High - net - worth individual - Wikipedia High - net - worth individual Not to be confused with Ultra high - net - worth individual. Parts of this article ( those related to documentation ) need to be updated. Please update this article to reflect recent events or newly available information. ( January 2017 ) High - net - worth individual ( HNWI ) is a term used by some segments of the financial services industry to designate persons whose investible assets ( such as stocks and bonds ) exceed a given amount. Typically, these individuals are defined as holding financial assets ( excluding their primary residence ) with a value greater than US $1 million. However, there are distinct classifications of HNWI and the exact dividing lines depend on how a bank wishes to segment its market. For example, an investor with less than US $1 million but more than US $100,000 is considered to be `` affluent '', or perhaps even `` Sub-HNWI ''. `` Very - HNWI '' ( VHNWI ) can refer to someone with a net worth of at least US $5 million. By 2007, the expansion of HNWI assets led to the creation of a super class of HNWIs, known as ultra-high - net - worth individuals ( UHNWIs ), i.e. those with US $30 million in liquid financial assets according to the Capgemini and Merrill Lynch World Wealth Report 2006 or with a disposable income of more than US $20 million. At the end of 2017, there were estimated to be just over 15 million HNWIs in the world. The United States had the highest number of HNWIs ( 5,047,000 ) of any country, while New York City had the most HNWIs ( 393,500 ) among cities. Contents 1 United States : SEC regulations 2 Annual World Wealth Report 3 Capgemini figures 3.1 Banking and finance 3.2 Retail 4 Number of HNWIs per city 5 Academic studies of asset management trends 6 See also 7 References 8 External links United States : SEC regulations See also : Accredited investor The U.S. Securities and Exchange Commission requires all SEC - registered investment advisers to periodically file a report known as Form ADV. Among other things, Form ADV requires each investment adviser to state how many of their 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 $1,000,000 managed by the reporting investment adviser, or whose net worth the investment adviser reasonably believes exceeds $2,000,000 ( 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. Annual World Wealth Report The World Wealth Report was co-published by Merrill Lynch and Capgemini, previously known as Cap Gemini Ernst & Young who worked together since c. 1993, investigating the `` needs of high - net - worth individuals ( HNWIs are individuals with more than $1 million in assets excluding primary residence ) '' in order to `` successfully serve this market segment. '' Their first annual World Wealth Report was published in 1996. The World 's Wealth Report defines HNWIs as those who hold at least US $1 million in assets excluding primary residence and ultra-HNWIs as those who hold at least US $30 million in assets excluding primary residence. The report states that in 2008 there were 8.6 million HNWIs worldwide, a decline of 14.9 % from 2007. The total HNWI wealth worldwide totaled US $32.8 trillion, a 19.5 % decrease from 2007. The ultra-HNWIs experienced the greater loss, losing 24.6 % in population size and 23.9 % in accumulated wealth. The report revised its 2007 projections that HNWI financial wealth would reach US $59.1 trillion by 2012 and revised this downward to a 2013 HNWI wealth valued at $48.5 trillion advancing at an annual rate of 8.1 %. The 2013 World Wealth Report was jointly produced by Capgemini and RBC Wealth Management and included, for the first time, the Global HNW Insights Survey produced in collaboration with Scorpio Partnership. The inaugural survey represented one of the largest and most in - depth surveys of high - net - worth individuals ever conducted, surveying more than 4,400 HNWIs across 21 major wealth markets in North America, Latin America, Europe, Asia - Pacific, Middle East, and Africa. Scorpio Partnership have established themselves as a market leader in the supply of HNW insight having spent over 15 years conducting private client interviews, collecting business intelligence and working with over 100 clients who range from universal banks, domestic retail banks, specialist private banks and fund managers, to family offices, high - net - worth clients and regulatory bodies. The partnership is independently owned and managed by Sebastian Dovey and Cath Tillotson and carries out global assignment overseen from its base in London 's West End. HNWI Wealth Distribution ( by Region ) Region HNWI Population HNWI Wealth Global 12 million $46.2 trillion North America 3.73 million $12.7 trillion Asia - Pacific 3.68 million $12.0 trillion Europe 3.41 million $10.9 trillion Latin America 0.52 million $7.5 trillion Middle East 0.49 million $1.8 trillion Africa 0.14 million $1.3 trillion Capgemini figures The World Wealth Report published Capgemini has estimated the number and combined investable wealth of high - net - worth individuals as follows, using the United States Consumer Price Index ( CPI ) Inflation Calculator. Year Number of HNWIs ( millions ) HNWI Wealth ( trillions USD ) In 2012 USD ( trillions USD ) 1998 ? 17.4 24.3 1999 6.0 21.6 29.5 2000 7.0 25.5 33.7 7.2 27.0 34.7 2002 7.1 26.2 33.2 2003 7.3 27.2 33.7 7.7 28.8 34.7 2005 8.3 30.8 35.9 2006 8.7 33.3 37.6 2007 9.5 37.2 40.9 2008 10.1 40.7 43.1 2009 8.6 32.8 34.8 10.0 39.0 40.7 2011 10.9 42.7 43.2 2012 12.0 46.2 46.2 2013 13.7 2014 14.7 2015 15.4 2016 16.5 63.5 Banking and finance Main articles : Private banking and Wealth management Most global banks, such as Credit Suisse, Barclays, BNP Paribas, Citibank, Deutsche Bank, HSBC, JPMorgan Chase and UBS, 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 characteristics similar to institutional investors. By 2006, asset managers working for HNW individuals invested more than £ 300 billion on behalf of their clients. These wealth managers are bankers who in 2006, earned multimillion - pound salaries and owned their own companies and equity funds. In 2006, a list of the 50 top investment bankers was published by the Spear 's Wealth Management Survey. Retail Brands in various sectors, such as Bentley, Maybach, and Rolls - Royce in motoring, actively target UHNWI and HNWI to sell their products. In 2006, Rolls - Royce researchers suggested there were 80,000 people in ultra-high - net - worth category around the world. UHNW individuals `` have, on average, eight cars and three or four homes. Three - quarters own a jet aircraft and most have a yacht. '' Number of HNWIs per city The following is a list of the cities with the most HNWIs as of December 2017. Rank City Number of HNWIs ( 2017 ) New York City 393,500 London 353,600 Tokyo 321,800 Hong Kong 250,700 5 Singapore 239,000 6 San Francisco Bay Area 220,000 7 Los Angeles 199,300 8 Chicago 150,200 9 Beijing 149,000 10 Shanghai 145,800 Academic studies of asset Management trends The Wharton Global Family Alliance whitepaper was released in 2008 to study the investment strategies of single family offices in the United States and in Europe. The research was segregated into sub-groups representing those with less than $1 billion in assets and those with assets above $1 billion. The study found that U.S. families reported a more aggressive attitude toward investment objectives than their counterparts in Europe. One recommendation of the WGFA study advised the advisors and family offices serving this niche to avoid complexity in the structure of portfolios. The authors cite that the more complex the portfolio and number of holdings, the more difficult the job of performing adequate governance, reporting, and education. The Institute for Private Investors, a peer networking organization for wealthy families and their advisors, suggested a similar theme to its membership in 2008 with a conference themed, `` The Return to Simplicity ''. Kotak Wealth Management and CRISIL Research, published a report on the Ultra High Net Worth Individuals in India titled `` Top of the Pyramid Report ''. See also Billionaire Ultra high - net - worth individual Millionaire Middle Class Global assets under management Plutonomy Politically exposed person Wealth National wealth List of countries by wealth per adult References ^ Jump up to : Staff, Investopedia ( 6 April 2006 ). `` High Net Worth Individual - HNWI ''. Jump up ^ `` Capgemini 2007 World Wealth Report '' ( PDF ). Capgemini. 2006 - 06 - 12. Archived from the original ( PDF ) on 2008 - 09 - 10. Retrieved 2007 - 07 - 08. World Wealth Grows to $33.3 trillion Says Merrill Lynch ^ Jump up to : Nivedita Chakravartty ( 18 Jan 2007 ). `` For A Few Dollars More ''. The Times of India. Jump up ^ Stefano Caselli ; Stefano Gatti ( 2005 ). Banking for Family Business : A New Challenge for Wealth Management. Springer. ISBN 3 - 540 - 22798 - 9. ^ Jump up to : 2006 World Wealth Report ( PDF ) ( Report ). Capgemini. 2006. Archived from the original ( PDF ) on January 2, 2010. Retrieved 11 September 2013. ^ Jump up to : Ray Hutton ( 5 November 2006 ). `` Rich spurn ultra-luxury cars ''. UK : The Sunday Times. Retrieved 10 September 2013. Jump up ^ `` Terms of Service Violation ''. Bloomberg.com. Retrieved 2018 - 08 - 20. Jump up ^ `` Map : Visualizing the Global Shift in Wealth Over 10 Years ''. www.visualcapitalist.com. ^ Jump up to : afrasiabank.com. `` Global Wealth Migration Review - AfrAsia Bank Mauritius ''. www.afrasiabank.com. Jump up ^ `` SEC.gov - Form ADV ''. www.sec.gov. Jump up ^ 2003 World Wealth Report ( PDF ) ( Report ). Capgemini. 2003. Archived from the original ( PDF ) on January 2, 2010. Retrieved 10 September 2013. Jump up ^ 2009 World Wealth Report ( Report ). Thought Leadership. Capgemini. 2009. ^ Jump up to : 2009 World Wealth Report ( PDF ) ( Report ). Capgemini. 2009. Retrieved 11 September 2013. Jump up ^ 2013 World Wealth Report ( PDF ) ( Report ). Capgemini. 2013. Archived from the original ( PDF ) on 2013 - 10 - 25. Retrieved 10 September 2013. ^ Jump up to : `` World Wealth Report 2013 ''. Capgemini. ^ Jump up to : 1998 World Wealth Report ( PDF ) ( Report ). Capgemini. 1998. Retrieved 10 September 2013. ^ Jump up to : 2010 World Wealth Report ( PDF ) ( Report ). Capgemini. 2010. Retrieved 11 September 2013. ^ Jump up to : 2011 World Wealth Report ( PDF ) ( Report ). Capgemini. 2011. Archived from the original ( PDF ) on 3 November 2011. Retrieved 11 September 2013. Jump up ^ `` Consumer Price Index ( CPI ) Inflation Calculator ''. U.S. Bureau of Labor Statistics. Jump up ^ `` Archived copy '' ( PDF ). Archived from the original ( PDF ) on 2009 - 05 - 09. Retrieved 2012 - 03 - 24. CS1 maint : Archived copy as title ( link ) Jump up ^ `` Archived copy '' ( PDF ). Archived from the original ( PDF ) on 2012 - 06 - 17. Retrieved 2012 - 03 - 24. CS1 maint : Archived copy as title ( link ) Jump up ^ `` Archived copy '' ( PDF ). Archived from the original ( PDF ) on 2012 - 06 - 17. Retrieved 2012 - 03 - 24. CS1 maint : Archived copy as title ( link ) Jump up ^ `` Archived copy '' ( PDF ). Archived from the original ( PDF ) on 2011 - 06 - 27. Retrieved 2012 - 03 - 24. CS1 maint : Archived copy as title ( link ) Jump up ^ `` Wayback Machine '' ( PDF ). 2 January 2010. Archived from the original ( PDF ) on 2010 - 01 - 02. Jump up ^ ( 1 ) Jump up ^ ( 2 ) Jump up ^ `` Wayback Machine '' ( PDF ). 2 January 2010. Archived from the original ( PDF ) on 2010 - 01 - 02. Jump up ^ 2008 World Wealth Report ( PDF ) ( Report ). Capgemini. 2008. Archived from the original ( PDF ) on November 23, 2008. Retrieved 11 September 2013. ^ Jump up to : `` The proliferation of high - net - worth individuals ''. The Economist. 4 October 2017. Jump up ^ Rivkin, Annabel ( 12 December 2006 ). `` How I make the rich richer ''. London : The Times. Retrieved 10 September 2013. Jump up ^ `` With $950 bn private wealth, Mumbai is 12th richest city in world, home to 28 billionaires - Times of India ''. Jump up ^ Wharton Global Family Alliance. `` Benchmarking the Single Family Office : Identifying the Performance Drivers ''. Jump up ^ Institute for Private Investors. ( 3 ). Jump up ^ Ultra HNI segment set to treble : Report. Indian Express ( 2011 - 06 - 07 ). Retrieved on 2013 - 07 - 18. External links 2013 World Wealth Report ( WWR ) ( PDF ) ( Report ). Capgemini. 2013. Archived from the original ( PDF ) on 2013 - 10 - 25. Retrieved 2013 - 09 - 11. Extreme Wealth Concepts Billionaires Capital accumulation Distribution of wealth Dynastic wealth Economic inequality Geography and wealth High - net - worth individual UHNWI Millionaires National wealth Oligarchy Overaccumulation Paper wealth Plutocracy Plutonomy Wealth Wealth concentration Wealth effect Wealth management Wealth and religion Wealth tax Lists of people Female billionaires ‎ Wealthiest Americans Richest royals Wealthiest families Wealthiest historical figures Forbes list of billionaires Lists of organizations Companies by profit and loss Largest companies by revenue Largest financial services companies by revenue Largest manufacturing companies by revenue Public corporations by market capitalization Wealthiest organizations Other lists Cities by number of billionaires Countries by number of billionaires Most expensive things Wealthiest animals See also Business magnate Business oligarch Philanthropy The Giving Pledge The rich get richer and the poor get poorer Upper class Nouveau riche Vieux riche Religion and poverty Retrieved from `` https://en.wikipedia.org/w/index.php?title=High-net-worth_individual&oldid=860024660 '' Categories : Distribution of wealth Hidden categories : CS1 maint : Archived copy as title All articles with dead external links Articles with dead external links from August 2018 Wikipedia articles in need of updating from January 2017 All Wikipedia articles in need of updating Articles with specifically marked weasel - worded phrases from June 2018 Wikipedia articles needing clarification from June 2018 Wikipedia articles needing clarification from March 2013 Talk Contents About Wikipedia Français Italiano Lietuvių 日本 語 Edit links This page was last edited on 17 September 2018, at 20 : 44 ( UTC ). 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Question: what is considered a high net worth individual
Answer: a value greater than US$1 million