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June 2014
Tomorrow’s UHNW Private Jet Owners
Mykolas D. Rambus, Wealth-X
Overview
The Rise and Rise of Asia – largest UHNW region in 20 years
Private Jet Owners have average net worth of US$520 million
nearly 4x the average UHNW individual
Billionaires to Grow Faster than all other UHNW Individuals
June 2014
UHNW Wealth Velocity
=> US$30 millionNet Worth
June 2014
vesc =2GM
R
More Wealth, More Wealthy
200,000 UHNW Individuals
US$28 TrillionTotal Wealth
June 2014Source: Wealth-X and UBS World Ultra Wealth Report 2013
Addressable Audience 4x Larger
June 2014
800,000Principal, plus spouse and 2 adult
children
Source: Wealth-X Institute Analysis
North America Keeps the Lead
June 2014Source: Wealth-X and UBS World Ultra Wealth Report 2013
“Average” Global UHNW Individual has 25% Liquidity
Average Net Worth
US$139 million
Average Liquidity
US$35 million
Average Age
58 years
Average Number of Children
2 children
June 2014Source: Wealth-X Institute Analysis
Billionaires to increase 80% by 2020
June 2014Source: Wealth-X Institute Analysis
SUPERYACHT OWNERPRIVATE JET
OWNER
GLOBAL UHNW
INDIVIDUAL
Average Net Worth
(US$ Million)680 520 139
Average Liquidity
(US$ Million)117 120 35
Average Age 63 63 58
% Male 97% 95% 88%
% Self-Made 65% 74% 65%
Median Asset Value
(US$ Million)20 12 -
Greater Market for Private Jets
June 2014Source: Wealth-X Institute Analysis
A Story of Wealth Creation
June 2014
We Have Only Just Begin
Germany in 1881
1830 to 1980
China in 2013
1999 to ?
June 2014
Hundreds of millions new middle
income consumers entering the
market in the next few decades in Asia
There are more people living inside this
circle than outside of it
Socio-Economic Mobility Drives Asia’s UHNW Growth
June 2014
Wealth Creation Comes in Waves
Natural Resource &
Infrastructure
(Government)
Indonesia
Manufacturing & Industrial
(B2B)
Germany
Retail & Technology
(B2C)
Silicon Valley
June 2014
2018 2013
UHNW PopulationUHNW WealthUS$ Billion
UHNW PopulationUHNW WealthUS$ Billion
242,400 36,275 199,235 27,770
$
$
$
$
$$
$
$
$
US$8.5 trillion Wealth Creation in 5 Years
Source: Wealth-X and UBS World Ultra Wealth Report 2013 June 2014
Asia’s UHNW wealth to surpass Europe’s by 2017 and
the United States by 2024
Asia’s UHNW population to surpass Europe’s by 2021
and the United States by 2032
Asia Leading Within 20 Years
Source: Wealth-X and UBS World Ultra Wealth Report 2013 June 2014
Asian Growth in 2013 Slowed Down by China
2013 2012-2013
UHNW
POPULATION
UHNW WEALTH
US$ Billion
POPULATION
CHANGE %
WEALTH CHANGE
%
Asia 44,505 6,590 3.8% 5.4%
Japan 14,270 2,335 11.2% 12.5%
China 10,675 1,515 -5.1% -4.1%
India 7,850 935 1.6% 1.1%
Source: Wealth-X and UBS World Ultra Wealth Report 2013 June 2014
India and China have two of the three largest UHNW populations in Asia,
with another 8,000 non-residents based elsewhere
Asia is expected to be one of the fastest growing regions in the next five
years, with its UHNW population increasing at an average rate of 5.9%
Lifestyle, education, and safety & security are all relevant factors in
creating demand for global citizenship
But Still Strong Demand from Asia’s Giants: India and China
June 2014Source: Wealth-X Institute Analysis
Other Hot Markets throughout Asia
SOUTH KOREA TAIWAN HONG KONGSOUTHEAST
ASIA
Average Net
Worth
(US$ million)
US$190 US$169 US$167 US$133
Average
Liquidity
(US$ million)
US$27 US$50 US$38 US$30
Average Age 59 64 63 60
June 2014Source: Wealth-X Institute Analysis
Southeast Asia has 10% of the Region’s UHNW Population
2013 2012-2013
UHNW
POPULATION
UHNW WEALTH
US$ Billion
POPULATION
CHANGE %
WEALTH
CHANGE %
Asia 44,505 6,590 3.8% 5.4%
Southeast
Asia4,690 625 9.1% 7.9%
June 2014Source: Wealth-X Institute Analysis
Singapore Largest Total Luxury Spend in Southeast Asia
AVERAGE LUXURY HOLDINGS
INDONESIA US$14 million
PHILIPPINES US$13 million
SINGAPORE US$11 million
MALAYSIA US$7 million
June 2014Source: Wealth-X Institute Analysis
Financial Centre's Dominate UHNW Foreign Hotspots
Proportion of UHNW individuals in a different country from where they were raised.
HONG KONG 70%
SINGAPORE 44%
SWITZERLAND 42%
UNITED KINGDOM 28%
CHINA 21%
UNITED STATES 9%
GERMANY 5%
June 2014Source: Wealth-X Institute Analysis
Global Citizens: Wealthy, Liquid and Mobile
June 2014Source: Wealth-X Arton Capital Special Report on Global Citizenship
50% wealthier than average UHNW individual (US$205 million), and twice
as much cash (US$66 million)
Nearly 60% of Global Citizens come from the Middle East, with Asia set to
be the next growth market
Key drivers: Stability and security, tax efficiency, ease of travel, standard of
living and children’s education
The Aviation Industry is Optimistic
87% of respondents expect growth in revenue
33% expect growth in excess of 10% in revenue
North America remains the region from which the aviation industry expects to
see the fastest growth
90% of respondents said that their main clients were UHNW individuals
June 2014Source: Wealth-X Luxury Sentiment Survey V.1 & V.2
Aviation 11% of UHNW Luxury Spending
ANNUAL UHNW SPEND (2013)
US$ billion
Travel/Hospitality 40
Art 21
Aviation 19
Watches 16
Yachts 13
Apparel 12
Accessories 11
Wines/Spirits 7
Home 7
Automobiles 6
Jewellery 6
Food 5
Beauty 5
Other Fashion 1
Total 169
Travel & Hospitality and Aviation are one
of the main denominators across the
global UHNW population
June 2014Source: Wealth-X Institute Analysis
$848,000
$1,101,000
$880,000
$777,000 $759,000 $755,000
$672,000
$360,000
World Asia North America Latin America Oceania Middle-East Europe Africa
Asian Luxury Spending 60% Higher than Europe
Annual UHNW Luxury Spending(per capita in 2013, excludes real estate)
June 2014Source: Wealth-X Institute Analysis
Summary
The Rise and Rise of Asia – largest UHNW region in 20 years
Private Jet Owners have average net worth of US$520 million
nearly 4x the average UHNW individual
Billionaires to Grow Faster than all other UHNW Individuals
June 2014
WWW.WEALTHX.COM
Mykolas RambusChief Executive Officer, Wealth-X
www.billionairecensus.com
www.wealthx.com/wealthxubswealthreport
Connect With Us
June 2014
NORTH ASIA
INDIA
SOUTH EAST ASIA
AUSTRALIA AND NEW ZEALAND
MIDDLE EAST AND AFRICA
AMERICAS
EUROPE
WWW.WEALTHX.COM
Connect With Us
June 2014