Investable assets of the wealthy rose by 11 percent globally in 2006November 27th, 2007 - 1:06 pm ICT by admin
London, Nov.27 (ANI): The global market for wealthy individuals with over one million dollars of investable assets rose by 11 percent in 2006, the biggest rise for seven years, to reach over 37 trillion dollars.
Key developments, noted in the new edition of IFSL’s International Private Wealth Management report, have been the continuing recovery in equity markets and growing investment in real estate.
The share of alternative assets - such as hedge funds, private equity and equity derivatives - in the portfolio of wealthy investors halved from 20 percent to 10 percent in 2006, as investors moved to take advantage of rising real estate markets. Liquidation of gains in real estate may reduce net investment in real estate this year.
Alternative investments can be readily accessed in London, where hedge funds to the tune of 426 billion dollars are managed, nearly 80 percent of the European total. Half of the investments in the European private equity market are made in the UK.
And trading in equity derivatives at Euronext.liffe and Eurex, which largely originates in London, is likely to reach EUR50 trillion in 2007, a half up on 2006.
Advisers in London provide a range of specialist services to an international clientele. UK residents represent a key segment of the market with the UK being home to 610,000 millionaires the most of any European country and exceeded only by the US and Japan. (ANI)
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