Number of Ireland's rich up by more than 10 per cent last year

A STOCK market recovery boosted the number of high net worth individuals in Ireland in 2009 after two years of decline, according to the 14th annual World Wealth Report, published by Merrill Lynch Global Wealth Management and Capgemini

The number of Ireland’s rich – measured as those having investable assets of $1 million or more – rose by over 10 per cent last year. However, overall wealth values are still back at 2005 levels.

In 2009, an additional 1,800 Irish people entered the high net worth individual (HNWI) category, bringing the total up to 18,100 from 16,300 in 2008. That indicates a per capita HNWI population for Ireland of 0.54 per cent.

The figures still remain some way off the high of 21,000 HNWIs reached in 2006, however.

A further 18 Irish “ultra-HNWIs”, defined as having investable assets of $30 million or more, were recorded, bringing that total up to 181.

While property values may still be on the floor and the economy may be in turmoil, Nick Tucker, market leader UK and Ireland for Merrill Lynch Wealth Management, said Ireland’s rich benefited from resurgent global stock markets in 2009, pushing more people into the HNWI category.

Moreover, efforts to rein in the public finances have also paid off for the Irish economy. “Ireland is perceived to be ahead of the game,” Mr Tucker said.

However, the dependence of Ireland’s wealthy on property is holding back the pace of recovery. Globally, there was a 17 per cent increase in the number of high net worth individuals recorded in the report, returning numbers to levels last seen in 2007. In the UK, there was an increase in HNWIs of 24 per cent in 2009 and the European average was 13 per cent, with Ireland’s 10.7 per cent increase lagging behind.

Total global wealth values rose by 18.9 per cent to $39 trillion, just slightly off the $40.7 trillion recorded in 2007, boosted by growth among HNWIs in the Asia-Pacific region.

In Ireland however, while there is no specific wealth figure available, Mr Tucker indicated that it was still “back at 2005 levels”.

A major trend identified in the report was investors increasingly favouring investments outside their home market. Mr Tucker said this was particularly evident among Irish HNWIs, with the days of the “one-way bet” on Irish property and equities gone.

The report also identified that investors are increasing their allocation to fixed income products such as bonds, up to 32 per cent from about 21 per cent in 2006/07.