Australia's wealthy sit with US$519 billon
Australia’s population of high-net-worth individuals (HNWI) has risen by 34.4 per cent to 173,600, according to Merrill Lynch Global Wealth Management and Capgemini’s latest World Wealth Report.
Australia’s HNWI have a combined wealth of US$519.4 billion, up 36.8 per cent since 2008.
The world HNWI population has grown by 17.1 per cent to 10 million, with a combined wealth of US$39 trillion.
“The recovery in wealth over the past year has nearly recouped the global losses of 2008, with the total millionaire population and their wealth almost back to 2007 levels,” said Capgemini Financial Services Australia senior manager Wayne Li. “Increased market capitalisations have been a key driver of wealth over the past year, and the report also points to regained trust and confidence by wealthy individuals in financial advisers and advisory firms.”
The report highlighted that HNWIs are making greater demands of their wealth management firms for specialised advice, greater transparency and more effective portfolio and risk management capabilities.
The global statistics showed HNWI investors favoured fixed income, with allocations to fixed income instruments rising from 29 per cent to 31 per cent. As stock markets recovered, equity holdings rose from 25 per cent to 29 per cent.
“By 2011 HNWIs will significantly restructure their asset allocations as they regain their risk appetite,” said the senior vice president of investments at Merrill Lynch Global Wealth Management, Australia, Peter Opie. “The winners are expected to be equities and alternative investments at the expense of real estate and cash.”
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