The number of ultra-high-net-worth individuals is expected to grow by 3.9% a year over the next five years and their wealth to increase by 5.5% annually, but the growth in Latin America and Africa is expected to far outstrip that in other areas of the world, according to a new report by Wealth-X.
UHNW population growth on average in North America will be 2.4% annually over the next five years, while in Africa it will be 6.9% and in Latin America 6.5%, according to Wealth-X. Average annual wealth growth in North America will be 3.4% compared to 12.1% in Latin America and 11.2% in Africa, with other areas of the globe ranging in between, Wealth-X predicted.
The ultra-high net worth population grew by only 0.6% globally this year and their actual wealth decreased by 1.8%, according to Wealth-X, a business development organization that researches the population of those with at least $30 million in assets.
There are 187,380 people worldwide with $30 million or more in wealth, but their combined assets shrank to $25.8 trillion this year. The number of billionaires on the other hand grew by 9.4%, to 2,160 individuals, and their combined wealth grew by $14%, to $6.2 trillion, according to Wealth-X.
Asia is expected to have a higher and richer population of ultra-high-net-worth individuals than the U.S. by 2025, seven years earlier than previously predicted.
Because of the shifts in economies in the world, investment trends are changing, according to the report.
"UHNW investors are shifting their wealth into private companies, real estate and commodities," Wealth-X said. "Risk aversion is largely reflected in the shift away from speculative financial investments to hard assets."
-Karen DeMasters