The number of Australians with over $US1 million of financial assets plunged 23.4% from 168,700 to 129,200 at the end of 2008 as the global financial crisis ripped through fortunes of the rich.
The figures, released this morning as part of the 13th annual World Wealth Report, from Merrill Lynch Global Wealth Management and Capgemini, also shows the total wealth of Australian high net worth individuals with over $US1 million in assets other than their family home declined by 29.7%, from $US540 billion in 2007 to $US379.8 billion in 2008.
Chris Selby, head of Merrill Lynch Global Wealth Management for Australia and New Zealand says the global downturn in financial markets has clearly eroded wealth for many of Australia’s millionaires.
“Falling equity markets have been a key driver in pushing wealth levels down. However, as markets rebound and investor confidence returns, we expect Australia’s high net worth population and wealth to resume the strong growth levels we’ve seen in recent years.”
Australia’s millionaires have been caught up in a worldwide wealth wipeout. The report shows that the global millionaire population fell 14.9% during 2008, with the total wealth of this group dropping 19.5% to $US32.8 trillion.
The population of ultra HNWIs (those with over $30 million of financial assets) plunged 24.6%.
But while the drop in wealth in 2008 all but erased the gains from the previous two years, Merrill Lynch and Capgemini are bullish about the outlook for the next five years.
Overall HNWI financial wealth is expected to hit $US48.5 trillion by 2013, growing at an annual rate of 8.1%.
While growth will be led by millionaires in North America and the Asia-Pacific, the Asia-Pacific region is tipped to become the world’s richest region by 2013, thanks to the booming Chinese market.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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