Rich clients' assets to hit $75 trillion by 2012: study

LONDON (Reuters) - Wealth held by rich investors with assets over $1 million is set to grow 50 percent in the next five years to $75 trillion, according to a report published on Thursday.

The study by management consultancy Oliver Wyman found that the annual growth rate of wealth held by high net worth individuals is expected to slow to nine percent in the next five years as tougher market environment bites.

Global wealth held by rich clients grew by an annual 12 percent over the past five years to 2007 to $50 trillion thanks to a bull run in stock markets.

"The combination of increased competition and more difficult market conditions has marked the beginning of a more challenging era for the global private banking industry," said Stefan Jaecklin, Partner and Head of the Wealth and Asset Management Practice at Oliver Wyman.

Oliver Wyman's estimate of the current global wealth pool is higher than calculations made by other consultants.

For example, London-based consultancy group Scorpio Partnership said last year wealthy clients had $24.4 trillion of bankable assets, while Cap Gemini's estimate of global wealth as of end-2006 stood at $37.2 trillion.

The Oliver Wyman study has found that 16 percent of wealth among high net worth individuals was held offshore in 2007, with the share of offshore banking expected to decline in coming years due to increasing pressure from international regulators on tax avoidance.

Oliver Wyman is part of insurance broker Marsh & McLennan.

(Reporting by Natsuko Waki; editing by Stephen Nisbet)