HNWIs mirror behaviour of institutional investors
Fairbairn: Europe growing slower than US
Strict income tax policies in Europe are impeding wealth accumulation
Spain led the rest of Europe in wealth creation during 2003, with the number of high net worth individuals (HNWIs) growing 18 per cent, according to data from the latest Capgemini/Merril Lynch World Wealth report. The Czech Republic, with 12 per cent, the UK with 8 per cent and Russia, with 5.4 per cent, were also above the European average.
According to the report, the global average growth of HNWI assets, belonging to those with more than $1m to invest, was 7.5 per cent in 2003. North America (13.5 per cent) and Asia-Pacific (8.4 per cent) grew at a faster rate than Europe (2.4 per cent) and Latin America (1.3 per cent).
“Europe still has a lower growth rate than America and the Pacific region due to restrictions to wealth creation,” said Robert Fairbairn, managing director, Merrril Lynch Investment Management. He blamed restrictive European income tax policies for impeding personal wealth accumulation.
Private clients are also becoming more sophisticated in their investments. “HNWIs are mirroring the behaviour of institutional investors,” said Ian Mackenzie, vice-president of Capgemini, UK Financial Services. The equity proportion of portfolios represents 35 per cent, compared with 25 per cent in 2002. Alternatives grew from 10 to 13 per cent. Bonds are down from 30 to 25 per cent.
Fairbairn: Europe growing slower than US
