High net worth numbers in Europe hit by credit crunch
The number of high net worth individuals in the European Union fell by 5.2% in the first half of 2008, with the largest drops in Ireland, Spain, Italy, France and the UK, according to a report from MDRC, a UK consultancy.
Altogether there were 2,617,400 HWNIs in the European Union at the end of the first half. MDRC defines HNWIs as having liquid assets of $1m.
Despite the slowdown in many Western European countries, HNW growth was still strong in Central Europe, with Poland and the Czech Republic experiencing growth of 4% in the first half.
MDRC said the overall fall was less than might have been expected given the economic slowdown and the fall in residential property prices in much of Europe this year.
Efforts by HNWIs to diversify into cash and low risk assets have helped lessen losses, said the report.
“Most HNW individuals (and their advisors) realigned their portfolios to the mitigate some of the effects of the economic climate. In particular they have increased the allocation of cash and low risk assets by an average of 14.7%,” said the report.
The MDRC research also found that falling property prices have yet to have a significant impact on the HNW wealth, but there are exceptions, with the most obvious case being the UK.
del.icio.us
Digg
Newsvine
reddit
StumbleUpon