Wealth X World Ultra Wealth Report 2015 2016

WORLD ULTRA WEALTH REPORT
HIGHLIGHTS
2015-2016
Executive Summary
In 2015, the worlds ultra wealthy population experienced almost flat growth as the number
of individuals with US$30 million or more in net assets grew just 0.6% and total ultra high net
worth (UHNW) wealth increased by 0.8%. Nonetheless, the economic importance of this
cohort is as strong as ever, with the ultra wealthy accounting for just 0.004% of the worlds
adult population but controlling 12% of its wealth.
Beneath the global picture differences in performance emerge, region to region, country to
country and even city to city. In Europe, the Middle East and Africa (EMEA), ultra wealth
fell 2.4% as equity markets, local currencies and gross domestic product (GDP) collectively
experienced negative net returns. By contrastand even accounting for Chinas slowdown
in growth and emerging market volatilityAsia-Pacific achieved a 3.9% rise as the ultra
wealthy in selected markets continued to benefit from dynamic business expansion and
economic growth rates that still surpass those in the west. Likewise, in the Americas, it was
Latin America, rather than North America, that helped the region achieve a modest 1.5%
growth in ultra wealth value.
The slump in energy and commodity prices from mid-2015 onward proved punishing for
the ultra wealthy in certain countries, with Russia and Australia experiencing double-digit
declines in both UHNW population numbers and total UHNW wealth as a result. By
contrast, manufacturing-focused and energy-importing countries such as Germany and
India benefited from oils decline, which helped to support modest UHNW growth.
New York, London and Tokyo remain the top ultra wealthy cities and together are the chosen
homes for one in 10 of the worlds UHNW population. However, 2015 saw some surprising
shifts with all of the top five cities seeing their UHNW population decline slightlythe
result of flat and declining asset values.
By contrast, most principal Asian cities saw double-digit percentage growth in their ultra
wealthy population, as have Rio de Janeiro and So Paulo in Brazil, as entrepreneurs and
business owners continue to benefit from infrastructure development, urbanisation and
rising consumption.
Genders also experienced mixed fortunes in 2015. The female UHNW population remained
steady at 13%, but their share of total UHNW wealth fell from 14% to 11% this year. Average
female high net worth wealth dropped from US$147 million to US$126.3 million. This
reflects a higher reliance on inherited wealth and a greater allocation to cash, which proved
a drag on returns in an ultra low interest rate environment. Male wealth rose 2.4% from
US$139.8 million to US$143.1 million, reflecting a greater focus on self-made wealth and a
higher-risk asset composition.
WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016
Across all regions, it is the highest ranks of the UHNW population who are experiencing the
most success. In 2015, billionaires saw their wealth grow 5.4%more than double the rate of
global economic growth, while collectively other tiers saw their wealth shrink by 0.6%.
Finance, banking and investment remains the most significant industry in which to find the
ultra wealthy, but its lead has shrunk while manufacturing has grown in importance. In two out
of three cases, wealth is purely self-made rather than inherited. However, as wealth matures
in younger economies, the transfer of wealth has seen a growing class of second-generation
ultra wealthy emerge.
Notwithstanding high-profile stories of young tech entrepreneurs, the under-30s account for
just 1% of the worlds ultra wealthy population and 0.3% of its wealth. Wealth continues to
rise steadily generation by generation, howevertoday UHNW individuals aged 80 or over
are seven times wealthier than those under 30 and are worth nearly double that of the average
UHNW individual globally.
Private interests, such as privately-owned business stakes, continue to account for the greatest
proportion of wealth at 35.1% in 2015, although publicly held shares have almost caught up.
The ultra wealthy are also choosing to hold more liquid assets (cash), reflecting growing
caution in the face of ongoing global economic and geopolitical challenges.
Regardless of these challenges, the diversified global interests of the worlds ultra wealthy
and their focus on skillful wealth preservation and managementshould ensure their
continued strong performance. By 2020, we expect the global UHNW population to exceed
318,000 (50% higher than in 2015), with total wealth rising 54% to US$46.2 trillion.
2015
THE GLOBAL ULTRA

WEALTHY POPULATION
UHNW Wealth
(US$ Trillion)
UHNW
Wealth
Growth
Region
World
212,615
30.0
211,275
29.7
0.6%
0.8%
The Americas
91,375
12.7
89,670
12.5
1.9%
1.5%
EMEA
69,725
9.5
70,800
9.7
1.5%
2.4%
51,515
7.8
50,805
7.5
1.4%
3.9%
EMEA
THE AMERICAS
UHNW
Individuals
UHNW Wealth UHNW

(US$ Trillion)
Population
UHNW
Population
Growth
UHNW
Population
Asia-Pacific
91,375
2014
69,725
43.0%
of UHNW
Population
UHNW
Individuals
32.8%
of UHNW
Population
1.5%
1.9%
ASIA-PACIFIC
2.4%
1.5%
51,515
UHNW
Individuals
24.2%
of UHNW
Population
1.4%
3.9%
FORECASTING GLOBAL
ULTRA WEALTHY GROWTH
CAGR*:
8.4%
FORECAST UHNW POPULATION 2015-2020

350,000
Number of People
300,000
250,000
Total:
246,150
Total:
228,500
Total:
212,615
Total:
291,100
Total:
267,350
Total:
318,400
200,000
150,000
100,000
96,500
91,375
91,150
87,900
80,200
80,850
75,300
69,725
50,000
115,400
95,500
108,400
101,650
122,600
104,650
63,650
56,700
51,515
71,050
The Americas
EMEA
Asia-Pacific
0
2015
2016
2017
2018
2019
FORECAST UHNW WEALTH 2015-2020 (US$ TRILLIONS)

The Americas
Total:
US$30.0
EMEA
Total:
US$32.4
CAGR*:
9.0%
Asia-Pacific
Total:
US$34.9
Total:
US$38.2
Total:
US$42.0
US$12.5
Total:
US$46.2
US$14.2
US$11.0
US$8.7
US$9.8
US$7.8
US$11.0
US$12.1
US$13.2
US$9.5
US$10.3
US$12.7
US$13.4
US$14.2
US$15.2
US$16.4
2015
2016
2017
2018
2019
Totals may differ due to rounding
*Compound Annual Growth Rate
2020
US$14.5
US$17.6
2020
PROFILING THE UHNW

INDIVIDUAL
212,615
Total UHNW
Population
US$30.0
Trillion
US$141
Million
US$6.4
Trillion
Total UHNW Wealth
Average Net Worth
Liquidity
59
Average Age
THE AVERAGE UHNW INDIVIDUAL

There are 212,615 individuals in the world who qualify as ultra high net worth, with US$30
million or more in net assets. On average, they are likely to be male, married and in their late
50s. In two out of three cases, their wealth is purely self-made rather than inherited.
The average net worth of the ultra wealthy individual was US$141 million in 2015, experiencing
an average increase of US$290,000 year on year. Finance, banking and investment remains
the most significant industry in which to find the ultra wealthy, but its lead has shrunk while
the percentage of UHNW individuals involved in manufacturing has grown to 8% since our
2014 reporta 3% increase.
SOURCE OF WEALTH
17.3%
18.9%
63.8%
UHNW Population
UHNW Population
UHNW Population
36,775
40,195
135,645
TOTAL: 212,615 I
Inheritance
Inheritance/Self-Made
0.6%
Self-Made
GENDER
UHNW Wealth
UHNW Wealth
88.7%
US$26.6 Trillion
US$3.4 Trillion
UHNW Population
UHNW Population
185,805
87.4%
Male
26,810
Female
12.6%
MOST SIGNIFICANT INDUSTRIES
Finance/Banking/Investment
14.7%
Manufacturing
8.0%
Industrial Conglomerates
5.6%
Non-Profit & Social Organisations
4.6%
Real Estate
4.3%
MARITAL STATUS
The overall marital status of UHNW

individuals is unchanged since 2014,
with 91% currently married, 4%
divorced, 3% widowed and 2% single.
Single
2.3%
Widowed
2.7%
3.6%
Divorced
91.3%
Married
11.3%
THE ULTRA WEALTHY BY AGE

Although much is made of the rise of young tech and social media entrepreneurs, the
incidence of UHNW wealth below the age of 30 is still rare, with this age group accounting
for just 1% of the UHNW population and 0.3% of its wealth in 2015. Half of UHNW wealth
is concentrated in the hands of those in their 50s and 60s.
Also notable is how average wealth rises with age for every generation; UHNW individuals
aged 80 or over are seven times wealthier than those under 30 and are worth nearly double
the average UHNW individual globally. By having the best financial advice and wealth
management available to them, UHNW individuals are able to keep building their net worth
even into retirement.
SHARE OF UHNW POPULATION AND WEALTH BY AGE
UHNW Population
80+
70s
60s
50s
40s
6.7%
13.0%
14,335
US$3.9 Trillion
14.8%
21.2%
31,450
US$6.4 Trillion
25.6%
26.5%
54,450
US$7.9 Trillion
29.8%
24.2%
63,390
US$7.2 Trillion
16.8%
11.9%
35,785
US$3.6 Trillion
5.2%
30s
11,025
Under
30
1.0%
2,180
UHNW Wealth
3.0%
US$0.9 Trillion
0.3%
US$0.1 Trillion
THE AMERICAS FOCUS COUNTRY:
UNITED STATES
2015
Country
UHNW
Population
2014
UHNW Wealth UHNW

(US$ Billion)
Population
UHNW Wealth
(US$ Billion)
UHNW
Population
Growth
The Americas
91,375
12,680
89,670
12,490
1.9%
1.5%
United States
69,350
9,525
69,560
9,630
0.3%
1.1%
As the worlds largest economy, it is perhaps natural that the United States should also
be the largest UHNW country. It is home to 69,350 ultra wealthy individualsmore
than the next five largest UHNW countries (Germany, Japan, China, United Kingdom
and India) put togetheror a third of the worlds total UHNW population. A quarter
(25.9%) of US UHNW wealth is held by billionaires.
However, growth in ultra wealth stalled in 2015, experiencing its first decline in both
wealth and population since 2012 and 2011 respectively. Given that the US economy grew
a respectable 2.5% over the yearprompting the US Federal Reserve to raise interest
rates in December 2015 for the first time in seven yearsthis may be surprising.
Frustrations that 2015 growth refused to hit International Monetary Fund projections
of 3% were widespread. Equities fell by 1.5% as concerns about plunging oil prices, the
timing of the Feds rate rise and Chinas slowdown mounted.
Its also worth noting that a fifth of the USs UHNW population derives its wealth from
finance, banking and investment and the S&P 500 financial sector fell 3.5% over the year as
energy losses and limited scope for increased revenues took their toll on analysts earnings
forecasts.
However, for the ultra wealthy in other sectors, 2015 was a positive year.
The S&P 500 consumer discretionary sector was up 8.4%its seventh consecutive annual
risedriven by double-digit gains from Netflix and Amazon as well as strong performances
from Starbucks, Expedia and Cablevision. Consolidation, including the change to including
the Pfizer/Hospira acquisition, lifted the healthcare sector. IT and consumer staples rose
4.3% and 3.8% respectively.
UHNW
Wealth
Growth
COUNTRY PROFILE
0.8%
25.9%
Billionaire Share of
UHNW Population
UHNW Population
AVERAGE NET WORTH

& LIQUIDITY
US$137
Million
23.5%
61
Liquidity
Average Age
Average Net Worth
(US$ MILLIONS)
% of UHNW
Population
Industry
Total: 139
106
Total: 137
Finance/Banking/Investment
20.6%
Non-Profit & Social Organisations
6.8%
Real Estate
4.5%
105
33
32
The Americas
United States
Non-Liquid Net Worth
CHANGE IN UHNW POPULATION

& WEALTH SINCE 2011
19.9%
Change in UHNW
Population
25.3%
Change in UHNW
Wealth
Liquidity
2015s marginal decline in the UHNW segment may also result from demographics. With an
average age of 61, the US UHNW population is older than that of many other developed
markets and a large proportion will be shifting from wealth accumulation to preservation.
Also, while liquidity levels dropped from the previous year (from 29% to 23.5%), holding
more than a fifth of wealth in cash in an ultra low-rate environment will have been a drag on
returnsalbeit providing protection from a volatile and unpredictable stock market.
10
ASIA-PACIFIC FOCUS COUNTRY:
CHINA
2015
Country
Asia-Pacific
China
UHNW
Population
2014
UHNW Wealth UHNW

(US$ Billion)
Population
UHNW Wealth
(US$ Billion)
UHNW
Population
Growth
UHNW
Wealth
Growth
51,515
7,785
50,805
7,490
1.4%
3.9%
12,050
1,740
11,070
1,565
8.9%
11.2%
Despite slowing economic growth and a roller-coaster stock market, Chinas ultra
wealthy population marked up powerful growth over 2015. Total UHNW wealth rose
US$175 billion, contributing 70% of the total global rise in wealth (US$250 billion)
over the period and substantially outpacing growth rates across Asia-Pacific as a whole.
The latest increases in wealth were supported by an equity market that, even given deep
slumps in June and August, still grew strongly in 2015. Equity rises may have particularly
boosted Chinas UHNW population given that on average they hold just 8.8% of their
wealth as cashthe lowest percentage of any focus country in this report. A solid 7% rise
in GDP benefited many of the 27% of ultra wealthy individuals involved in manufacturing.
In terms of population, Chinas UHNW sector grew by 980 individuals in 2015, or 8.9%, to
12,050. Chinas ultra wealthy population now includes 265 US dollar billionaires. Overall,
Chinas UHNW population has risen just 5% over the past four yearsa rate far lower than
that of its economic peers, such as the US (19.9%) and Germany (21.7%). This may reflect
the greater strictures that China still faces in supporting young enterprise, as well as its
economic slowdown. Also, China has one of the youngest UHNW populations, averaging
just 52 years old; therefore the multiplier effect of generational wealth transfer is still to be
felt.
11
COUNTRY PROFILE
2.2%
38.8%
UHNW Population
UHNW Population
AVERAGE NET WORTH

& LIQUIDITY
US$144
Million
8.8%
52
Liquidity
Average Age
Average Net Worth
(US$ MILLIONS)
% of UHNW
Population
Industry
Total: 151
Total: 144
130
Manufacturing
27.4%
Pharmaceuticals
5.1%
IT Services
4.5%
132
CHANGE IN UHNW POPULATION

& WEALTH SINCE 2011
21
13
Asia-Pacific
China
5.0%
Change in UHNW
Population
8.7%
Change in UHNW
Wealth
Non-Liquid Net Worth

Liquidity
Looking forward, Chinas entrepreneurs and business leaders face substantial new challenges
as the government navigates ambitious reforms to transition from an export-heavy economy
to a more consumption-focused one. It is worth noting that close to 40% of Chinas UHNW
wealth is held by billionaires with highly diversified global interests. As Chinas slowdown
and equity/FX declines continue to feed through to our data, it will be interesting to see to
what extent these individuals at the highest level of the ultra wealth scale are insulated from
events back home.
12
About Wealth-X
Wealth-X is a wealth information and insight business with unique data assets and specialised
skills, offering the worlds largest collection of hand-curated dossiers on the ultra wealthy and
the worlds leading high net worth market research.
We partner with the worlds leading prestige brands across the financial services, luxury,
not-for-profit and higher education industries to fuel strategic decision-making in sales,
marketing and compliance. We provide our clients with the data, analysis, advice and ideas
to drive business success through applied wealth intelligence.
Founded in 2010 and employing more than 200 staff across North America, Europe and Asia,
Wealth-X works with more than 500 clients.
Our team of experts is widely quoted as the global authority on wealth intelligence in
top-tier media, including the Financial Times, Business Insider, CNN, The New York Times
and the BBC.
The full report, featuring an additional 60 pages of statistics, analysis, and regional focus is
available to clients of Wealth-X. Please contact worldultrawealthreport@wealthx.com for
more information on the full report. For media enquiries, please contact press@wealthx.com.
13
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WORLD ULTRA WEALTH REPORT

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

THE GLOBAL ULTRA

UHNW Wealth UHNW

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

FORECAST UHNW POPULATION 2015-2020

FORECAST UHNW WEALTH 2015-2020 (US$ TRILLIONS)

Totals may differ due to rounding

*Compound Annual Growth Rate

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

PROFILING THE UHNW

Total UHNW Wealth

Average Net Worth

THE AVERAGE UHNW INDIVIDUAL

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

MOST SIGNIFICANT INDUSTRIES

Non-Profit & Social Organisations

The overall marital status of UHNW

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

THE ULTRA WEALTHY BY AGE

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

THE AMERICAS FOCUS COUNTRY:

UHNW Wealth UHNW

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

AVERAGE NET WORTH

Average Net Worth

MOST SIGNIFICANT INDUSTRIES

Non-Profit & Social Organisations

Non-Liquid Net Worth

CHANGE IN UHNW POPULATION

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

ASIA-PACIFIC FOCUS COUNTRY:

UHNW Wealth UHNW

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

AVERAGE NET WORTH

Average Net Worth

MOST SIGNIFICANT INDUSTRIES

CHANGE IN UHNW POPULATION

Non-Liquid Net Worth

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

WEALTH-X WORLD ULTRA WEALTH REPORT HIGHLIGHTS 2015-2016

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