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Industry Spotlight > Women in Wealth

10 Intriguing Trends of the Ultra-Wealthy: 2016

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The last 10 years have seen a great leap in the number of truly wealthy people around the world, and while growth is expected over the next decade, the latest Knight Frank Wealth Report forecasts a slowdown in the rate of increase.

In fact, the 10th annual survey found that two-thirds of the 400 private bankers and wealth advisors surveyed said they expect that to be the case.

One of the biggest concerns expressed by respondents, who represent 45,000 ultra-high net worth individuals with at least $30 million each, regards succession and inheritance. More than 60% said their children wouldn’t be encouraged to make their own wealth and about half said they wouldn’t know how to invest properly.

(Check out last year’s findings in Top 10 Big Trends Among the Ultra-HNW.)

The report detailed the attitudes and trends of the richest of the rich and looked back at the last decade and at what lies ahead. Knight Frank found that charitable activities were expected to grow over the next decade compared with the last 10 years. The main motivation cited for philanthropy was personal fulfillment.

Check out 10 interesting findings about the ultra-wealthy:

Tax for the Wealthy

Biggest Risks to Wealth Creation:

Succession and inheritance issues: 67% over next 10 years (56% for the previous 10 years)

Tax for the Wealthy: 62% (58%)

Global Economic Conditions: 61% (47%)

Stock Market Volatility: 52% (32%)

Online Security and Privacy: 39% (9%)

Compliance Issues: 34% (12%)

Personal and Family Wealth: 33% (28%)

Most respondents thought wealth creation would slow.

% Who Say Wealth Creation Will Slow Over Next Decade:

Latin America: 100%

Australasia: 84%

North America: 68%

Asia: 62%

Africa: 59%

Europe: 54%

Russia & CIS: 50%

Middle East: 47%

UHNWs more involved in managing their wealth

UNHW Have Taken a More Active Role in Managing Their Wealth Over the Last Decade:

Strongly Agree: 46%

Slightly Agree: 41%

Neither Agree nor Disagree: 8%

Slightly Disagree: 4%

Strongly Disagree: 1%

Westminster Abbey in London (Photo: AP)

Most Important Cities to the UNHW:

(Based on where they live, educate children, spend leisure time and grow their businesses)

  1. London
  2. New York
  3. Hong Kong
  4. Singapore
  5. Shanghai
  6. Miami

Expectations for philanthropy

Expectations for Philanthropic Giving:

Increase a Lot: 25% for next 10 years (14% for the previous 10 years)

Increase Slightly: 55% (52%)

No Change: 17% (27%)

Decrease: 4% (7%)

North America (Photo: AP)

Areas With the Most UNHW Residents in 2015:

North America: 69,283

Europe: 46,191

Asia: 41,072

Toronto, Canada

Areas Projected to Have Most UNHW Residents in 2025:

North America: 90,247 (30% increase from 2015)

Europe: 58,645 (27%)

Asia: 67,999 (66%)

Portfolio asset distribution

Portfolio Asset Distribution in North America:

Investments (equities, bonds etc.): 37%

Personal Business: 23%

Primary Residences and Secondary Homes: 22%

Real Estate Investments: 9%

Cash: 7%

Collectibles (art, wine, classic cars etc.): 2%

Precious Metals: 1%

Ferrari at a Chinese auto show (Photo: AP)

Reasons for Collecting Luxury Items – North America:

Further Diversification: 58%

Act as Status Symbols: 42%

Passion for the Investment: 37%

Tangible: 26%

Better Returns: 11%

Tax Breaks: 16%

Precious Metals: 16%

Top Auction Items 2015

Top Auction Items of 2015:

Picasso’s “Women of Algiers:” $179.4 million

12-carat Blue Moon of Josephine Diamond: $48.4 million

Jaguar C-Type: $13.2 million

Patek Philippe Doctor’s Chronograph: $4.9 million

Lockheed Lounge Chair: $3.7 million

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