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Driving Global WealthMapping ultra high net worth individuals around the globe

in association with:

© Copyright Forbes 2011 2

Key findings 3

Introduction: Emerging Wealth Takes Over 4

The Lingering Impact of the Global Downturn 5

Emerging Wealth from Emerging Markets 6

Managing Family Involvement 8

Creating a Philanthropic Legacy 11

Finding Success in Public Service 13

Global Citizens Who Stay Put 15

Conclusion: Emerging Wealth, Emerging Markets, Emerging Opportunities 16

Methodology 16

Appendix A: Ultra High Net Worth Individuals by Country 17

Appendix B: Research Definitions 29

Table of ConTenTs


This study looks at the characteristics of UHNWIs in a dozen global markets: Brazil, China, France, Germany, Hong Kong, India, Mexico, the Middle East, Russia, Singapore, the U.K., and the U.S. Analysis was conducted on ten different criteria, including:

• Source of wealth: Is the wealthy individual self-made, or did he or she inherit wealth?

• Company ownership: Is the individual’s company private or publicly held?

• Family: Does the individual have children or other relatives involved in his or her business?

• Employment: Is the individual still involved in the venture, retired, or a full-time investor?

• Net worth: What is the range of the net worth of the individuals being analyzed?

• Citizenship and residence: Does the individual hold citizenship and residence in the same country or in dif-ferent countries?

• Political involvement: How involved is the individual in national or local politics?

• Charitable foundation: Does the individual fund or run his or her own charitable foundation, or does the individual otherwise make philanthropy and giving a large part of his or her life?

• Age: How old is the individual?

• Gender: Is the individual male or female?

At the same time, entering the second decade of the 21st century, the balance of global wealth has begun to shift from traditional western economies to the newer emerging markets. The unprecedented growth of the Chinese economy, the expansion of India as a repository for innovation, and the ongoing progress of markets in Russia, Brazil and other developing nations, has led to this swing in the nature of the world’s richest individu-als and families.

In fact, our study suggests that the center of growth for UHNWIs has shifted eastward. While the U.S. still has the greatest number of UHNWIs, China, Russia and India have overtaken Western Europe in the number of billion-aires they produce. This marks a fundamental shift in the demographics of the world’s ultra-rich, and this could have an impact on spending and investing in the future.

Simply put, it is not just the number of wealthy indi-viduals in these emerging markets, but how money is flowing into these areas from around the globe. As they look for new investing opportunities, UHNWIs saw that these emerging markets were less affected by the 2008-09 downturn than were funds and investments in the U.S. and Europe. Today, they are adding these opportunities to their wealth management portfolios.

To gain a greater understanding of the characteristics of ultra high net worth individuals (UHNWIs), and how this investment segment is developing, Forbes Insights, in association with Societe Generale Private Banking, conducted an in-depth analysis of the world’s wealthi-est individuals. This exclusive data is derived from Forbes Magazine’s database of the world’s wealthiest people, look-ing at both people who made the “billionaire’s” list in 2010, as well as other UHNWIs.

he last few years have been historic for wealthy individuals—not so much in their importance but in

how they’ve changed some of the attitudes and characteristics of this unique investment sector. The

global credit crisis had an impact on all levels of society, including the very wealthy, that saw gains

they had made disappear in the sudden market volatility. And while signs of recovery appeared during the

past year, the wealthy, as everyone else, have been taking a more guarded approach to risk.


Forbes Insights, in association with Societe Generale Private Banking, examined the unique characteristics of ultra high net worth

individuals (UHNWIs) in a dozen countries. The analysis is based on exclusive data from Forbes Magazine’s database of the world’s

wealthiest people. The minimum net worth of the individuals studied was US$1 billion, with three exceptions: India ($500 million

minimum), China ($425 million minimum), and Singapore ($190 million minimum).

Key findings from this analysis include:

• WhilerecoveryseemstohavecomequicklytomanyUHNWIs,therearestilllingeringeffectsfromthe2008-09

globaldownturn. In particular, the impact has been on some of their investing attitudes and actions. Based on interviews

and conversations with UHNWIs, they appear to have reduced their risk exposure, but have significant concerns about the

possible impact of inflation over the coming years. In addition, many are revising their portfolios with greater investment in

emerging markets such as China and the Asia Pacific region, where they believe there is less potential volatility. Finally, for

some UHNWIs, the post-downturn timeframe has been an opportunity to review their advisor relationships.

• ThegreatestareaofUHNWIgrowthhasbeenintheworld’semergingeconomies,particularlytheso-calledBRIC

nationsofBrazil,Russia,China,andIndia.Today, both China and Russia have more than 100 billionaires in their ranks,

putting them second and third behind the U.S. But UHNWIs in these emerging markets are different from those elsewhere in

the world. They are younger; the average age of the UHNWI in Russia is just 49 and in China it is 50. They are predominantly

self-made, having been responsible for creating their own wealth. They remain involved in their businesses. But they are still

determining what they will do with their wealth, trailing other markets in areas such as philanthropy, for example.

• ThereareextremelystrongfamilylinksamongtheUHNWIsstudied. This is a global phenomenon present in nearly all

markets, with a few notable exceptions such as Russia. In many societies, keeping family close is a priority, as they have their

children and other family members involved in their businesses. Still, as generations pass, some conflicts can arise, particularly

when investments are managed by a family office.

• PhilanthropyandcharityremainprioritiesformanyUHNWIsastheylookforwaystocreateamorelasting

legacyandhaveagreaterimpactonsociety. In three quarters of the markets studied, more than 40% of the UHNWIs

fund their own charitable foundation, or run a charitable foundation founded or started by other family members. Yet this is

not yet universal. China remains a significant outlier, as only 7% of UHNWIs have foundations. But efforts are underway to

encourage greater giving and philanthropy from the emerging Chinese billionaires.

• Havingmadetheirmarksinthebusinessworld,someUHNWIsseetheirnextstepsasshapingpolicyanddebate

inthepublicsector.Tracking the political activity of the world’s richest people is difficult. In some nations such as the U.S.

or India, many UHNWIs individuals are open in their support of certain political causes, and some billionaires have turned

from business to politics. But elsewhere in the world (such as in Europe), UHNW individuals have been less open in their

political involvement, either not being involved or keeping their positions unknown.

• Despitebeingglobalcitizens,manyUHNWImaintaincitizenshipandresidenceinthesamecountry.The figure is

over 90% for most markets studied. The biggest outlier is Hong Kong—still maintaining its image as a haven for global

wealth—where 28% of the UHNW individuals studied hold citizenship and residence in different countries.

Key finDinGs


“Our advisors have been warning us about the risk of inflation,” said a second-generation Europe-based manu-facturer. “It makes sense to prepare for it.” While he would not disclose his specific investing plan, he did allude to moving away from the dollar.

Looking at deveLoping nations As they assess their investment portfolios, some of the UHNWIs interviewed are examining putting a greater share of their capital into emerging markets, particularly in the Asia Pacific area. While investments in emerging mar-kets also fell during the economic downturn, they were not as volatile as those in developed markets, and they recov-ered more quickly, said one interviewee.

Noted a U.K.-based investment advisor for UHNWIs, “The emerging markets as a whole are growing at a 7 per-cent clip. The developed countries have enormous debt whereas the emerging nations have healthy balance sheets.” The advisor added that he has recommended building portfolios that “decouple the emerging world with the developed world. I believe that’s going to play a role in nearly all strategic wealth management.”

turnover in investor reLationships It’s hard to say whether it is attributable to the post-down-turn hangover or simply a matter of it being an opportunity to shake things up, but a number of UHNWIs indicated they were assessing new advisor relationships, or looking to restructure their existing investment advisor roster.

For one UHNWI who made his money in the U.S. retail industry, its nothing more than a matter of regular due diligence. “I’m not looking to have different broker-age advisors compete against each other, but I want to be sure that the people I work with are the best at exe-cuting my investment strategy.” As he has rebalanced his assets to achieve his goals, he’s also replaced a couple of his advisors because their areas of expertise no longer fit the portfolio’s approach.

Or as another UHNWI indicated, “There’s been some churn in relationships because sometimes, it’s just time for a change.”

Nobody was untouched by the global recession of 2008-09, and the effect of the downturn lingered into 2010 for some UHNWIs. Still, the overall impact wasn’t just related to the value of portfolios. Certainly those were affected, but, for many UNHWIs, the biggest shift may have been related to their investing attitudes and actions.

Based on conversations and interviews with UHNWIs across the globe, as well as with some of their advisors, many of the world’s wealthiest were stung by the down-turn, but not to the same extent as other investors. (Most of these interviews were conducted on the condition that they would be used for background and that information not be attributable to the individual.) In the words of a U.S.-based technology investor: “The thing to con-sider is that in this downturn, it wasn’t just a few assets, it was nearly all asset classes. So everyone got burned nearly equally.”

Still, the recession has influenced how some of these UHNWIs are investing today, and how they interact with their advisors, as the anecdotes below describe:

a speedy recovery Many of the UHNWIs interviewed indicated they felt their investments had recovered more quickly after the down-turn than perhaps the “general public” had. In some cases, they felt their advisors had helped them move away from the more volatile real estate and public markets prior to the depth of the downturn, and encouraged them to return to some of those investments at the right time. “I’ve done well,” said one U.S.-based investor in charge of his family’s office. “I feel we saw what was coming and moved away at the right time.”

Lowering risk, but fearing infLation UNHWIs, almost as a rule, are often more moderate risk tak-ers, focused more on wealth preservation and strategic growth rather than high-return/high-risk investment. Following the recession, some of those interviewed who had dabbled with higher-risk investments such as hedge funds were retreating from those in favor of more mainstream equities.

The biggest concern many of the UHNWIs is inflation.

The lingering impact of the Global Downturn


emerging market uhnwis are generaLLy younger The average age of the UHNW individual in Russia is 49 and is 50 in China. (Fig. 1) Compare that to more estab-lished economies such as the U.S., where the average age of a UHNWI is 66, or France, where it is 74. In other words, emerging market UHNWIs are often just estab-lishing themselves, so their overall influence and activity will likely continue for an additional decade or two. Their wealthy status has just begun, and the long-term impact is likely to be sizable.

emerging market uhnwis are seLf-made Entrepreneurship is alive and well in the BRIC nations, and is paying off handsomely for those that have succeeded. 100% of the UHNWIs studied in Russia are self-made—meaning every single one was responsible for creating their own wealth and did not inherit it.

Few economic developments have compared to the mete-oric growth of China both as a global industrial powerhouse, and as a creator of unprecedented wealth for those entre-preneurs, industrialists, and investors who have succeeded over the past decade. While other economies contracted during the global credit crisis, China remained strong and vibrant, and today it leads the so-called BRIC nations—Brazil, Russia, India and China—as the greatest areas of growth for UHNWIs.

Consider some recent numbers: In the 2011 Forbes bil-lionaire’s list, the BRIC nations produced more than half of the new billionaires to join the ranking. Until the past 12 months, no nation other than the U.S. was home to more than 100 billionaires—today China has 115 and Russia 101.

The analysis shows that UHNWIs in these emerging markets—while they have much in common with their counterparts elsewhere in the world—also have a number of unique characteristics.

emerging Wealth from emerging Markets

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figure 1: Average age of UHNWIs, by country

The ultra-rich in emerging markets are making their fortunes at a younger age than UHNWIs in the West. China’s and Russia’s wealthy are, on average, 15 years younger than their counterparts in the U.S., U.K. or Germany.


While Russia may be an extreme in that area—espe-cially given its political history over the past 90 years—other wealthy individuals in the BRIC nations have been sim-ilarly entrepreneurial. In China, two thirds (66%) of the UHNWIs studied were self-made. For India, that figure is 65%, and for Brazil it is 67%. The impact of this entrepre-neurialism is further evident in the ongoing involvement of these individuals in their businesses (see below), and what is likely to be a continued expansion of their wealth based on their desire for ongoing success.

bric uhnwis are invoLved in their business Whereas UHNWIs and entrepreneurs in some western markets appear eager to sell their companies once they are successful, most of those in the BRIC nations remain actively involved with their businesses. This may be because they are younger and not yet ready to take a more passive role. Or it may be attributable to the high growth trajectories for many of these companies, and the desire of the leaders to see that growth through.

Among the UHNWIs studied, 93% of Russian UHNW individuals, and 85% of Chinese UHNWIs are employed full time, meaning they are in control of, directing, or run-ning their companies. The figures for India and Brazil are 78% and 75%, respectively.

emerging market uhnwis are stiLL determining how to give back Philanthropy is a mixed bag among UHNWIs in emerg-ing markets. For many, determining how or when to give

For UHNWIs in emerging markets, determining how

to give money away may be more difficult

than earning it.

STIllaMaN’SWoRlD

Gender diversity has not yet come to the world of ultra-high net worth.

In most of the markets studied, UHNW individuals are predominantly male. Of the markets studied, the ones with

the highest percentage of female UHNW individuals were Hong Kong (23%) and Germany (17%).

In most other markets, more than 90% of UHNW were male.

money away has been more difficult than earning it. As this new generation of titans emerges, it is unclear whether they will be as committed to giving back their wealth as some of their western counterparts have been. For instance, just 7% of Chinese UHNWIs analyzed in the study have their own charitable foundations, a far cry from the 55% that do so in the U.S.

It may be premature to say that these individuals will not be philanthropic, however, as many may see themselves as being at the stage of “building” their wealth. There are also social and political issues that are unique to these mar-kets that are affecting giving strategies—for example, is philanthropy seen as a way to help a nation’s people, or is that a role for the government?

Ultimately, how a select number of UHNWIs in emerging markets approach philanthropy may end up guid-ing others. These nations have yet to have their Carnegies or Rockefellers to usher in their ages of philanthropy.


Managing family involvement

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• Children in Business • Other Family in Business

figure 2: Family in Business

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UHNWIs in India, Hong Kong, the Middle East, and France are most likely to have children involved in their business, while those in Mexico, the Middle East, and Singapore involve other family.

There are extremely strong family links among the UHNWIs studied. This is a global phenomenon, and it is present in nearly all markets, with a few notable exceptions such as Russia.

Clearly, in certain societies, keeping family close is a priority, and UHNWIs in these countries are more likely to have children or other family members work-ing in the business. (Fig. 2) More than half of UHNWIs from the Middle East have their children involved in their businesses, and a similar percent have other fam-ily members involved (note that a person can have both children and other family members employed). Similarly, in India, 58% of UHNWIs have their children working with them.

Within many of these developing nations, one person’s wealth is often seen as something to be shared—a legacy that can enrich both the immediate and the extended fam-ily. “In our culture, family still comes first. Wealth becomes a way to bring everyone closer together,” said a wealthy finance executive from Latin America. “It is important to share our advantages with those closest to us.”

But involving family in wealth strategies certainly comes with its challenges. Once a family has significant wealth, the problem becomes how to preserve it for future generations. This is often a surprisingly difficult task, as it may require the family to tackle personal issues as much as they need to deal with investment and financial uncertainties.


ISSUeSINTHeFaMIlyoFFICe

For a second-generation European business owner, managing multigenerational wealth through a single-family office is at

times both a godsend and a curse. It both eases some of the issues related to investing and growth of the family fortune,

but it also sets up a number of conflicts as different segments of the family have different opinions regarding allocation and

risk profiles.

“Our goal for the past several decades and going forward has been to manage our wealth independently so that the principals

have enough time to devote to the business,” said the executive. “Staffing our office with professionals that don’t have a direct

link to the family has been beneficial.” He added that the group has a staff of 9, including tax advisors and legal counsel.

Still, he has found that as a third generation has become more involved in the SFO’s business and now sits on its committees,

it is becoming increasingly necessary to outsource some of its functions. For example, the group recently decided to restaff

its investing team to focus its expertise primarily on private equity placements (they used a unique performance bonus structure

to lure a high-performer into the organization). Other portfolio matters are being contracted with several independent

investment professionals.

“We try to have a long-term investing vision and adhere to investing best practices,” he added. This helped the family ride

out the 2009 downturn, and will help them find value in their future investments.

“In our culture, family still comes first… It is important

to share our advantages with those closest to us.”

To manage such conflicts, many UHNWIs turn to a single-family office (SFO), a professional organization ded-icated specifically to managing their personal fortunes. While SFO involvement was not directly analyzed in the Forbes wealth list data, other studies have looked at the issues and characteristics of the SFO. According to a 2009 study from the Wharton Global Family Alliance, SFOs and the families behind them are generally entrepreneur-ial, insofar as the families involved are often still majority shareholders involved (similar in profile to the UHNWIs from the Forbes list). These families tend to view their SFOs as private investment services, more focused on main-taining and growing wealth than on “softer” services—a hedge fund expert shouldn’t be distracted by having to deal with domestic staff issues.


Globally, many expect the biggest growth in family offices to occur in Asia, as UHNWIs in that region who have gained their wealth over the past two decades look to come up with ways to pass it on to the next generation. “We’ve been pretty unsophisticated investors compared to Americans and Europeans,” said a Singapore-based inves-tor specializing in biotech. “Wealthy Asians need to look for ways to grow their assets and preserve them for future generations.”

The importance of using services such as an SFO or private bank is further demonstrated by under-standing the source of the UHNWI’s wealth.

Entrepreneurial activity still drives the vast majority of wealth creation in most markets—the defining charac-teristic of the “self-made” individual. In half the markets studied—Brazil, China, India, Russia, the U.K., and the U.S.—more than 60% of the UHNWIs were “self-made,” meaning that they “earned” their wealth through the suc-cess and growth of their business ventures.

But even in those markets where the majority of UHNWIs received their wealth through inheritance, many are actively involved in growing that financial leg-acy. (Fig. 3) For example, in France, two thirds of the UHNWIs inherited their wealth, but half are actively involved today in growing the fortunes. Similarly, in the Middle East, 42% of UHNWIs inherited their fortunes, but are still looking to grow them.

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figure 3: Source of Wealth

• Self Made • Inherited • Inherited and Growing • Other

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Entrepreneurial activity still drives most wealth creation in both emerging and established markets as most UHNWIs fall into the category of “self-made” wealth.


In 2010, many UHNWIs were issued a challenge: increase their charitable giving and develop a way to return their wealth to charitable causes.

The “Giving Pledge”—kicked off by Warren Buffet and Bill and Melinda Gates—is an effort to have the wealthi-est individuals and families in America commit to giving the majority of their wealth to the philanthropic causes and charitable organizations of their choice either during their lifetime or after their death. The goal: have those who have been most fortunate make a moral commitment to give, and through their generosity make the world a better place.

More than 50 of the wealthiest U.S. individuals and families have taken the pledge. And the challenge has been extended overseas, as Buffet and Gates traveled to China to share their experiences with philanthropy with the wealthy entrepreneurs from that emerging nation.

Philanthropy and charity have long been part and par-cel with ultra high net worth, as individuals look for ways to create a more lasting legacy and have a greater impact on society.

The analysis of the Forbes data suggests that this is still true. In three quarters of the markets studied, more than 40% of the UHNWIs fund their own charitable founda-tion, or run a charitable foundation founded or started by other family members. (Fig. 4) And in seven of the markets, more than 40% of the UHNWIs gave other substantial charitable contributions; that is, made donations outside of their foundations, or made sizable donations without hav-ing their own or a family foundation.

While many think of philanthropy as an American notion—people in the U.S. give more to charity than

Creating a Philanthropic legacyfigure 4: Charitable Foundation

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• Charitable Foundation • Other substantial charitable giving

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In most markets studied, foundations and charitable giving is part of the legacy UHNWIs are trying to create, but the ultra-rich in emerging markets have some catching up to do.


people in any other country—clearly giving has become global in nature. In the U.S., 55% of UHNW individu-als studied operate charitable foundations, and of those that do not, nearly three quarters recorded substantial charitable donations. Yet even more UHNWIs operate foundations in the U.K. (57%) and France (58%). And in the Middle East, where Sharia law often directs charitable contributions, 63% of UHNWIs fund a charitable foundation.

Even in the emerging market of India, 48% of UHNWIs have a charitable foundation. Consider, for example, Wipro founder Azim Premji, who has pledged much of the fortune he made through his information technology company to his foundation, which currently is focused on improving public education in India.

As noted earlier, China remains an outlier in the area of philanthropy, as just 7% of Chinese UHNWIs have

PHIlaNTHRoPyKeePSalegaCyalIve

One could argue that the most valuable and enduring assets of a multigenerational family are its shared values, its reputation,

and its place in society. Evidence of its good work can serve as a magnet to draw individual family members together and

provide direction for the future.

Nowhere is this truer than in the family charitable foundation of the descendents of an American industrialist who made his

fortune more than 60 years ago. Based in a midsize city, the foundation—actually an amalgam of several foundations run by

different branches of the family—has two key points of focus: maintain and grow its endowment, and support the kinds of

causes the family’s patriarch would have supported during his lifetime, according to a family board member.

Maintaining and growing the endowment, the board member said, comes via the family’s commitment to supporting their

foundations. The commercial side of the family fortune has shifted from manufacturing to investing, including commercial real

estate and private equity investment. While those investments are not part of the foundation’s endowment, their ongoing

success provides the funds, the board member added. In terms of causes, the foundation’s charter calls for it to support areas

of social equality, cultural enrichment, and local causes, including medical research and education.

“It is important for us to maintain what our family stands for,” the board member said. “Our wealth came via inheritance,

but our true legacy is really about what we continue to do with it.”

a foundation, and 35% make some sort of other sub-stantial charitable giving. There remains great cultural hesitancy in that country to making a charitable pledge. For instance, Confucian values call for people to take care of their families first, which is often considered a reason why Chinese UHNWIs leave wealth for their descen-dents. In fact, when Buffet and Gates visited, they had to issue an official letter to the state news agency to clar-ify that attendees at their event would not be asked to donate anything.

But that could be changing. After the visit by Buffet and Gates, several Chinese entrepreneurs changed direction. Chen Guangbio, a recycling entrepreneur with a fortune estimated at more than $400 million, announced on his company’s website that he planned to give all his money away. Others could follow his lead.


Philanthropy is one way UHNWIs can give back to society. Another way is through activity in the pub-lic sector.

A growing number of entrepreneurial UHNWIs, having made their fortunes in business, have turned to politics to take their success in the private sector and bring it to public service. Consider the number of high-profile billionaires that have turned from business to politics. New York City mayor Michael Bloomberg made his fortune via his namesake information services and media company. Lebanese prime minister designate Najib Mikati co-founded the telecommunications com-pany Investcom.

In most cases, these are not individuals who are look-ing to further enrich themselves via the public sector, or see political involvement as a way to improve the standing of their businesses. Rather, many see it as a way to shape the debate on critical issues, and use their business experi-ence for public service.

Still, tracking the political activity of the world’s richest people is difficult. The Forbes Insights research defines “political involvement” as those individuals who have donated money to a political party in a manner that is recorded in public record; have been known to attend political fundraisers; have served on or in a government cabinet, task force, or partnership on the local, federal or international level; have attended global economic confer-ences sponsored by governing bodies; or have run for or served in elected office.

finding success in Public serviceMany UHNWIs see political

involvement as a way to shape public debate and use

their business experience for public service.


While this definition can identify some of the politi-cal involvement of UHNWIs, information to back up all involvement is not always available. (Fig. 5) As a result, the figures for those who are “not” politically involved include both UHNWIs who noted that they remain politically neutral as well as those for whom no data is available. Thus, it is pos-sible that some are politically active on some level, but data cannot be found either due to country disclosure laws or dearth of public information.

In nations studied, political activity among UHNWIs is most common in the Middle East (74%), the U.S. (52%), and India (48%).

In the Middle East, the high rate of political involve-ment may be due to the concentration of wealth of the ruling families, and the political appointment of mem-bers of these families in the countries studied (the United Arab Emirates, Saudi Arabia, Kuwait, and Lebanon). For example, prime minister of Kuwait, Sheikh Nasser Al-Sabah, is the nephew of the emir Sheikh Sabah Al-Ahmad Al-Jeber Al-Sabah. It is this kind of concen-tration of wealth and political power that led to some of the protests and democracy demonstrations in countries such as Bahrain in 2011.

In the U.S. and India, political involvement and polit-ical donations may come from the increasing expense of running a political campaign. In the U.S., political fun-draising has been well documented, and the courting of wealthy individuals is part of the ongoing process. In India, electioneering has also become dominated by candidates’ desires to outspend their rivals as they run for office.

This trend also accounts for the lower levels of political involvement in certain European countries, where elec-tions may be publically financed, and privacy laws limit political disclosures.

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figure 5: Political Involvement

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• Yes • No/Unknown

While political involvement of UHNWIs is not easy to track, wealthy individuals in the U.S., India, and the Middle East are among the most active.


UHNWIs are the stereotypical global citizens. Given their wealth and the global nature of their investments and inter-ests, many are likely to maintain multiple residences and conduct business and across the world.

For example, one UHNWI interviewed for this study is a U.S. citizen. His office is based in the U.K., and he maintains residences in both London and New York, where his family resides. His primary area of investment specialty, however, is real estate in developing markets, particularly in India and now Hong Kong, and he operates out of offices in those nations as well.

Still, the vast majority UHNWIs individuals maintain cit-izenship residence in the same country. (Fig. 6) In two thirds of the markets studied, more than 90% of UHNWIs hold citi-zenship and residence in the same country. For Mexico and the Middle East, all of the UHNWIs studied live and reside in those regions. In the U.S., the figure is 97%.

The biggest outlier is Hong Kong—still maintaining its image as a haven for global wealth—where 28% of the UHNW individuals studied hold citizenship and residence in different countries. In the U.K., where UHNWIs from elsewhere in the Commonwealth often maintain residence, 17% of the individuals studied hold citizenship and resi-dence in different countries.

Global Citizens Who stay Put

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figure 6: Citizenship of UHNWIs

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U.s.

Mexico

• Holding Citizenship and Residence in Same Country

• Holding Citizenship and Residence in Different Countries

The vast majority of UHNWIs have residence in their country of citizenship, but Hong Kong and the U.K. still attract the ultra-rich from elsewhere in the world.


the most successful entrepreneurs. And emerging market money will also be fueling the growth of wealth in western markets—consider how Russian entrepreneur and venture capitalist Yuri Milner has invested in successful U.S. Internet properties such as Facebook, Zynga, and Groupon, whose owners themselves are billionaires.

Still, challenges exist. The concentration of wealth in countries such as India and China—where significant pov-erty also exists—may need to be watched closely. In India, for instance, concerns have been voiced that major family-based corporations wield disproportionate influence over markets. Local governments in China are looking for ways to expand the standard of living for its emerging middle class. The concern: to avoid chances of social unrest.

Ultimately, the influence of this shift will be felt for years to come. Older, established wealth could be usurped by the emerging market billionaires. Philanthropic giv-ing by these emerging market UHNWIs could change the specter of poverty into opportunity in these markets and create a lasting legacy.

There has been a significant shift in how wealth is distrib-uted around the globe, as so-called emerging markets have come forward as the fastest growing markets for the ultra-rich, perhaps at the expense of more established wealth in western Europe. Driven by strong entrepreneurism and meteoric growth in countries such as China, India, and Russia, these newly minted UHNWIs are creating a new demographic wealth profile.

Consider, for example, the profile of the average UHNWI in China. This person is young ( just hitting 50), self-made, entrepreneurial, and continues to be focused on building wealth. At the same time, the Chinese UHNWI may not yet be comfortable with wealth, and is still figur-ing out how to affect society through philanthropy.

The impact of this geographic shift in wealth could be long-lasting. Not only do these markets make billionaires, but they are also are attracting the investments of other UHNWIs seeking stable growth opportunities. This strong funding could further spur economic growth in the emerg-ing markets, creating even more innovation and wealth for

methodoLogy

the information in this study is based on an exclusive analysis of ultra-high-net-worth individuals in 12 markets conducted by Forbes insights. the markets studied were: Brazil, china, France, Germany, hong Kong, india, Mexico, the Middle East (United arab Emirates, saudi arabia, Kuwait, Lebanon), Russia, singapore, the U.K., and the U.s.

Using the Forbes Magazine list of the world’s wealthiest individuals from 2010, Forbes insights evaluated trends and developments of Uhnw individuals against a number of key criteria, including company ownership, citizenship and residence, source of wealth, employment status, family business involvement, charitable foundations and giving, and political involvement.

the minimum net worth of the individuals studied was Us$1 billion or local currency equivalent in all markets. there were three exceptions: india ($500 million minimum), china ($425 million minimum), and singapore ($190 million minimum).

in addition, 17 interviews were conducted with Uhnwis in the countries studied. Each person interviewed had at least Us$60 million in net investable assets. Many of the interviews were conducted “off the record,” but the insights they provided were used to help shape the analysis of the data. others were conducted “not for attribution,” in order to protect the privacy of the individual interviewed.

christiaan rizy DiREctoR

stuart feiL EDitoRiaL DiREctoR

brenna sniderman REsEaRch DiREctoR

cLara knutson REsEaRchER

ConClusion

emerging wealth, emerging markets, emerging opportunities


company ownershipPrivate holding 22%

Public holding 78%

citizenship & residenceCitizenship and residence in same country 89%

Citizenship and residence in different countries 11%

genderMale 94%

Female 6%

average ageAge 68

source of weaLthSelf made 66%

Inherited 6%

Inherited and growing 28%

Other 0%

net worth rangeMin net worth ($mil) $1,100

Max net worth ($mil) $27,000

empLoyment statusFull-time 75%

Retired 6%

Full-time investor 6%

Other 13%

charitabLe foundationYes 38%

No/None found 63%

Other substantial charitable giving (total) 44%

famiLy in businessChildren in business 11%

Other family in business 14%

poLiticaL invoLvementYes 13%

No/Unknown 87%

BRAzIL(n=18)

aPPenDix a

ultra high net worth individuals by country



Public holding 64%



genderMale 96%

Female 5%

average ageAge 50


Inherited 1%


Other 14%

net worth rangeMin net worth ($mil) $425



Retired 2%


Other 2%


No/None found 94%





No/Unknown 94%

CHINA(n=400)



Public holding 83%



genderMale 92%

Female 8%

average ageAge 74


Inherited 17%


Other 0%




Retired 25%


Other 17%


No/None found 42%





No/Unknown 83%

FRANCE(n=12)


GERMANY(n=53)


Public holding 26%



genderMale 83%

Female 17%

average ageAge 66


Inherited 32%


Other 0%




Retired 19%


Other 9%


No/None found 36%





No/Unknown 98%


HONG KONG(n=40)


Public holding 68%



genderMale 78%

Female 23%

average ageAge 68


Inherited 5%


Other 28%




Retired 13%


Other 5%


No/None found 58%





No/Unknown 65%


INDIA(n=100)


Public holding 85%



gender*

Male 75%

Female 5%

average ageAge 60


Inherited 17%


Other 0%




Retired 10%


Other 11%


No/None found 52%





No/Unknown 52%

*Gender could not be identified for remaining 25%


MExICO(n=19)


Public holding 58%



genderMale 100%

Female 0%

average ageAge 64


Inherited 33%


Other 0%




Retired 0%


Other 11%


No/None found 44%





No/Unknown 67%


MIDDLE EAST(n=19)


Public holding 58%



genderMale 100%

Female 0%

average ageAge 61


Inherited 16%


Other 0%




Retired 11%


Other 0%


No/None found 37%





No/Unknown 26%


RUSSIA(n=62)


Public holding 47%



genderMale 98%

Female 2%

average ageAge 49


Inherited 0%


Other 0%




Retired 1%


Other 5%


No/None found 74%





No/Unknown 80%


SINGAPORE(n=40)


Public holding 70%



gender*

Male 30%

Female 3%

average ageAge 62


Inherited 3%


Other 74%




Retired 15%


Other 15%


No/None found 58%





No/Unknown 85%

*Gender could not be identified for remaining 67%


UNITED KINGDOM (n=29)


Public holding 17%



genderMale 90%

Female 7%

average ageAge 65


Inherited 10%


Other 0%




Retired 17%


Other 6%


No/None found 43%





No/Unknown 91%


UNITED STATES(n=400)


Public holding 26%



genderMale 90%

Female 11%

average ageAge 66


Inherited 18%


Other 1%




Retired 11%


Other 4%


No/None found 45%





No/Unknown 48%


by other family members such as a parent or sibling; and

those whose companies run charitable foundations (though

in these cases, the individual in question must own or run

that company).

No/Nonefound: Includes those without a charitable

foundation as defined by above, as well as those for whom

this information could not be found.

othercharitablegiving: Includes those who either hold a

role on the board of a charitable foundation not owned or

run by themselves, their family, or their company; those who

have made a significant donation to a charitable organization;

and/or those who make philanthropy and giving a large part

of their lives either outside their own foundation or in lieu of

their own foundation.

poLiticaL invoLvement

Politicallyinvolved: Includes those who have donated money

to a political party in a manner that is recorded in public record;

have been known to attend political fundraisers; have served on

or in a government cabinet, task force, or partnership on the

local, federal or international level; have attended global

economic conferences sponsored by governing bodies; have run

for or served in elected office; have been appointed to office;

may be noted in reports as having “suspected political ties” or

having been suspected of being “politically well-connected”;

or who have a spouse, sibling, parent or child who has run for,

or served in, office, or is currently serving in office.

No/Unknown: Includes those who note that they remain

politically neutral as well as those for whom no data is available.

Thus, it is possible that some are politically active on some level

as defined above, but data cannot be found either due to

country disclosure laws or dearth of public information.

empLoyment

Full-time: Includes individuals who are still in control of,

directing or running their company, as well as those who may

have ceded day-to-day control of their company to others but

still remain as an active and functioning chairman of the board.

Retired: Includes only those individuals who have officially

retired from day-to-day engagement with a company and no

longer serve on their company’s board, or who serve in an

“honorary” or “emeritus” capacity, and who do not hold any

other roles at any other for-profit organizations. Although they

may still hold stakes in other companies or hold other

investments, they are not actively acquiring new stakes or

getting involved in any new ventures.

Full-timeinvestor: Includes only those who are full-time

investors of their own wealth, or their family’s wealth.

other: Includes those who may no longer serve in a day-to-day

capacity at their company and no longer serve on their

company’s board; or who serve in an “honorary” or “emeritus”

capacity, but who are also active members on other company

boards; who run their own charitable foundation(s); are now

serving in public or elected office; are in the process of starting

another company; are running or serving as a guiding force at

another company separate from the one at which they made or

grew the bulk of their wealth; are deceased since the data was

completed; or who are not necessarily retired but made their

wealth through family inheritance and not through their career

or employment. Also includes families who are listed as among

the wealthiest.

charitabLe foundation

Hasacharitablefoundation: Includes individuals who have

funded and own/run their own charitable foundation; those

who have funded their own charitable foundation and allow it

to be run by family members or a staff of professionals; those

who continue to run charitable foundations founded or started

aPPenDix b

research definitionsFor analysis purposes, the following definitions were used to categorize ultra-high-net-worth individuals studied for this report:

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