Merrill Lynch and Capgemini Release 11th Annual World Wealth Report

Merrill Lynch and Capgemini Release 11th Annual World Wealth Report

Latin American Wealth Grew at a Record Pace in 2006

Number of High Net Worth Individuals Grew By 23.2% In 2006

The total wealth of Latin America’s high net worth individuals (HNWIs1) grew by 23.2% in 2006, representing the fastest growth of any region in the world, according to the 11th annual World Wealth Report, released today by Merrill Lynch (NYSE: MER) and Capgemini.

The number of HNWIs in Latin America also grew in 2006 by 10.2%, with Argentina, Brazil, Peru and Chile leading the way. This is up from 9.7% in 2005.

Globally, the world’s HNWIs increased 11.4% to US$37.2 trillion in 2006, while the number of HNWIs in the world increased 8.3% to 9.5 million and the number of ultra-high net worth individuals (Ultra-HNWIs2) grew by 11.3% to 94,970.

Real GDP and market capitalization growth rates – the two primary drivers of wealth generation globally – accelerated through 2006, helping to increase the total number of HNWIs worldwide as well as the amount of wealth they control.

Similarly, real GDP growth in 2006 of 4.8% in the Latin American region, and a surge in market capitalization and foreign direct investment were behind growth in the number of HNWIs in Latin America and the amount of wealth they control.

China’s growing demand for local commodities as well as its mounting direct investments in the region accounted for roughly 16% of all foreign direct investment in Latin America in 2006, up from 2.9% in 2000.

“This year’s Report found that the number of wealthy people in Latin America, and the amount of wealth that they control, continued to increase in 2006,” said Darcie Burk, Managing Director in charge of the Latin American division of Merrill Lynch’s Global Private Client Group. “The level of wealth creation in the region 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, ” she added.

Brazil in particular saw a large increase in private consumption and investment along with a decline in inflation in 2006. The Sao Paulo Bovespa returned 32.9% in 2006. At the same time, commodity prices were relatively high — factors that helped drive up the total number of HNWIs in Brazil by 10.1%.

Emerging markets, including Latin American nations, are setting the pace for global economic growth and their wealthiest citizens are becoming enthusiastic collectors, especially for artwork and objects that reflect their cultural identities.

Latin Americans historically have allocated a majority of their assets to foreign markets. In 2006, they were the only group to increase their investments in North America. Latin American investors also increased their allocations to real estate — from 11% to 25% of their portfolios.

“The globalization of wealth creation has accelerated,” said Bertrand Lavayssière, Group Director, Capgemini Financial Services. “If 2005 was characterized by a flow of investment to international funds from HNWIs, 2006 ushered in a new era whereby emerging economies leaped ahead with direct foreign investment, strong domestic demand, and hefty stock market gains.”

About Merrill Lynch

Merrill Lynch is one of the world’s leading wealth management, capital markets and advisory companies with offices in 37 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world’s largest publicly traded investment management companies with more than $1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com.

About Capgemini

Capgemini is positioned with deep industry experience, enhanced service offerings and next generation global delivery to serve the financial services industry. With a network of 15,000 professionals serving over 900 clients worldwide, we move businesses forward with leading solutions and best practices in Banking, Insurance, Capital Markets and Investments.

As one of the world’s foremost providers of Consulting, Technology and Outsourcing services, Capgemini enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working called the Collaborative Business Experience. Capgemini reported 2006 global revenues of EUR7.7 billion and employs more than 75,000 people worldwide. For more information, please visit www.capgemini.com/financialservices.

Note to Editors/Reporters: To download the 2007 World Wealth Report, please visit www.capgemini.com/worldwealthreport.

1 Individuals with net assets of at least US$1 million, excluding their primary residence and consumables.

2 Individuals with net assets of at least US$30 million, excluding their primary residence and consumables.
Contacts

Capgemini
Jonathan Blank (North America)
+1 917 934 8842
jonathan.blank {at} capgemini(.)com
or
Merrill Lynch
Danielle Robinson (North America)
+1 212 449 0097
danielle_robinson {at} ml(.)com