The rich are getting richer because they have become smarter at investing in a tricky economic climate, according to experts.
The Birmingham Post Rich List revealed that the wealthiest 50 people in the Midlands got £1 billion richer last year, and Adrian Quin, head of the Birmingham office of wealth management business Williams de Broe said this was because they were “being cleverer with their money”.
And he predicted that the trend would be maintained as the recovery continued.
Mr Quin said individuals, trusts and pension funds were – within liquidity requirements – seeking to switch from cash into other sectors such as shares, fixed interest, commercial property and commodities.
So, when money on deposit was coming due, they were looking to make it work harder.
He said: “Inflation is running at four to five per cent yet you are only getting perhaps half a per cent for cash. So you are actually losing money.
“However, in our experience, diversified portfolios saw net values increase by eight to nine per cent in 2010 and our prediction is that 2011 will continue that sort of trend. So I can understand why real wealth is rising.”