The number of high net worth individuals (HNWI) in Australia jumped by 34 per cent in 2009 as the economy continued to expand and equity markets surged.
There were 173,600 Australian HNWIs at the end of 2009, up from 129,200 the year before, according to Merrill Lynch Global Wealth Management and Capgemini’s annual world wealth report.
Their total wealth stood at $597 billion in 2009, up from $436 billion in 2008.
HNWIs are classified as having $1.15 million (US$1 million) or more in investable assets.
Australia’s gross domestic product expanded 1.3 per cent in 2009.
The S&P/ASX 200 surged 26 per cent during the year, while house prices across major capital cities experienced double-digit growth.
The average wealth of an Australian HNWI was $3.43 million at the end of 2009. The global average was $4.45 million.
“Australia moved back up to tenth position in the HNWI population rankings, overtaking Brazil, after many of those who had fallen into the mass affluent category in 2008 regained their HNWI status in 2009,” Merrill Lynch Global Wealth Management (MLGWM) Australia head Chris Selby said.
The global population of HNWIs returned to 10 million in 2009 and their financial wealth rose 18.9 per cent to $44.8 trillion.
The report said HNWI investors favoured predictable returns and cash flow, as evidenced by the rise in allocations to fixed income to 31 per cent from 29 per cent.
Equity holdings also rose to 29 per cent from 25 per cent as global markets recovered.
“By 2011, HNWIs will significantly restructure their asset allocations as they regain their risk appetite,” MLGWM Australia senior vice president of investments Peter Opie said.
