๐๐ก๐๐ญ ๐ข๐ฌ ๐ญ๐ก๐ ๐๐ฌ๐ฌ๐๐ญ ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐ฅ๐ญ๐ซ๐ ๐๐ข๐ ๐ก ๐๐๐ญ ๐๐จ๐ซ๐ญ๐ก ๐๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ๐ฌ (๐๐๐๐๐๐ฌ), ๐ฉ๐๐จ๐ฉ๐ฅ๐ ๐ฐ๐ข๐ญ๐ก ๐ ๐ง๐๐ญ ๐ฐ๐จ๐ซ๐ญ๐ก ๐จ๐ ๐๐๐ 30 ๐ฆ๐ข๐ฅ๐ฅ๐ข๐จ๐ง?
Knight Frank – The Wealth Report, which is based on a global survey of over 500 wealth managers, family offices, and private bankers provides some insights (full report in the link below). There were around 579k UHNWIs worldwide in 2022 and the figure is anticipated to increase by 29% over the next five years.
On average, the portfolio consists of:
๐ธ 32% in primary and secondary homes! The average UHNWI owns 3.7 homes.
๐ธ 22% in commercial property, which includes direct investments, funds, and REITs.
๐ธ 18% in equities. Of all respondents, Americans have the highest share of investable assets (excl. homes) in equities (33%), followed by Europe (28%) and Asia (26%).
๐ธ 12% bonds
๐ธ 6% #PrivateEquity / #VentureCapital. I have expected this to be higher, especially compared to the major endowments’ allocation.
๐ธ 3% investment of passion, which includes art, cars, watches, wine, and other luxury items.
๐ธ 2% gold
๐ธ 1% crypto assets
The competition among countries to attract UHNWIs is increasing. The UK and the EU and the US still attract a considerable number of wealthy residents, but Singapore and Dubai are emerging as critical new wealth hubs. The sevenfold increase in family offices in Singapore serves as evidence of the market’s substantial size.
Visualization: Visual Capitalist / Data: Knight Frank – The Wealth Report / #WealthManagement #AssetAllocation #FamilyOffice
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