Global HNI market rose by 8% in 2005 to reach over $33 trillion, allocation to alternatives doubled

Date: Monday, December 4, 2006
Author: Finfacts.com

The global market for wealthy individuals with over $1m of investable assets rose by 8% in 2005 to reach over $33 trillion, continuing the steady growth seen in the two previous years according to industry body International Financial Services London (IFSL). 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 popularity of alternative investments.

The share of alternative assets - such as hedge funds, private equity and equity derivatives - in the portfolio of wealthy investors has doubled from 10% to 20% in recent years. These can be readily accessed in London, where hedge funds to the tune of $317bn are managed, nearly 80% of the European total.