Wealth
Where Does the World’s Ultra-Wealthy Population Live Today?
Where Does the World’s Ultra-Wealthy Population Live Today?
The pandemic, geopolitical tensions, and supply chain disruptions have thrown the world into disarray in recent years, but that hasn’t stopped the world’s ultra-wealthy population from growing at a strong clip.
New data from this year’s Wealth Report by Knight Frank shows that the number of Ultra-High Net Worth Individuals (UHNWIs) grew 9.3% between 2020 and 2021. Nearly all regions saw an increase in ultra-wealthy people over the time period.
The above visualization from the report explores the global distribution of uber-affluent people. Below, we’ll also look at how the populations are projected to grow in the future.
The World’s Ultra-Wealthy, by Region
UHNWIs are defined as having net assets of $30 million or more, including their primary residence.
With over 230,000 UHNWIs in 2021, North America has the largest subset globally, followed by Asia at nearly 170,000. Over the last year, the ultra-wealthy population rose 12.2% and 7.2% across these regions, respectively.
| Region | UHNWIs (2021) | Change (2020–21) |
|---|---|---|
| North America | 233,590 | 12.2% |
| Asia | 169,889 | 7.2% |
| Europe | 154,008 | 7.4% |
| Australasia | 24,245 | 9.8% |
| Latin America | 10,337 | 7.6% |
| Middle East | 9,717 | 8.8% |
| Russia & CIS* | 6,542 | 11.2% |
| Africa | 2,240 | -0.8% |
| World | 610,569 | 9.3% |
*Commonwealth of Independent States
Following North America and Asia is Europe. In 2021, the top countries for the ultra-wealthy were France (30,000), Germany (28,000), U.K. (25,000) and Italy (17,000). On a per capita basis, Monaco is the highest worldwide, at five people per thousand residents.
Interestingly, the ultra-rich in Russia & CIS (6,500) grew the second fastest across all regions, at 11.2%. Rebounding oil prices, property prices, and stock market valuations likely bolstered this growth. However, the crippling sanctions and economic fallout resulting from the invasion of Ukraine could substantially impair oligarch wealth for many years to come.
Growing Fast
How will UHNWI populations change in the next five years?
Globally, the number of ultra-rich is projected to increase a staggering 28% by 2026. (Still, it’s worth noting that growth between 2016-2021 was almost three times this rate, at over 75%.)
Asia is projected to have the highest growth rate, along with Australasia. In five years, UHNWIs are set to rise 33% in both regions. Singapore is projected to see its ultra-rich population grow 268%, while the ultra-rich living in mainland China are anticipated to grow over 42%.
Meanwhile, North America is projected to see 28% growth, or reaching a total of 300,000 UHNWIs by 2026.
Significant growth is also projected across Latin America. Amid rampant hyperinflation, Argentina is estimated to see a 38% expansion in its ultra-wealthy population.
Behind the Scenes
What is fueling this growth in UHNWIs worldwide?
Sky-high asset prices and a real estate boom are two drivers behind this trend, according to Knight Frank. Ultra-low interest rates, which declined during the pandemic, is another.
Given cheap borrowing costs, the ultra-wealthy have more leverage to build their wealth, such as buying more property or investing in financial assets. In fact, the average UHNWI owns 2.9 properties.
It’s worth noting that strong GDP projections often underlie wealth projections. The IMF predicts that a post-pandemic recovery will be robust. However the crisis in Ukraine could pose meaningful risks to the global economy, especially for inflation and financial markets.
For instance, Russia contributes 12% to the global oil supply, a key factor behind inflation. At the same time, Ukraine supplies 90% of America’s neon—an essential material used in the semiconductor industry—which could further exacerbate supply chain issues.
Money
Ranked: The World’s Top 50 Endowment Funds
Endowment funds represent the investment arms of nonprofits. See the worlds top 50, which collectively have over $1 trillion in assets.
Ranked: The World’s Top 50 Endowment Funds
What do Harvard, the Church Commissioners for England, the NYC Metropolitan Museum of Art, and an entity on behalf of Saudi Arabia’s King Abdullah all have in common? They all have endowment funds.
An endowment fund is the investment arm of nonprofit institutions like universities, charities, and churches. The purpose of the fund is to invest the organization’s assets to fuel future operations and other important projects.
The world’s largest endowment funds have billions in investable assets, making them sizable players in the finance sector. Here, using data from Sovereign Wealth Fund Institute, we take a closer look at the world’s largest endowment funds by total assets.
Types of Endowment Funds
Overall, there are four main types of endowment structures.
- Unrestricted Endowment: A fund structure where assets are used at the full discretion of the institution
- Term Endowment: A fund structure with a fixed term time period before the principal can be spent
- Quasi Endowment: A donation to an endowment with a specific purpose to deploy that capital
- Restricted Endowment: A fund structure where the principal value from donations is held forever and only returns generated on the principal can be used
In addition, each endowment fund has different structures in regards to withdrawals, use of funds, and their general investment philosophy.
The Largest Endowment Funds
The largest endowment funds can be compared on a grand economic scale, in terms of assets.
To put it all into perspective, the largest 50 endowment funds represent over a trillion dollars in assets. Or for a more singular example, look at Harvard’s fund, which has an endowment greater than the entire GDP of countries like Serbia, Bolivia, or Slovenia.
Here’s how the top 50 rank.
| Rank | Endowment Fund | Total Assets | Region |
|---|---|---|---|
| 1 | Ensign Peak Advisors, Inc | $124,000,000,000 | North America |
| 2 | Japan Science and Technology Agency | $80,700,000,000 | Asia |
| 3 | Stanford University | $75,143,751,000 | North America |
| 4 | Harvard Management Company | $72,781,329,000 | North America |
| 5 | Yale University | $56,223,259,000 | North America |
| 6 | Princeton University | $44,460,038,000 | North America |
| 7 | MIT Investment Management Company | $42,526,492,000 | North America |
| 8 | Duke University | $30,385,835,000 | North America |
| 9 | New York University | $27,840,535,000 | North America |
| 10 | Columbia University in the City of New York | $24,698,782,000 | North America |
| 11 | University of Notre Dame | $24,599,541,000 | North America |
| 12 | KAUST Investment Management Company | $23,500,000,000 | Middle East |
| 13 | Emory University | $20,458,905,000 | North America |
| 14 | Johns Hopkins University | $18,037,751,000 | North America |
| 15 | Church Pension Fund | $17,773,649,171 | North America |
| 16 | University of Chicago | $17,276,136,000 | North America |
| 17 | Ohio State University | $16,006,851,000 | North America |
| 18 | Northwestern University | $15,855,683,000 | North America |
| 19 | Washington University in St Louis | $15,103,569,000 | North America |
| 20 | Penn State University, Office of Investment Management | $15,017,272,000 | North America |
| 21 | Notre Dame of Maryland University | $14,938,580,253 | North America |
| 22 | Cornell University | $14,850,618,000 | North America |
| 23 | University of Southern California | $14,495,427,000 | North America |
| 24 | Vanderbilt University | $13,883,495,000 | North America |
| 25 | University of Virginia Investment Management Compnay | $13,811,076,000 | North America |
| 26 | University of Tokyo | $13,285,270,000 | Asia |
| 27 | National University of Singapore | $12,626,100,000 | Asia |
| 28 | UNC Management Company | $11,986,857,000 | North America |
| 29 | University of Michigan Office of Investments | $11,900,000,000 | North America |
| 30 | General Authority of Awqaf | $11,238,371,192 | Middle East |
| 31 | Church Commissioners for England | $11,197,700,000 | Europe |
| 32 | J.Paul Getty Trust | $10,778,927,000 | North America |
| 33 | Trinity Wall Street Episcopal Church | $9,932,419,000 | North America |
| 34 | Unitersity of Utah | $9,827,602,000 | North America |
| 35 | Brown University | $9,793,108,000 | North America |
| 36 | Kamehameha Schools | $9,326,013,000 | North America |
| 37 | Dartmouth College | $9,078,340,000 | North America |
| 38 | Hong Kong Jockey Club | $8,603,580,000 | Asia |
| 39 | Rice University | $8,424,555,000 | North America |
| 40 | The Leona M. and Harry B. Helmsley Charitable Trust | $8,313,588,000 | North America |
| 41 | University of Pittsburgh | $8,011,856,000 | North America |
| 42 | Nature Conservancy | $7,870,380,000 | North America |
| 43 | University of Toronto Asset Management Corporation | $7,329,730,000 | North America |
| 44 | University of Rochester | $7,149,025,000 | North America |
| 45 | Virginia Commonwealth University | $6,985,495,306 | North America |
| 46 | Purdue University | $6,755,500,000 | North America |
| 47 | University of Miami | $6,582,600,000 | North America |
| 48 | University of Minnesota | $6,304,508,000 | North America |
| 49 | Caltech Investment Office | $6,252,584,000 | North America |
| 50 | Metropolitan Museum of Art of New York City | $5,588,554,000 | North America |
The largest endowment fund, Ensign Peak Advisors, is based in Salt Lake City, Utah, and manages the assets for the Mormon Church (officially known as the Church of Jesus Christ of Latter-day Saints). The church itself has over 16 million members worldwide and is the fourth largest church in America.
The Japan Science and Technology Agency (JST) is a national research and development agency that plays a core role in promoting technology, innovation, and science within society. In 1995, Japan’s government passed the Science and Technology Basic Plan and the JST came to life and now has over $80 billion in assets as well as offices in Paris, Washington, Singapore, and Beijing.
Just two funds come from the Middle East. The King Abdullah University of Science and Technology (KAUST) with $23.5 billion and the General Authority of Awqaf. KAUST is ranked 95th amongst universities in the world and made history in the country by being Saudi Arabia’s first mixed-gender university.
The General Authority of Awqaf has $11 billion in assets and was established as a public authority to manage endowments and enhance Saudi Arabia’s various goals for societal development. “Awqaf” in Arabic loosely translates to assets that are donated or purchased for general or specific charitable causes that are socially beneficial.
On the environmental side is the Nature Conservancy, which has $7.8 billion in assets. The charity is estimated to have protected more than 100 million acres of land.
American Universities Dominate
Universities are one leading category from the world of endowment funds, particularly those from the United States. In fact, universities make up 39 of the top 50 endowment funds, with 35 of them based in America.
Historically, Harvard has been the largest, but Stanford has edged ahead in recent years. Stanford has $75 billion in assets compared to Harvard’s $73 billion. These vast amounts of money have not gone unnoticed, and elite universities are facing mounting criticism in some circles.
“When Harvard’s total admitted freshman class is 1,400 people—and they have an endowment that is the GDP of El Salvador—they’re not a nonprofit, they’re a hedge fund educating the children of their investors.” – Professor Scott Galloway
With student debt rising to $1.6 trillion, it’s likely these universities may face greater criticism around how they use the wealth available to them in endowment funds.
Sizable Influence
The top endowment funds carry considerable influence within the world of finance. While they all have billions to invest, each has very different objectives and intentions on how to deploy their capital.
And despite being non-profit organizations, endowment funds are seeing their overall assets exceed those held by many other investment funds, such as sovereign wealth funds, hedge funds, and private equity firms.
-
VC+4 weeks agoComing Soon: Here’s What’s Coming to VC+ Next
-
Maps2 weeks agoMapped: Renewable Energy and Battery Installations in the U.S. in 2023
-
Demographics4 weeks agoVisualizing the American Workforce as 100 People
-
Technology2 weeks agoNvidia Joins the Trillion Dollar Club
-
Batteries4 weeks agoHow EV Adoption Will Impact Oil Consumption (2015-2025P)
-
Demographics1 week agoComparing Population Pyramids Around the World
-
Money3 weeks agoRanked: The World’s Top 50 Endowment Funds
-
Green6 days agoRanked: The 20 Most Air-Polluted Cities on Earth