New York, June 13: The number of individuals worldwide last year with at least $1 million to invest grew at the slowest rate in at least seven years, edging up 2.1%, according to a survey. Asia-Pacific’s rich saw the strongest growth, with their wealth jumping 10.7% from the prior year, to $5.7 trillion. On the other end of the spectrum, North America was the only region to report a drop in the numbers and wealth of high net-worth individuals, as exposure to falling stocks, accounting scandals and political concerns took a toll.

The study, jointly produced by brokerage Merrill Lynch & Co and consultant Cap Gemini Ernst & Young, covers 59 countries and accounts for 96% of the world’s economic output. The study focuses on high net-worth individuals and their investments.
Worldwide in 2002, there were 7.3 million high net-worth individuals — defined as persons with at least $1 million in financial assets — who held assets worth $27.2 trillion, the survey showed.
Cash and fixed-income securities represented 55% of all financial assets for the group, highlighting doubts about stocks, which accounted for only 20% of the group’s portfolio overall. Real estate and alternative investments such as hedge funds and private equity made up the remaining 25%, according to the survey. European high net-worth individuals saw their wealth rise 4.8%, to $8.8 trillion in 2002.
Europe has the highest concentration of wealthy individuals, and was helped by a currency strength, the study said. North America’s high net-worth individuals saw their fortunes decline by about 2%, to $7.4 trillion. Bureau Report