A little more than 2,100 individuals have added their names to 2018’s list of the super rich, bringing the total figure of ultra high net worth (UHNW) people with personal finances exceeding $30 million to 265,490. Globally, 2017 saw the figures for UHNW individuals rising by 12.9 percent as a result of flourishing stock markets, but last year, there was only a rise of 0.8 percent. According to the research firm, Wealth-X, the super rich were influenced by decreasing investment values and increasing world trade tensions.
Predictions and influences
Collectively the wealth of UHNW people dropped by nearly 2 percent to $32.3 trillion last year. Regardless, Wealth-X expects the numbers of the mega rich to expand to 353,550 in the next three years, with a total estimated fortune of $43 trillion.
“After hitting the ‘sweet spot’ for global wealth creation in 2017, wealth preservation became the primary focus for many UHNW individuals in 2018,” says the 2019 Wealth-X report published today. “The late-year slump in equity markets meant that investors entered 2019 with some trepidation against a backdrop of slowing global growth and rising tensions in world trade. Developments over the first half of the year largely justified this sense of caution, with volatile asset markets, a deepening U.S-China trade war, rising Brexit related threats, and weaker global demand bringing about another challenging environment for wealth generation.”
According to the report, factors such as new-age tech, an increasing population, the ascent of emerging market economies, and the sprouting trend of consumers purchasing premium merchandise will “continue to provide opportunities for wealth creation”.
Less than 15 percent of UHNW individuals are female, although this is an increase from 13.7 percent in 2017.
“Women accounted for almost one in five of the global ultra wealthy class below the age of 50,” the report mentioned. “This is an indication of shifting trends in global wealth distribution, changing cultural attitudes, and the rising frequency of intergenerational wealth transfers, and reveals how technology is creating new opportunities for female entrepreneurs to create wealth.”