Canada's super-rich have seen a sharp drop says Wealth-X

World Ultra Wealth Report 2019 shows overall global wealth declined

Canada's super-rich have seen a sharp drop says Wealth-X
Steve Randall

The world’s super rich are not quite as rich as they were according to a global report.

The latest World Ultra Wealth Report from WealthX shows that combined ultra-high-net-worth (UHNW) wealth fell by 1.7% to U$32.3 trillion in 2018 and the world's ultra- wealthy population grew just 0.8% to 265,490 individuals.

It was the first slump in UHNW wealth in three years, partly driven by weaker investor sentiment and global equity markets late in 2018. All seven regions saw a drop in wealth.

However, despite the slump the report is forecasting a projected population increase to 353,550 individuals possessing a total combined wealth of $43 trillion by 2023.

Canada among the worst

Although Canada remains among the top 10 UHNW countries, it posted the second largest percentage drop in both UHNW population and wealth among the top 10.

Canada’s UHNW population fell 4.1% year-over-year to 10,395 and their wealth fell 8.8% year-over-year to $1,053 billion.

Hong Kong saw the steepest drop among the top 10 with a 10.6% slump in population to 8,950 with their wealth down 9% to $1,179 billion.

Canada is in the top 5 UHNW countries and is outranked by Germany (15,865 population with $1,847bn), Japan (17,855 with $1,672bn), China (24,965 with $3,764bn), and the United States (81,340 with $9,835bn).

Canada punches above its weight though with 334 UHNW individuals per million people, while the US has 304 per million.

Main UHNW holdings

Looking at the asset holdings of the world’s super rich, liquid assets (cash, income, and dividends) take a 36.5% share, private holdings 32.1%, public holdings 25.3%, and real estate and luxury assets 6.2%.

By industry focus, banking & finance is the clear leader (22.9%) followed by consumer & business services (8.5%), real estate (7.6%), industrial conglomerates (5.8%), and non-profit and social organizations (5.7%).

More than two thirds of UNHW individuals were self-made, 23.7% inherited/self-made, and 8.5% inherited.

Men make up 85.4% of the UHNW population and control 89.7% of the wealth; but the number of ultra-wealthy women increased to nearly 39,000, equivalent to a record- high share of 14.6%. Among UHNW individuals below the age of 50, women account for almost one in five.