Monthly Archives: September 2012

India’s super rich: Top 8 Cities for Indian multi-millionaires

 

According to WealthInsight research, there are 1,576 multi-millionaires in India (each with net assets of over US$30 million). Mumbai is home to 37% of these or 577 multi-millionaires.

According to WealthInsight analyst Shekhar Tripathi: The number of multi-millionaires in India increased by 46% over the four year period between 2007 and 2011.”

Dehli has the 2nd highest number of Indian multi-millionaires (147 multi-millionaires) followed by Kolkata (126 multi-millionaires), Hyderabad (114 multi-millionaires) and then Bangalore (97 multi-millionaires).

The number of multi-millionaires in Pune, Maharashtra’s second city after Mumbai, grew by the largest margin (68%) over the period between 2007 and 2011. The number of multi-millionaires in Mumbai also grew by strongly over the period, by 59%.

According to WealthInsight analyst Sunil Agarwal: “Pune’s rise was aided by its proximity to Mumbai and by robust growth in the local automotive, manufacturing and technology sectors”

 

Major Cities

Number of multi-millionaires, 2011

Mumbai

577

Delhi & New Delhi

147

Kolkata

126

Hyderabad

114

Bangalore

97

Chennai

88

Pune

55

Ahmedabad

51

Other

321

India

1,576

Super rich: Top 16 Cities for Chinese multi-millionaires

According to WealthInsight research, there are 7,905 multi-millionaires in China (each with net assets of over US$30 million). Unsurprisingly, Beijing and Shanghai are the top two cities with 1,318 and 1,028 multi-millionaires respectively.

 

Hangzhou has the 3rd highest number of Chinese multi-millionaires (563 multi-millionaires) followed by Shenzhen (377 multi-millionaires), Guangzhou (311 multi-millionaires), Nanjing (192 multi-millionaires) and then Tianjin (155 multi-millionaires).

 

Over the four year review period, the number of multi-millionaires in China increased by 41% from 5,590 individuals in 2007 to 7,905 in 2011. Chongqing was the top performing city with multi-millionaire numbers rising by 78% in the city from 54 individuals in 2007 to 96 in 2011. Chengdu was the 2nd best performing city, with multi-millionaire volume growth of 61%.

 

According to WealthInsight analyst Christopher Rocks: “Chongqing multi-millionaire numbers were boosted by strong growth in the local manufacturing, real estate and transportation sectors”

Can the BRICS keep building wealth?

The ultra-wealthy populations in the BRICS countries have prospered in recent years, increasing in number by almost a third and withstanding the global financial crisis.

As of 2011, there are approximately 1.9 million HNWIs in the BRICS, with a combined wealth of US$7.5 trillion. This equates to 11.3% of total worldwide HNWIs volumes (16.8 million) and 11.4% of total worldwide HNWI wealth (US$66 trillion). The total number of HNWIs in the BRICS increased by 30% over the review period from 1.5 million HNWIs in 2007 to 1.9 million in 2011.

China accounts for the greatest share of the BRICS’ wealthy population. As of 2011, two-thirds of HNWIs coming from the BRICS are Chinese, a ratio expected to increase by 2016. South Africa has by far the smallest share of high net-worths, unsurprising due to its far smaller overall population.


The number of HNWIs in China has also increased at the quickest rate over the review period since 2007, rising by 41%. In India, HNWI volumes increased by 32%; in Brazil, 31%; and 18% in South Africa. During this time, Russia was the only country in the group to experience a decline in the total number of HNWIs (-18%), largely due to a fall in the value of the Russian ruble which negatively impacted on the US dollar wealth of Russian HNWIs.

Over the forecast period (2011-2016) the overall volume of HNWIs in the BRICS is projected to increase by 76%. But the story is not just about China. India will see the strongest growth in the years ahead with the number of HNWIs in the country more than doubling by 2016 (103%). Russia will again be home to the slowest increase in HNWIs amongst the BRICS, but even there the number of millionaires is still expected to increase by over a third.

India is also home to some of the fastest growing cities for ultra-HNWIs. In the period to 2016, 30% of the fastest UHNWIs growth centers will be India, including four of the top five. Brazil made up two of the fastest growing cities over the review period. Otherwise the fastest growing locations for ultra-HNWIs over the review period, and forecast for to 2016, are again dominated by China.

Definitions:

  • For the purposes of this report, the phrase “coverage period” refers to the period of 2007–2016, while the “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.
  • “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
  • Billionaires are those HNWIs with wealth of US$1 billion or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

For more information see WealthInsight’s BRICS Wealth Book 2012.

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

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.”

Super rich: Top 20 Cities for UK multi-millionaires

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.

The Rise of Russian Tech: New opportunities for wealth creation in Russia

Basic materials have been the driving force behind the growth in Russian high net worth individuals (HNWIs), but research by WealthInsight has found that the technology sector has been booming in recent years. Wealth managers should pay attention to this fast-growing sector.

Since 2007 the number of  ultra-wealthy Russians (those with net assets of US$30 million or more excluding their primary residences) who acquired their wealth through technology has grown by 21% – more than any other major sector. Research by WealthInsight finds that, at the end of 2011, the technology sector is the primary source of wealth for 5.7% of Russia’s ultras.

At present, compared with the other ‘BRICS’, only Brazil is behind Russia in its ratio of ultra-HNWIs coming from the technology sector.

But the Russian technology sector is a growing market: in 2011, Russia overtook Germany as the European market with the highest number of unique visitors online and internet penetration rates, relatively low compared to developed markets, are expected to increase from 40% to 70% over the next four years. As the internet market continues to develop, this will create opportunities for companies with an understanding of local markets and political nuances, leading to an upsurge in the numbers of HNWIs coming from this sector.

WealthInsight research also shows that:

  • Between 2007 and 2011 the number of Russian millionaires decreased: from 194,870 high net worth individuals (HNWIs) in 2007, to 159,558 in 2011.
  • Basic materials is the most important wealth sector in Russia, constituting the primary source of wealth for 26% of ultra-HNWIs (those with wealth >$30m).
  • By 2016 the total wealth of Russia’s HNWIs is projected to grow by 39%, to reach $1,304 billion. The number of HNWIs will grow to 216,000 individuals in 2016.

Definitions:

  • For the purposes of this report, the phrase “coverage period” refers to the period of 2007–2016, while the “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.
  • “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
  • Billionaires are those HNWIs with wealth of US$1 billion or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

For more information see WealthInsight’s report on Russia, “Russia – The Future of HNWIs to 2016: The Land of Oil and Gas”.