From the editor Andrew Shirley introduces the frst in our series of updates to The Wealth Report, capturing the latest intelligence and insights into global wealth trends Ayear is a long time in global wealthtrends and, following feedback fromour readers, we discovered that not all of you want to wait until next springto get your fix ofThe Wealth Report ’s unique blendof insight and analysis.So I’m delighted to present the first in a seriesof updates toThe Wealth Report , which we’ll bepublishing at regular intervals. The package maybe more compact, but it’s nevertheless bursting atthe seams with all the things that you love aboutthe annual report. We’ve got an interview with one of our regularcontributors, leading geo-political risk analyst Ian Bremmer (page 3). Ian talks about his new bookUs vs. Them: The Failure of Globalism , his mostpersonal – and arguably most worrying – work yet. There’s also an update on the state of the world’sluxury residential markets from Kate Everett-Allen,our international research guru (page 10). Shereports that, while global price growth continuesto slow overall, certain cities – including Tokyo,Madrid and Los Angeles – are bucking the trend.For those interested in global property investmentopportunities we look at the potential of the logistics sector in Asia-Pacific (page 13). As theregion’s online retail segment booms, this lookslike a trend that is set to run and run.A key part ofThe Wealth Reportis our AttitudesSurvey, based on responses from private bankers andwealth advisers around the world. As ever, educationis incredibly important to UHNWIs, with the numberof children being sent overseas for their schoolingincreasing year on year, according to the survey.Liam Bailey, our Global Head of Research, decided totake a deeper dive, working with a leading educationconsultant to analyse the growing demand for UKpublic schools from overseas (page 8). Still focusing on global UHNWIs, Gráinne Gilmore, our Head of UK Residential Research, takes a look atthe distribution of the world’s population of demi- billionaires – those with over US$500 million in netassets – and fnds that Asia is still leading the way (page 4). Flora Harley also shares the latest numbers from the Bank for International Settlements (page 6).Where is money fowing around the world Prepareto be surprised.I hope you enjoy this bite-sized edition of The Wealth Report . Do let us know what you think.andrew.shirley@knightfrankTHE WEALTH REPORT 1 | KNIGHTFRANKThe Wealth Report 2018Autumn Update SPONSOR Lord Andrew Hay Global Head of Residential EDITORAndrew ShirleyGLOBAL HEAD OF RESEARCHLiam Bailey WRITTEN BY Knight Frank ResearchRESEARCHGráinne Gilmore Kate Everett-Allen William Matthews Tom Bill Nicholas Holt Flora Harley CHIEF ECONOMISTJames Roberts GROUP HEAD OF MARKETINGSimon Leadbetter CREATIVE HEAD OF PUBLICATIONSChristopher Agius HEAD OF PUBLICATIONSKate Mowatt HEAD OF CORPORATE COMMUNICATIONSAlice Mitchell HEAD OF RESIDENTIAL PRAstrid Recaldin MARKETING PROJECT MANAGERBertie Milligan-Manby ALL KNIGHT FRANK CONTACTS:firstname.familyname@knightfrank Defnitions UHNWIUltra-high-net-worth individual –someone with a net worth of over US$30 million excluding their primary residence HNWIHigh-net-worth individual – someonewith a net worth of over US$1 millionexcluding their primary residencePRIME PROPERTYThe most desirable and mostexpensive property in a given location,generally defined as the top 5% of eachmarket by value. Prime markets often have a significant internationalbias in terms of buyer profile knightfrank/wealthreport SUB-EDITORLouise Bell, Sunny Creative COVERSHOUT ILLUSTRATIONSStanley Chow DATA VISUALISATIONS Nicholas Rapp PRINTED BY Optichrome NOW AVAILABLEViewThe Wealth Reportand properties from around the world on your device today THE WEALTH REPORTTHE WEALTH REPORT 2 | KNIGHTFRANK3 | KNIGHTFRANK Which way now A new book claims globalism has left us more more divided than ever.Andrew Shirley talks to the author, Ian Bremmer, to fnd out more I an Bremmer, a leading geo-political risk analyst and regular contributortoThe Wealth Report , was pretty fred up at the London launch of his latestbook,Us vs. Them: The Failure of Globalism , earlier this summer. He’s always a passionate orator, but that night he seemed genuinely angry at the state of the world. Having read the book, I can see why. A strong proponentof a liberal global order with an outward-facing America leading by example, Ian is aghast at the rise of populist politicians who polarise society and pit citizens against one other. Such populism and its more undesirable consequences, he argues, are the backlash from those who feel theyhave been left behind by globalism. I caught up with him after the launch to fnd out more...I’ve read a good number of your booksand this feels like the most personaland impassioned yet. Did it feel thatway when you were writing it, and whatmade you put pen to paper Absolutely. What spurred me wasthe feeling that the people living inmy own country, the United States,have never been as divided as theyare now and, rather than addressingthe causes of these divisions,mostpeoplekeep focusing on the symptoms.I want to be part of a more constructiveconversation, and that can’t just meanrunning a consulting frm that advisesthe folks that go to Davos.Us vs. Themismy attempt to be a part of the solution.The premise of the book is thatglobalism has failed, but the statisticsyou quote suggest that across theworld it has actually helped morepeople than it has hurt. Isn’t it the failure of Western governments to adapt tothe inevitable changing of the world order that is the real problem Globalisation has been a great success. It has generated huge amounts of wealth,created the global middle class we know today, extended life expectancy andmade literacy near universal. Globalism is different. It’s a political ideology(and a largely Western one at that) that says open borders, free trade andUS-led global security will be good for all citizens of advanced industrialdemocracies. That hasn’t proven to be true at all – inequality of wealth andopportunity is the widest it’s ever been. Western leaders took their eye off theball and stopped taking care of their people. That definitely wasn’t inevitable. Even without globalism, wouldn’t we have many of the problems blamed on itYou argue, for example, that increased automation has actually destroyedmore jobs in Europe and North America than competition from cheap labourin developing economies. Automation isa big challenge and exacerbates opposition to globalism, butit’s a challenge to which governments can respond by improving the socialsafety net and moving towards universal lifetime training. Corporations canbe part of the solution too, and we’re already seeing some of them start tomove in that direction. The book is full of worrying statistics– I was shocked that only 57% of youngAmericans think it is important tolive in a democratic country – but ifyou had to choose, which frightensyou the mostI’d pick that one too, because itsuggests that a large percentage of Americans think their system is rigged against them. That meansthey think the American dream is dead. We have to fx this, andsooner rather than later.What do you think the consequenceswill be if our politicians aren’tcapable of finding solutions to theissues you highlight in the book Far more walls – both real and virtual,and of the external and internalvariety. Put another way, morestructural inequality that allowsfor more dehumanisation of people.Think Israel/Palestine, coming to atheatre near you.How optimistic are you that our politicians have the solutions to the issuesyou highlight in the book, if indeed they want to address themI’m not optimistic at all. Clearly, these people do not have the solutions. Whatthat means is that the solutions will need to start as smaller-scale experimentsfrom local governments, companies and ind