The 2009 Wealth Report

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Capgemini and Merrill Lynch Global Wealth Management present the 2009 World Wealth Report. A collaborative analysis of the macroeconomic factors that drive wealth creation and the key trends that affect High Net Worth Individuals (HNWIs) around the globe. Restoring trust and confidence in the markets and the industry are resounding themes as we move forward, and their Spotlight identifies the trends and forces driving HNWI client behavior [password]and focuses on specific opportunities that wealth management firms and Advisors can pursue directly to help craft mutually value-creating relationships moving forward into the future.

State of the World’s Wealth

HNWI POPULATION AND WEALTH CONTRACT SIGNIFICANTLY
At the end of 2008, the • world’s population of high net worth individuals (HNWIs1) was down 14.9% from the year before, while their wealth had dropped 19.5%. The unprecedented declines wiped out two robust years of growth in 2006 and 2007, reducing both the HNWI population and its wealth to below levels seen at the close of 2005.
• Ultra-HNWIs2 suffered more extensive losses in financial wealth than the HNWI population as a whole. The Ultra-HNWI population fell 24.6%, as the group’s wealth dropped 23.9%, pushing many down into the ‘mid-tier millionaire’3 pool.
• T he global HNWI population is still concentrated, but the ranks are shifting. The U.S., Japan and Germany together accounted for 54.0% of the world’s HNWI population in 2008, up very slightly from 53.3% in 2007. China’s HNWI population surpassed that of the U.K. to become the fourth largest in the world. Hong Kong’s HNWI population shrank the most in percentage terms (down 61.3%).
• H NWI wealth is forecast to start growing again as the global economy recovers. By 2013, we forecast global HNWI financial wealth to recover to $48.5 trillion, after advancing at a sustained annual rate of 8.1%. By 2013, we expect Asia-Pacific to overtake North America as the largest region for HNWI financial wealth.

To download the full, 40-page report, click here.

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