Emerging markets lead high net worth hotspots

The average wealth held by high net worth individuals (HNWI) surpassed $4m for the first time in the Annual World Wealth Report's history, increasing 9.4% to $40.7 trillion last year.

India led the world in HNWI population growth at 22.7%, driven by market capitalisation growth of 118% and GDP growth of 7.9%.

Meanwhile China experienced the second-largest expansion of its HNWI population, growing by a very healthy 20.3%, fuelled by market capitalisation growth of 291% and GDP growth of 11.4%.

Brazil had the third-fastest HNWI growth expanding by 19.1%, while net private capital flows to Latin America doubled in 2007. Russia was also one of the world’s 10 fastest-growing HNWI populations as growth remained strong at 14.4% in 2007, marginally down from 15.5% in 2006.

“Gains in commodity exports, paired with growing international acceptance of emerging financial centres as significant global players, contributed to the growth rates of emerging economies,” said Jonty Crosse, resident director of Merrill Lynch’s Global Wealth Management business in the Middle East.

The report suggests that global HNWI wealth will grow to $59.1 trillion by 2012, advancing at a rate of 7.7% per year.

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