Investments of high-net-worth individuals - statistics & facts
In a world where wealth continues to accumulate in the hands of a few individuals, we may consider to ask where do they hold this wealth, how have these wealthy individuals been investing, and what does the future look like for this exclusive group. As of 2023, there were around 22.84 million high-net-worth individuals (HNWIs) worldwide, defined as individuals whose net worth totals over one million U.S. dollars. Net worth takes into consideration an individual’s financial assets invested in a variety of classes, such as property, land, stocks, bonds, etc. minus their debts and/or liabilities.
Looking forward it may be safe to assume that those holding considerable amounts of wealth may continue to do so. Often HNWIs based on expert financial advice may adjust their holdings, following a strategy that is reflective of current economic times, allowing for continued prosperity and even further wealth creation.
Where are the wealthiest individuals?
Both the number of HNWI`s and the value of their assets have been primarily domiciled in North America and the Asia-Pacific. Each nation houses a comparable level of wealth, while Europe is the third largest region for HNWIs and their assets. However, the number of ultra-high-net-worth individuals (UHNWI), defined as individuals whose net worth exceeded 30 million U.S. dollars, is far greater in North America than in Asia and Europe. Most UHNWIs come from the United States, over two times as many as in China, the country with the second highest number of UHNWIs.What assets and investments comprise the net worth of these individuals?
The vast majority of UHNWI`s and HNWIs domiciled in the Asia Pacific held the largest portion of their wealth in real assets, with Japan being an exception, as the majority of Japanese HNWIs held their wealth through financial asset investments. Similarly, in North America, financial assets were also the most popular choice as over 126 trillion U.S. dollars was held by North American HNWI`s through financial assets. Looking further into the most populous region of HNWI`s as of 2024, roughly one-third of HNWI`s in the United States held their wealth in cash, with alternative securities being the second most popular financial asset. High cash allocation is typically associated with risk aversion, reflective of decreased investor confidence and economic uncertainty. However, the vast majority of wealth managers across the globe expected a marginal increase in their HNW clients' wealth. Wealth mangers in Asia were the most optimistic, with roughly 42 percent having noted they expected clients' wealth to increase significantly.Looking forward it may be safe to assume that those holding considerable amounts of wealth may continue to do so. Often HNWIs based on expert financial advice may adjust their holdings, following a strategy that is reflective of current economic times, allowing for continued prosperity and even further wealth creation.
