LAST year, global private wealth grew by 12%, or $17.5 trillion, to reach $164 trillion (in stocks, bonds, savings and cash) according to a report released this week by BCG, a consultancy. Good news for many, but particularly for Asia, where private wealth grew by a whopping 29% compared to 5.6% in North America and 6.6% in Europe.

For the first time in modern history, Asia is now richer than Europe. And it is catching up with North America too; by 2019 the region’s wealth is expected to reach $75 trillion compared to $63 trillion in North America. And although America is still the country with by far the most millionaires in the world, of the 2m new millionaire households created last year 62% are from Asia-Pacific. China is the main driver here; it will account for 70% of Asia’s growth between now and 2019, predicts BCG, and by 2021 it will overtake America as the world’s wealthiest nation.

At the same time, the world’s wealth is being concentrated in fewer pockets. Whereas in 2012 38% was held by millionaires, in 2014 this was 42% and the trend is increasing. Whereas households with more than a million dollars in the bank saw their wealth swell by 16% on average, those with less wealth saw it grow by only 9%.

Where is all this wealth coming from? Strong performance by stocks, which now make up 39% of private wealth compared to 31% in 2009, accounts for the bulk of it. But it wasn’t just the performance of existing assets that drove growth; new wealth was created as well, particularly outside the rich world. Much of Asia’s newly created wealth came from entrepreneurs of mid-sized companies, says Daniel Kessler, one of the authors of the report. Of the $4.7 trillion in new wealth created last year, $3.2 billion came from outside the rich world, particularly the Asian powerhouses.

The differences in regional growth rates are a consequence of different stages of economic development. And North America and Europe can console themselves with the fact that they are still comfortably the second- and third-biggest contributors to global wealth growth. But for private-wealth managers the direction of travel is all too clear. Those who haven’t already got operations in Asia are working on capturing these new clients either through the London and New York markets, or through satellites which they plan to build in Hong Kong or Singapore, if not Shanghai. Competition from local players is increasing rapidly too and it seems only a matter of time before an Asian bank buys up a western wealth manager.

But although Asia is now richer than Europe, individual Asians are not. Once wealth (including life and pension assets) is broken down per household a different picture emerges: whereas European households now have $220,000 in wealth and America’s $370,000, China still has a long way to go with its $72,000 (as does Asia-Pacific as a whole with $54,000). Convergence is certainly conditional.