worldwealthreport2005-IlSole24Ore.ppt

Massimo Fortuzzi Chief Operating Officer Merrill Lynch Global Private Client – Italia Key Findings – Market Sizing and Growth 2006 In 2006, 9.5 million people globally held more than US$1million in financial assets – an increase of 8.3% over the 2005 HNWI population HNWI wealth gained 11.4% over 2005 to total US$37.2 trillion The total population of Ultra-HNWIs, people with more than US$30million in Financial assets, now stands at 94,970 an 11.3% increase over 2005 In 2006 GDP Growth and Market Capitalization worked in concert to fuel wealth creation Emerging markets registered strong advances - Singapore, India, Indonesia and Russia witnessed the highest growth in HNWI populations HNWI financial wealth is expected to reach US$51.6 trillion by 2011, growing at an annual rate of 6.8% The Global HNWI Population Grew 8.3% in 2006 to 9.5M, Up from 6.5% Growth in 2005 HNWI Wealth Grew by 11.4% in 2006, up from 8.5% in 2005, to Total $37.2 Trillion Wealth Continued to Grow Increasingly Concentrated with The Richest 1% of HNWIs Controlling Over 35% of Total HNWI Wealth The Global Economy Grew at 5.4% in 2006, Led by Eastern Europe and Asia-Pacific Similar to GDP, Most Worldwide Market Capitalizations Experienced Accelerated Growth In 2006 Looking Ahead, HNWI Wealth Is Projected to Total US$51.6 Trillion By 2011, Growing at a Rate of 6.8% Key Findings – HNWI Asset Allocation HNWI allocations in 2006 varied from 2005: Allocations to real estate increased while allocations to alternative investments dipped Globally, high returns in commercial real estate and REITs drove increased allocations to real estate: In 2006, real estate investments became more liquid and more transparent driven by the increase, globally, in legislation which allows for REIT-type investment structures Certain alternative investments which capitalize on market volatility did not fare well during 2006, a year of relatively low volatility HNWIs globally continued to diversify their holding