June 25, 2008	Wednesday	Jamadi-us-Sani 20, 1429

PARIS, June 24: The number of millionaires worldwide rose 6 per cent last year to 10.1 million, with the sharpest gains recorded in emerging market powerhouses India, China and Brazil, a study revealed on Tuesday.

The 12th annual World Wealth Report, prepared by US investment bank Merrill Lynch and information technology group Capgemini, highlighted the rising clout of emerging market countries on the global financial stage.

It said assets held overall by the world’s millionaires soared to $40.7 trillion last year from 2006, with the average exceeding $4.0 million for the first time.

The study also found that the number of people 103,320 with net assets of at least $30 million rose by 8.8 per cent in 2007.

It described global economic momentum was “solid” in 2007, both in terms of real GDP (gross domestic product) and market capitalisation “the two primary drivers of wealth generation.

“This year’s report found that the number of high net worth individuals (with net assets, excluding primary residences, of at least $1 million), and the amount of wealth they control, continued to increase in 2007, with the greatest wealth being created in the emerging markets of India, China and Brazil,” said Robert McCann, president of Global Wealth Management at Merrill Lynch.

The report predicted that despite uncertainties in the global economic climate, “still-strong fundamentals in emerging markets are likely to sustain high levels of growth” in 2008.

It identified potential obstacles as growth constraints in mature markets and prospects for high inflation in emerging market countries.

The number of millionaires jumped 22.7 per cent in India last year, 20.3 per cent in China and 19.1 per cent in Brazil.

By region, the greatest increase came in the Middle East, 15.6 per cent, Eastern Europe, 14.3 per cent, and Latin America, 12.2 per cent.

The study attributed the increase in such areas to gains in commodity exports, “paired with growing international acceptance of emerging financial centres as significant global players.”

Emerging markets also figured prominently in initial public offerings last year, during which more than 1,300 IPOs raised about $300 billion.

Emerging markets captured seven of the top 10 issues, according to the study.

China led the way in attracting net private capital inflows, taking in about $55 billion in 2007.

By region, emerging markets in Europe were the most popular destinations, taking in $276 billion while emerging Asia saw a 20 per cent decline in private capital flows.

The report revealed increased interest in “green” investing, with total investment in clean technology rising 41 per cent from 2005 to $117 billion last year.—AFP