5 things we learnt from the World Ultra Wealth Report
5 things we learnt from the World Ultra Wealth Report
Asia-Pacific riches are growing faster than ever
Wealth-X has just released the fourth and latest edition of its World Ultra Wealth Report, and the exceptionally well-to-do in Asia and the Pacific are outgunning their peers in other regions.
There are now about 212,615 ultra high net worth (UHNW) individuals, or those with USD30 million or more in net assets, a 0.6 percent growth between 2014 and 2015. At USD30 trillion in net assets, the UHNW wealth value of the world is also on the upswing, rising 0.8 percent.
Here are five of the biggest talking points from the report:
1. Asia-Pacific is the fastest-growing region for ultra wealth
Even taking into account China’s economic slowdown and emerging market volatility, the wealth of ultra-high net worth individuals (UHNWI) in Asia-Pacific is outpacing that of the Americas and Europe, Middle East, and Africa (EMEA). Between 2014 and 2015, ultra-wealth in Asia-Pacific grew 3.9 percent to USD7.8 trillion as the affluent benefited from dynamic business expansion and economic growth rates that still surpass those in the west. For perspective, the Americas only posted a 1.5 percent leap in UHNW wealth, while EMEA dwindled by 2.4 percent.
2. UHNW individuals are growing in numbers in the region, too
Wealth value aside, the ultra-affluent in Asia-Pacific are multiplying. In 2015, there were 51,515 UHNW individuals across the region, a 1.4 percent growth from the previous year.
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3. Especially China’s ultra-wealthy populace
“Powerful growth” marked China’s UHNW populace, which grew 8.9 percent to 12,050 individuals last year. In the last four years, however, China’s UHNW population has increased only 5 percent, compared with 19.9 percent in the US and 21.7 percent in Germany. China’s UHNW denizens also tend to be young, averaging just 52 years old.
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4. Chinese UHNW wealth is growing spectacularly as well
All in all, UHNW wealth in the country rose by US175 billion, representing 70 percent of the total increase in ultra-wealth worldwide. Such spectacular growth is buttressed by a well-performing equity market as well as gains in the manufacturing sector. Liquidity is still low though, with China’s UHNWIs holding just 8.8 percent of their riches in cash — the lowest percentage of any focus country in Wealth-X’s report.
5. Asian cities are growing richer
Wealth-X stated that most principal Asian cities saw double-digit percentage growth in their ultra-wealthy population. Tokyo, along with New York and London, makes up top three ultra-wealthy cities — the trio is home to one in 10 of the world’s UHNW population. Then again, flat and declining asset values ensured that the top five cities saw their ultra-affluent populace decreasing slightly.
Source: Property Report