chileans have half their wealth in life insurance and pension funds, and are less exposed to market variation,” says Federico Muxí, Partner and Managing Director of Boston Consulting Group , and co-author of the report.
In terms of wealth distribution in Chile, 18% of assets are of individuals with a net worth greater than $100 million; 20% of individuals with between $1 million and $1 billion; 8% in individuals with between $250 thousand and $1 million; and 54% in individuals with a net worth of less than $250,000.
On cross-border wealth management, only 6% of invertible liquid assets are outside Chile, or about $30 billion. In addition, by 2023 it is estimated that chile represents only 5%.
“Unlike other countries in the region, Chile has a very strong local (onshore) industry and much of the local wealth is managed by local asset managers. This reality differs from the rest of Latin America, where the percentage of assets under cross-border management is on average 18%,” adds Federico Muxí, co-author of the report.
The Global Wealth 2019 report is the 19th edition of this global study by Boston Consulting Group on the evolution of personal wealth from both a global and regional perspective. It can be downloaded from the BCG website.