Competition for Bill Gates? 600,000 millionaires minted
By Eileen Alt Powell, AP Business Writer
NEW YORK — A strong global economy welcomed 600,000 people into a highly envied group: the world's millionaires.
The annual World Wealth Report, released Thursday by Merrill Lynch and the Capgemini Group consulting firm, found that 8.3 million people worldwide had $1 million or more in financial assets at the end of 2004, up from 7.7 million a year earlier.
Their total wealth rose 8.2% to $30.8 trillion, giving them control of nearly a quarter of the world's financial assets, according to Petrina Dolby, vice president of Capgemini's wealth management practice.
The 8.2% increase was the strongest since an identical 8.2% rise in 1999, she said.
The expansion of the millionaire class was especially strong in North America because of the solid economic growth last year in both the USA and Canada.
"Significantly, North America surpassed Europe both in total high net worth individuals population and wealth for the first time since 2001," when North American investors were hard-hit by the bursting of the technology stock bubble and the terror attacks on the World Trade Center and Pentagon. The Asia-Pacific region also showed strong growth.
According to the latest figures, the number of high net worth individuals was 2.7 million in North America with a total of $9.3 trillion in assets; 2.6 million in Europe with $8.9 trillion; 2.3 million in the Asia-Pacific region with $7.2 trillion; 300,000 in Latin America, including Mexico, with $3.7 trillion; 300,000 in the Middle East with $1 trillion; and 100,000 in Africa with $700 billion.
The study also looked at what it termed "ultra high net worth individuals," who have at least $30 million in financial assets.
Their ranks increased by 6,300 individuals, or 8.9%, to 77,500 worldwide, the study said.
Although the international economy was growing rapidly last year, the world's millionaires were more cautious in their investment and asset allocation strategies, the study said.
"With returns drifting lower and market volatility increasing in 2004, high net worth individuals leveled off their commitments to equities," it said.
The wealthy decreased their stock holdings to 34% last year from 35% in 2003 and increased their fixed-income investments to 27% from 25%. Their other holdings in 2004 were 12% in cash and other liquid investments, 13% in real estate and 14% in "alternative" investments such as hedge funds and commodities.
The real estate portion of their holdings was down from 17% in 2003, the report said.
"We believe this relatively low allocation rate signals high net worth individuals' desires to harvest returns from now premium-priced (real estate) holdings to direct profits into other asset classes," the report said.
Although the global economic expansion is slowing down, the study predicts 6.5% growth over the next five years — enough to create many more millionaires, especially in North America.
By 2009, high net worth individuals will amass $42.2 trillion in assets. By region, it will include $13.9 trillion in North America, $10.7 trillion in Europe, $10.1 trillion in the Asia-Pacific region, $5 trillion in Latin America, $1.5 trillion in the Middle East and $900 billion in Africa.
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发表于 2005-6-11 00:34
