Global HNI wealth up 9.4% yoy

The combined wealth of the world’s high net worth individuals (HNIs ) increased 9.4% to US$40.7 trillion in 2007, according to the 12th annual World Wealth report, released by Merrill Lynch and Capgemini. The increase was largely driven by market capitalization growth in emerging economies. India was the world’s fastest-growing HNI market with a 22.7 % gain to 123,000, followed by China which saw a 20.3 % increase to 415,000.

The number of HNWIs in the world rose 6% in 2007 to 10.1mn, while the number of ultra high net worth individuals (Ultra-HNWIs ) increased by 8.8 %. 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% from a year earlier to 2.8mn. The region’s HNWIs had combined wealth of US$9.5 trillion, an increase of 12.5 %.

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 %, Indonesia at 16.8 % and Singapore at 15.3 %.

In India, the number of HNWIs rose 22.7 % 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."