Australia's population of high net worth individuals (people with a least $1 million in assets, excluding their home) crashed by 23.4% last year to 129,200, as their total wealth fell 29.7% to $US379.8 billion.
The data, released by wealth management firm Merrill Lynch and consulting firm Capgemini, shows the wealthy in the Asia Pacific region were smashed by falling sharemarkets. According to the research, sharemarkets across the region dropped by an average of 48.6% in 2008.
The sharp fall in equity markets forced Australia's millionaire population to sharply adjust their asset allocation of their portfolios.
The percentage of wealth held in shares fell from 38% to 25%, while the proportion in cash increased from 14% to 19%.
The big surprise was a sharp increase in the percentage of assets held in property, which increased from 28% to 41%. This may reflect the better performance of the local property sectors relative to markets overseas.
"Amid the market uncertainty of last year, there was a flight to safety by HNWIs to the more tangible asset classes of property and cash," Chris Selby, head of Merrill Lynch Global Wealth Management for Australia and New Zealand, said in a statement.
"As the economy recovers, and market confidence strengthens, asset allocations to equity and debt market investments will increase."
They survey also examines how Australia's millionaires like to spend their money. The category of "luxury investments" which covers high-end cars, boats and jets, still dominates, just ahead of art collecting.
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