Advisors globally have given their insights to the World Wealth Report which highlights some of the investment trends of UHNWIs
How do the world’s wealthiest invest their money? And how much money do they have?
Those are two of the questions answered by the World Wealth Report 2022 which has just been published by global property market firm Knight Frank.
The annual report does not just focus on real estate, but other investment trends too, based on a survey of wealth advisors and private bankers.
It shows that the population of ultra-high-net-worth individuals (UHNWIs) – those with at least US$30 million in net assets – grew by more than 9% in 2021.
Growth in North America was the largest at 12%, taking the region’s total to 233,590 individuals.
Other regions saw strong growth, except for Africa which dipped slightly, but the only other region to post a double-digit gain (11.2%) was Russia and the Commonwealth of Independent States, ironic given the sanctions now being placed on many of its wealthy individuals.
Increased wealth
Knight Frank expects the global population of UHNWIs to have more than doubled in the 10 years to 2026 with Asia becoming the second largest regional wealth hub by then, surpassing Europe.
For 2021, more than half of respondents said their clients’ wealth had increased by at least 10% with real estate, luxury collectibles (especially fine wine and collectible watches), and equities among the assets that delivered gains for UHNWI portfolios.
Given the performance of portfolios, despite the ongoing pandemic, 83% of advisors and bankers said they expected clients’ wealth to increase in 2022, although the survey was conducted before the current crisis in Ukraine.
ESG driving real estate performance
Knight Frank’s report also examines the drivers of ESG-related real estate investment.
The survey reveals that most investors are interested in this with future-proofing portfolios cited by nearly 40% of respondents and 52% saying that clients see it as an opportunity to create and preserve wealth.
Making an impact and external pressure/reputation are also considered key drivers of ESG-related real estate investment.
However, challenges include finding the right opportunity, a lack of understanding, and a lack of reliable or comparable information.
We’re delighted to launch The Wealth Report 2022: your global perspective on the key trends impacting investment decisions and property markets worldwide.
— Knight Frank (@knightfrank) March 3, 2022
Together with the latest real estate trends, this year’s report covers rising risks. https://t.co/yK50F52bm0#TWR22 pic.twitter.com/ptwhIOQoQD
