Ultra-wealthy population increased by 10% in 2017

Cape Town – The latest global wealth data, prepared exclusively for Knight Frank’s 12th edition of The
Wealth Report, illustrates a remarkable increase in 2017 in the number of people with net assets worth
in excess of US$50 million. These “ultra-wealthy” people now constitute a population of 129,730
individuals with a combined worth of US$26.4 trillion, a 10% increase from 2016.

Not only is this a notable increase in a singular calendar year, but it rapidly surpasses the average
growth per year recorded over the previous five years; whose cumulative increase was only 18%
respectively. This trend echoes what is being seen in the global economy, whereby since the beginning
of 2017, there has been noticeable growth. Furthermore, data provider Wealth-X, forecasts that this is
only the beginning, with the global economy gaining momentum, they predict that the number of these
“ultra-wealthy” individuals should increase by a further 40% by the year 2022.

Looking more locally, the past trends are however dissimilar. The African “ultra-wealthy” population in
fact decreased by 8 % in the period of 2012 to 2017 in comparison to the global increase. Wealth-X
however, has predicted that the African population should follow the global trend proceeding to 2022,
with an estimated increase in “ultra-wealthy” individuals in this region to be approximately 31%.
North America remains the world's largest wealth region, hosting 34% of the global population of the
ultra-wealthy. Europe however has been surpassed into third position, as mass growth in Asia resulted
in a 15% increase in the number of ultra-wealthy individuals, catapulting this region into being home to
the second largest portion of the global population.

Beyond just the numbers, Wealth-X looked at the critical factors driving the nature of the world's ultrahigh-
net-worth individuals (UHNWIs). Five hundred of the world's leading private bankers and wealth
advisors were surveyed, representing over 50 000 clients with a combined net worth well over US$3
trillion. Contributors to the report agree that there are fundamental global issues that are influencing
decisions by the ultra-wealthy, and thus having major impact on the global economy. These factors
include, unsurprisingly, terrorism, cybercrime and the rise of political populism around the world. Brexit,
the North Korean crisis and the volatility consuming American politics with Trump's presidency are all
shaping decisions made by those constituting the majority of global wealth.

Furthermore, there were some more positive noteworthy trends, including the increase of secondary
citizenship, promoting the concept of the “global village” and investment in property globally. There too
seems to be an emphasis on philanthropy with dramatic increases in donations and a shifting in
investment philosophy, now focussing more towards the social and environmental impact of businesses
world-wide.

Relevant to the global real estate industry, The Wealth Report highlighted an increase in global real
estate investment. Commenting on this, Knight Frank South Africa MD, Susan Turner, says “This puts
Cape Town’s luxury residential market in a prime position within the investment landscape as most
UHNWIs want to become global citizens and are looking at acquiring property.” Turner adds that Cape
Town has much to offer the global investor, especially delivering on floor space, in comparison to other
popular destinations such as New York, Sydney or London.

To download the report, please click: http://www.knightfrank.com/wealthreport