SA ranks 35th with personal wealth above $30 million
SOUTH Africa has only 1 033 individuals with wealth in the $30 million (R470m) range, called UHNWI, according to the Wealth Report 2020 launched last week by Knight Frank.
The report found that despite last year being a tumultuous year with declining economic global growth, the world’s UHNWI population rose by 6.4 percent, according to Knight Frank’s new wealth sizing model.
Leading the top six UHNWIs was the US with 240 575 individuals, followed by China (61 587), Germany (23 078), France (18 776), Japan (17 013) and the UK (14 367).
In Africa, South Africa had the most UHNWIs and ranked 35th while Nigeria ranked 44th with 724 individuals. Morocco, ranked 70th, had 215 individuals, with Kenya at 113th with 42 UHNWIs, while Zambia ranked 180th with five individuals.
The report said economically, 2019 was outwardly a tumultuous year, the International Monetary Fund reducing its forecast for global gross domestic product growth from 3.5 percent in January 2019 to just 2.9 percent in January 2020 – a 10-year low. In its attitudes survey, Knight Frank said 63 percent of respondents claimed their clients’ wealth had increased in 2019, with only 11 percent reporting a decrease.
Globally, more than 31 000 additional UHNWIs were created in 2019, bringing the total to more than 513 200. North America dominated, with more than double the UHNWI population of Europe.
Asia was quickly closing the gap on Europe and Knight Frank’s figures predicted that by 2024 it would be the world’s second-largest wealth hub, with a five-year growth forecast of 44 percent.
“The expansion in wealth during 2019 is unsurprising, given the strong growth seen in many asset classes. Equity markets, including stock exchanges in the US, Germany and Australia, have seen double-digit growth, although the UK and Japan saw more modest returns,” it said.
Over the next five years, Knight Frank forecast that global UHNWI numbers would grow by 27 percent.
Rory Penn, the head of Knight Frank Private Office, said: “The next 10 years have already been dubbed by some the new ‘roaring twenties’ – and I am optimistic that, with many positives to look forward to, they will live up to that soubriquet.”
He said among the wealthy was a growing focus on well-being, which presented many opportunities whether it was the investment potential of the global demographic trend towards longer, healthier lives or the ability of forward-thinking property investors and landlords to capitalise on demand for “healthy” workspaces that boost productivity.
Liam Bailey, Knight Frank’s global head of Research, said the dominant investment trends were: wellness; impact investing; and ESG (environmental, social and governance).
While investment in “wellness” assets and services promoting healthier lifestyles is merely a reflection of a market opportunity, the more seismic change for investors is being brought about through the expansion of impact investment.