Merrill Lynch Global Wealth Management and Capgemini Release 13th Annual World Wealth...

Merrill Lynch Global Wealth Management and Capgemini Release 13th Annual World
Wealth Report

HNWI Population and Wealth Shrink Below 2005 Levels - HNWI Wealth Drops to
$32.8 Trillion

World's High Net Worth Population Now Stands at 8.6 Million; Wealth Expected
to Reach $48.5 Trillion by 2013

NEW YORK and PARIS, June 24 /PRNewswire/ -- Following a year-long period of
exceptional volatility in 2008, the world's population of high net worth
individuals (HNWIs(1)) was down 14.9 percent from the year before and the
population of ultra high net worth individuals (Ultra-HNWIs(2)) fell 24.6
percent, according to the 13th annual World Wealth Report, released today by
Merrill Lynch Global Wealth Management and Capgemini. The decrease in
population was matched by a 19.5 percent drop in HNWI wealth to $32.8
trillion. The unprecedented declines wiped out two years of robust growth in
2006 and 2007, reducing both the HNWI population and its wealth to below
levels seen at the close of 2005.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090624/CL36264LOGO-a )
(Logo: http://www.newscom.com/cgi-bin/prnh/20090624/CL36264LOGO-b )

Ultra-HNWIs suffered more extensive losses in financial wealth than the HNWI
population as a whole. Consistent with the drop in the Ultra-HNWI population,
the group's wealth decreased 23.9 percent.

"This year's World Wealth Report shows a distinct shift from our reports in
recent years," said Bertrand Lavayssiere, Managing Director Global Financial
Services, Capgemini. "After a year of significant volatility, we're seeing a
shift in HNWI activity and priorities. There are currently opportunities for
wealth management firms and advisors to understand and effectively address
increased client concerns by helping to navigate through the uncertain
economic times and build relationships that will continue well into the
future."

Global HNWI Population is Still Concentrated, But Shifting
Specific regions continue to host large percentages of the total global HNWI
population, namely North America, Asia, and Europe. The top 3 countries for
HNWI population - U.S., Japan, and Germany - together accounted for 54 percent
of the world's HNWI population in 2008, up slightly from 53.3 percent 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, down 61.3 percent to 37,000.

The U.S. saw its HNWI population drop 18.5 percent; however, it remains the
single largest home to HNWIs with 2.5 million, or 28.7 percent of the total
global HNWI population. Decreases in the European HNWI populations varied by
country: 12.6 percent in France but only 2.7 percent in Germany, for example.
In Japan, home to more than 50 percent of all HNWIs in the Asia-Pacific
region, the total HNWI population decline was mild at 9.9 percent, in marked
contrast to declines in Hong Kong. The low impact is credited to the Japanese
slowdown in macroeconomic growth that started in 2007.

HNWI Wealth is Forecast to Resume Growth as Global Economy Recovers
Overall HNWI financial wealth is expected to grow to $48.5 trillion by 2013,
advancing by an annual rate of 8.1 percent. North America and the Asia-Pacific
regions are predicted to lead in wealth growth, with Asia-Pacific surpassing
North America by 2013. These regions will be spurred by increasing U.S.
consumer spending and the extension of the autonomy of the Chinese economy,
already sparking a new increase in consumer demand.

HNWIs Sought Refuge in Cash, Fixed Income, and Domestic Investments
HNWIs reduced their exposure to equities across the globe, and increased the
proportion of their assets in safer and simpler investments in 2008. More
income was allocated to fixed-income investments, cash and liquid assets.
Additionally, HNWIs allocated slightly more of their financial assets to
real-estate holdings, which rose to 18 percent of the total global HNWI
portfolio - an increase of 4 percent from 2007.

The proportion of cash-based holdings also significantly increased, to 21
percent of overall portfolios and up 7 percent from 2006. Japan, where the
savings rate has been traditionally high, had the largest number of HNWIs
moving to cash-based holdings, at 30 percent. North American HNWIs, in
contrast, held the lowest amount of cash or deposits as a percentage of their
total portfolios at 14 percent, up 3 percentage points from 2007.

"Last year was about preservation, not appreciation," said Dan Sontag,
president of Merrill Lynch Global Wealth Management. "With no safe havens
HNWIs ended up with significant amounts of cash in their portfolios. As
markets recover, they will have the flexibility to readjust their strategies
and reinvest in new, developing opportunities along the way."

About Merrill Lynch Global Wealth Management
Merrill Lynch Global Wealth Management (GWM) is a leading provider of
comprehensive wealth management and investment services for individuals and
businesses globally. With approximately 16,000 financial advisors and more
than $1.1 trillion in client assets, it is among the largest businesses of its
kind in the world. More than two-thirds of GWM assets are with clients who
have a net worth of $1 million or more. Within GWM, the Private Banking &
Investment Group provides tailored solutions to ultra high net worth clients,
offering both the intimacy of a boutique and the resources of a premier global
financial services company. These clients are served by more than 160 Private
Wealth Advisor teams, along with experts in areas such as investment
management, concentrated stock management and intergenerational wealth
transfer strategies. Merrill Lynch Global Wealth Management is part of Bank of
America Corporation.

About Capgemini
Capgemini, one of the world's foremost providers of consulting, technology and
outsourcing services, 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 - the Collaborative Business Experience - and through a global
delivery model called Rightshore(R), which aims to offer the right resources
in the right location at competitive cost. Present in more than 30 countries,
Capgemini reported 2008 global revenues of EUR 8.7 billion and employs over
90,000 people worldwide. More information is available at www.capgemini.com.

Capgemini's Financial Services Global Business Unit (FS GBU) brings deep
industry experience, enhanced service offerings and next generation global
delivery to serve the financial services industry. With a network of 12,000
professionals serving over 900 clients worldwide, the FS GBU collaborates with
leading companies in banking, insurance, and capital markets to create
tangible value. For more information please visit
www.capgemini.com/financialservices.

Rightshore(R) is a trademark belonging to Capgemini.

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

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

SOURCE Merrill Lynch Global Wealth Management

Jenny Grendel (North America), +1-212-445-8187,
CapgeminiWWR@webershandwick.com, or Emma Hedges (EMEA), +44 (0) 207 067 0512,
capgeminiemeapr@webershandwick.com, both of Weber Shandwick for Capgemini; or
Selena Morris (North America), +1-212-449-7283, selena_morris@ml.com, or
Sara-Louise Boyes (EMEA), +44 20 7996 3557, saralouise_boyes@ml.com, Merrill
Lynch