Wealth X World Ultra Wealth Report 2017 FINAL

APPLIED WEALTH INTELLIGENCE
WORLD ULTRA WEALTH

REPORT 2017
WORLD ULTRA WEALTH
REPORT 2017
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TABLE OF CONTENTS
EXECUTIVE SUMMARY_ ___________________________________________ 1
INTRODUCTION__________________________________________________ 3
GLOBAL MAP OF THE ULTRA WEALTHY______________________________ 4
THE ULTRA WEALTHY IN 2016:

HOPES AND FEARS_______________________________________________ 7
ULTRA WEALTH BY TIER__________________________________________ 12
FORECAST TO 2021______________________________________________ 14
TRENDS AMONG THE ULTRA WEALTHY:

IMPLICATIONS FOR THE WEALTH MANAGEMENT,
LUXURY AND NOT-FOR-PROFIT SECTORS _ _________________________ 17
TOP 30 UHNW COUNTRIES_ _____________________________________ 22
TOP 30 UHNW CITIES___________________________________________ 24
PROFILING TODAYS ULTRA WEALTHY_ ____________________________ 26
ULTRA WEALTHY ARCHETYPES_ _________________________________ 33
METHODOLOGY________________________________________________ 36
ABOUT WEALTH-X_ ____________________________________________ 37
WEALTH-X WORLD ULTRA WEALTH REPORT 2017

EXECUTIVE SUMMARY
A RISE IN THE GLOBAL ULTRA WEALTHY POPULATION AND ITS TOTAL WEALTH.
In 2016, the world’s ultra high net worth (UHNW) population – individuals with $30m or
more in net worth – grew by 3.5% to 226,450 individuals, a partial recovery from a sharp fall a
year earlier. Their combined wealth also increased in 2016, expanding by 1.5% to $27trn. The
average net worth of the ultra wealthy declined for the first time since 2013.
NORTH AMERICA AND ASIA THE GROWTH FRONT-RUNNERS AS LATIN AMERICA

FALTERS. There were sharp regional fluctuations in dollar-denominated wealth creation,
with North America (+5.1%) and Asia (+3.5%) recording the only significant rises in wealth
in 2016. The picture was subdued in Europe, with the ultra wealthy population and its total
wealth edging slightly lower, while fortunes remained largely unchanged in the Middle East.
Latin America and the Caribbean registered a significant fall and Africa also posted a decline.
DIVERGING PERFORMANCE ACROSS THE WORLD’S MAJOR ECONOMIES. Currency

movements were a key driver of UHNW wealth trends in 2016, contributing to solid gains
in the US, Japan, India and Indonesia, but generating substantial losses in the UK, Russia,
Mexico and Brazil. Buoyed by a stronger dollar, rising equity markets and a robust tech
sector, the US consolidated its dominant position as the world’s leading UHNW country.
THE NEW YORK METROPOLITAN AREA BOLSTERED ITS POSITION AS THE WORLD’S
LARGEST UHNW CITY. Two other global financial hubs, Hong Kong and Tokyo, maintained
their top-three city status. London remains the largest UHNW city in Europe, but its
lead over Paris narrowed sharply. Though China has the world’s third-largest ultra wealthy
population, Shanghai came in joint 29th, emphasising the point that robust wealth creation
is occurring not just within its top-tier cities.
LIQUID ASSETS ACCOUNT FOR THE LARGEST SHARE OF HOLDINGS. The stock of liquid
assets (primarily cash) owned by the ultra wealthy stood at $9.6trn in 2016, accounting for
the largest share (35.4%) of UHNW holdings. Abundant liquidity also reflects a continuing
‘search for yield’ and underlines the enormous spending potential of the world’s ultra wealthy.
OPPORTUNITIES AND CHALLENGES FOR THE INDUSTRIES THAT CATER TO AND TARGET
THE ULTRA WEALTHY. Rapid advances in technology, growing demand for ‘experiential’
luxury, the movement towards increasing global transparency and rising philanthropic
engagement have implications for the wealth management, luxury goods and not-for-profit
sectors in the years ahead.
SOLID GROWTH EXPECTED ACROSS THE ULTRA WEALTHY SECTOR. Despite the
heightened geopolitical instability, the global ultra wealthy population is forecast to rise to
299,000 people by 2021, an increase of 72,550 compared with 2016 levels. UHNW wealth is
projected to rise to $35.7trn, which implies an additional $8.7trn of newly created wealth over
the next five years. The trend towards a more balanced global distribution of ultra wealth
across the different regions will continue.

1
INTRODUCTION
The Wealth-X World Ultra Wealth Report 2017 analyses the state of the world’s ultra high
net worth (UHNW) population, an exclusive group of wealthy individuals located across
the globe, each with $30m or more in net worth. This report offers a detailed insight
into developments across the ultra wealthy population in 2016. It considers political and
market moves, regional trends and the distribution of wealth, and profiles the ultra wealthy
population in terms of their asset holdings, source of wealth, industry focus, education and
hobbies. We also draw on our extensive knowledge base to rank the leading countries and
cities of the world in terms of their ultra wealthy populations.
The report also looks to the future, presenting our outlook for the ultra wealthy population
and its combined net worth to 2021, alongside an analysis of the geopolitical risks, economic
prospects and structural factors that underpin this forecast. We examine major trends
among the ultra wealthy – advances in technology, rising demand for ‘experiential’ luxury,
the move towards global transparency and a rise in philanthropy – and consider some of the
implications for the wealth management, luxury goods and not-for-profit sectors.
As in our recent Billionaire Census 2017, we also investigate the characteristics of four
archetypal ultra wealthy groups: individuals from ‘emerging Asia’ (Asia excluding Japan,
Singapore and Hong Kong); those who graduated from an Ivy League university in the US;
millennials (those born between 1980 and 1995) and the female ultra wealthy population.
This deep drill reveals some contrasting trends across age, gender and geography, while also
highlighting the different channels – new and established – of ultra wealth creation.
At a time of political and economic change, the Wealth-X World Ultra Wealth Report 2017 offers
a unique and market-leading insight into this group of individuals, the changing landscape
of the ultra wealthy and the key issues that are likely to influence wealth creation in the
years ahead.
AN UPDATE TO THE WAY IN WHICH WE SIZE AND FORECAST

THE ULTRA WEALTHY POPULATION AND ITS WEALTH
In order to estimate the size and wealth of the ultra wealthy population, and to rank the top countries
and cities, this report uses our newly updated proprietary Wealth and Investable Assets Model. This
model produces statistically significant estimates for total private wealth and estimates the size
of the population by level of wealth and investable assets for the world and each of the top 70
economies, which account for 97% of world GDP.
Due to a lack of wealth distribution data, most wealth models estimate wealth distribution patterns
using income distribution data. However, Wealth-X’s proprietary database of more than 100,000
dossiers on ultra high net worth individuals across the globe, as well as further dossiers on individuals
lower down the wealth pyramid, allows us to construct wealth distribution patterns using real – rather
than implied – wealth distributions, making the model more reliable.
To profile the ultra wealthy population in greater depth, we continue to use our unique and proprietary
Wealth-X Ultra High Net Worth Database, the world’s most extensive collection of curated research
and intelligence on ultra wealthy individuals.
For further information, please see the Methodology section.

3
GLOBAL MAP
OF THE ULTRA WEALTHY
AFRICA
LATIN AMERICA AND

THE CARIBBEAN 2,170 -4.0%
NORTH AMERICA
6,850 -3.4%
-4.7%
81,700 5.7% $212bn
-10.2%
$945bn
5.1%
$9,633bn
36%
1%
3%
% of the world’s ultra wealthy population
4 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

% Change in population % Change in wealth
3.5% 1.5% from 2015
from 2015
2016 226,450 $27,035

Ultra wealthy Number of ultra Total wealth
population and wealthy individuals ($bn)
total wealth
ASIA
59,850 6.6%
EUROPE 3.5%
$6,773bn
MIDDLE EAST
64,370 -0.2%
PACIFIC
8,380 -0.1%
-2.4%
$7,724bn 3,130 3.0%
0.1%
$1,440bn
0.3%
$308bn
28%
4%
26%
1%
Note: Data on % of the world’s ultra wealthy population does not total 100% due to rounding.
Source: Wealth-X

5
THE ULTRA WEALTHY
IN 2016
HOPES AND FEARS
In a year of political shocks and economic Mirroring the volatile global backdrop,
uncertainty, the world’s ultra wealthy there were marked regional fluctuations in
population, comprising people each with the ultra wealthy population and in total
a net worth above $30m, grew by 3.5% net worth. Among the seven main regions,
to 226,450 individuals, a partial rebound four – North America, Asia, the Middle
from a sharp fall of 7.1% a year earlier. The East and Pacific – recorded an increase
combined wealth of this exclusive group – in wealth, although the Middle East and
which comprises just 0.003% of the global Pacific registered only very slightly positive
adult population – also increased in 2016, increases. North America and Asia registered
albeit by a modest 1.5% to $27trn. As a result, the strongest growth in the number of ultra
the average net worth of the ultra wealthy wealthy individuals. In contrast, 2016 was
declined slightly for the first time since 2013. a terrible year for Latin America and the
Caribbean, which suffered double-digit
falls in its ultra wealthy collective wealth,
IN 2016, THE WORLD’S although the decline in the population
ULTRA WEALTHY was less severe. Elsewhere, the picture was
POPULATION GREW BY subdued, with the ultra wealthy population and
its wealth edging lower in Europe and Africa.
3.5% TO 226,450 INDIVIDUALS,
A PARTIAL REBOUND FROM
A SHARP FALL OF 7.1%
A YEAR EARLIER.
NORTH AMERICA AND ASIA

REGISTERED THE STRONGEST GROWTH

7
One notable development in 2016 was the reflation’ boost to financial markets late
diverging wealth patterns in many of the in the year, leaving most major exchanges
world’s major economies. Whereas the US, reporting year-end growth. On an annual
Japan, India and Indonesia all generated basis, global real gross domestic product
substantial additional wealth, sizeable losses (GDP) in 2016 rose at its weakest pace for
were recorded in the UK, Russia, Mexico seven years, constraining international trade
and Brazil. Currency movements were a flows and commodity prices.
key driver of these contrasting fortunes
– an indication of heightened market 2016
instability throughout the year – although GLOBAL M&A NUMBER OF
other broader trends in global markets and VOLUMES IPOs
country-specific events were also at play. DOWN DOWN
18% 16%
SIGNS OF THE TIMES
Political risk was the defining feature of

Global mergers and acquisitions (M&A)
2016, contributing to an underlying sense
activity followed a similar trend, gaining
of business and investor caution, while also
momentum only late in the year to deliver
triggering volatile shifts in market sentiment.
a series of major deals, capped by AT&T’s
Donald Trump’s presidential victory in
$107.9bn bid for Time Warner, the seventh
the US and the unexpected Brexit vote
largest M&A transaction on record. Over
in the UK revealed a previously untapped
2016 as a whole, M&A volumes were
populist agenda and set out an uncharted
down 18% from the record-high level of
policy course for two of the world’s largest
the previous year. Revenue was just 2%
economies and financial-services markets.
lower,1 however, indicating the significant
Uncertainty was compounded by escalating
proportion of mega-deals. The technology
tensions across the Middle East, an
sector led the way for a second successive
attempted coup in Turkey, a constitutional
year. In general, corporates around the
referendum defeat in Italy, anti-immigrant
world adopted a fairly cautious stance on
friction across the EU, a populist surge in the
new fundraising, with the number of initial
Philippines and a presidential impeachment
public offerings (IPOs) down by 16%
in Brazil.
over the year (following a fairly subdued
The upshot of all this was a roller-coaster performance in 2015) and the amount of
ride in the economic and financial markets. capital raised declining by a third.2 Asia-
The broad picture was one of subdued Pacific was the dominant region, accounting
global growth and investor activity over for more than half of global IPO activity
the first nine months of 2016, followed by a both in terms of volume and proceeds raised.
synchronised upturn in output and a ‘Trump
1 Dealogic, Global M&A Review: Full Year 2016

2 EY, Global IPO Trends 2016 4Q

DOLLAR STRENGTH
The US dollar was a major factor in the fluctuating regional fortunes of the global ultra
wealthy population in 2016. Having strengthened over recent years, the currency appreciated
to a 13-year high (in trade-weighted terms) immediately after the US presidential election
in November, delivering an across-the-board boost to domestic financial markets. The S&P
500 composite equity index ended the year up 10%, with the financial-sector index 20%
higher, underpinned by a steadily expanding US economy.
Lifted by this favourable backdrop, NORTH AMERICA recorded the strongest growth in ultra
wealth in 2016, posting a 5.1% increase and consolidating its position as the world’s dominant
UHNW region with a 35.6% share of global wealth. The rise in net worth was accompanied
by a robust expansion of the region’s ultra wealthy population, which advanced to a record
high of 81,700 individuals. This was a US-driven story, with Canada seeing a decline in the
number of ultra wealthy individuals and their combined wealth, hampered by a weaker
Canadian dollar and the still subdued trend in global oil prices.
THE US DOLLAR WAS A MAJOR DETERMINANT IN THE

FLUCTUATING REGIONAL FORTUNES OF THE ULTRA WEALTHY.
ASIA was the only other region to register a significant increase in UHNW wealth, which
rose by 3.5% on the back of solid gains in Japan and India and a more moderate gain in
China. The region recorded the fastest growth in its ultra wealthy population, with a 6.6%
expansion just outpacing the 5.7% rise in North America. Asia’s market share of the global
ultra wealthy population has been increasing steadily and accounted for over 26% in 2016,
up from just above 18% a decade earlier. Resilient economic growth and supportive currency
movements were the main drivers of wealth gains across the region in 2016. Investor fears of a
major slowdown in China were largely unfounded, while ongoing reforms in India continued
to support robust economic activity, despite the disruption of a banknote demonetisation
in November. Japan recorded the largest rise in UHNW wealth of all the Asian countries,
boosted by the strength of the safe-haven Japanese yen, which even appreciated against the
dollar. There was a positive overall equity performance in the region (in dollar terms) but this
disguised quite sharp local-currency falls in China’s benchmark Shanghai Stock Exchange
and Japan’s Nikkei Index.

9
BREXIT WEAKNESS
In contrast to North America and Asia, ultra wealth trends were more subdued
in EUROPE, the other dominant UHNW region. The number of ultra wealthy
individuals decreased marginally by 0.2%, while the combined wealth of the region
declined by 2.4%, dragged down by sharp falls in the UK and Russia. The most
immediate impact of the mid-year Brexit vote in the UK was a slump in the
value of sterling, which fell to a 31-year low against the US dollar before
recovering a little ground later. Despite resilient economic growth
and a positive equity performance – the benchmark FTSE-100
Index ended 2016 at an all-time high in local-currency terms,
boosted by mining companies and overseas earners – overall
dollar-denominated UHNW wealth in the UK fell
by 14.2%.
A sizeable decline was also recorded in

Russia, amid ongoing trade sanctions
and the continued fallout from the
earlier slump in commodity prices.
Ultra wealth levels in other major
countries in the region, such as EUROPE
Germany and France, remained PUT IN A MORE SUBDUED
largely stable in 2016, if in slightly PERFORMANCE
negative territory. While economic
growth in the region showed
signs of modest improvement,
financial-market activity was
muted. Even with a fourth-
quarter rally, the annual level
of capital raised in IPO activity
in Europe slumped by almost
50% compared with 2015, while M&A
volumes in the region fell by 13% to a three-year low.
LATIN AMERICA AND THE CARIBBEAN was the hardest-hit region, experiencing
a 3.4% fall in its ultra wealthy population and a 10.2% slump in combined
wealth. The region’s two largest economies, Brazil and Mexico, continued to
underperform, while assets denominated in local currencies fell sharply in value in
late 2016 against a strengthening US dollar. Investor unease was also heightened by
political instability in Brazil following the presidential impeachment and removal
from office of Dilma Rousseff in August.

MAJOR WEALTH DRIVERS IN 2016
Local currency
against the
Region GDP Equities US dollar
World
Africa
Asia
Europe
Latin America and the Caribbean
Middle East
North America
Pacific
Note: GDP represents the sum of each country’s GDP in current $ prices within each region and equities the sum of stock-market
values in $. Currency movements were aggregated based on each country’s proportion of GDP within its region.
Sources: Wealth-X; International Monetary Fund; World Bank; national stock-market exchanges.
With growth in equity markets and economic activity subdued, and parts of the region beset
by social unrest and war, the MIDDLE EAST recorded a flat performance in UHNW wealth
and population size in 2016, although this was a major improvement on the slump of 2015.
We have highlighted in previous reports the diversified asset portfolios of the region’s ultra
wealthy individuals, but the wealthiest countries in the region – Saudi Arabia, the United
Arab Emirates and Kuwait – nevertheless continued to struggle with the underlying weakness
of oil prices, despite a gradual recovery in global commodity markets over the course of 2016.
In the PACIFIC region, which primarily reflects developments in Australia, ultra wealth was
broadly flat, rising by just 0.3%, while its population rose by 3%. Modest support from a
relatively stable currency, an improved equity performance and still rising real estate prices
helped to offset the country’s significant asset exposure to subdued commodity markets.
AFRICA recorded a 4% drop in its ultra wealthy population in 2016, led by a substantial fall in
Nigeria. South Africa, the region’s most industrialised economy, experienced a small increase
in its ultra wealthy population and combined wealth following three successive annual falls.

11
ULTRA WEALTH
BY TIER
% Change in % Change
population in wealth
from 2015 from 2015
2016 226,450
3.5%
$27,035 1.5%
Ultra wealthy ($bn)
individuals
WEALTH TIER
POPULATION TOTAL WEALTH
(individuals) ($bn)
2,397 $1bn+ 7,400
3,803 $500m-$1bn 2,631
8,980 $250m-$500m 3,092
33,650 $100m-$250m 5,040
69,010 $50m-$100m 4,736
108,610 $30m-$50m 4,135
Source: Wealth-X

ALMOST HALF OF THE GLOBAL ULTRA WEALTHY
POPULATION HAD A NET WORTH OF BETWEEN
$30M AND $50M, WITH THE NUMBER OF
INDIVIDUALS IN EACH TIER DIMINISHING STEADILY
AS THE WEALTH PYRAMID RISES.
In 2016, all tiers of the global ultra wealthy population expanded in size and recorded an
increase in net worth, with the notable exception of billionaires. This exclusive group
registered a 3.1% decline in numbers – the first annual fall since the global financial crisis –
and took a 3.7% hit to its combined US dollar wealth.3 Despite the modest falls in individuals
and net worth, the influence of the global billionaire population remained considerable.
Accounting for just 1.1% of the total number of ultra wealthy individuals, this elite group
controlled almost 28% of the world’s combined ultra wealth.
Among all the other wealth tiers combined, the annual pace of growth in population and
net worth was around 3% – an indication that despite the uncertain global backdrop,
opportunities for wealth creation were widely available, more so than in 2015.
Almost half of the global ultra wealthy population had a net worth of between $30m and
$50m, with the number of individuals in each tier diminishing steadily as the pyramid rises.
Average net worth for the approximately 108,500 UHNW individuals in the lower tier was
$38m, rising to $344m for those in the $250m to $500m bracket and a substantial $3.1bn for
the small group of 2,397 billionaires.
3 See our Billionaire Census 2017 for further information.

13
FORECAST TO 2021
Following a period of robust growth at the beginning of this decade, momentum in ultra
wealth creation has softened over recent years against a backdrop of weaker global economic
activity, a slowdown in globalisation and heightened geopolitical risks. However, the steady
expansion of the ultra wealthy population in 2016 underlined the resilience of this group of
people and we forecast strong growth in the total number of ultra wealthy individuals and
their combined wealth over the coming years.
By 2021, we expect the global ultra wealthy population to total 299,000, an increase of
72,550 compared with 2016. The level of UHNW wealth is projected to rise to $35.7trn,
which implies an additional $8.7trn of newly created wealth over the next five years. Our
forecasts show similar compound annual growth rates for the ultra wealthy population and
its combined wealth over the 2017-2021 period, pointing to a stable pattern in average net
worth. Meanwhile, the trend towards a more balanced global distribution of ultra wealth
across the different regions is expected to continue.
Global ultra wealthy population (individuals)

Wealth ($bn)
$bn
40,000
350,000
35,000
300,000
30,000
250,000 25,000
200,000 20,000
150,000 15,000
100,000 10,000
50,000 5,000
0 0
2012 2013 2014 2015 2016 2017F 2018F 2019F 2020F 2021F
Source: Wealth-X

STRUCTURAL DRIVERS
LONG-TERM GROWTH DRIVERS INCLUDE URBANISATION,

RISING INCOME LEVELS AND AN INCREASE IN FEMALE
LABOUR IN DEVELOPING MARKETS, AS WELL AS THE
ONGOING RAPID ADOPTION OF TRANSFORMATIVE DIGITAL
TECHNOLOGIES AROUND THE WORLD.
Short-term prospects for ultra wealth creation have been boosted by the moderate – but
clear – upturn in global economic activity since late 2016. A synchronised firming of industrial
demand and financial-market sentiment, alongside faster inflation and falling unemployment
in most major countries, point to a world economy that is looking healthier than it has for
some time. A gradual tightening of monetary policy by the Federal Reserve (the US central
bank) is testament to the more upbeat tone across global markets, with equities, IPO activity
and M&A transactions all rising in the opening months of 2017. The greater optimism should
not be overstated, yet the expectation is for a more supportive economic environment for
wealth creation during 2017.
On a broader level, a number of underlying structural trends in the global economy will
continue to provide opportunities for asset-value appreciation throughout the five-
year forecast period. Growth drivers will include urbanisation, rising income levels, the
‘premiumisation’ of consumption (the shift among consumers towards more expensive
premium products as their income/wealth rises) and an increase in female labour in developing
markets, as well as the ongoing rapid adoption of transformative digital technologies around
the world.
RISING IN THE EAST
Much of the expansion of the global ultra wealthy population will be driven by Asia, notably
China and increasingly India – the latter is likely to emerge as the region’s fastest-growing
large economy. The number of ultra wealthy individuals is also expected to expand rapidly
in other high-growth Asian countries, such as Vietnam and Indonesia. Although the pace
of headline economic growth in China is expected to moderate, discretionary income levels
across the country will continue to rise, reshaping the world’s largest consumer market and
creating additional opportunities for wealth creation, especially in retail and real estate.
China’s One Belt, One Road (OBOR) initiative – or the Silk Road Economic Belt and 21st
Century Maritime Silk Road, to give it its proper title – will also present numerous openings
for new and expanding fortunes across Asia and its surrounding regions, particularly in the
areas of infrastructure, energy and technology.

15
Outside Asia, the ultra wealthy population of the US is forecast to continue to expand
steadily. Growth in the European ultra wealthy population is projected to rise at a more
modest pace than that of the US. The Middle East, as well as parts of Africa and the Pacific
region, should be supported by a moderately firmer trend in global commodity markets.
HEADWINDS ABOUND
However, while we expect a robust expansion of the global ultra wealthy population and
its net worth over the next five years, it is important to acknowledge the dramatic shift
in the geopolitical environment that has taken place recently. The changes bring greater
uncertainty over the prospects for future wealth creation, along with a number of significant
downside risks to global growth. Underlying Donald Trump’s unexpected victory in the US
presidential election and the UK’s decision to leave the European Union was a clear sense of
deep popular dissatisfaction with the ‘establishment elite’ and a desire for change. Although
the populist challenge in Europe has since lost some momentum following elections in the
Netherlands and France, the threat of a broader retreat from peak globalisation around
the world is likely to continue over the coming years, amid more strident views on issues of
immigration, deindustrialisation and sovereignty.

TRENDS AMONG THE
ULTRA WEALTHY
IMPLICATIONS FOR THE WEALTH
MANAGEMENT, LUXURY AND
NOT-FOR-PROFIT SECTORS
Rapid advances in technology, growing demand for personalised consumption, more

restrictive controls on cross-border flows and rising philanthropic engagement were some of
the major social, political and economic trends to evolve in 2016. In today’s innovative and
complex global economy, they are especially relevant to the ultra wealthy and the industries
that either target them or cater specifically to their needs. We examine recent developments
in these areas and consider the implications for the wealth management, luxury goods and
not-for-profit sectors in the years ahead.

17
HOW TECHNOLOGY IS DISRUPTING WEALTH MANAGEMENT
Rapid advances in technology, coupled with a data. This is aimed primarily at the lower
new generation of investors whose preferences strata of wealth accumulation, but the wider
and expectations have been shaped by the implications are clear to see. As expectations
digital world, are having a transformative for digital functionality continue to rise
effect across the global economy. From retail among the ultra wealthy – many of whom
to manufacturing, from telecoms to financial now regularly use online and mobile banking
services, the disruptive impact of new services and review their portfolio markets
technology is clear to see. online – an increasing share of the traditional
wealth manager’s role faces being delegated
The traditional business model of wealth to technology. A similar bifurcation of the
management is one predicated on a market is becoming apparent in the luxury real
personalised client service, providing counsel estate sector, with technology now addressing
tailored to an individual’s investment goals, many of the simpler aspects such as property
lifestyle choices and attitude to risk. For availability, internal viewing and services
many ultra wealthy individuals with complex support. The role of the luxury property
asset structures and intricate wealth transfer broker has become more of a high-level wealth
requirements, this personal interaction is likely advisor, offering expertise, nuance and insight
to remain in high demand. It offers a sense of about specific markets and locations.
assurance on savings, investments, tax and
legal affairs in a rapidly changing regulatory The complexities of tax structures, estate
environment. Rising concerns over security planning and investment suggest a hybrid
and data privacy among the ultra wealthy arrangement of technology-driven service
also suggest there is a limit to their reliance efficiency and personalised face-to-face client
on technology. Nevertheless, many aspects of interaction will emerge as the preferred form
the wealth management sector remain highly of wealth management provision for most
vulnerable to digital disruption, given the ultra wealthy individuals. For the sector itself,
ongoing innovation in algorithmic software, the digital revolution implies a significant
the growing competition from standalone shake-up of the status quo, throwing up tough
fintech firms and the steady increase in tech- challenges but also creating new opportunities
savvy ultra wealthy individuals who demand to adapt and refresh the client-wealth manager
convenience and speed in service delivery. relationship.
The evolution is already apparent across parts

of the industry, with fully automated robo-
advisors now able to offer a streamlined wealth
management service to investors, employing
algorithms to determine a suitable investment
strategy based on a defined set of personalised

EARLY ADOPTERS AND THE SHIFT TO ‘EXPERIENTIAL’ LUXURY
The number of ultra wealthy individuals is of the ultra wealthy on a lifestyle experience
forecast to grow strongly over the next five and personal enjoyment as a simple statement
years. This will provide a larger pool of potential of riches. This shift is stimulating demand
consumers of luxury goods and services, and for other out-of-home4 luxury experiences,
greater opportunities for luxury brands to such as ‘transformative’ travel (from socially
enhance their market share around the world. engaged trips to the ultimate escape of space
The ultra wealthy have always been avid flights), fine dining, high-end entertainment
early adopters and new frontiers will remain and personal beauty services, as well as in-
a particular focus of luxury consumption. On home indulgences linked to high-quality
the technology front, continued advances design, architecture and fine art.
in artificial intelligence (AI), virtual reality
(VR) and smart-home technology are likely High-end businesses in these sectors will
to attract increasing levels of spending by ultra benefit particularly from the growing
wealthy individuals. Within the luxury car discernment among the expanding ultra
segment, the ultra wealthy have been among wealthy population in emerging markets.
the prime purchasers of electric vehicles It will also spur more luxury providers to
and marques equipped with connected-car integrate a more heuristic approach to the
technologies. This first-mover approach is consumption process, with service likely to
expected to extend to self-driving vehicles – become a strong differentiator for luxury
touted to be available by the end of the decade brands. This also fits with the ultra wealthy’s
– which have the potential to be one of the growing requirement for personalisation in
most revolutionary advances in modern living. the search for exclusivity and uniqueness in
today’s increasingly commoditised world.
A recent trend in the more established wealth
markets of Europe and North America
has been a shift in consumption away from
tangible goods and towards more ‘experiential’
luxury. While this may still involve the
purchase of a desirable luxury asset, such as
a super yacht or private jet, the driving force
is just as likely to reflect an increasing focus
4 Bain, Luxury Goods Worldwide Market Study, fall-winter 2016

19
THE PUSH FOR GLOBAL ASSET DISCLOSURE
Rising public awareness of – and opposition to regulations on private wealth transfers, while
– the global tax arrangements of the wealthy a host of countries have introduced more
in recent years has led to a more concerted restrictive residency and stamp-duty rules
international examination of cross-border linked to real estate investments. Ahead of
flows of private wealth. Governments around the introduction of the CRS, tax amnesties,
the world have stepped up efforts to regulate such as those in Italy and Indonesia, have been
these movements of capital, adopting stronger introduced to encourage investors to repatriate
regulatory positions on secrecy, transparency undeclared liabilities from foreign assets, and
and protection of personal data. more are likely to be announced. The CRS
will come into effect across most countries
This push for growing global asset disclosure throughout 2017-18 and will significantly
and reporting requirements is an important increase the volume and sharing of financial
issue for the ultra wealthy, extending beyond data on foreign citizens between governments.
concerns over asset protection and tax Ultra wealthy individuals, especially those in
liabilities to the pertinent challenge of how jurisdictions where regulatory oversight and
best to pass on their wealth and businesses to technological standards may be lacking, will be
the next generation. This is more relevant than concerned about the security of this data.
ever given the more apparent threat to wealth
preservation from the uncertain geopolitical
environment and the rising privacy and
security concerns of the ultra wealthy.
The momentum on full disclosure and

exchange of information for tax purposes
is building through frameworks such as
the Foreign Account Tax Compliance Act
(FATCA) in the US and the Organisation for
Economic Cooperation and Development’s
Common Reporting Standard (CRS).
Over the past few years, the governments of
China, Russia and Brazil have tightened their

A GROWING SENSE OF PHILANTHROPIC ENGAGEMENT
Donations to philanthropic causes from the With the level of intergenerational wealth
global ultra wealthy population have increased transfers set to rise sharply over the next
steadily since the global financial crisis, decade and beyond, the growing share of social
according to Wealth-X’s proprietary database entrepreneurs and environmentally conscious
on the ultra wealthy.5 This tallies with other individuals among the global ultra wealthy
survey findings that suggest philanthropy is population has implications across a range
becoming more important to ultra wealthy of sectors. From a wealth management and
individuals around the world. The precise not-for-profit sector perspective, there will
reasons for this can be difficult to pin down, be rising demand to cater for the increasingly
although two broad themes to emerge are sophisticated channels of philanthropic
a growing sense of social engagement and a engagement. New developments such as
motivation for personal fulfilment. impact investing – leveraging private capital
for social good – are building on the work of
The younger generation is likely to be a factor traditional foundations and financial vehicles
behind this – notwithstanding their modest are becoming more closely integrated into the
share of global ultra wealth – because they core strategy of the ultra wealthy’s businesses.
tend to be more socially and environmentally Limited liability corporate (LLC) structures
minded and more willing to drive employee- have been championed by eBay founder Pierre
based philanthropy. Innovations in giving Omidyar and more recently by Facebook’s
by several high-profile tech billionaires over Mark Zuckerberg and his wife, Priscilla
recent years may also have spurred wider Chan. Other innovations range from donor
engagement, along with growing concerns advice funds (DAFs) to social impact bonds
over the rise in global wealth inequality. The and programme-related investments (PRIs).
latter may partly reflect the stronger growth Many of these new products are hybrids,
in the ultra wealthy populations of many combining aspects of traditional philanthropy
emerging economies, where religious beliefs with tools more familiar to investment
and family/social ties – especially among first- professionals.
generation ultra wealthy individuals – have
instilled a desire to give something back.
5 See also Arton Capital and Wealth-X, Changing Philanthropy – Trend Shifts in Ultra Wealthy Giving (Third Edition)

21
TOP 30 UHNW
COUNTRIES
Year-on-year
change in Year-on-year
UHNW UHNW wealth population change in
Rank Country population 2016 ($bn) 2016 (%) wealth (%)
1 United States 73,110 8,719 6.7 6.0
2 Japan 16,740 1,546 14.7 13.8
3 China 16,040 1,950 3.6 2.2
4 Germany 13,420 1,570 4.5 -0.1
5 United Kingdom 8,860 994 -14.2 -14.2
6 France 8,630 924 2.7 -0.4
7 Canada 8,590 914 -1.5 -2.4
8 Hong Kong* 7,650 986 4.1 -2.4
9 Switzerland 5,940 788 -0.5 -1.4
10 Italy 5,530 624 1.8 1.7
11 India 4,510 604 8.9 4.7
12 South Korea 4,230 409 1.7 -0.7
13 Russia 3,780 666 -6.2 -7.2
14 Brazil 3,570 451 -1.1 -9.6
15 Spain 3,190 395 3.2 2.5
16 Taiwan 3,000 322 2.0 1.7
17 Netherlands 2,860 345 4.4 2.5
18 Sweden 2,660 315 4.3 3.2
19 Saudi Arabia 2,640 427 -0.4 -1.2
20 Australia 2,470 240 2.5 -0.8
21 Singapore 2,170 273 -0.5 -0.9
22 Indonesia 1,950 230 9.6 4.0
23 Denmark 1,440 149 7.5 5.6
24 Ireland 1,330 133 6.4 5.9
25 Belgium 1,320 122 7.3 7.2
26 Thailand 1,250 174 4.2 0.3
27 Turkey 1,190 150 -0.8 -2.2
28 United Arab Emirates 1,120 272 2.8 4.4
29 Mexico 1,050 205 -10.3 -19.7
30 Iran 950 190 0.0 -3.0
Note: Population numbers are rounded to the nearest 10.

*Hong Kong is a semi-autonomous, special administrative region of China.
Source: Wealth-X

The leading five countries (the US, China, Japan, Germany and the UK) accounted for
almost 57% of the global ultra wealthy population and just short of 55% of UHNW wealth
in 2016. Overall, the top 30 countries accounted for around 93% of both the world’s ultra
wealthy population as well as its total wealth. Of these 30 countries, 12 are in Europe, nine
are in Asia, four are in the Middle East, two are in North America and two in Latin America,
and one is in the Pacific region.
Buoyed by a stronger currency and rising equity markets, the US consolidated its dominant
position as the leading country for ultra wealthy individuals in 2016. The ultra wealthy
population of the world’s largest economy increased to 73,110, more than the combined
total of the next six largest UHNW countries (China, Japan, Germany, the UK, France and
Canada) and equivalent to just under one-third of the global ultra wealthy population. The
level of UHNW wealth in the US rose by 6%, with only Japan among the top 20 UHNW
countries recording stronger growth. The combined net worth of ultra wealthy individuals
in the US totalled $8.7trn, more than the cumulative UHNW wealth across the whole of
Asia and the Middle East.
CURRENCY SWAP
Whereas currency depreciation against the US dollar was a shared occurrence for most
major economies in 2015, foreign-exchange movements were more diverse in 2016, which
had a significant bearing on the rise and fall of UHNW wealth around the world. A rally
of the yen in 2016 supported a robust increase in the ultra wealthy population and its
combined wealth in Japan, while countries such as Indonesia and Denmark – whose
currencies were broadly stable against the firming dollar – all recorded solid year-on-year
gains in UHNW wealth and the size of their ultra wealthy populations. The euro also held
its ground in a gradually improving regional economy, which led to respectable gains in
net worth across some of the 19-member bloc, particularly in Ireland, Belgium and the
Netherlands.
In contrast, the major countries that suffered the largest falls in their ultra wealthy
populations and levels of UHNW wealth in 2016 – Mexico, Russia, the UK and Brazil
(albeit just in its wealth) – all saw their currencies weaken sharply against the dollar. A
weak economy, subdued stock-market performance and deepening political corruption
scandals all contributed to a near 10% slump in UHNW wealth in Brazil (though a less
severe 1.1% drop in population). The Mexican peso and British pound both depreciated by
more than 10% against the dollar. Heightened Mexico-US political tensions and the Brexit
vote in the UK prompted a reassessment of the countries’ economic prospects among
investors. The UK experienced just over a 14% decline in both its ultra wealthy population
and UHNW wealth in 2016, one of the largest falls of any major country. Although it was
able to preserve its fifth-placed ranking, the UK lost considerable ground to its peers.
CANADA FALLS AGAIN

Among the other leading UHNW countries, China recorded more modest growth in its
ultra wealthy population and combined wealth as currency trends and resilient economic
activity helped to offset a disappointing equity market performance. China has one of the
youngest ultra wealthy populations, whose wealth is held predominantly in more illiquid
assets, such as private holdings and real estate. Germany strengthened its position as the
largest UHNW country in Europe with a 4.5% rise in its ultra wealthy population, although
net worth remained broadly flat, implying a decline in average wealth levels. Along with
the UK, Canada was the only other top-10 country to suffer a sizeable fall in its ultra
wealthy population and net worth in 2016. This occurred on the back of a moderately
weaker currency and the relatively subdued trend in commodity markets. Since 2013, the
country’s ultra wealthy population has declined steadily, which has pushed Canada down
the rankings to its current seventh position.

23
TOP 30 UHNW
CITIES
Year-on-year change in
City/rank UHNW population 2016 population (%)
New York-Newark-Jersey City, NY-NJ-PA 1 8,350 +9.0
Hong Kong* 2 7,650 +4.1
Tokyo (Kanto MMA)** 3 6,040 +17.5
Los Angeles-Long Beach-Anaheim, CA 4 4,600 +8.0
London - Metro*** 5 3,630 -14.6
Paris - Metro 6 3,440 +4.6
Chicago-Naperville-Elgin, IL-IN-WI 7 3,110 +7.6
Washington-Arlington-Alexandria, DC-VA-MD-WV 8 2,570 +8.9
Osaka-Kyoto (Keihanshin MMA) 9 2,390 +16.6
Dallas-Fort Worth-Arlington, TX 10 2,330 +5.4
San Francisco-Oakland-Hayward, CA 11 2,310 +6.0
Houston-The Woodlands-Sugar Land, TX 12 2,290 -3.4
Singapore 13 2,170 -0.5
Boston-Cambridge-Newton, MA-NH 14 2,090 +8.9
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 15 2,020 +8.6
Zurich - Metro 16 1,930 +0.5
Toronto 17 1,760 +0.6
Seattle-Tacoma-Bellevue, WA 18 1,660 +8.5
Atlanta-Sandy Springs-Roswell, GA 19 1,590 +8.2
Miami-Fort Lauderdale-West Palm Beach, FL 20 1,450 +9.0
Nagoya (Chukyo MAA) 21 1,410 +16.5
San José-Sunnyvale-Santa Clara, CA 22 1,390 +7.8
Minneapolis-St. Paul-Bloomington, MN-WI 23 1,230 +7.9
Stockholm - Metro 24 1,160 +7.4
Detroit-Warren-Dearborn, MI 25 1,150 +9.5
Taipei 26 1,110 +2.8 Note: Population numbers are rounded to the nearest 10.
Cities are defined on the basis of urban agglomerations and
Seoul 27 1,080 +3.8 metropolitan (metro) areas, which include the built-up areas
outside the administrative core. Globally comparable city-
level data is not available; as such, to ensure comparability
Munich - Metro =28 1,070 +5.9 is as precise as possible, we have sourced consistent metro-
and urban-level population and GDP data. Major cities
San Diego-Carlsbad, CA =28 1,070 +7.0 are determined on a nominal GDP basis in $. For further
information, please see the Methodology section.
Moscow =30 960 -4.0 *Hong Kong is a semi-autonomous, special administrative

region of China.
Phoenix-Mesa-Scottsdale, AZ =30 960 +7.9 **MMA stands for major metropolitan area.
***Metro stands for metropolitan area.
Shanghai =30 960 +9.1 Sources: Wealth-X; Oxford Economics.

The New York metropolitan (metro) area bolstered its position as the world’s largest
UHNW city in 2016, with the number of ultra wealthy individuals rising strongly to more
than 8,300. The world’s premier financial centre and the largest regional economy in
the US remains a powerful magnet for the ultra rich. Two other global financial hubs,
Hong Kong and Tokyo, maintained their top-three city status, with the Japanese capital
recording the largest increase in UHNW population (in percentage terms) of all 30 leading
cities. New York and Hong Kong were also the top two billionaire cities as investigated by
our recent Billionaire Census 2017, though Tokyo was ranked lower, in 16th position.
US CITIES DOMINATE
Underlining its dominant status among the global ultra wealthy population, the US
accounted for five of the top 10 cities in our ranking and more than half of the top-30
list. All but one, Houston, recorded an increase in their ultra wealthy population in 2016,
benefitting from the improved performance of domestic financial markets, the continued
expansion of the lucrative tech sector and the broad appeal of the large US economy in
more uncertain times. The allure and prestige of the celebrated powerhouses of New York
and Los Angeles is clear but ultra wealth is spread far and wide across the US, with less
celebrated cities such as Philadelphia, Seattle and Atlanta being the location of choice for
a sizeable number of UHNW individuals. Also of interest is the San Francisco metropolitan
area’s 11th-placed ranking, which compares with its elevated fifth position in our study of
top billionaire cities. As home to many of the world’s very richest individuals, including
household names in the tech sector, San Francisco attracts considerable attention.
However, in terms of its overall UHNW population, it lies behind a number of other cities,
including Chicago and Dallas.
London was a stand-out performer for the wrong reasons in 2016, being the only top-
10 city to register a decline in its UHNW population. In fact, the UK capital suffered
the largest proportional drop in ultra wealthy numbers of all 32 cities in our ranking, as
wealth levels took a hit from currency weakness and Brexit-related concerns. Still a major
financial and cultural draw for the world’s ultra wealthy, London held on to its status as the
largest UHNW city in Europe, although its lead over Paris narrowed sharply. In terms of
regional coverage, Europe accounted for six of the top 30 UHNW cities, with the financial
safe-haven of Zurich the next highest in the ranking. Moscow – another high flyer in our
billionaire list – just made the final cut, experiencing the second-largest fall in its UHNW
population (after the UK) of the top 30 cities.
SHANGHAI JUST MAKES THE CUT

Despite boasting the fourth-highest number of ultra wealthy individuals of any country
(and the most in Europe), Germany only has one city – Munich – in our list, ranked in a
modest 28th position. Similar in part to the US, although without a star performer at the
helm, this highlights how Germany’s substantial levels of wealth are dispersed across the
country. This is also applicable to China, with Shanghai coming in joint 29th, even though
the country has the world’s second-largest ultra wealthy population (Beijing ranks 35th).
Robust wealth creation is occurring across the huge expanse of China, which now has
more than 100 cities with a population of more than one million individuals. In contrast
to London, for example, which is home to 41% of all the UK’s ultra wealthy individuals,
Shanghai accounts for just 6% of the total Chinese ultra wealthy population.
There is also no city representation from the Latin America, Middle East, Africa or Pacific
regions. Notable absences – based on our country ranking – include major cities in Brazil,
such as Rio de Janeiro and São Paulo, as well as Mexico City and the largest UHNW city
in Australia, Sydney. Negative economic developments and a hit to wealth from currency
depreciation contributed to marked falls in the UHNW populations of these four cities.

25
PROFILING TODAY’S
ULTRA WEALTHY
A breakdown of the global ultra wealthy population in 2016 by their asset holdings, gender,
industry focus, wealth source, education and hobbies.
ASSET ALLOCATION
Liquid assets Private Public Real estate and

(cash) holdings holdings luxury assets
% share 35.4 33.0 25.0 6.6
Wealth ($bn) 9,570 8,922 6,759 1,718
Source: Wealth-X, 2016
The stock of liquid assets (primarily cash) owned by the ultra wealthy totalled $9.6trn in
2016, representing the largest share (35.4%) of UHNW holdings. Abundant liquidity is
a reflection of the broader ‘search for yield’ in an environment of ultra low interest rates
and elevated equity valuations, with cash-flush portfolios offering the flexibility to respond
quickly should advantageous investment opportunities arise. Also, in an uncertain global
economy, the preservation of wealth – and ensuring its transfer to the next generation – has
become an increasingly important factor for many of the ultra wealthy. Total holdings in
privately owned companies and other private equity stakes accounted on average for one-
third of their asset portfolios.
ABUNDANT LIQUIDITY WITHIN UHNW HOLDINGS IS A

REFLECTION OF THE BROADER ‘SEARCH FOR YIELD’
IN AN ENVIRONMENT OF ULTRA LOW INTEREST RATES
AND ELEVATED EQUITY VALUATIONS.

The value of all the ultra wealthy’s public holdings, such as stock-market-listed equities,
totalled $6.8trn in 2016, equivalent to a 25% allocation. The volume of global M&A
transactions was the third-highest on record in 2016, whereas IPO activity was relatively
weak. The remaining 6.6% share of wealth was held in real estate and other luxury assets,
such as yachts, planes, automobiles, art and jewellery.
GENDER
Number of individuals
11.8%
of wealth
28,985
197,465 88.2%
of wealth
The global population of ultra wealthy individuals is still very male dominated, with women
accounting for a modest 12.8% share in 2016. This proportion has remained fairly steady
over recent years, while average net worth is largely similar for both genders, at $110m for
women and $120m for men. There is a clear distinction in wealth source between the genders,
with a much larger proportion of ultra wealthy women having received some or all of their
fortunes through inheritance. The past two decades of wealth creation have been driven
largely by self-made individuals; without a sizeable influx of new female entrepreneurs,
female representation is unlikely to change substantially.

27
PRIMARY INDUSTRY
Rank Industry %
1 Finance/banking/investment 14.5
2 Manufacturing 7.4
3 Technology 7.1
4 Non-profit and social organisations 5.7
5 Business services 5.3
Overall, recent years have shown a gradual broadening of industry diversification among the
ultra wealthy. This reflects the expansion of technology, a more challenging environment for
financial services, the ongoing development of emerging markets, increasing global demand
for business services and a broadening sense of philanthropic engagement.
Financial services remains the most significant industry for the ultra wealthy population, with
finance, banking and investment the major business activity for 14.5% of these individuals
in 2016, around twice the share of either manufacturing or technology. This was largely
unchanged from a year earlier although, compared with several years ago, the financial sector
is now a less significant channel of new wealth creation, reflecting higher levels of economic
volatility and market regulation. Globally, 7.4% of the ultra wealthy were based primarily in
manufacturing, narrowly ahead of the 7.1% in technology.
The technology sector has risen steadily up the rankings in recent years as rapid global
digitalisation has opened up new opportunities for substantial wealth creation. As we noted
in the Billionaire Census 2017, there are very large fortunes to be made from pioneering
‘disruptive’ technologies, with the average net worth of tech billionaires being considerably
higher than that of billionaires in other major industries. Five of the 10 richest people in
the world amassed their wealth primarily from technology in 2016 (whereas no-one from
finance, banking and investment made it into this top 10). As demand for social media
services, e-commerce, mobile payment systems and ‘connected technologies’ expands around
the world, the share of ultra wealthy individuals – and their total wealth – in the sector is
expected to continue to rise.
RECENT YEARS HAVE SHOWN A GRADUAL BROADENING OF

INDUSTRY DIVERSIFICATION AMONG THE ULTRA WEALTHY.

WEALTH SOURCE
21.9%
Inherited/
self-made
66.4%
Self-made
11.7%
Inherited
The fortunes of the global ultra wealthy population are predominantly self-made, with
two-thirds sourcing their wealth from fruitful business ventures or successful investments.
The wealth of just under a further 22% has been accumulated through a combination of
inheritance and personal enterprise.
Individuals who have solely inherited their wealth account for a relatively small 11.7%
share. Against the backdrop of increasing inter-generational wealth transfers, rather than
simply boosting the share of inherited wealth, this handover of fortunes has spurred greater
entrepreneurialism among members of the next generation, who are keen to pursue their
own business interests in areas such as retail, fintech and real estate.
THE FORTUNES OF THE ULTRA WEALTHY POPULATION

ARE PREDOMINANTLY SELF-MADE, WITH TWO-THIRDS
SOURCING THEIR WEALTH FROM THEIR OWN EFFORTS.

29
EDUCATION
TOP EDUCATIONAL QUALIFICATIONS
1 Economics
2 Business
3 Engineering
4 Finance
5 Accountancy
6 Law
7 Management
8 Mathematics
9 Computer science
10 History
Note: Educational differences between countries mean some qualifications may overlap. Includes both undergraduate and
graduate qualifications.
A ranking of the most popular qualifications (both undergraduate and graduate) held by
ultra wealthy individuals is headed by the usual suspects of economics, business, engineering
and finance.

US-BASED INSTITUTIONS FILL ALL THE TOP 10
POSITIONS IN THE GLOBAL RANKING OF EDUCATIONAL
ESTABLISHMENTS ATTENDED BY THE ULTRA WEALTHY.
While obtaining an academic degree is certainly no prerequisite for future financial success,
the choice of educational establishment can be an important determining factor. Standing
out from the crowd is Harvard University, the leading academic institution for today’s ultra
wealthy graduates and one that regularly provides the largest number of billionaires. Its
attraction is global, with Harvard accounting not only for the highest share of ultra wealthy
individuals in the Americas but also in Europe, the Middle East and Africa (EMEA) and
Asia-Pacific (based on an individual’s primary business address).
The US universities of Stanford, Columbia and Pennsylvania also rank highly as educational
establishments attended by ultra wealthy individuals from across the world. Indeed, US-
based institutions fill all the top 10 positions in the global ranking. On a regional basis, the
universities of Oxford and Cambridge in the UK remain a popular destination for the ultra
wealthy in EMEA, with the National University of Singapore prominent in Asia-Pacific.
TOP EDUCATIONAL ESTABLISHMENTS ATTENDED BY THE ULTRA WEALTHY
Rank Americas EMEA Asia-Pacific
1 Harvard University Harvard University Harvard University
National University of
2 University of Pennsylvania University of Cambridge
Singapore
3 Columbia University INSEAD University of Mumbai
4 New York University University of Oxford University of Pennsylvania
American University
5 Stanford University Tsinghua University
of Beirut
Note: Based on an ultra wealthy individual’s primary business address as opposed to citizenship or residency.

31
PASSIONS, INTERESTS AND HOBBIES
TOP INTERESTS AS PURSUED BY PERCENTAGE OF ULTRA WEALTHY INDIVIDUALS
36.3% Philanthropy
34.5% Sport
19.8% Education
17.6% Outdoors
15.7% Aviation
15.4% Art
15.1% Public speaking
14.9% Politics
10.4% Music
10.1% Health and wellness
Note: Individuals are able to have multiple interests.

Philanthropy ranks as the most common interest among the global ultra wealthy population,
with just over a third engaged in benevolent causes, such as education, healthcare, the arts,
the environment and enhancing life opportunities around the world. Personal fulfilment will
be a driving force for many philanthropists, although recent global coverage of charitable
endeavours – such as the Giving Pledge initiated by Bill and Melinda Gates and Warren
Buffett, and the promise by Mark Zuckerberg and Priscilla Chan to give away 99% of
Facebook shares – as well as a recognition of widening wealth inequality may also have
instilled a greater sense of humanitarian responsibility.
Sport is also a passion for more than a third of ultra wealthy individuals. Popular activities
include golf, skiing, tennis and American football but soccer leads the way. The expansion
in soccer’s television rights has been a dual driver. It has broadened soccer’s global reach
to encompass previously indifferent regions, such as North America and Asia, while also
substantially boosting the financial power of the sport and its potential monetary returns.
Soccer is no longer simply a passion, it is a major investment opportunity.

ULTRA WEALTHY
ARCHETYPES
In this section we examine in more detail some of the key characteristics of four selected
ultra wealthy groups: individuals from ‘emerging Asia’ (Asia excluding Japan, Singapore and
Hong Kong); those who graduated from an Ivy League university; millennials (people born
between 1980 and 1995) and women. While there is naturally some overlap between the four
chosen groups, each one displays a number of distinctive traits among its cohort, whether
related to age, geography, wealth source, asset holdings or average net worth.
ALL MILLENNIALS WOMEN EMERGING IVY LEAGUE

(BORN ASIA
1980-95)
Number 226,450 7,200 28,985 33,290 34,961
Total wealth ($bn) 27,035 334 3,190 3,968 6,928
Average wealth ($m) 120 45 110 120 200
Top 3 countries (%) US (33) US (64) US (45) China (48) US (77)
Japan (7) UK (6) UK (5) India (14) UK (3)
China (7) India (5) China (4) Korea (13) India (3)
Male (%) 87 92 0 89 93
Female (%) 13 8 100 11 7
Average age 62 34 50 66 63
Proportion under 50
17 100 41 13 16
years of age (%)
Self-made (%) 66 66 45 68 75
Inherited/self-made (%) 22 20 19 20 16
Inherited (%) 12 13 36 12 9
Note: Emerging Asia refers to Asia excluding Japan, Singapore and Hong Kong. Average wealth is rounded to the nearest $5m. Millennials' source of
wealth does not total 100% due to rounding. Wealth-X considers UHNW alumni as belonging to the university/ies from which they graduated. Both
undergraduate and postgraduate degrees are counted but diplomas, certificates, honorary and incomplete degrees are not included. Alumni of multiple
institutions may be counted more than once.

33
ULTRA WEALTHY MILLENNIALS:
A SMALL BUT INFLUENTIAL GROUP
The number of ultra wealthy individuals born between 1980 and 1995 is small, accounting
for only 3.2% of the global ultra wealthy population. Recipients of inherited wealth are a
minority, with two-thirds having made their fortunes through their own endeavours (the
same share as for all ultra wealthy individuals). This small share is a testament to the difficulty
in amassing substantial levels of wealth at a relatively young age. Despite the media attention
given to young tech billionaires or property heirs such as Yang Huiyan (one of the richest
women in Asia), wealth creation and accumulation is more often than not a long-term
process. As with the general population, our research has shown that the net worth of ultra
wealthy individuals rises steadily with age. At $45m, the average net worth of the millennial
cohort was just over a third of the level of the global population, with women representing
just 8% of the group. The US is home to almost two-thirds of ultra wealthy millennials,
reflecting, among other things, the country’s strong entrepreneurial environment, the global
pull of the country’s higher education institutions and the rapid advances of its technology
sector. Wealth earned from sport, entertainment and real estate largely underpinned the
UK’s second-placed ranking.
MILLENNIALS ACCOUNT FOR ONLY 3.2% OF THE GLOBAL

ULTRA WEALTHY POPULATION.
ULTRA WEALTHY WOMEN:

UNDER-REPRESENTED BUT SLOWLY GAINING GROUND
Ultra wealthy women are, on average, 12 years younger than the global ultra wealthy
population, have a lower level of average net worth – $110m compared with $120m in 2016
– and are three times more likely to have inherited their fortunes. They are also significantly
under-represented in the global ultra wealthy population – totalling just shy of 13% in 2016 and
accounting for around 12% of UHNW wealth. As with the cohort of millennials, the younger
average age of the female group partly explains the disparity in average wealth holdings with
the global mean. Stark differences in wealth source are also a factor: 55% of ultra wealthy
women received some or all of their fortunes via inheritance, compared with a third of men.
However, this does disguise a growing trend for family wealth and business responsibilities
to be transferred to younger female generations than was previously the case. This is likely
to support growth of the hybrid self-made/inherited wealth source category among females
over the coming years. Almost half of ultra wealthy females have their primary business in the
US, a higher share than among all individuals.
ON AVERAGE, ULTRA WEALTHY WOMEN ARE THREE TIMES

MORE LIKELY TO HAVE INHERITED THEIR FORTUNES.

ULTRA WEALTHY IN EMERGING ASIA:
BECOMING MORE PROMINENT
Emerging Asia represents an increasingly important and growing cohort of ultra wealthy
individuals. In 2016, the region accounted for almost 15% of the global ultra wealthy
population, up from 10.5% in 2010. Growth has been driven predominantly by China on the
back of still impressive rates of economic growth and the rapid evolution of the technology,
consumer retail and real estate sectors. More recently, however, there has also been strong
growth in the ultra wealthy populations of India and Indonesia and, from a lower base, those
of Vietnam and the Philippines. On average, ultra wealthy individuals in emerging Asia are
slightly older than their global peers and have a higher level of wealth. Most are still at the
wealth creation rather than the wealth preservation stage, which contrasts with the multi-
generational wealth patterns more common in Europe and North America. That said, the
share of inherited wealth is expected to rise further over the next decade as the emerging Asia
region undergoes its first major intergenerational wealth transfer.
EMERGING ASIA ACCOUNTED FOR ALMOST 15% OF THE GLOBAL

ULTRA WEALTHY POPULATION IN 2016, UP FROM 10.5% IN 2010.
ULTRA WEALTHY IVY LEAGUE ALUMNI:

AN EXCLUSIVE NETWORK
Around 15% of the global ultra wealthy population graduated from an Ivy League university, a
select group of eight higher education establishments in the north-east of the US that includes
Columbia, Harvard, Princeton, Yale and the University of Pennsylvania. This underlines the
global attraction of the US higher education system – around a quarter of Ivy League alumni
have their primary business outside the US – and the powerful ‘network effect’ at such elite
institutions, where access to well connected, privileged networks and a fast-track career can
significantly boost the prospects of future wealth creation. The average net worth of Ivy
League alumni is more than one-and-a-half times that of the global ultra wealthy population
average. It is perhaps surprising, given the exclusivity and highly selective admission criteria of
the eight institutions, that this cohort accounts for the lowest share of inherited wealth of all
four archetypes, with an above-average 75% having made their own fortunes. Ultra wealthy
Ivy League alumni include Elon Musk (University of Pennsylvania), Jeff Bezos (Princeton),
Warren Buffett (Columbia) and Jorge Paulo Lemann (Harvard).
AROUND 15% OF THE GLOBAL ULTRA WEALTHY POPULATION

GRADUATED FROM AN IVY LEAGUE UNIVERSITY.

35
METHODOLOGY
To size and forecast the ultra wealthy population and its combined wealth, we use our newly
updated proprietary Wealth and Investable Assets Model. This model produces statistically
significant estimates for total private wealth and estimates the size of the population by level
of wealth and investable assets for the world and each of the top 70 economies, which account
for 97% of world GDP.
We use a two-step process. First, to estimate total private wealth, we use econometric
techniques that incorporate a large number of national variables such as stock-market values,
GDP, tax rates, income levels and savings from sources such as the World Bank, International
Monetary Fund, Organisation for Economic Cooperation and Development (OECD) and
national statistics authorities. Second, we estimate wealth distribution across each country’s
population. Due to a lack of wealth distribution data, most wealth models estimate wealth
distribution patterns using income distribution data. However, Wealth-X’s proprietary
database of more than 100,000 dossiers on ultra wealthy individuals across the globe, as well
as further dossiers on individuals lower down the wealth pyramid, allows us to construct
wealth distribution patterns using real – rather than implied – wealth distributions, making
the model more reliable. We then use the resulting Lorenz curves to distribute the net wealth
in a country across its population. The database is also used to construct investable asset
distribution patterns across each country’s population. The model uses residency as the
determinant of an individual’s location.
Our model also estimates population, wealth and investable assets for the world’s major cities
as ranked by nominal GDP in $. These cities are defined on the basis of urban agglomerations
(UAs) and metropolitan (metro) areas, which include the built-up areas outside the
administrative core. We find that metro and urban areas are closer to self-contained entities
compared with city administrative cores (city proper) because more residents are likely to
work and spend within the metro/UA boundaries. Globally comparable city-level data is not
available so to ensure comparability is as precise as possible, we have sourced all metro- and
urban-level population and GDP data from Oxford Economics.
To profile the ultra wealthy in greater depth, this report leverages the unique and proprietary
Wealth-X Ultra High Net Worth Database, the world’s most extensive collection of curated
research and intelligence on ultra wealthy individuals. Our database provides insights into
their financial profile, career history, known associates, affiliations, family background,
education, philanthropic endeavours, passions, hobbies, interests and much more. Our
proprietary valuation model (as defined by net worth) assesses all asset holdings, including
privately and publicly held businesses and investable assets. The database uses the primary
business address as the determinant of an ultra wealthy individual’s location.
Analysis of the data and additional insights were provided by Wealth-X Custom Research.
The Custom Research (formerly Ledbury Research) department conducts primary and
secondary research globally to give our clients in the wealth management, financial and luxury
industries bespoke insight to fuel strategic decision making. References to $ or dollars refer
to US dollars.

ABOUT WEALTH-X
Wealth-X is the leading global wealth information and insight business, partnering with
prestige brands across the financial services, luxury, not-for-profit and higher education
sectors. We have developed the largest collection of hand-curated dossiers on UHNW
individuals available anywhere in the world today, as well as the world’s foremost HNW
market research team.
At Wealth-X, we believe in the power of applied wealth intelligence to drive success for our
clients. Our proprietary data assets and specialised research capabilities help our clients
understand and engage their target audience, minimise their risk and make informed strategic
decisions.
Founded in 2010, the Wealth-X team has grown to more than 200 staff across North America,
Europe and Asia, working with more than 500 clients.
Our team of experts is widely quoted as the global authority on wealth intelligence by top-
tier media organisations, such as The Wall Street Journal, Financial Times, Business Insider,
CNN, The New York Times and the BBC.
If you would like further information, please email [email protected].

37
WEALTHX.COM

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APPLIED WEALTH INTELLIGENCE

WORLD ULTRA WEALTH

© 2017 WEALTH-X PTE. LTD. ALL RIGHTS RESERVED.

GLOBAL MAP OF THE ULTRA WEALTHY______________________________ 4

THE ULTRA WEALTHY IN 2016:

ULTRA WEALTH BY TIER__________________________________________ 12

TRENDS AMONG THE ULTRA WEALTHY:

TOP 30 UHNW COUNTRIES_ _____________________________________ 22

TOP 30 UHNW CITIES___________________________________________ 24

PROFILING TODAYS ULTRA WEALTHY_ ____________________________ 26

ULTRA WEALTHY ARCHETYPES_ _________________________________ 33

ABOUT WEALTH-X_ ____________________________________________ 37

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

NORTH AMERICA AND ASIA THE GROWTH FRONT-RUNNERS AS LATIN AMERICA

DIVERGING PERFORMANCE ACROSS THE WORLD’S MAJOR ECONOMIES. Currency

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

AN UPDATE TO THE WAY IN WHICH WE SIZE AND FORECAST

For further information, please see the Methodology section.

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

LATIN AMERICA AND

% of the world’s ultra wealthy population

4 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

2016 226,450 $27,035

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

NORTH AMERICA AND ASIA

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

SIGNS OF THE TIMES

Political risk was the defining feature of

1 Dealogic, Global M&A Review: Full Year 2016

8 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

THE US DOLLAR WAS A MAJOR DETERMINANT IN THE

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

A sizeable decline was also recorded in

10 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

Latin America and the Caribbean

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

2,397 $1bn+ 7,400

3,803 $500m-$1bn 2,631

8,980 $250m-$500m 3,092

33,650 $100m-$250m 5,040

69,010 $50m-$100m 4,736

108,610 $30m-$50m 4,135

12 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

3 See our Billionaire Census 2017 for further information.

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

Global ultra wealthy population (individuals)

14 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

LONG-TERM GROWTH DRIVERS INCLUDE URBANISATION,

RISING IN THE EAST

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

16 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

Rapid advances in technology, growing demand for personalised consumption, more

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

The evolution is already apparent across parts

18 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

4 Bain, Luxury Goods Worldwide Market Study, fall-winter 2016

WEALTH-X WORLD ULTRA WEALTH REPORT 2017

The momentum on full disclosure and

20 WEALTH-X WORLD ULTRA WEALTH REPORT 2017

WEALTH-X WORLD ULTRA WEALTH REPORT 2017