The region is quickly closing the gap on Europe, with five-year growth of 44% in the number of ultra high net worth individuals (UHNWIs), compared with a 27% increase in the global number, estimates the international property consultancy.
Six of the top 20 fastest growing countries are located in Asia, led by India with 73% growth and followed by Vietnam (64%), China (58%), Indonesia (57%), Malaysia (35%) and Singapore (29%).
Knight Frank’s findings are similar to those of other recent reports, such as a Wealth-X survey that found that Asia already has the second largest number of HNWIs (people with more than $1m of investible assets). On the other hand, Hong Kong’s lowly 171th place out of around 200 locations surveyed by Knight Frank for future growth in UHNWI numbers contrasts with reports highlighting the rapid pace of Hong Kong’s wealth growth in the last few years.
“However, even following this heady rise, Asia’s UHNWI cohort will still only be half the size of North America’s, which is forecast to grow by 22% over the same period,” said the Knight Frank report.
The world’s UHNWI population – those with a net worth of $30m or more – rose by 6.4% in 2019, according to the firm’s wealth sizing model, which was deployed in over 200 countries, and uses balance sheet data on households’ financial and non-financial wealth combined with econometric techniques.
Forecasts were based on predicted growth in GDP, house prices, equity performance, interest rates and other asset classes that individuals hold.
The data was also backed up by an “attitudes survey” of wealth managers and financial advisers, in which 63% of respondents said their clients’ wealth had increased in 2019, with only 11% reporting a decrease. Globally, around 31,000 additional UHNWIs were created last year, bringing the total to 513,244.
Strong returns in many asset classes, including investment grade and high yield bond, and US and emerging market equities as well as property, helped fuel the increase, which occurred despite the International Monetary Fund reducing its annual global GDP forecast to a decade low of 2.9% during a year of rising protectionism, headlined by the US-China trade dispute.
According to the attitudes survey, on average 23% of UHNWI investment portfolios are made up of equities, meaning that their returns were a large contribution to rising wealth. Residential property accounts for almost a third of net worth, and Asia’s 3.1% increase in average prime residential prices made it the best performing region in the world, according to the survey.
Knight Frank’s report was compiled before the wallop to investor confidence and markets by the coronavirus outbreak.
Hence, positive sentiment was captured in the survey, with 55% of respondents expecting their clients’ wealth to increase in 2020.
UK-based Knight Frank was unable to comment in time for publication.
Asia tops UHNWI* regional growth
| Region | 2019 UHNWI totals |
2019-2024 growth |
| Asia |
103,335 |
44% |
| Africa |
4,501 |
32% |
| Australasia |
5,931 |
30% |
| Russia & CIS |
10,363 |
23% |
| Europe |
110,846 |
23% |
| North America |
249,900 |
22% |
| Middle East |
14,178 |
17% |
| Latin America |
14,190 |
17% |
| Global |
513,244 |
27% |
Source: Knight Frank, 2020. * individuals with net wealth of $30m or more
UHMWI* asset allocations
| Property (as an investment) |
27% |
| Equities |
23% |
| Fixed income |
17% |
| Cash/currencies |
11% |
| Private equity |
8% |
| Collectables |
5% |
| Gold/precious metals |
3% |
| Cryptocurrenies |
1% |
