A late-year rally in global equities increased the global ultra-high-net-worth population’s total wealth by 7.6% to US$49.2 trillion, a new report has found.
Key Takeaways
- Ultra-high-net-worth individuals (UHNWs) – those with a net-worth in excess of US$30 million – grew their wealth to US$49.2 trillion (AU$75 trillion) in 2023.
- The US posted double-digit growth in UHNW numbers, with the total population now at 147,950. China’s numbers fell by 1%. Growth in North America overall outpaced that in Europe and Asia.
- Three of the top 10 fastest-growing UHNW cities over the next five years will be in India, including Hyderabad, Delhi and Bengaluru.
- Wealth portfolios around the globe were bolstered by a late-year rally in global equities, led by developed markets and growing optimism of a soft landing for the global economy.
Big number
426,330. That’s how many UHNWs there are as of 2023, according to a new report from Altrata. It’s an increase of 7.6% – and a record high. The surge in UHNWs is largely thanks to a rally in global equities. The S&P 500 closed up 22.6% higher at the end of 2023.
Much of that growth is coming out of the United States, the report found, where the UHNW population increased by 13% to 147,950. The US is now home to a third of all UHNW individuals, with growth outpacing that in Europe and Asia.
Quick stats
Globally, the ultra-wealthy account for:
- US$118 billion of personal luxury goods spend, equivalent to 30% of the world’s total spend.
- US$190 billion of philanthropic donations, equivalent to 38% of all giving by individuals.
- US$38 trillion of investable assets, equivalent to 32% of global assets under management.
What to watch for
India.
Currently just scraping into the top 10, India is set to continue working its way up the ranks over the coming years thanks to its expansive labour and consumer markets, the report found. It is also home to three of the top 10 growth cities, including tech-focused Bengaluru, Hyderabad and Delhi. In fact, India’s expanding economy led the growth of UHNWs in Asia.
Tangent
On Wednesday, the benchmark S&P 500 slid 2%, in its worst day since 2022 – and the magnificent 7 stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla), lost a combined almost US$800 billion. The losses followed earlier earnings reports from three of the US’ most valuable companies: Alphabet, Tesla and Visa. Tesla in particular took a 12% dive after it revealed one of its lowest profit margins in years.
And equity markets may continue to experience volatility with the US election looming. Historically, in absence of a clear front-runner, equities markets see larger daily price-changes, according to Economics Observatory.
Top 10 ultra-wealthy countries
- The United States (147,950 UHWNs)
- China (46,060 UHWNs)
- Germany (22,210 UHWNs)
- Japan (16,565 UHWNs)
- UK (15,640 UHWNs)
- France (13,655 UHWNs)
- Canada (13,330 UHWNs)
- Hong Kong (12,545 UHWNs)
- Italy (10,480 UHWNs)
- India (9,540 UHWNs)
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