- High net worth individual
A high-net-worth individual (HNWI) is a person with a high
net worth . In theprivate bank ing business, these individuals typically are defined as having investable assets (financial assets not including primary residence) in excess of US$1 million. cite web|url=http://www.us.capgemini.com/worldwealthreport07/State_of_the_World_Wealth_2007.pdf|title=Capgemini 2007 World Wealth Report|quote=World Wealth Grows to $33.3 trillion Says Merrill Lynch|date=2006-06-12|accessdate=2007-07-08] The number of high net worth individuals worldwide is estimated at 9.5 million. HNWI wealth totals US$37.2 trillion, representing an 11.4% gain since 2005. As explained below, the U.S. Securities and Exchange Commission has promulgated a different definition of "high net worth individual" for regulatory purposes.UHNWI
UHNWI refers to Ultra-High-Net-Worth Individuals, individuals or families who have at least US$30 million [http://timesofindia.indiatimes.com/OPINION/Editorial/LEADER_ARTICLE_For_A_Few_Dollars_More/articleshow/1258255.cms For A Few Dollars More] , by Nivedita Chakravartty, The Times of India, 18 Jan 2007] in investable assets. The number of ultra high net worth individuals worldwide is estimated at about 95,000. The exact dividing lines depend on how a bank wishes to segment its market; for example, the term "Very High Net Worth Individuals" [Banking for Family Business: A New Challenge for Wealth Management, by Stefano Caselli, Stefano Gatti, Springer, 2005, ISBN 3540227989] can refer to those with assets between $5 million and $50 million, with Ultra High Net Worth Individuals only those with above $50 million.
Banking and Finance
Most global banks, such as
Credit Suisse ,Deutsche Bank orUBS , have a separate Business Unit with designated teams consisting of client advisors and product specialists exclusively for UHNWI. Because of their extreme high net worth and the way their assets were generated, these clients are often considered to have semi-institutional or institutional like characteristics.Retail
Brands in various sectors, such as
Bentley ,Maybach and Rolls-Royce in motoring, actively target UHNWI and HNWI to sell their products. Figures gathered by Rolls-Royce suggest there are 80,000 people in the UHNWI category around the world. [http://business.timesonline.co.uk/tol/business/article1086869.ece Rich spurn ultra-luxury cars] , The Sunday Times (UK), 5 Nov 2006] They have, on average, eight cars and three or four homes. Three-quarters own a jet aircraft and most have ayacht .EC regulations
The
U.S. Securities and Exchange Commission requires all SEC-registered investment advisers to file periodically a report known as Form ADV. [ [http://www.webiard.com/iad] ] Among other things, Form ADV requires each investment adviser to state how many of his clients are "high net worth individuals." The Form ADV Glossary of Terms explains that a "high net worth individual" is an individual with at least $750,000 managed by the reporting investment adviser, or whose net worth the investment adviser reasonably believes exceeds $1,500,000 (or who is a "qualified purchaser" as defined in section 2(a)(51)(A) of the Investment Company Act of 1940). The net worth of an individual for SEC purposes may include assets held jointly with his or her spouse. Unlike the definitions used in the financial and banking trade, the SEC's definition of HNWI would include the value of a person's verifiable non-financial assets, such as a primary residence or art collection.ee also
*
World Wealth Report
*Millionaire
*Billionaire
*Swiss bank
*Wealth
*Global assets under management
*Wergild References
*cite web|url=http://www.timesonline.co.uk/tol/life_and_style/article667593.ece|date=
December 12 ,2006 |title=How I make the rich richer|first=Annabel|last=Rivkin|publisher=The Times|accessdate=2007-07-08
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