Mumbai, June 25, 2008 : The combined wealth of the world’s high net worth individuals (HNWIs¹ ) increased 9.4 percent to US$40.7 trillion in 2007, according to the 12th annual World Wealth Report, released today by Merrill Lynch (NYSE: MER) and Capgemini. The increase was largely driven by market capitalization growth in emerging economies. India was the world’s fastest-growing HNWI market with a 22.7 percent gain to 123,000, followed by China which saw a 20.3 percent increase to 415,000.

The number of HNWIs in the world rose 6 percent in 2007 to 10.1 million, while the number of ultra high net worth individuals (Ultra-HNWIs² ) increased by 8.8 percent. For the first time in the history of the Report, the average assets held by HNWIs exceeded US$4 million.

In Asia Pacific, the HNWI population rose 8.7 percent from a year earlier to 2.8 million. The region’s HNWIs had combined wealth of US$9.5 trillion, an increase of 12.5 percent.

Asia was home to some of the world’s fastest-growing markets by HNWI population, taking five spots out of the global top 10 for the third consecutive year. China also surpassed France as the fifth-largest HNWI population in the world. Also included in the world’s fastest-growing markets were South Korea, where the HNWI population increased 18.9 percent, Indonesia at 16.8 percent and Singapore at 15.3 percent.

In India, the number of HNWIs rose 22.7 percent during the year to 123,000. The growth was primarily led by market capitalization and real GDP growth.

“In India, wealth is being created at an unprecedented rate. We are in the midst of a multi-year growth trajectory in terms of the number of HNWIs as also their combined wealth,” said Pradeep Dokania, head of Global Private Client at DSP Merrill Lynch Limited. “Notwithstanding the recent dislocation in global markets, the robust economies in Asia, as well as in India, are increasingly being driven by the domestic consumption story and continue to spur wealth creation in the region.”

Market Capitalization Growth Explodes in Emerging Markets

Stock markets in India, China and other emerging markets enjoyed stellar performances last year. India’s Bombay Exchange and National Stock Exchange had respective growth rates of 122 percent and 115 percent.

“The divide between market capitalization growth in mature and emerging economies was significantly more pronounced in 2007 than in previous years,” said Bertrand Lavayssière, Managing Director, Capgemini Global Financial Services. “Despite slowdowns in the growth of traditional stock exchanges and significant market volatility, several emerging market exchanges experienced robust gains in 2007, further accelerating global wealth.”

China is also experiencing explosive growth in its “mass affluent” population, which has yet to break the HNWI threshold of US$1million.

Emerging markets made significant contributions to record-level worldwide IPO activity in 2007, another factor driving wealth creation. More than 1,300 IPOs raised about US$300 billion during the year – and emerging markets captured seven of the top 10 issues.

Net private capital flows to emerging markets also increased in 2007. China attracted the largest absolute amount of private capital in 2007 at a country level, drawing in about US$55 billion. Emerging Europe was the most popular regional destination, attracting US$276 billion.

Shift to Safer, More Familiar Investments

The global economy had a transitional year in 2007. Building on the optimism of 2006, the early months of 2007 showed HNWIs betting heavily on riskier asset classes. But as the year wore on, and financial market turmoil and economic uncertainty intensified, HNWIs began to retrench, shifting their investments to safer, less volatile asset classes.

Asia Pacific HNWIs held 25 percent of their wealth in cash/deposits, higher than the global average of 17 percent. They increased their exposure to fixed income securities to 21 percent, from 15 percent the previous year. Globally, cash/deposits and fixed income securities made up 44 percent of HNWI financial assets, up nine percentage points from 2006.

Across all regions, HNWIs showed greater interest in domestic market investments, preferring more familiar ground amid growing economic uncertainty. Asia Pacific HNWIs boosted their regional investments to 53 percent from 50 percent, and trimmed their exposure to North America and Europe.

This year’s report examined trends in green investing, which has become more popular in recent years amid growing concerns about the environment. Investors have access to an array of vehicles through which to back green initiatives, such as mutual funds, ETFs and other pooled products, or alternative investments. These investment vehicles drove robust growth in green sectors in 2007. The total investment in clean technology, for example, increased to US$117 billion in 2007, up 41 percent from 2005, with notable strength in wind and solar segments.

With future sustainability at stake, the Report projects continued growth in green investments.

Looking Ahead

Despite heightened uncertainty regarding the near-term global outlook, fundamentals in emerging markets remain strong and are likely to sustain high levels of growth. The balance between emerging market strength and mature market recovery will likely persist through 2008. The global economy has two distinctive obstacles to overcome: inhibitors to growth in mature markets and high risks of inflation in emerging markets. How well these challenges are met will shape global HNWI growth prospects going forward.

Global HNWI wealth is forecast to increase 7.7 percent annually to US$59.1 trillion by 2012, led by growth in Asia Pacific, Middle East, Latin America and Africa.

About DSP Merrill Lynch

DSP Merrill Lynch Limited is one of the leading wealth management, capital markets and advisory companies in India. Merrill Lynch holds 90% of DSP Merrill Lynch Limited. DSP Merrill Lynch has consistently won leading awards from international publications including Euromoney, FinanceAsia and The Asset.

About Merrill Lynch

Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 40 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, one of the world's foremost providers of consulting, technology and outsourcing services, 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 - the Collaborative Business Experience – and through a global delivery model called Rightshore®, which aims to offer the right resources in the right location at competitive cost. Present in 36 countries, Capgemini reported 2007 global revenues of EUR 8.7 billion (approximately US$12 billion) and employs over 83,000 people worldwide.

Capgemini provides 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 services and best practices in Banking, Insurance, Capital Markets and Investments. For more information, please visit www.capgemini.com/financialservices.

Note to Editors/Reporters: To download the 2008 World Wealth Report, please visit www.capgemini.com/worldwealthreport.

• HNWIs¹ - Individuals with net assets of at least US$1 million, excluding their primary residence and consumables.
• Ultra-HNWIs² - Individuals with net assets of at least US$30 million, excluding their primary residence and consumables.