Mumbai, June 28 – Driven by a strong global economy, the wealth of the world’s high net worth individuals (HNWIs ) increased 11.4 percent to US$37.2 trillion in 2006, according to the 11th annual World Wealth Report, released today by Merrill Lynch and Capgemini. The number of HNWIs in the world increased 8.3 percent in 2006 to 9.5 million and the number of ultra high net worth individuals (Ultra-HNWIs ) grew by 11.3 percent to 94,970.

In Asia Pacific, the HNWI population increased to 2.6 million in 2006, an 8.6 percent gain from the year before. These HNWIs’ combined wealth increased 10.5 percent to US$8.4 trillion. Asia was also home to some of the fastest-growing markets in terms of HNWI population, occupying five out of the top 10 spots globally, a repeat of its 2005 performance. India, with a 20.5 percent increase in the number of HNWIs to 100,015, recorded the second highest growth rate in HWNIs globally. It trailed only Singapore with a growth rate of 21.2 percent. Indonesia saw its HWNI population rise 16.0 percent while those of South Korea and Hong Kong rose 14.1 percent and 12.2 percent, respectively. Double digit growth was also recorded in Russia, the United Arab Emirates, South Africa, Israel and the Czech Republic and together these emerging economies made up the top ten fastest growing markets globally for HNWI population.

China, with GDP growth of 10.5% in 2006, saw a 7.8 percent increase in HNWIs.

“Strong economic growth and a robust performance in many of the region’s stockmarkets worked together during 2006 to drive wealth creation in the Asia Pacific Region,” said Pradeep Dokania, Managing Director, Global Private Client, DSP Merrill Lynch. “The region continued to benefit from the combined effects of strong underlying fundamentals and incremental portfolio and direct investment into Asian economies.”

Real Estate’s Allure Deepens

In 2006, HNWIs globally shifted more money into real estate investments, at times liquidating some of their alternative investments to fund these real estate opportunities. This trend was most dramatic in the Asia Pacific where a full 29 percent of HNWI assets was held in real estate, up from 16 percent one year earlier. On a global basis, HNWI held 24% of their assets in real estate compared with 16 percent in 2005.

Asia Pacific HNWIs also had the lowest exposure to fixed income securities, with only 15 percent of assets held in this category compared with 21 percent for HNWIs globally. Equities made up 24 percent of Asian HNWI investments, below the global average of 31 percent.

In 2006, Europe regained its position as the second most popular destination, after North America, for HNWI investments, accounting for 25 percent of total HNWI assets. Asia accounted for 21 percent of total HNWI assets. The 2006 rankings for Europe and Asia reverse the 2005 positions, when Asia accounted for 23% of HWNI assets and Europe 22 percent.

“The globalization of wealth creation has accelerated,” said Bertrand Lavayssière, Group Director, Capgemini Financial Services. “If 2005 was characterized by a flow of investment to international funds from HNWIs, 2006 ushered in a new era whereby emerging economies leaped ahead with direct foreign investment, strong domestic demand, and hefty stock market gains.”

In the Report’s first breakout of philanthropic giving, it found that HNWIs, led by the ultra-wealthy, gave an estimated US$285 billion to philanthropic causes in 2006. The Report also found that the global perspective of HNWIs continued to increase in 2006, driven by an expanded awareness of international developments, better international fund performance and risk mitigation.

Future Growth Looks Moderate

Looking ahead, mature markets like the United States are expected to act as an anchor on the world economy as moderate growth rates settle in. With many central banks tightening monetary policy, the period of high liquidity that has so stimulated recent growth may soon come to an end. Finally, the growth rates of Asia and Latin America are expected to ease back as global demand slows.

Combined global HNWI wealth is forecast to grow at a 6.8 percent annual rate between 2006 and 2011 to US$51.6 trillion. The Asia Pacific at 8.5 percent per annum, the Middle East at 9.5 percent per year and Latin America at a 7.2 percent annual rate, are forecast to lead the growth into the next decade.

About Merrill Lynch

Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies with offices in 37 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world’s largest publicly traded investment management companies with more than $1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com.

About Capgemini

Capgemini is positioned with deep industry experience, enhanced service offerings and next generation global delivery to serve the financial services industry. With a network of 15,000 professionals serving over 900 clients worldwide, we move businesses forward with leading solutions and best practices in Banking, Insurance, Capital Markets and Investments.

As one of the world's foremost providers of Consulting, Technology and Outsourcing services, Capgemini enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working called the Collaborative Business Experience. Capgemini reported 2006 global revenues of EUR7.7 billion and employs more than 75,000 people worldwide. For more information, please visit www.capgemini.com/financialservices.

Note to Editors/Reporters: To download the 2007 World Wealth Report, please visit www.capgemini.com/worldwealthreport.