The
number of wealthy people and the amount of money they control increased
dramatically during 2006, with individuals in Singapore and India
leading the way, according to the 11th annual World Wealth Report
released recently by Merrill Lynch and Capgemini.
The amount of
wealth controlled by high-net-worth or ultra-high-net-worth individuals
grew by 11.4% last year to $37.2 trillion. The number of high-net--worth
individuals-those with at least $1 million in assets excluding their
primary residence-increased 8.3% to 9.5 million; the number of ultra
high net worth individuals-those with $30 million in assets-grew by
11.3% to 94,970.
Cash flow going to
emerging economies is credited with the more than 20% growth in the
number of high-net-worth individuals in Singapore and India, but that
growth will moderate in 2007, the report predicts. Real GDP and market
capitalization growth rates are credited with creating the increases
worldwide. Market capitalization grew rapidly in Europe, Asia-Pacific
and Latin America thanks to strong corporate profits, IPO activity and
on-going foreign investment, the report says.
High-net-worth
individuals continued to shift money into real estate investments,
resulting in a 38% increase in real estate transaction volume last year
to reach a total of $682 billion.
"The level of
wealth creation around the world provides a tremendous opportunity for
wealth management firms, and success will go to the firms that offer a
service model that meets the ever-changing needs of today's
sophisticated clients," says Robert J. McCann, president of Merrill
Lynch's Global Private Client Group.