The global ultra high net worth population shrank last year. When it does grow again, it’s predicted to happen at a slower rate. Here’s why.
Ultra high net worth individuals, or UHNWIs, represent a small segment of the world’s population but hold a large amount of its wealth: at least $30 million in net assets per person. As of late, the exclusive group is becoming even smaller. A recent study on global wealth by real estate consultancy Knight Frank reveals that the number of UHNWIs worldwide has declined over the last year.
According to Knight Frank’s 2015 Wealth Report, 193,100 individuals qualified as UHNWIs at the end of 2014. By the end of last year, that number had dropped to 187,500.
Latin America and the Caribbean, including Brazil and Venezuela, saw a drop in wealthy individuals between 2014 and 2015, the highest percentage of any region. North America, Europe and Australasia suffered the least, losing only about 2% of UNHWIs.
Furthermore, Knight Frank found that global UHNWI growth will slow over the next decade. After increasing by 61% from 2005 to 2015, the number of UHNWIs is expected to expand by about 41% over the next 10 years. So eventually, the total number of UHNWIs will expand again, albeit not as quickly.
Predicted growth is expected to vary widely by region. For example, the number of Asian UHNWIs will rise by 66%, compared with 27% growth in Europe.
Read more: The Shrinking Number of the Ultra Rich | Investopedia http://www.investopedia.com/articles/wealth-management/032116/shrinking-number-ultra-rich.asp#ixzz43kSXQ8Ri
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