THE US$100M+ CLUB

The ‘Centi-Millionaire Report 2023’ by Henley & Partners and New World Wealth reveals a global increase in centi-millionaires, or individuals with investable assets of US$100 million or more.

The report notes that the number of centi-millionaires has doubled over the past 20 years, increasing by 12 percent in the past year alone, meaning there are now 28,420 centi-millionaires internationally.

According to the study, the United States has the highest concentration of centi-millionaires at 38 percent, with New York City having the most resident centi-millionaires (775 residents).

London is the only United Kingdom city in the top 50 centi-millionaire cities and it has experienced a 4.4 percent decrease in centi-millionaires over the past year. Asia, on the other hand, is well-represented, with four cities in the top 10, including Beijing, Shanghai, Singapore and Hong Kong.

Within the next decade, the report projects a 38 percent increase in the centi-millionaire population internationally, citing promising sources in inheritance, entrepreneurship, stock market investments and cryptocurrency.

Two-thirds of the top 50 centi-millionaire residential locations are in countries with investment migration programs, as centi-millionaires push for options in global citizenship to enhance mobility and access to international opportunities.

Sinking Savings

The ‘Allianz Global Wealth Report 2023’ indicates it’s been a challenging year for savers, with a global decline of 2.7 percent in private household financial assets.

This is the most significant drop since the global financial crisis in 2008 and is most adversely affecting North America and Western Europe. Nearly two-thirds of nominal growth in financial assets over the past 20 years has been eroded by inflation, reducing measurable growth to only about 6.6 percent in three years.

However, Asia has continued to experience robust growth. But as far as liabilities are concerned, global private debt growth slowed significantly in 2022, with Asia – and China in particular – experiencing a decrease in debt growth.

Net financial assets worldwide declined by 5.2 percent, with the Asia market being an exception, where there was a 4.2 percent increase in net financial assets.

In other positive news from the report, the global debt-to-gross domestic product ratio for private households decreased to about the same level as at the beginning of the millennium, indicating greater stability than may be widely regarded.

Hungry for Risks and Results

A global study by Ortec Finance indicates that clients are increasing their risk appetite as a response to recent market volatility affecting their investment goals. The study involved wealth managers and financial advisors overseeing approximately US$750 billion collectively.

Of the respondents, 97 percent reported that their clients’ investment goals have been adversely affected by market volatility, with 20 percent experiencing up to a six-month delay and 45 percent facing delays between six and nine months.

Despite these delays, 95 percent of wealth managers and financial advisors viewed their clients’ investment goals as realistic, with 18 percent considering them very realistic.

Most respondents (69 percent) stated that the risk profile of their clients’ investments has increased in the past year, and 82 percent predicted further increases in risk appetite over the next 12 months.

The Top Five New-Wealth Hubs

The top five highest-performing new-wealth cities have been assessed in Knight Frank’s ‘Rise of the Super Wealth Hub’ series, which uses a number of indicators focused on work–life–play metrics. And the results are intriguing.

1.  Dubai:  The jewel of the Middle East performs especially well in the lifestyle category.

2. Singapore:  The city-state supports enterprise within a strong legal framework.

3. Hong Kong:  The island rates highly in lifestyle and urban prosperity.

4. Sydney:  Australia’s best-known city is a high performer in both legal framework and enterprise excellence.

5. Shanghai:  The Chinese city rates well for urban prosperity and enterprise excellence.