Wealth X has released and made available for download the seventh edition of its World Ultra Wealth Report, which analyzes the state of the world’s ultra wealthy population, or those with $30m or more in net worth, which showed muted growth in 2018, rising by 0.8% to 265,490 individuals. This subdued increase comes on the heels of a year of significant growth the prior year, when the population increased by nearly 13%. Wealth X’s summary of its report is as follows:
UHNW WEALTH SLUMPS FOR FIRST TIME IN THREE YEARS
The combined net worth of the UHNW population saw a decrease for the first time in three years, falling by 1.7% in 2018 to $32.3 trillion, implying a modest drop in the average net worth of the UHNW class, in part due to a late-year slump in investor sentiment and global equity markets.
Despite these findings, the World Ultra Wealth Report 2019 forecasts robust growth for the UHNW population, with a projected population increase to 353,550 individuals possessing a total combined wealth of $43 trillion by 2023.
Further report findings include:
ALL SEVEN REGIONS OF THE GLOBE SAW A DROP IN ULTRA WEALTH
Regional declines ranged from a marginal dip in the Middle East to a drop of 7% in Latin America and the Caribbean. Net worth in Asia fell at a faster rate than in both North America and Europe.
POPULATION GROWTH VARIED SIGNIFICANTLY ACROSS REGIONS
There was robust growth in the UHNW populations of the Middle East, alongside a modest expansion of ultra wealthy numbers in North America and Europe. The other four regions posted falls in population, led by a 6% drop in Latin America and the Caribbean.
THE US CONTINUES TO LEAD IN UHNW POPULATION
The leading country for UHNW individuals in 2018, the US accounts for a 31% global share. This compared with 9% for second-placed China, and nearly 7% for third-placed Japan.
NEW YORK REGAINED ITS STATUS AS THE WORLD’S LEADING UHNW CITY FROM HONG KONG
In 2018 the top 10 UHNW cities accounted for 18.9% of the global ultra wealthy population. Modest ultra wealthy growth in New York was sufficient for it to regain the top spot as Hong Kong wealthy were impacted by the slump in Asian stocks and a softening Chinese economy.
HONG KONG HAS BY FAR THE HIGHEST DENSITY OF ULTRA WEALTHY INDIVIDUALS
At 1,364 for every million adults, Hong Kongs’ UHNW population density was considerably higher than the next-ranked countries of Switzerland, Luxembourg and Singapore – all established financial- services hubs – and more than four times the density of the US.
WOMEN MAKE UP A LARGER PORTION OF THE GLOBAL ULTRA WEALTHY POPULATION THAN EVER BEFORE
The number of ultra wealthy women increased to nearly 39,000, equivalent to a record- high share of 14.6%. Among UHNW individuals below the age of 50, women account for almost one in five.
In addition to revealing a global view of the status and trends of the ultra wealthy, the World Ultra Wealth Report 2019 also examines the population based on their asset holdings, gender, industry focus, wealth source, and hobbies. From this insight, the report reveals ultra wealthy archetypes across three main age groups – under 50 years old, 50-70 years old, and over 70 years old.
The World Ultra Wealth Report 2019 leverages the proprietary information in Wealth-X’s Global Database of records on wealthy individuals, the largest of its kind in the world.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.