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Australia the millionaires factory

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  • Australia the millionaires factory

    Australia the millionaires factory

    * September 23, 2008 - 4:43PM

    The number of millionaires in Australia has grown sharply, says the latest annual report on global wealth by management consulting firm Boston Consulting Group (BCG).

    The number of millionaire households - those with at least $US1 million ($1.2 million) in assets under management - increased to 190,000 in 2007 from 148,000 in 2006.

    Assets under management include cash deposits, money market funds and listed securities but excludes wealth attributed to investors' own businesses, residences or luxury goods.

    Australia ranked 10th among 62 countries for the number of millionaires, behind Taiwan with 335,000 and Switzerland with 246,000.

    BCG said personal wealth had grown faster in Australia compared to any other mature market in the five years to 2007, at an average annual rate of 12%, to $2.5 trillion.

    Australia's rate of wealth growth was followed by Sweden at 11.2% and Israel at 9.9%.

    BCG's leader of financial services in Australia, Matthew Rogozinski, said Australia's top performance reflected the savings and investment benefits of the compulsory superannuation system.

    "The system forces a large volume of savings, of which a large component has been allocated into growth assets,'' Mr Rogozinski said.

    "This structure, combined with the strong performance of the local equities market, made Australia once again the leading mature market for growth in the latest global survey.''

    Mr Rogozinski said the the outlook for wealth creation in Australia was very positive despite the current financial crisis.

    "We expect wealth to increase in the order of 10% per annum over the medium term,'' he said.

    "While this is below the 12% rate between 2002 and 2007, there are plenty of reasons for asset managers to believe they are still in a business with very good growth prospects.''

    The report said the United States topped the list of having the most number of millionaires, with 4.9 million, followed by Japan, United Kingdom, Germany and China.

    Singapore had the highest concentration of millionaires, where one in 10 households had assets under management of at least $US1 million.

    The number of millionaire households worldwide grew by 11.2% to 10.7 million.

    Millionaires represented just 0.8% of all households but owned 35% of global assets under management, the report said.

    Australia had 26,000 wealthy households each with more than $US5 million in assets under management, totalling $US397 billion.

    Globally, households with more than $US5 million in assets under management represented than less than 0.1% of all households yet owned $US21 trillion - or almost one fifth - of all assets under management.

    BCG said global wealth grew by 4.9% in 2007 to $US109.5 trillion. The rate of growth fell from about eight per cent in 2006 as the global financial crisis unfolded.

    The United States was the wealthiest nation, followed by Japan.

    North America and Western Europe accounted for about two-thirds of the world's wealth in 2007.

    The other third was spread across emerging or less mature markets around the world, where wealth was growing at much faster rates.

    Countries in the Asia-Pacific, Latin America, Eastern Europe and the Middle East had about $US33 trillion in assets under management in 2007.

    Wealth in Asia-Pacific totalled about $US25.5 trillion, in Latin America, and assets under management in Latin America reached $US3.1 trillion.

    Russia was by far the largest wealth market in Eastern Europe, with assets under management of $US950 billion in 2007.

    In the Middle East, wealth was concentrated in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

    In 2007 this region had an estimated $US1.5 trillion in assets under management.


    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    Because of the compulsory super over here and the ease of wealth creation through property the place is certainly rotten with people who are worth a bit.


    • #3
      If these numbers based on 'per 1 million people' we'd have a much better idea of the wealth in Oz...no doubt the figure will be lower for next year!