wealth insight

WealthInsight Top 10 global cities for millionaires

noreply@blogger.com (Unknown) — Tue, 14 May 2013 09:47:00 +0000

WealthInsight Top 10 global cities for millionaires:

Tokyo tops the millionaire list
London tops the multi-millionaire list
New York tops the billionaire list

Which global cities contain the most US dollar millionaires?

It’s an elusive statistic that cannot be found in the public domain.

WealthInsight, a London based wealth consultancy, has changed this by releasing a comprehensive list of the top 20 cities for millionaires worldwide.

According the WealthInsight analyst Andrew Amoils:

“Tokyo tops our millionaire list and is surprisingly above New York. This is partly due to the fact that many wealthy New Yorkers live off the Island in cities such as Greenwich”

WealthInsight has also released a list of the top 20 cities for multi-millionaires (individuals with over US$30 million each) and top 20 cities for billionaires. These two lists are in the briefing attached.

This briefing also includes a case study on the top 10 countries for millionaires in 2012 and 2020.

Definitions:

· “Multi-millionaires” otherwise known as “ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences.

· “Millionaires” otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences.

· For the purposes of this report, the phrase “review period” relates to the years 2007–2012 and the “forecast period” relates to the years 2012–2017.

If you have any questions about this release, or would like more information, please contact us.

Best regards,

Andrew Amoils

http://www.wealthinsight.com/Media

Obama’s million millionaires

noreply@blogger.com (WealthInsight) — Tue, 06 Nov 2012 14:29:00 +0000

A thousand millionaires a day. It sounds like a lot doesn't it? But this is how quickly America’s wealthy population has grown in recent years, despite the financial crash. During Obama’s first 3 years in office the US has added more than 1.1 million millionaires - an increase of 29%.

As of 2011 there are 5.1 million high net worth individuals (those with net assets of US$1 million or more, excluding primary residences) in the US, just 165,360 fewer than in 2007. Recent rises in stock markets and signs of recovery in real estate should see the number of millionaires above pre-recession levels by the end of 2012.

This doesn't fits easily with an election campaign where the incumbent president has been labelled as harmful to wealth creation and his challenger, Mitt Romney, has Wall Street banks as his top five donors. It also raises the question: which of the presidential candidates would be better for wealth creation in the US?

The recovery of the US economy post-recession continues to be tepid as debt de-leveraging continues. The IMF forecasts growth of 2% for 2012, improving slightly to 2.3% in 2013. The performance of the economy is unlikely to be significantly improved whoever is elected, but it could be worse.

Ongoing political gridlock is blocking an agreement on fiscal policy. If a compromise is not reached before January 1 2013, the “fiscal cliff” would automatically follow: a combination of increased taxes and decreased government spending equivalent to tightening of about 4% of GDP. This would likely trigger a return to recession in 2013 and a decline in the HNWI population of about 6% for the year.

On policy, President Obama favours a combination of tax rises aimed at the wealthy and medium term fiscal consolidation; his challenger is more inclined towards immediate tax and spending cuts to stimulate investment activity. While Republican policies are more beneficial to the wealthy at face-value, their fiscal proposals have so far lacked credibility, ranging from improbable to dangerous, depending on your viewpoint.

Sidestepping the fiscal cliff will require whoever is elected President to negotiate with a House controlled by Republicans and a Senate with a narrow majority of Democrats or Republicans. It is not entirely clear how either candidate would overcome the impasse, or how policies might be altered post-election.

Monetary policy and the role of the US Federal Reserve might offer a clearer contrast between the candidates impact on wealth. Since the onset of the financial crisis, the Fed Chairman Ben Bernanke has aggressively pursued an expansionary monetary policy, and controversially, successive rounds of quantitative easing (QE).

The aim of QE, an unconventional form of monetary policy, is to stimulate economic activity by pushing up asset prices. US stocks are up 12% this year and by more than 100% since March 2009.

With the top 5% wealthy households owning 60% of the county’s individually held financial assets, this has benefited HNWIs directly. On average, American millionaires allocated over a quarter of their investable assets to equities in 2011, more than compensating for lost income caused by low-interest rates on savings.

This is backed up by recent research from the Bank ofEngland which found that the value of UK shares and bonds had risen by about £600 billion as a result of QE in Britain, and that 40% of the gains went to the richest 5% of households.

Mitt Romney though, has voiced disapproval of Chairman Bernanke, and publicly opposed the QE programme as inflationary. Bernanke's second term expires in January 2014 and it is thought that Romney, if elected, would seek more hawkish appointments to the central bank. This move could hurt equities if the Fed’s ultra-accommodative stance changes dramatically (though any move towards more hawkish policy is likely to be gradual).

A second term for President Obama should see monetary policy consistency, and could, ultimately, be better for America' millionaires.

Super rich: Top 20 Cities for UK multi-millionaires

noreply@blogger.com (Unknown) — Thu, 13 Sep 2012 15:33:00 +0000

According to WealthInsight research, there are just over 10,100 multi-millionaires in the UK (each with net assets of over US$30 million). These individuals have a combined wealth of US$1,113 billion. London is home to over 40% of these or 4,220 multi-millionaires, which is greater than the whole of France (3,800 multi-millionaires).

Manchester has the highest number of multi-millionaires (170 multi-millionaires) outside of London followed by Glasgow (158 multi-millionaires), Edinburgh (134 multi-millionaires) and then Birmingham (130 multi-millionaires).

According to WealthInsight analyst Andrew Amoils: “Despite being the 2nd largest city in the UK by population, Birmingham has a relatively low number of multi-millionaires when compared to the likes of Manchester and Glasgow”

Among UK counties, Greater Manchester (which includes Manchester, Bolton, Wigan, and Salford) has the highest number of multi-millionaires outside of London, with 374 multi-millionaires, followed by Surrey with 230 and Hertfordshire with 206.

Definitions:

· “Multi-millionaires” otherwise known as “ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences.

· “Millionaires” otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences.

· For the purposes of this report, the phrase “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.

Australia’s multi-millionaires: Perth and Adelaide outperform the rest

noreply@blogger.com (Unknown) — Wed, 12 Sep 2012 16:50:00 +0000

According to WealthInsight research, the number of multi-millionaires in Australia increased by 11% over the four year period between 2007 and 2011, to reach 2,460 at the end of 2011. This includes 930 multi-millionaires in Sydney, 590 in Melbourne, 330 in Perth, 240 in Brisbane, 60 in Adelaide and 37 on the Gold Coast.

Adelaide experienced the strongest multi-millionaire growth among Australian cities over this period with growth of 75%, followed by Perth with 52% growth. Adelaide’s growth can be attributed to growth in a number of local industries including retail and fashion, construction and FMCG.

According to WealthInsight analyst Andrew Amoils: “the strong growth in Perth was facilitated by growth in the number of multi-millionaires who acquired their wealth from the basic materials sector, which was fuelled by a rise in commodity prices.”

Definitions:

· “Multi-millionaires” otherwise known as “ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences

· “Millionaires” otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences

· For the purposes of this report, the phrase “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.

Rich Suburbs: Sandhurst has the most multi-millionaires in South Africa

noreply@blogger.com (Unknown) — Thu, 30 Aug 2012 11:12:00 +0000

This press release is part of WealthInsight’s report on South Africa, entitled: South Africa – The Future of HNWIs to 2016: The Rise of African Wealth. http://timetric.com/research/report/WI0053MR/

Press release:

Rich Suburbs: Sandhurst has the most multi-millionaires in South Africa

Sandhurst in Sandton, is home to over 30 South African multi-millionaires, more than any other suburb in the country. It also has the highest multi-millionaire population density in the country, with one on every 20 residences being owned by a multi-millionaire, according to new research from WealthInsight.

“A combination of large plots, safety and location make Sandhurst the top suburb in South Africa for the ultra rich” according to WealthInsight analyst Andrew Amoils.

WealthInsight research also shows that:

South Africa has the highest number of millionaires in Africa. As of 2011, there were just over 44,700 millionaires in the country, with a combined wealth of US$188 billion, accounting for roughly 25% of South Africa’s total individual wealth (US$740 billion).
Included in this total are 543 multi-millionaires, each with wealth of over US$30 million. Johannesburg is home to the largest portion of these individuals (48% or 261 multi-millionaires). There are also sizable South African multi-millionaire populations in Cape Town (103 multi-millionaires), Durban (31 multi-millionaires) and Pretoria (28 multi-millionaires).

Definitions:

· “Multi-millionaires” otherwise known as “ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences

· “Millionaires” otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences

· For the purposes of this report, the phrase “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.

Far from Equal: Previously disadvantaged groups account for only 14% of South Africa’s Ultra Wealthy at the end of 2011

noreply@blogger.com (WealthInsight) — Wed, 22 Aug 2012 08:56:00 +0000

This press release is part of WealthInsight’s report on South Africa, entitled: South Africa – The Future of HNWIs to 2016: The Rise of African Wealth.

According to the report’s author, WealthInsight analyst Andrew Amoils: “Despite strong transformation efforts by the ANC government since 1994, South Africa’s wealth distribution at the top end remains far from equal”

“WealthInsight research shows that there were 75 South African ultra high net worth individuals from previously disadvantaged groups at the end of 2011, which equates to only 14% of South Africa’s total UHNWI population of 543 individuals. This is a relatively low percentage considering that these groups make up 90% of the national population.”

“Things were slightly more equitable at the lower end of the high net worth spectrum, but still far from equal. Among all high net worth individuals (otherwise known as millionaires), WealthInsight research shows that there were approximately 12,500 South African millionaires from previously disadvantaged groups at the end of 2011, which equates to a healthier 28% of South Africa’s total millionaire population of just over 44,700 individuals.”

Definitions:

· “High net worth individuals” otherwise known as “millionaires” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences

· “Ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences

· “Core high net worth individuals” or “Core HNWIs” are individuals with net assets of between US$1 million and US$30 million, excluding their primary residences

· ‘Previously disadvantaged groups’ include Black Africans, Cape Coloreds, Indians and Chinese citizens. These individuals were restricted from voting in national elections until 1994 and were forced to live in different areas to the white population in a system known as ‘apartheid’ (racial separation).

As the UK Government sets out plans to increase the number of visiting Chinese tourists, WealthInsight research suggests lesser-known centres like Hangzhou, Wuhan and Chongqing could be the places to target for high net worth tourists in the years ahead.

noreply@blogger.com (WealthInsight) — Thu, 16 Aug 2012 16:43:00 +0000

On Wednesday, Jeremy Hunt, culture secretary, set out plans to “turbo-charge” the UK tourism industry, announcing an £8 million marketing campaign focused on tripling the number of tourists coming from China. “By 2030, China should have around 1.4bn middle class consumers – creating a potential market four times bigger than America.” Mr Hunt said.

Indeed WealthInsight finds that China will be fertile ground for the creation of High Net Worth Individuals (HNWI) in the coming years. According to our analysis more than 845,000 Chinese will join the ranks of HNWIs between 2011 and 2015 – equivalent to about 24 every hour (see chart). During this period, growth in billionaires will lead the way with an increase in volume of over 450% and an increase in total wealth of 600%.

China is experiencing rapid growth in the number of people with assets >£1m

Source: WealthInsight

With this rapidly expanding wealth, Chinese tourists are a lucrative market. In 2010 Chinese tourists spent £1,677 each per visit to the UK according to Visit Britain, three times more than the average. And the latest UNWTO World Tourism Barometer shows that Chinese expenditure on international tourism increased by 32% in 2011; reaching $73bn (see below). Mr Hunt’s strategy is intended to ensure the UK doesn’t lose out to other European countries like Germany and France, who currently attract more visitors from China.

China was the 3^rd top source market for international tourism expenditure in 2011

Source: UNWTO World Tourism Barometer

To do this the government will increase marketing and airline connections in cities beyond traditional wealth centres like Beijing and Shanghai. Recent WealthInsight research could be of help. Our analysis sheds light on some of China’s lesser known centres for growth in ultra-HNWIs (those with assets over >$30m), highlighting Tier II and Tier III cities like Hangzhou, Wuhan, Chongqing, Chengdu and Fuzhou, as growing wealth hotspots. These are the places high spending Chinese tourists will be coming from in the years ahead.

City	Growth in UHNWI's (2011-2015)	UHNWI's, 2011	Predicted UHNWI's, 2015
Fuzhou	90-100%	50-100	100-150
Chongqing	85-95%	50-100	150-200
Hangzhou	75-85%	500-600	950-1050
Chengdu	75-85%	100-150	200-250
Wenzhou	75-85%	100-150	150-200
Wuhan	70-80%	100-150	150-200
Tianjin	65-75%	150-200	250-300
Changsha	60-70%	100-150	150-200

Source: WealthInsight

Analyst Contacts:

Christopher Rocks

christopher.rocks@wealthinsight.com

020 7406 6711

Andrew Amoils

andrew.amoils@wealthinsight.com

020 7406 6564

Facebook floatation to create 970 millionaires

noreply@blogger.com (WealthInsight) — Thu, 17 May 2012 11:41:00 +0000

Facebook’s pending IPO will create 970 millionaires including 165 super rich Ultra High Net Worth Individuals, according to new research by the wealth intelligence service WealthInsight.

In depth analysis reveals that the Facebook Elite UHNWIs (those worth more than $30m) will each have an average wealth of over $225m. Though the prospect of immediate and huge spending sprees is unlikely due to restrictions on the exercise of stock options and other shares.

WealthInsight has created a unique proprietary database of 160 Facebook employees, investors and other beneficiaries packed with data and biographical detail.

According to WealthInsight analyst Andrew Amoils: “This floatation will create an unprecedented number of new super rich people. And despite the success of the film The Social Network and the company’s media profile, no-one knows much about the Facebook Elite beyond the senior management leaders. That’s why we have pulled out all the stops to research these individuals”.

The research is based on the valuation being placed on the floatation of Facebook which values the company at a multiple of 79-99 times earnings, compared with 13.7 and 18.6 for Apple and Google, respectively.

For more information on the Facebook Elite and to see how WealthInsight generated these findings please download our attached research paper:

http://www.vrl-financial-news.com/pdf/The%20Facebook%20Elite%20(2).pdf

WealthInsight releases latest global UHNWI numbers; UHNWIs hold 1.5% of wealth in boutique investment products such as art, wine and classic cars

noreply@blogger.com (WealthInsight) — Thu, 03 May 2012 13:56:00 +0000

Of the world’s 122,000 ultra-high-net-worth individuals (UHNWIs) China and India are home to 6.5% and 1.3%, respectively. The number of UHNWIs in India and China is increasing rapidly and will surpass the numbers found in leading European countries over the next decade, according to WealthInsight, the London based global wealth consultancy.

WealthInsight has also found that the world’s 122,000 UHNWIs have an average wealth of US$121 million and together hold a remarkable US$14.8 trillion – almost equal to the US’s 2011 GDP.

Collectable assets – such as art, wine, classic cars, watches and jewellery – account for 1.5% of the total wealth of the world’s UHNWIs, or US$1.8 million per person.

“We expect collectables to become an increasingly important part of the asset allocations of the world’s UHNWIs, especially in Asia, where there is robust growth in interest in this asset class. We’ve also seen an uptick in interest among Asian Ultras for yachts, super-yachts, private jets and private planes,” said Andrew Amoils, a senior analyst with WealthInsight.

While Asia is important and will increasingly be so, WealthInsight research underscores the importance of the developed world, home to the majority of the world’s UHNWIs: the US, with 40,000 UHNWIs, has one third of the global total and California’s 7,000 UHNWIs alone account for about 6%.

Similarly, the UK, France and Germany together are home to 21% of the world’s UHNWIs.

Ollie Williams, senior analyst and research manager of WealthInsight’s HNWI Database remarks: “Everyone is talking about China, India and Asia; it’s an amazing growth story and the Ultra wealth creation is truly impressive. But we believe Europe, Australia, Japan and the US will still be the pillars of the wealth industry and major consumers of big-ticket collectables and luxury goods. Furthermore, we see huge potential for the creation of large numbers of new UHNWIs in these countries. For example our early research shows that the Facebook IPO alone will generate scores of new UHNWIs.”

Future of HNWI in China to 2015 - Opportunities for Wealth Managers and Private Banks

noreply@blogger.com (WealthInsight) — Thu, 27 Oct 2011 14:12:00 +0000

REPORT OVERVIEW

China offers tremendous opportunities for the wealth management and private banking industry as a result of not only the substantial growth in the number of HNWI over the past few years, but especially because of the strong forecasted growth in volumes and wealth to 2015. This report not only provides detailed forecasts but gives the reader the crucial insight necessary to effectively capitalise on these forecasts.

EXPLORE ISSUES INCLUDING

· HNWI - Strong rebound from the financial crisis and solid growth outlook - The drop in Billionaire wealth had a major impact on the Ultra HNWI wealth band. WealthInsight forecasts robust growth for all bands going forward and especially for the UHNWI wealth band.

· UHNWI - Centimillionaires on top, but Billionaires to lead going forward - Centimillionaire and Affluent Millionaire volumes grew faster than wealth over the review period. This trend will reverse over the forecast period.

· Core Millionaires – Continual wealth creation - Over the forecast period, Cores will add another 840,000 people to their ranks and will hold over US$2.1 trillion by 2015.

· HNWI – Internationalization - Our research shows that over 50,000 Chinese HNWI are looking to move abroad each year.

KEY FINDINGS

· High Net Worth Individuals – Wealth and volumes more than double from 2007 to 2015.

· Manufacturing, Basic Materials and Diversified - These are the most important industries for creating HNWI wealth creation.

· Asset Classes - Equities will be the second most important asset for HNWI after Business Interests, and the most important investible and liquid asset.

REASONS TO BUY

· Independent market sizing of China’s HNWI - for every HNWI wealth band, we provide in depth analysis of past, present and forecasted wealth and volumes.

· Most up to date analysis of the demographic breakdown of China’s HNWI - We are able to provide detailed information on sources of wealth for HNWI by several key categories

· Volume, wealth and allocation forecasts to 2015 - The report provides detailed asset allocation information for six major asset classes and thirteen sub asset classes for the coverage period from 2007 to 2015.

· Details of the development of the Wealth Management and Private Banking sector in China – Receive an overview of China’s wealth management sector as well as details about the various sub-sectors, especially wealth management firms, private banks, family offices and trusts.

For more information, or to buy this report please click here