The number of millionaires in Australia grew at its fastest rate in five years in 2014, mainly due to the share market and the rising value of housing.
Australia created 43,500 new millionaires, from 400,000 in November 2013 to 443,500 in October 2014, a rise of 10.8%.
“This is the largest annual increase in the number of HNW (High Net Worth) investors weâ€™ve seen in the past five years,” says Irene Guiamatsia, Analyst at Investment Trends.
These wealthy investors, with at least $1 million in net assets, hold $1.6 trillion in investments, nearly equivalent to the country’s entire superannuation savings.
The growth was fuelled by a strong performance of the stock market (up 12%) and property (up 9%).
Analysts Investment Trends identified the increase in millionaires in its annual 2014 High Net Worth Investor Report.
Of course, $1 million isn’t worth as much as it used to. $1 million today has the spending power of about $250,000 in 1985, according to the Reserve Bank’s inflation calculator.
A typical portfolio of a high net worth individual includes 31% in shares, 31% in property, about 17% in cash, 7% in managed funds, 2% in exchange traded funds and the rest in a range of securities.