High net-worth.individuals (HNWI) aren’t like most people. In fact, they’re not like most rich people.The HNWI is defined as someone having over $25,000,000 in investable assets.* They have different needs and wants. They invest differently. And they see the world differently.
Here are some stats about the world’s HNWI from The Wealth Report 2012, published by Knight Frank and Citi Private Bank (via Frank Holmes). On average, those who participated in this study had a net worth of over $100,000,000.*
- 16% already own a ski chalet, 12% are interested in owning one
- 40% already own beachfront property, 23% are interested in owning some
- 37% invest in wine, 22% are interested,
- 59% invest in fine art/collectables, 28% are interested
- 52% invest in jewellery, 25% are interested
- 20% invest in sports teams, 16% are interested
- The US and UK are the most popular locations for a second home. Singapore is the fifth most popular. Asians favour the UK.
- London and New York are the most important cities to the HNWI
- 27% believe “availability of luxury housing” is an attribute for a city to be “considered globally important
- 11% of wealth has been donated, 21% of US HNWI wealth
Here are some more findings from the survey:
- 32% feel optimistic about their future wealth prospects, 23% feel pessimistic
- 91% think global economic factors are the biggest threat to future wealth creation, 6% think terrorism
- The average portfolio consists of real estate (23%), equities (21%), bonds (21%), cash (15%), gold (3%), currencies (3%), commodities (2%), other (12%).
*Earlier, we defined the HNWI as those with “$100,000,000.00 in net assets.” We have since changed it to “$25,000,000 in investable assets.” We further note that the average wealth of those surveyed had net assets of over $100 million.