Untitled - Factbook

Contents
The State of the World’s Wealth..... 2
HNWIs’ Asset Allocation Strategies
Grow More Conservative .................... 10
Spotlight
Mid-Tier Millionaires Caught in the Middle...................... 14
Solving the Mid-Tier-Millionaire Paradox......................... 21
Evolution of the Mid-Tier-Millionaire Service Model........... 24
Appendix A: Methodology............................................ 26
Appendix B: Selected Country Breakdown........................ 27

To Our Readers,
Merrill Lynch and Capgemini are pleased to present the Ninth Annual World Wealth Report, the latest product of a 20-year
collaboration to measure and monitor changes in the size of the global high-net-worth market, identify the macroeconomic
factors that create and destroy wealth and analyze the behavior of high-net-worth investors (HNWIs).
As in 2003, 2004 saw a continuation of strong economic growth in most parts of the world. While stock market performance
in the developed economies tended to moderate year-over-year, rising oil prices and demand for commodities fueled
dramatic gains in many of the developing markets. Led by North America and Asia-Pacific, the growth of the HNWI
population worldwide remained strong, in the high single digits.
As we have seen in past years, HNWIs frequently try to anticipate future developments and stay ahead of the curve in their
investment behavior. Our research found a slightly more defensive approach to asset allocation, with many HNWIs locking in
some profits from the recent, dramatic appreciation of real estate.
Finally, we shine our spotlight on a wealth segment we’re calling the “mid-tier millionaires,” those with US$5 million to
US$30 million in financial assets. Faced with complex wealth management needs but lacking access to expensive “family
office” services, mid-tier millionaires are finding it increasingly difficult to manage multiple advisors. We predict that to
effectively and profitably serve this growing market segment, financial services firms will need to create “virtual service
networks” using new applications of technology and the internet.
We appreciate your interest in our work. Thanks in part to our many readers, the World Wealth Report has become one of
the most widely cited sources of information on the global high net worth market.
James P. Gorman Bertrand Lavayssiere
Executive Vice President, Managing Director,
Merrill Lynch & Co., Inc, and Capgemini
President, Global Private Client Global Financial Services

The State of the World’s Wealth
HNWI SECTOR GAINS IN 2004
■ 8.3 million people globally each hold at least US$1million in financial assets — an increase of 7.3% over 2003
■ HNWI wealth totaled US$30.8 trillion, an 8.2% gain over 2003
■ Wealth generation was driven by fast-paced GDP performance and moderate market capitalization growth
■ HNWI wealth and population growth in North America outpaced those in Europe for the first time since 2001
■ Singapore, South Africa, Hong Kong, and Australia witnessed the highest growth in HNWI numbers
■ We expect HNWI financial wealth to reach US$42.2 trillion by 2009, growing at an annual rate of 6.5%
While 2003 was recognized as a year of recovery from an economic
slowdown, 2004 can be characterized as a year of stabilization. With
interest rates at historic lows globally, world GDP grew at its fastest
pace in over 20 years. Stock market capitalization also increased
steadily across the world, buoyed by economic stability and low cost of
money. Together, the drivers of wealth — GDP growth and increase
in market capitalization — accelerated gains in personal wealth.
By comparison to 2002 and 2003, which saw the wealth of high-networth
individuals (HNWIs) grow at rates of 2.7% and 7.7%,
respectively, 2004 was a better year, with worldwide HNWI financial
wealth growing at 8.2%. This growth was at the upper end of our
projections, with the United States and Asia-Pacific driving the pace.
Significantly, North America surpassed Europe both in total HNWI
population and wealth for the first time since 2001 (Figures 1, 2).
Despite these gains, HNWIs adopted a more cautious approach
towards investment and asset allocation in 2004, since they recognized
a market that might be leveling off and were in the process of determining
what their next moves should be.
As anticipated, the world’s very richest individuals — the Ultra-
HNWIs (those with at least $30 million in financial assets) —
continued to grow in number in 2004, increasing their ranks by 8.9%
as 6,300 more individuals joined this elite group. This gain brought
the total number of Ultra-HNWIs worldwide to 77,500 (Figure 3).
2 World Wealth Report 2005
Economic Drivers of HNWI Wealth
Last year, the two primary drivers of personal wealth generation —
GDP growth and market capitalization — worked in concert to drive
HNWI wealth growth at a faster than expected rate.
In 2003, resurgent stock markets had promised record economic growth
for 2004. The year fulfilled these expectations as world GDP grew by
3.9% — according to the Economist Intelligence Unit (EIU) — the fastest
in more than 20 years, and well in excess of the 2.6% growth posted in
2003. The United States and China, two of the world’s largest economies
and accounting for nearly one third of the world’s GDP, continued to drive
global economic growth (Figure 4). Although aggregated growth in the
European Union was slow (2.4%), economies like Ireland and the United
Kingdom broke from the trend and posted strong growth.
Stable and low interest rates around the world contributed to the fast
pace of economic growth in 2004, creating an environment that encouraged
businesses to increase their investment spending and consumers to
boost private consumption in most countries. Although interest rates
rose somewhat in the second half of 2004, the increase was incremental
and evenly paced, reinforcing notions of stability and predictability
among investors. Even the United States Federal Reserve’s five interest
rate hikes of 25 basis points each, over the course of six months, did little
to shake investor confidence in 2004.
Low Interest Rates Drive United States’ Growth
The high growth witnessed in the United States in 2004 (Figure 4) is a
record in recent history — the country last saw a higher growth rate in

Figure 1. | HNWI Population by Region, 2002 – 2004
Number of
HNWIs
Worldwide
(in millions)
9
8
7
6
5
4
3
2
1
0
(in Millions)
CAGR
2002 – 2004
7.4%
7.2
Million
1.9
2.2
2.5
0.1
0.2
0.3
7.7
Million
2.1
2.5
2.5
0.1
0.2
0.3
8.3
Million
2002 2003 2004
CAGR
2003 – 2004
7.3%
Figure 2. | HNWI Wealth Distribution by Region, 2002 – 2004
Global
HNWI
Wealth
(in US$
Trillions)
35
30
25
20
15
10
5
0
(US$Trillions)
CAGR
2002-2004
7.4%
3.6
5.9
7.4
8.4
0.6
0.8
3.4
6.6
8.5
8.6
0.6
0.8
2.3
2.7
2.6
0.1
0.3
0.3
0.7
1.0
Note: All chart numbers are rounded. CAGR 2002–2004 uses published rounded numbers.
Source: Capgemini Lorenz curve analysis, 2005
3.7
7.2
9.3
8.9
2002 2003 2004
CAGR
2003-2004
8.2%
US$26.7 US$28.5 US$30.8
% Change Total
HNWI Population
2003 – 2004
Africa 13.7%
Middle East 9.5%
Latin America 6.3%
Asia-Pacific 8.2%
N. America 9.7%
Europe 4.1%
% Change Total HNWI
Wealth, by Region
2003 – 2004
Africa................ 17.3%
Middle East....... 28.9%
Latin America...... 7.9%
Asia-Pacific......... 8.5%
N. America ........ 10.2%
Europe ................ 3.7%
World Wealth Report 2005
3

4 World Wealth Report 2005
1997 and before that in 1983 1 . Last year’s above-average growth also coincided with a peak in worldwide economic recovery.
Interest rates in the United States remained stable and low throughout 2004. The low cost of money drove spending on fixed
investments, which rose 10.2%, compared to a 5.1% increase in 2003.
In 2004, HNWIs in the United States continued to benefit from the Tax Relief Act of 2001 2 . This legislation raised the
threshold of financial assets exempt from estate taxes from US$1million in 2002 - 2003 to US$1.5 million in 2004 - 2005.
Moreover, this protection will steadily increase through the end of the decade; at which point, without congressional action, the
act’s sunset provision will go into effect, returning the tax-exempt level to US$675,000.
Structural Deficiencies Constrain Growth in Europe
2004 witnessed the expansion of the European Union, with 10 new countries admitted as members 3 . While GDP growth
varied from country to country, Germany, France and Italy, which together account for over half of the European Union’s
economic output, remained in an economic trough (Figure 4).
Germany has been plagued by employment problems for the past few years: Rigid labor regulations that make companies
cautious about hiring, coupled with high social insurance benefits, have raised unemployment to unsustainable levels. By March
2005, 5.2 million people were out of work there — the highest number of unemployed citizens since the end of World War II.
These labor problems were compounded further by low workforce productivity. According to Lucas Papademos, Vice President
of the European Central Bank, workforce productivity in Germany stood at about 80% of the United States’ level; in Italy, the
productivity rate was 77%. Jean-Philippe Cotis, Chief Economist of the Organization for Economic Co-operation and Development,
captured the problem succinctly:“Economic rates in the core EuroZone will lag behind those in Asia, Central and
Eastern Europe, and the United States until France, Germany and Italy create and sustain more jobs, particularly for workers
under 25 and over 55 4 .”
Notwithstanding low growth rates in the larger European Union nations, some European economies enjoyed a strong performance:
Ireland led with real GDP growth of 5.6%, having enjoyed relatively high growth rates since the mid-1990s — a result of a
boom in foreign direct investment, fiscal and monetary consolidation, low taxes and favorable demographics. Another strong
Figure 3 | Geographic Distribution of Ultra-HNWIs, 2004
Number
of HNWIs
Worldwide
(in Millions)
Ultra-HNWIs Account for 0.9% of Global HNWI Population
8
6
4
2
0
8.3 77.5
Africa
Middle East
Latin America
Asia-Pacific
North America
Europe
2004 HNWI 2004 Ultra-HNWI
Note: Ultra-HNWI is defined as an individual with more than US$30 million in financial assets
Source: Capgemini Lorenz curve analysis, 2005
1 The growth in both 1997 and 1983 was 4.5% in real terms
2 W.G. Gale and P.R. Orszag, “Bush Administration Tax Policy: Introduction and Background,” Tax Notes [September 13, 2004]
3 Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia were admitted to the European Union in 2004.
4 Tony Barber, et al, “In Search of an Antidote to Decline,” The Financial Times, March 7, 2005
80
60
40
20
0
Number of
Ultra-HNWIs
Worldwide
(in
Thousands)
Ultra-HNWIs as
% of HNWIs
Africa................ 1 .9%
Middle East....... 1.0%
Latin America.... 2.3%
Asia-Pacific....... 0.6%
N. America ........ 1.2%
Europe .............. 0.8%

performer in the European Union was the United Kingdom; there, as in the United States, low interest rates fueled growth,
with a 6% increase in fixed investment spending. As a result, the United Kingdom, the second largest economy in the European
Union behind Germany, saw its highest real GDP growth since 2000.
The BRIC Nations Become an Economic Force
Among developing economies, Brazil, Russia, India and China (the BRIC nations) have emerged as an economic force,
together accounting for 41% of the world’s population and 8% of its GDP. Although the combined output of these economies
is a small fraction of world GDP today, the BRIC countries are significant because of their size and fast-paced economic
growth. Goldman Sachs predicts they will overtake the G7 economies in terms of output by 2040 5 . These nations are
geographically large and resource rich, with growth fueled by large inflows of foreign investment. And, as they vigorously pursue
ambitious reform agendas, they are fast becoming regional economic powers.
Similar to 2003, China and India were Asia’s primary success stories in 2004. China, growing at a rate of 9.5%, drove economic
growth across the Asia-Pacific region. Australia, Taiwan, South Korea, Malaysia, Singapore and Japan all benefited, as almost
half of China’s imports came from these countries in 2004.
Looking ahead, however, over-investment and excess capacity are expected to reduce China’s growth in 2005. Last year, the
People’s Bank of China attempted to rein in the overheated economy by raising interest rates for the first time in nine years.
However, as China’s growth slows, many of its neighbors are likely to feel the pinch. India is the lone exception — as its
fortunes are less dependent on China and the overall economy of East/South East Asia.
The other two nations in the BRIC bloc — Russia and Brazil — both scored gains on the strength of their mineral resources.
Russia’s current account balance grew by over 22%. This was hardly surprising since oil and gas, both of which have experienced
a strong run-up in prices, make up over half of Russia’s exports. Brazil, accounting for almost one third of South
American GDP, continued to dominate that continent’s economic landscape. The three pillars of its economic program — a
floating exchange rate, inflation-targeting regime and tight fiscal policy — enabled Brazil to exceed fiscal targets in 2004 and
reduce government debt.
Figure 4. | Real GDP Growth in Selected Economies, 2003 – 2004
10%
8%
6%
4%
2%
0%
3.0
4.4
United
States
2.2
2003
2004
3.1
United
Kingdom
2.8
2.0
Source: Economist Intelligence Unit, March 2005
2.5 2.6
5 “The BRICs Are Coming —Fast,” Business Week, October 2003
0.6
2.3
0.1
1.6
1.0
0.4
0.5
5.2
7.3 7.1
Canada Japan France Germany Italy Brazil Russia India
G7 Nations BRIC Nations
8.4
6.8
9.5
9.3
China
World Wealth Report 2005
5

6 World Wealth Report 2005
However, even as these economies grow, destabilizing forces are at work: The problems surrounding the Russian government’s
intervention in the privatization efforts of Yukos, a large integrated oil producer, made worldwide headlines — and chilled the
interest of foreign investors to such a degree that it drew a statement from United States Secretary of State Dr. Condoleeza
Rice during her trip to Moscow in April 2005.“People are really watching [the Yukos affair] for signals that, indeed, there is rule
of law in Russia," 6 she told reporters.
While strong economic growth is a powerful driver for wealth generation in each of the BRIC nations, there are equally strong
counterbalancing factors — in particular, relatively young and immature stock markets and the slow pace of economic reforms —
that could pose significant risks.
Stock Markets Generate Moderate Gains
2004, as previously noted, was a year of stabilization and an extension of the 2003 recovery. However, while investors rushed
into equities in 2003, a year later they took a more cautious and subdued approach towards stocks. Rising oil prices, too, took a
toll on investor confidence — although, oil and commodity-exporting nations benefited from the higher prices. As a result,
world markets showed mixed returns: Benchmark indices at major stock exchanges rose only moderately, while those in certain
smaller markets showed large increases in market capitalization (Figure 5).
In the United States, small- to mid-cap companies performed well, with the Russell 2000 climbing more than 18%. Market
returns across Western Europe showed a similar range. However, some European economies “imported the growth” of their
Central and Eastern European neighbors: In Austria, for example, the country’s benchmark index (ATX) rose 57%, as the
financial services sector benefited from the prevailing differential in interest rates between Austria and Central/Eastern Europe.
Despite the moderate returns of the world’s major financial markets, certain smaller markets performed well. Oil-and
commodity-exporting nations reaped rich rewards as prices remained strong: The United Arab Emirates’ Shuaa Capital Index
rose by 103%, while South Africa, a net exporter of commodities, saw the market capitalization at its Johannesburg Stock
Exchange ( JSE) rise by 163% in 2004. Driven by high GDP growth rates, market returns were strong in the emerging
economies as well, with the Morgan Stanley Capital International (MSCI) Free index rising more than 24% for the year.
Figure 5 | Returns on Major Stock Market Indices, 2003 – 2004
CAC40
FTSE100
S&P 500
DAX
Nikkei 225
7.6
9.0
8.8
11.2
Source: SunGard PowerData accessed March/April 2005
12.9
13.0
13.0
0 10 20 30 40
6 “Rice talks up Russian Democracy,” BBC News [April 20, 2005]
% Return
24.5
26.4
Price Returns 2004
Price Returns 2003
30.0

HNWI Ranks Continue to Swell
GDP growth and stock market capitalization drove wealth accumulation around the world. In 2004, HNWI populations
grew most in regions that showed both high economic growth and high market returns: most notably the Asia-Pacific region
(Figure 6). Significantly, North America exceeded Europe in both the size and wealth of its HNWI population.
In 2004, North America, with a HNWI population of 2.7 million and total HNWI wealth of US$9.3 trillion, exceeded all
other regions in both the number and accumulated wealth of its HNWI population. The United States, the country with the
largest HNWI population, saw 226,000 more people join the ranks of wealthiest Americans. With an annual growth rate of
9.9%, the United States leads the developed nations in the number of HNWIs created each year. Canada also performed well,
adding almost 17,000 HNWIs to its rolls, owing in large part to rising oil prices.
Europe’s HNWIs grew at the far slower rate of 4.1%, a result of the continued low growth of its largest economies: France,
Germany and Italy. Despite low interest rates across most of Western Europe, high tax burdens in the region hindered personal
wealth accumulation. Against this backdrop, HNWI population growth in the United Kingdom and Spain, at 8.9% and 8.7%,
respectively, appears to be significant. Both of these economies also outperformed the rest of Europe in 2003 in terms of
HNWI growth.
Germany, with the third largest economy in the world and the largest in the European Union, saw its GDP grow by only 1.6%
in 2004. Although this was significantly higher than the 0.1% growth recorded in 2003, it did little to boost HNWI numbers.
The country’s complex and burdensome tax system, high fiscal deficit and record high unemployment constrained growth —
and limited the number of additional HNWIs in 2004, to only about 4,400.
France saw its economy recover as domestic demand drove GDP growth by 2.3% (compared with 0.6% in 2003). However, a
surge in imports and reduced exports took their toll: In early 2005, France experienced a trade deficit for the first time in 12
years. Still, a large number of French multinationals benefited from the global recovery, pushing the CAC40 up by 12.9% in
2004. This upturn carried over into householders’ financial assets, growing the French HNWI population by 2.6%.
Figure 6. | HNWI Population Growth by Country, 2003 – 2004
HNWI
Population
Growth
HNWI
Population,
2004
(in Thousands)
25%
20%
15%
10%
5%
0%
22.4%
21.6%
Singapore South
Africa
18.8%
Note: Growth rates and absolute HNWI numbers are rounded
Source: Capgemini analysis 2005 based on Lorenz curve
14.8% 14.6%
12.3%
Hong Kong Australia India United
Arab
Emirates
10.5% 9.9%
South
Korea
United
States
49 37 67 134 70 53 71 2,498 418 141
8.9%
United
Kingdom
8.7%
Spain
World Wealth Report 2005
7

8 World Wealth Report 2005
In contrast to Western Europe, and continuing last year’s trend, the Asia-Pacific region enjoyed much higher growth rates, with
the HNWI population increasing by 8.2% and HNWI wealth advancing by 8.5%. Within the Asia-Pacific region, Singapore,
Hong Kong and Australia showed impressive growth in HNWI populations, gaining 22.4%, 18.8% and 14.8% more members,
respectively. As noted earlier, these nations benefited from the fast-growing Chinese economy. Hong Kong recorded a boost as
the second phase of the Mainland-Hong Kong Closer Economic Partnership Arrangement (CEPA II) was concluded. That
move, in August 2004, further liberalized trade between the two governments. With tourist arrivals surging by 40% and hotel
occupancy rates averaging 88%, Hong Kong’s GDP expanded by 8.1%, providing an ample base for gains in HNWI wealth.
In export-oriented South Korea, the flow of outbound goods increased by about 20%, which more than compensated for the
low rate of domestic demand. This led to an increase in personal wealth last year and 10.5% population gains among the
country’s HNWIs.
The Outlook for 2005
Economic growth has been on a roller coaster ride since 2001, when stock markets around the world plummeted. In 2002
economies remained in the doldrums. Then came 2003, a year of euphoric recovery; 2004 built upon those gains. Looking
ahead into 2005, we expect a period of slower growth, with the EIU forecasting 3.0% real growth for the world.
As oil prices continue to rise and inflationary fears build, stepped-up monetary tightening will slow GDP growth. As the cost
of borrowing increases, consumers will spend less and outsized debt, easily obtained in 2002 and 2003, will weigh them down
further. This trend is already evident in the United Kingdom, where household debt of 140% of income constrained private
consumption in 2004. Indications of a slowdown also are evident in the United States, where the economy grew at 3.1% in the
first quarter of 2005, its slowest pace in two years, and down from the 3.9% posted in 2004.
Furthermore, in response to monetary tightening, China’s growth is expected to cool off — which may help ease the strains on the
country’s over-heated economy. However, by Chinese standards, slower growth equates to an 8.4% rise in real GDP, which is still
significant when compared to other economies. As we noted earlier, any slowdown in China will be mirrored in the economies of
other countries in the region. India, somewhat less reliant on its northern neighbor, is expected to continue on a growth path.
Figure 7 | HNWI Financial Wealth Forecast by Region, 2004 – 2009E
(US$Trillions)
0.6
0.8
US$
26.7
3.6
5.9
0.6
0.8
US$
28.5
3.4
6.6
0.7
1.0
US$
30.8
3.7
7.2
7.4 8.5 9.3
8.4 8.6 8.9
At 6.5%
Global
Growth
Note: The more conservative growth estimate is based on assumptions that HNWI wealth growth demonstrates cyclical trends similar to economic growth trends.
Expecting an economic slowdown in 2005 and 2006, the CAGR for 2004 – 2009E at 6.5% is slightly lower than the CAGR in last year’s report projected for 2003 – 2008E.
Source: Capgemini Lorenz curve analysis May 2005
All chart numbers are rounded.
0.9
1.5
US$
42.2
5.0
10.1
13.9
10.7
2002 2003 2004 2009E
Annual Growth Rate
2004 – 2009E
Global............... 6.5%
Africa................ 5.6%
Middle East....... 9.1%
Latin America.... 6.4%
Asia-Pacific....... 6.9%
N. America ........ 8.4%
Europe .............. 3.8%

Economic growth prospects on the European Continent remain lackluster. With fiscal deficits exceeding limits allowed by the
European Union’s Growth and Stability Pact, governments have little room to maneuver. Much-needed structural reforms will
have to be enacted in the region if Europe is to emerge from its doldrums.
While a gradual economic slowdown can be expected to follow 2004’s impressive GDP growth, concerns are mounting that the
world economy might hit an air pocket — which could happen if the United States’ dollar were to crash. The dollar’s decline
since early 2002 has made American exports more competitive and has limited the increase in the United States’ current
account deficit. With the United States’ dollar currently trading at close to its 30-year price-weighted average, we believe that
fears of its plunging into a free-fall are largely unsubstantiated.
Still, as world economic growth slows, wealth creation is likely to follow suit. And with geopolitical turmoil, record trade
deficits, low savings rates and high debt levels shaping financial markets, HNWIs will have to navigate carefully to maintain
and enhance their wealth.
In this climate, we expect HNWI wealth to grow at a 6.5% compound annual growth rate and to reach US$42.2 trillion by
2009 (Figure 7).
World Wealth Report 2005
9

HNWI Asset Allocation Strategies
Grow More Conservative
■ Allocations among equities, fixed income and cash/deposits remain stable
■ Private equity investments regained popularity in the second half of 2004
■ Hedge funds begin to move downstream
■ Regional cultures continue to shape allocation strategies
■ Foreign investments keep gaining ground
■ Allocation behaviors are a reaction to a recovering economy
HNWIs Behave More Cautiously
2004 became a “hold-and-see” year for HNWIs. Following two years
of their making more radical changes to their holdings, HNWIs
focused on diversifying their portfolios and adopting more conservative
asset allocations (Figure 8). In 2002, which was not a good year for
equities — stock markets under-performed and overall investor confidence
cooled — HNWIs sought refuge in low-risk asset classes, such
as fixed income and cash/deposits.
2003’s return to more favorable economic conditions, including a
marked upswing in stock market performance and a record low in
interest rates, lured HNWIs back into equities and heightened their
interest in alternative investments. The Dow Jones World Stock Index
gained 33.4% in 2003 — compared to 14.4% a year later, as rising oil
prices and interest rates produced lower stock market returns.
With returns drifting lower and market volatility increasing in 2004,
HNWIs leveled off their commitments to equities. As the year
progressed, HNWIs’ allocation strategies grew more conservative and
more diversified. This trend — illustrated by the US State Street Index,
which saw consumer confidence drop from 98.0 in January 2004, to
89.8 in January 2005 — prompted HNWIs to move allocations somewhat
away from more risky asset classes and into more stable fixed
income and cash deposits. While the rise of interest rates might theoretically
lead investors to postpone investments in bond markets, HNWIs
kept to a more conservative tack, eschewing short-term profits in favor
of safer returns.
7 Cambridge Associates LLC
8 “The Case for Taking a Company Private Grows on Executives,” The Wall Street Journal, April 2005
9 US Hedge Fund Index, Van Hedge Fund Advisors International, LLC. This index is produced from the company's database of hedge funds, one of the world's largest.
10 World Wealth Report 2005
HNWIs Regain Interest in Private Equity
HNWIs’ maturing financial sophistication can be seen in their growing
interest in — and reliance on — a wide range of alternative investments.
In fact, the extent of HNWIs’ diversification in this asset class is such
that some products must now be considered on their own merits.
Private Equity: One of the most striking investment trends of 2004
was HNWIs’ renewed interest in private equity investing. Investment
specialists widely interpret the considerable flow of funds into this asset
class in the second half of 2004 as further evidence of HNWIs’ growing
conviction that high valuations can be a much more dependable wealth
development strategy than volatile stock markets. Indeed, the United
States Private Equity Index, with returns of 23.5%, outperformed other
major market indices in 2004 (Figure 9) 7 . This growth continued into
2005 — amid whispers that records set during the peak of the dot-com
era in 2000 may soon be broken — as investments flowing into private
equity funds near the $200-billion mark 8 . For now, Ultra-HNWIs and
institutions remain the primary investors in private equity. According to
financial advisors, the United States remains the most important geography,
but Europe is in a fast-growing second position.
Hedge Funds: This asset class accounts for a growing share of HNWIs’
alternative investments, having become an integral part of most private
banks’ standard offerings. In fact, there are now nearly as many hedge funds
in existence as there are mutual funds. However, financial advisors report
that the rate at which HNWIs are betting on these investments has slowed
since 2003, as returns have declined from 17.2% in 2003 to 7.5% in 2004 9 .
More often today, hedge funds are seen as a route to portfolio diversification
rather than as a heavy-return generator.

The hedge fund industry has responded to broader interest in its products, targeting smaller — i.e., less affluent — investors
with funds composed of hedge funds. Minimum investment levels in these new funds can be as low as US$25,000, significantly
less than the $250,000+ stake amounts typically required by hedge funds 10 . This is just one more example of how high-end
investment opportunities that were once the exclusive domain of institutions and Ultra-HNWIs are being modified and made
available to HNWIs and “mass affluent” individuals. Currently, funds of hedge funds account for more than 25% of the hedge
fund market.
Real Estate’s Glow Flickers
HNWIs’ real estate allocations declined over the last year, from 17% in 2003 to 13% by the end of 2004. While our research
does not show a net outflow in this asset class, we believe this relatively low allocation rate signals HNWIs’ desires to harvest
returns from now premium-priced holdings to direct profits into other asset classes.
This is in sharp contrast with broader market trends of price inflation and stepped-up speculation brought on by record low
mortgage-interest rates 11 . The price of the median single-family home in the United States rose by 7.4% in 2004, following a
7.5% increase in 2003 12 . And even though interest rates increased in 2004, pushing borrowing costs higher and pricing countless
potential home buyers out of the market, property prices have not yet dropped. Furthermore, prices in many regions have
grown faster than household income or rent, providing more evidence that real estate has become overvalued.
Further indication of a pending slowdown: Real estate investment trusts’ (REITs) returns were lower in 2004 than in 2003.
Indeed, overall, apartment REITs were hurt in previous years as the affordable housing market turned renters into homeowners.
As we observed earlier, with HNWIs growing steadily more risk averse in 2004 than they were in 2003, the fact that they now
perceive real estate as a riskier investment justifies HNWIs adopting a more cautious approach towards this asset class. And, in
fact, total assets for real estate mutual funds in the United States decreased by 0.5%, from $43.9 billion at year-end 2004, to
$43.7 billion by April 2005 13 .
This behavior, which appears to be in anticipation of the sector overheating, is consistent with our belief that HNWIs are, in general,
more informed than the average investor and, also, that they possess the means to reallocate resources ahead of main market trends.
Figure 8 | HNWI Asset Allocations by Investment Class, 2002 – 2004
100%
10%
15%
25%
30%
20%
2002
100%
13%
17%
10%
25%
35%
2003
Alternative Investments*
Real Estate**
Cash/Deposits
Fixed Income
Equities
Note: * Includes: Structured products, hedge funds, managed funds, foreign currency, commodities (including precious metals), private equity and investments of
passion (fine art & collectables)
**Includes: Direct real estate investments and REITS, which are not common instruments outside the United States
Source: Capgemini/Merrill Lynch Relationship Manager Surveys, March 2003, April 2004, April 2005
10 “Hedge Funds Target Small Investors,” The Wall Street Journal, April 2005; SEC filings; company reports
11 National Association of Realtors: United States home sales increased 4.9% from 2003 to end of Q1 2004, establishing a record of new homes sales in March.
12 National Association of Realtors
13 Merrill Lynch research report
100%
14%
13%
12%
27%
34%
2004
World Wealth Report 2005
11

12 World Wealth Report 2005
Regional Differences Shape Allocation Strategies
In North America, equities remain the asset class of choice among HNWIs, winning 41% of their investment dollars. While
this trend now seems to be fading slowly, North American portfolios remain the least balanced among asset classes, with
HNWIs here showing far less interest/allocation in alternative investments than their counterparts in Europe, Asia-Pacific and
the Middle East. However, in Canada, hedge funds were quite successful in 2004, and currently account for a higher share of
HNWIs’ financial assets (7.5%) than in either the United States or in Europe, according to the 2004/2005 Canadian Wealth
Management Market Report from Capgemini Canada. The report further points out that alternative investments, such as
hedge funds and private equity, were among the fastest growing assets held by Canadian HNWIs in 2004.
In 2004, the portfolios of HNWIs in the Asia-Pacific region held the most equally distributed asset classes of wealthy individuals
in any region. Real estate allocations were high in this region, accounting for 19% of HNWIs’ portfolios. Only European
HNWIs allocated more — 21% — of their investment holdings to this asset class, the majority of which are in direct real
estate. Portfolios of European HNWIs also are well diversified, with 25% in equities and 24% in fixed income assets.
While HNWIs continue to view managed futures as an efficient diversification product, financial advisors in Europe
mentioned that the high fees associated with these products kept HNWIs from investing deeply in this asset class.
In 2004, Latin American HNWIs made a concerted effort to sidestep volatile financial markets by limiting their exposure to
equities and moving into revenue-generating, risk-balancing products such as hedge funds and managed futures. Consequently,
Latin American HNWIs’ equity allocation was the lowest of any region in the world, at 18%. And alternative investments,
especially private equity bets, won a higher share — 25% — of Latin American portfolios than elsewhere.
In Latin America, HNWIs’ asset allocations are largely shaped by traditional investment behaviors. Wealthy individuals typically
adopt conservative investment strategies to preserve their wealth in the region’s high-risk, difficult-return environment.
Thus, allocations tend to favor safer asset classes, with almost one third held in fixed income (a large portion of which is held in
the United States).
Figure 9 | Private Equity Outperformed Other Market Indices in 2004
US Private Equity Index
Russell 2000
Dow Jones Wilshire 5000
Russell 1000
S&P 500
Nasdaq Composite
Dow Jones Industrials Average
0 5 10 15 20 25
Source: Cambridge Associates LLC, Russell, Dow Jones, Wilshire Associates, Standard & Poor’s, Nasdaq
5.3
9.2
10.9
11.4
% Return
12.5
18.3
23.5

HNWIs Use Foreign Investments to Diversify
Two diversification trends gathered momentum in 2004: Emerging economies continued to attract HNWIs’ investments, with
the MSCI Emerging Markets Free Index returning 24.3% in 2004, far higher than the 6% to 13% returns possible in either
European or American markets. And Asia-Pacific benefited from an outflow of investments from North America, Europe and
Latin America.
Overall, HNWIs increased their foreign investments, continuing a trend we reported a year earlier. North America remained
the preferred region for investment, drawing a substantial range of allocations from offshore investors, from a low of 28%
among Asia-Pacific HNWIs to a high of 46% from wealthy Latin Americans 14 . However, growing fear of a crash in the United
States dollar led to broader foreign-investment diversification among HNWIs in all regions. Consequently, North America’s
overall share of non-North American HNWIs’ assets dropped from 48%, to 38% in 2004 15 . Even in the United States, where
investors traditionally favor domestic assignment of their investments, overseas holdings grew to 30% 16 of American HNWIs’
financial assets. Still, the Americans’ ratio is the smallest allocation to offshore assets of HNWIs worldwide.
Furthermore, while 2003 saw North Americans seeking to leverage what were almost exclusively domestically held tax-efficient
holding structures, our 2004 research revealed an important shift by this group into offshore tax havens. Moreover, this trend
has continued into 2005, according to The Sovereign Group.
Europeans also increased their share of assets invested in offshore tax havens, while HNWIs from Asia-Pacific showed they
were more averse to offshore investing than they were a year earlier. Bermuda, the Cayman Islands and the British Virgin
Islands continued to be the locations of choice for HNWIs’ tax-protected investments 17 . However, in light of HNWIs’ more
sophisticated investment behaviors, specialized safe havens have become increasingly popular, with Panama, Liechtenstein,
Hong Kong and the Isle of Man most often cited as preferred destinations for specific asset classes 18 .
Some institutional investors, such as pension funds, that have traditionally held assets in stocks and bonds also have begun to
invest abroad as well as in currency markets to improve performance and counter low bond yields and volatile equity markets.
These foreign-exchange market trades currently account for $2 trillion daily — but this is still a relatively early point in the
HNWI adoption cycle.
While we expected HNWIs’ foreign currency investments and speculation to increase with the asset class’s growing volatility,
their interest was dampened by mounting anti-terrorism concerns and the recent passage of legislation — such as the United
States’ Patriot Act — seeking to monitor individual behavior in the area of currency investing.
United States Dollar’s Decline Impacts Allocations
HNWIs’ fear of the falling dollar drove significant shifts in their allocation strategies. As we observed in the past, for example,
during the dollar’s devaluation in the late 1980s, investors typically respond to falling currencies by investing in more stable asset
classes such as commodities or gold. This investment flow usually benefits countries with stable currencies and emerging
economies where commodities and gold attract funds. In 2004, this shift towards commodities led HNWIs to allocate more to
alternative investments and also to increase their offshore holdings. HNWIs outside of the United States adapted their portfolios
to the fall of the dollar, moving more of their assets into regions such as Asia-Pacific and away from North America, as
noted previously.
14-17 Capgemini/Merrill Lynch Relationship Manager Survey, March 2005.
18 The Sovereign Group, www.sovereigngroup.com
World Wealth Report 2005
13

Spotlight
Mid-Tier Millionaires Caught in the Middle
THE MID-TIER MILLIONAIRE PARADOX
■ The mid-tier millionaires – HNWIs with between US$5 million and US$30 million in financial wealth – stand out in the
affluent market as an under-served group
■ Mid-tier millionaires have responded to increasing wealth management complexities by hiring more advisors and are
overwhelmed with “managing their managers”
■ Family offices present a ready solution, but are often unaffordable for many in the mid-tier millionaire market
What does it take to be truly wealthy? Opinions on this question vary
greatly, but by most accounts, people with at least US$1 million in
financial wealth are members of an elite group of individuals around
the world. They account for 0.2% of the global adult population and
nearly one fourth of the world’s wealth 19 . Yet, for all their resources,
HNWIs must consistently manage their wealth extremely well in
order to maintain their affluent lifestyles. For an increasing number of
HNWIs, this task is growing more difficult.
These challenges are most acutely felt by a burgeoning segment of
HNWIs: Those with investable assets between US$5 million and
US$30 million. We call this group mid-tier millionaires (MTMs). Why
is this extraordinarily wealthy group of individuals so adversely affected?
The answer is remarkably simple: It is a “tweener” wealth band.
The majority of HNWIs have between US$1 million – US$5 million,
and while their financial lives are by no means simple, they have not
achieved the level of wealth that triggers a geometric increase in the
complexity of managing their assets and liabilities. At the other end of
the spectrum, uber-wealthy multi-decamillionaires — the ultra-highnet-worth
set — have access to and can afford the cost of running a
family or private office to which they can comfortably delegate nearly
all of their wealth management activities.
From a service standpoint, MTMs are trapped between these two
groups: They have product and service needs that often are as complex
as those of much wealthier individuals, yet they lack the wealthiest
group’s deep financial resources. As a result, they are forced to do
19 Capgemini Lorenz curve analysis, 2005
20 Forrester Research, 2004
14 World Wealth Report 2005
business with a wide range of specialist providers as they attempt to
manage their own wealth.
This year, approximately 9% of the world’s HNWIs fit the MTM
profile. While the total HNWI population grew at 7.3% from 2003
to 2004, the number of MTMs grew 7.9%. These individuals tend
to be corporate executives or small- and mid-sized business owners,
who are usually the first in their respective families to have become
wealthy. Generally, earned income represents the largest portion of
their financial assets.
The Complex Lives of the “Not-so-Jet Set”
Many factors contribute to the MTMs’ increasing difficulty in managing
their wealth. According to our most recent survey of relationship
managers, MTMs:
■ Demand disciplined approaches to managing risk:
MTMs today seek to counterbalance their increased appetites for
risk-taking with a more disciplined approach to managing wealth and
cash flow. Why? More than two thirds of MTMs saw their wealth
fluctuate significantly during the recent bear market, and more than a
quarter of this group was forced to change their lifestyles and/or
spending habits 20 . To make up for lost ground, MTMs tended to
pursue wealth building strategies in recent years that forced them to
assume greater risk. As a result, within this group there is an emphasis
on risk management and optimizing cash flow to ensure that
spending needs are met.

■ Face wealth transfer challenges:
Around the globe, the tens of thousands of baby boomers retiring every day are suddenly being confronted with their own
mortality and the legacies they will leave — financial and otherwise. A majority of the relationship managers we surveyed
reported that a rapidly growing number of their HNWI clients, including those in the MTM segment, have begun involving
other generations in the wealth management process (Figure 11). At the same time, 45% of relationship managers said that
MTMs are ill-prepared to pass on their wealth to their heirs. When brought together, these data points suggest a storm
brewing around wealth transfer. As MTMs attempt to address the concerns of younger generations, which are often very
different from those of their parents, there is potential for significant conflict.
■ Juggle global assets and relationships:
Today, more than a quarter of MTM clients invest in offshore safe tax havens — and many more are interested in investment
opportunities in emerging economies, according to relationship managers. Pursuing these strategies puts additional pressure on
MTMs to find reliable investment information and then coordinate relationships with service providers around the globe. A
comment from one MTM European illustrated the scope of this challenge:“I work with a bank in France that focuses
primarily on execution, another in Germany that I rely on for investment advice, and a third in Singapore, where I need the
local knowledge.”
■ Demonstrate increasing sophistication:
Our research found that 89% of relationship managers believed that their MTM clients are looking more strategically, rather
than opportunistically, at investment return and performance. This, coupled with the adoption of more complex investment
strategies and asset allocations, has prompted greater numbers to take active roles in the management of their wealth.
Reflecting this trend, 83% of relationship managers said that clients in the MTM segment have become more engaged in
their investments over this past year than they have in years past.
Painted into a Corner
Mid-tier millionaires have responded to the growing complexity of wealth management by expanding their network of
specialist providers. Today, for example, it is not uncommon for an MTM with US$5 million in investable assets to have more
Figure 10. | HNWI Population by Financial Assets, 2004
Mid-Tier
Millionaires
Ultra–HNWIs
+ US$30
Million
US$5 Million –
US$30 Million
US$1 Million – US$5 Million
Note: Growth rates and HNWI population numbers are rounded”
Source: Capgemini Lorenz curve analysis, 2005
Number of HNWIs
Worldwide, 2004
(in Thousands)
77.5
744.8
% Change
in HNWI Population
2003 – 2004
8.9%
7.9%
7,445.8 7.2%
World Wealth Report 2005
15

16 World Wealth Report 2005
For the Ultra-Wealthy, the Cost of Living Escalates
Even as they work to protect their assets, price inflation takes its toll on the world’s wealthiest consumers.
In 2004, the ultra-wealthy population segment grew more quickly than those more broadly termed high-net-worth
individuals: During the year, 6,300 people, a 8.9% gain, joined the uppermost ranks of the world’s richest individuals,
compared to a more moderate 7.3% population increase for HNWIs overall.
While this trend meant that more people could afford the finest things the world has to offer, price inflation for
top-of-the-line luxury goods and services rose at a faster pace than mass-produced consumer products.
According to Forbes Magazine’s Cost of Living Extremely Well Index (CLEWI), price changes to a “basket” of
luxury goods and services rose by 4.2% in 2004. By contrast, during the same 12-month period, the United
States’ Consumer Price Index rose by only 3% — evidence that luxury goods and services are subject to different
inflationary pressures than those consumed by the public at large.
Using CLEWI as a base, the World Wealth Report has created two modified indices that separate Ultra-HNWIs’
luxury consumption from that of the HNWIs. The Ultra-HNWI index focuses on price changes of products and services
typically reserved for the wealthiest individuals (private jets, Rolls Royces, luxury yachts, etc.), whereas the HNWI
basket of goods contains relatively lower-priced items in the same categories (first-class airfare, BMWs, motor
yachts, etc).
According to our analysis, the Ultra-HNWI index rose by 11.3% — while goods and services more broadly favored
by HNWIs increased by only 6.4% between 2003 and 2004. Clearly, in this time period, the price inflation for
ultra-luxury products was considerably stronger than that of more moderately priced luxury items.
This rising trend-line translates into a two-fold challenge for Ultra-HNWIs: To maintain their lifestyles and
purchasing power, the world’s wealthiest must not only closely manage the people who manage their wealth,
they also must contend with an inflation rate that is nearly four times higher than the “regular” inflation.
Price Inflation of Luxury Goods, 2003-2004 (%)
Price
Inflation
2003-2004
(%)
12%
10%
8%
6%
4%
2%
0%
6.4%
Source: Jody Yen, “The Cost of Being Rich,” Forbes Magazine, October 11, 2004
11.3%
WWR HNWI Index WWR Ultra-HNWI index
3% United States
Consumer Price Index

than three service providers managing a portion of their portfolios 21 . Add to that the MTMs’ equally pressing needs for
banking, insurance, trust and estate planning, accounting and legal services and it quickly becomes clear just how daunting a
challenge overseeing the management of their wealth is for these individuals. Moreover, this is a challenge that is not likely to
diminish any time soon: Thirty-six percent of relationship managers noted an increase in the number of external providers for
their HNWI clients, including those in the MTM segment, in 2004. An even greater number, 62%, said this number would
continue to climb in 2005.
For their part, MTMs struggle with this paradox: They thirst for simplification (over one third said they want to consolidate
the number of financial firms they work with 22 ) — even as they continue to adopt more complex wealth strategies and add
advisors. Few are satisfied with their current situation. As Jay Welker, Senior Vice President at Wells Fargo Private Client
Services said:“This notion that clients want to disaggregate functions and do five different things with five different advisors is
not true. Clients are constantly testing to see if their advisor can truly be quarterback for all of their relationships."
Finding a solution will not be easy — though the solution requirements are becoming increasingly apparent. MTMs need:
■ A trustworthy maestro:
MTMs want a central advisor who can sit in the middle of all the financial activity, make sense of it and play maestro to
ensure that all parties are working from the same script. Elevating a single advisor to this kind of a position requires trust —
which is in short supply in today’s world. In fact, consumer research indicates that investors’ trust in wealth management
service providers has steadily eroded in recent years 23 .
■ Transparency:
MTMs want increased transparency from the investment managers handling their financial affairs. One sign of this trend is
evident in HNWIs’ increased demands for customized reporting, as noted by more than 90% of the relationship managers
we polled. Nearly the same number, 89%, said client reporting has become more complex, driven by a combination of
factors: increased diversification of holdings, demand for more indexed performance measures, and a growing desire to see
information presented in a way that measures progress against financial or life goals.
Figure 11. | Growth of Multi-Generational Client Relationships, by Client Type, 2002 – 2004
75%
50%
25%
0%
44%
13%
Mass Affluent
(US$250,000 – US$1 Million)
21 MLIM marketing research
22 Spectrem Research, 2005
23 Spectrem Research, 2005 and Forrester Research, 2003-2005
60%
1%
HNWI Clients
(US$1 Million – US$30 Million)
Source: 2005 Capgemini/Merrill Lynch Relationship Manager Survey, April 2005
% of Relationship Managers reporting changes in number of
multi-generational client relationships over 2 years
Increase Decrease
35%
2%
Ultra-HNWI Clients
(>US30 Million)
World Wealth Report 2005
17

18 World Wealth Report 2005
To meet client demand for transparency, ABN AMRO recently launched the first international index, which provides visibility
on how effectively its private bank is managing client portfolios 24 . This is a change from the traditional — i.e., more
confidential — nature of the private banks.
■ Collaboration among third-party providers:
MTMs and their advisers need to closely coordinate activities among third-party service providers — such as accountants
and estate and tax attorneys — to execute complex wealth strategies. However, many MTM primary advisors today lack the
tools, processes or personnel to efficiently and effectively take on such a burden.
■ Institutionalized wealth management processes:
More and more MTMs are adopting institution-like processes to manage their wealth, asking service providers for financial
and estate plans, philanthropic and charitable giving plans, investment policy statements and regular risk assessments. But
according to relationship managers, less than half of MTMs have actually created formal plans and supported them with
appropriate documentation and processes. Firms and relationship managers who step into this breach will find a tremendous
opportunity to play a valuable and central role in their clients’ financial lives — and win trusted maestro-status. Creating
standardized and repeatable processes are essential to make these services scalable.
Family Offices: So Close, But Yet So Far
The family office dates back to the early 1800s, when tycoons capitalizing on the opportunities of the industrial revolution brought
financial, legal and accounting experts together under one roof to focus solely on managing and protecting their family’s wealth and
far-flung business interests. Then, as now, establishing a family office or joining forces with others to form a multi-family office is a
privilege only the most affluent individuals — those with US$100 million or more in investable assets — can afford.
Yet, the classic family office model is exactly what the MTM is looking for: A simplified service model that delivers consolidated
reporting, a broad and multi-generational view of wealth management, unbiased advice and coordinated and well-timed
service delivery from multiple providers. Moreover, MTMs’ interest in the family office model will intensify in coming years,
according to 44% of relationship managers surveyed.“[This is the next] logical phase for the financial planner of the 80s and the
investment manager of the 90s…,” said Peter Wheeler from FamilyOfficeNetwork LLC 25 .
Figure 12. | HNWIs Add External Providers, 2004-2005
2005 Survey Results
Number of
Relationship
Managers
Polled
75%
50%
25%
0%
Source: Capgemini/Merrill Lynch Relationship Manager Survey, April 2005
24 “ABM AMRO Launches Performance Index for Private Banks,” The Financial Times, April 21, 2005
25 Lisa Gray, “The New Family Office,” Institutional Investor Books, 2004
36%
RMs Saw HNWI Clients Add External
Providers in 2004
62%
RMs Believe HNWI Clients Will Add
External Providers in 2005

The challenge for service providers has always been to sustain profitability while providing the highest possible levels of service
to affluent clientele. Family offices, with access to top talent, can easily cost more than US$2 million a year to operate — which
raises the critical question: How will firms deliver family-office-like features, such as larger service teams, improved access to specialists,
aggregated reporting, and increased advice on and access to third-party products, to mid-tier millionaires? (See page 20.)
Figure 13. | Mid-Tier Millionaires Like What They See in the Family Office Model
Characteristics Traditional FSI* Approach Family Office Model
Wealth
Management
Methodology
Process
&
Pricing
Products
&
Services
• Product-oriented
• Investment-management focused
• Advice centered on “in-house” portfolio only
• Little or no coordination/collaboration with
third-party providers
• Service oriented toward individual mid-tier millionaires
• Transaction-based pricing now moving towards AUM or
“by service” fee-based model
• Ad-hoc investment process; reacts to market conditions
• Portfolio reviews based on standard templates
• Advice & Planning to develop personalized wealth
management plan:
• Set objectives
• Develop strategy
• Implement solutions
• Review progress
• Banking Services:
• Direct deposit, check writing, funds transfer, etc.
• Business Financial Services:
• Integrated cash management, business banking, etc.
• Credit & Lending:
• Home, personal, investment and business financing
• Estate Planning:
• Trust services, tax assessments, etc.
• Investment Management
• Retirement planning
Note: * Financial Services Institution
Source: John Carrol, “The Functions of a Family Office,” The Journal of Wealth Management, Vol. 4 No. 2, Fall 2001
• Product neutral
• Investments are managed in the context of the
family “balance sheet”
• Advice reflects a full view of client’s assets
• Coordinates/collaborates with all providers to
develop an integrated wealth strategy
• Service focuses on the mid-tier millionaire
family “entity”
• Historically AUM-based pricing
• Investment process is often documented and
standardized, according to agreed-upon
investment policy
• Portfolio reviews are regularly scheduled and
customized, according to client’s needs and
preferences
• Chief Advisor: Oversees relationships with all product
and service providers, external counselors/advisors;
provides personalized service, technical expertise and
creative business leadership
• Investment Manager: Manages, analyzes and reviews
family’s financial capital, including: investment policy,
manager selection/review, asset monitoring/review
and due diligence
• Financial Administrator: Ensures asset allocation
mirrors client’s investment philosophy; tax
compliance; financial control; project management;
and financial reporting
• Trustee: Educates and mentors: administers family
trusts, ensures timely communications; and oversees
philanthropic management
• Back Office Manager: Provides investment and
partnership accounting, client reporting, internal
controls and technology support
World Wealth Report 2005
19

20 World Wealth Report 2005
Can the Family Office Resolve the MTM Paradox?
In Spectrem Group’s 2005 Ultra High Net Worth Study, mid-tier millionaires (MTMs) themselves confirm what we
heard from relationship managers and financial services executives around the globe: Despite their seemingly
vast fortunes, MTMs don’t have it easy when it comes to managing their wealth.
As financial firms bring institutional wealth management strategies down market, they have made available a raft
of new, highly complex products and services to the under US$30-million set. But when many MTMs buy these
new instruments and approaches, they are not doing so from their existing providers. In fact, 44% believe that
they should use different specialists for each financial need because no single provider can be good at everything.
The number of investment advisors MTMs use continues to rise as well — with an average of 2.82
advisors per MTM, up from 2.66 just two years ago.
So what’s the problem? MTMs struggle to validate the advice they receive from multiple providers, coordinate
different provider’s activities and track the progress of their wealth strategies across their numerous portfolios.
Paradoxically, even as they continue to add providers MTMs long for a simpler solution: Nearly four in ten are
looking to consolidate the number of firms they work with and almost 70% want a single provider to coordinate
their financial affairs and their growing list of providers.
How can this paradox be resolved? We think family-office-like services form the basis of the solution, but it will
not be a clear-cut or simple path by any means. More than half of MTMs want to work with firms that have
specialized practices targeted to their wealth levels. Just 15% consider themselves very familiar with the
concept of single- or multi-family offices and only 4% say they are very likely to use one in the near future. Until
firms make these services affordable, accessible and specific to the unique needs of this market segment,
family offices will remain a far-off concept for all but the supremely wealthy.
Can Family Offices Resolve the MTM Paradox?
40%
35%
30%
25%
20%
15%
10%
5%
0%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
MTMs Looking to Consolidate
their Relationships to Fewer Firms
31%
Source: Spectrem Group 2005 Ultra High Net Worth Study
38%
2004 2005
MTMs Need to Go to Different
Specialists for their Financial Needs
43%
44%
2004 2005
75%
50%
25%
0%
3.00
2.50
2.00
1.50
1.00
0.50
0.00
60%
68%
2004 2005
2.66
MTMs Prefering to
Work with One Advisor
MTMs’ Average Number of
Different Types of Advisors Used
2.82
2004 2005

Solving the Mid-Tier-Millionaire Paradox
■ VSNs will allow providers to scale family-office-like services to mid-tier millionaires
■ Some institutions are beginning to offer such “downstream” solutions but a VSN model has yet
to emerge
■ Firms will need to invest in account and data aggregation, online collaboration and wealth
management workflow tools to make VSNs a reality
While there is clearly a gap today between what mid-tier millionaires want and need and what is available to them in the
marketplace, we found many signs that this gap is rapidly closing. We believe that a new model of service will emerge over the
next three to five years that will enable MTMs to better manage their multiple provider relationships and better orchestrate
multi-generational wealth strategies. This new model will bring the simplicity and convenience of the family office to MTMs at
a price point more appropriate to their wealth level.
We use the term virtual service network (VSN) to describe this new model. The VSN combines state-of-the-art technology
and standardized processes to allow collaboration among the multiple service providers attending to an MTM’s interests.
Geographically disbursed teams will be able to work together in a virtual environment using a workflow-oriented process to
“assemble” various parts of a wealth management strategy into a coordinated whole. This model should enable firms to cost
effectively and affordably deliver family-office-like services to MTMs.
Figure 14. | The Operating Model for the Virtual Service Network
External
Investment
Managers
Investment
Management
Data
Aggregation
Financial
Planning
Other Providers
(accountants, lawyers, etc.)
Primary Advisor
Workflow
MTM Clients
Client Service
& Reporting
Online
Collaboration
Banking &
Financial
Administration
MTM Family
Members
World Wealth Report 2005
21

22 World Wealth Report 2005
What will the VSN look like? In the hypothetical example of the sale of an investment property, a geographically dispersed set
of bankers, investment managers, accountants and lawyers can work together via a VSN website set up by an MTM’s primary
advisor. After logging-in, each service provider is prompted through a discrete set of tasks, tailored to each one’s respective role
in the transaction. Next, the proceeds of the sale are transferred for investment in three separate portfolios — all without
anyone, including the client, having to leave the comfort of their own office.
By contrast, for MTMs conducting similar transactions today, the process would likely entail a series of face-to-face meetings
with numerous groups of service providers, using processes that would be time-consuming, manual and costly.
Some early examples of VSN-like infrastructure are beginning to emerge today, with providers not only offering online access
to all of their clients, but also allowing external providers access to log-in IDs. This allows external service providers to view and
even transact in the accounts custodied there upon appropriate client approval.
The “virtual” part of the VSN will do more than just eliminate the need for co-location: Workflow-oriented processes would
enable complex transactions to be handled efficiently in large volumes, further reducing costs. By giving self-service access to the
ever-increasing number of service providers with whom they share clients, firms will reduce the burden placed upon their
maestro-playing relationship managers, thereby allowing them to maintain high levels of productivity and serve more clients —
while keeping overhead low.
The Path to Trusted Maestro Leads to Value
Though the challenge of establishing the network and persuading third-party providers to participate in it will be a steep one, it
is likely to be a task many relationship managers will volunteer for, seeing a chance to become a MTM’s trusted maestro — and
win the higher wallet share and asset retention that come with the job.
In fact, many Ultra-HNWI providers already have begun positioning themselves to capture maestro-status within the MTM
market. Firms such as Bessemer Trust have built platforms to support multi-family office (MFO) models, which has helped
them grow efficiently and scale their service delivery while at the same time reducing account minimum requirements. From a
competitive standpoint, however, these entrepreneurial MFOs may not necessarily be in the best position to capitalize on the
MTM opportunity because of the significant investment required. As Jeff Roush, Senior Managing Principal with CEG
Worldwide and former Harris Private Bank/MyCFO Family Office executive noted:“The infrastructure [in terms of talent
and technology] that is required to really scale the MFO model is significant.”
Major HNWI service providers such as Merrill Lynch also are expanding their focus and investment in family-office-like
services, putting resources into technologies and processes that could allow these efforts to scale and lower account minimums,
but the game is certainly far from over. The traditional family-office focus on open architecture, integrated professional services
and highly customized services is dramatically different from the typical bank or brokerage model. Added Roush:“Getting large
banks and brokerages [who have the capital to invest in building the necessary infrastructure] to re-train their people culturally
to accept this challenge is the biggest problem.”
Leveraging Emerging Technologies
Though many firms are beginning to experiment with VSN-like capabilities, none are capable of fully supporting the VSN model
today. According to our market survey, to fully support such a network, firms must invest in and refine at least three key technologies:
■ Account/data aggregation:
Having a complete view of a HNWI’s financial picture, regardless of asset class or account location, is the core function of a
family office, and at the heart of its ability to set broad wealth management strategies. As one relationship manager pointed
out:“Imagine running a company without having a full view of the company’s assets. You couldn’t do it.” Account aggregation
and other data management technology can give MTMs and their service providers a 360-degree view without the need for
significant manual processing and data entry. Vendors such as Wealthtouch and Investment Scorecard have already made
significant advances in this space. At the moment, however, account aggregation technology providers face considerable challenges
in the industry’s lack of standardized data and the struggle to assuage consumers’ concerns about security.
■ Secure online collaboration:
Family offices have traditionally been dependent on advisors/experts sharing a single location to coordinate workflow and
work processes. Today, online collaboration technologies — such as file sharing, net meetings and document-sharing tools —

allow geographically separate individuals or teams to work seamlessly together. These kinds of technology tools are becoming
increasingly sophisticated, winning broad commercial, and even retail, acceptance. Firms such as eVault and eMoney Advisor
are examples of technology providers who are furthering this concept in wealth management. However, in the ultra-sensitive,
and often ultra-secretive, world of wealth management, security is always a paramount issue. But as the technology matures
and comfort levels increase, the application of these technologies in a VSN to facilitate the coordination of multiple
providers and family members in a virtual environment becomes a nearer-term reality.
■ Workflow-based wealth management platforms:
A key function of the family office is to coordinate the activities of multiple service providers through an organized and
strategic wealth planning and investment management process. Co-location of all these service providers in the family office
environment typically has been a key to making this feasible. Several emerging technologies are likely to remove these physical
constraints and make it possible for multiple providers to work apart yet coordinate their work processes through a
prescribed workflow. These technologies can be leveraged to help investment managers, tax attorneys, estate planners and
other advisors collaborate on an investment strategy in a coordinated and prescribed fashion — in much the same way UPS
uses technology and workflow optimization to coordinate and manage the logistics of multiple providers in order to successfully
deliver packages.
World Wealth Report 2005
23

24 World Wealth Report 2005
Evolution of the Mid-Tier-Millionaire Service Model
■ VSN can simplify the MTM wealth management burden for clients, advisors and providers alike
■ Though many technological and business barriers have been removed, a number of
organizational, process, regulatory and financial challenges will have to be addressed
■ For those who are able to successfully evolve MTM service, significant value in asset retention,
profitability and competitive position can be gained
That mid-tier millionaires need the service and value proposition inherent in the VSN is clear. In concept, it could dramatically
simplify their lives by pushing the burden of managing their wealth back on their advisors, especially their primary one.
At the same time, it would provide MTMs with a structured process to manage their fortunes and give them the transparency
and control that they desire.
The incentive for wealth management providers to embrace VSN-like models is clear as well. In the face of competitive
pressures to retain MTM primary provider relationships and the desire to maintain high margins, firms must avoid being
positioned as distributors of increasingly commoditized products versus trusted providers of value-added advice. The VSN
model could provide firms with the operational excellence and technology necessary to enhance and scale their value-added
relationship management services, and position them as gatekeepers to MTM clients.
Figure 15. | Evolving to the Next Level of a Global Trusted Advisor
HNWI Demands
Simplified & collaborative approach
to managing multiple relationships
Coordinated and orderly wealth
transfer strategy and execution
Disciplined risk management
approach
Transparency in fees & pricing
Customized reporting & accounting
Long-term,
Profitable,
Collaborative
Relationship
Collaborative internal & external culture
Institutionalized wealth management processes
Well understood and grounded ROI
Technology to drive scalability
Holistic account aggregation
Robust data warehouse structures
Enablers
Provider Incentives
True 360-degree client view to drive
relationship value
Primary and trusted client advisor to
deepen client relationship
Increased client profitability due to
asset retention & tenure
Avoid commodization and retain
control of client relationship
Additional revenue flows

Development of the VSN will not be without its challenges. Some of the key hurdles that will need to be addressed revolve
around understanding how providers can depreciate the cost of capital investment; ensuring that processes respect client
confidentiality and security; complying with regulatory constraints; delivering a transparent pricing model both to clients
and external partners; leveraging scale to deliver the desired solution at an acceptable cost, and, not least of all, overcoming
cultural barriers that may arise across both geographical and organizational boundaries. These are not insurmountable, but
they should not be dismissed without an understanding of the implications for all stakeholders.
The VSN is a natural path of evolution for an industry that is undergoing significant change. A similar evolution occurred in
the late 1970s and early 1980s within the institutional money management industry when a handful of companies, such as
Merrill Lynch, UBS and Capital Guardian, began to shift their focus to providing solutions instead of simply trying to sell
products. The firms that adopted this approach were able to successfully position themselves as trusted advisors and other
firms as merely sub-contractors. These firms have now emerged as some of the dominant competitors in the space. Firms
that are able to capitalize on the opportunity to meet the demands of MTMs have the potential to reap similar rewards.
World Wealth Report 2005
25

Appendix A: Methodology
The World Wealth Report covers 68 countries in the market-sizing
model, accounting for over 98% of global gross national income and
99% of world stock market capitalization.
We have estimated the size and growth of wealth in various regions
using the Capgemini Lorenz curve methodology, which was originally
developed during consulting engagements with Merrill Lynch in the
1980s. It is updated on an annual basis to calculate the value of HNWI
financial wealth at a macro level.
The model is built in two stages: first, the estimation of total wealth by
country, and second, the distribution of this wealth across the adult
population in that country. Total wealth levels by country are estimated
using national account statistics from recognized sources such as the
International Monetary Fund and the World Bank to identify the total
amount of national savings in each year. These are summed over time
to arrive at total accumulated country wealth. As this captures financial
assets at book value, an adjustment is made based on world stock
market indices to ensure that the final figures reflect the market value of
the equity portion of HNWI wealth. Other adjustments include
accounting for undeclared savings and foreign investments.
The wealth distribution, which differs by country, is based on known
relationships between wealth and income. Data on income distribution
is provided by the World Bank or by countries’ national statistics. We
then use the resulting Lorenz curves to distribute wealth across the
adult population in each country. To arrive at financial wealth as a
proportion of total wealth, we have used statistics from countries with
available data to calculate their financial wealth figures and extrapolated
these findings to the rest of the world.
The financial wealth figure we publish includes the values of private
equity holdings stated at book value as well as all forms of publicly
quoted equities, bonds, funds and cash deposits. It excludes collectibles,
consumables, consumer durables and real estate used for primary residences.
Offshore investments are theoretically accounted for, but only
insofar as countries are able to make accurate estimates of relative flows
of property and investment in and out of their jurisdictions. We accommodate
undeclared savings in the report.
In response to industry and media requests, last year we revised the
methodology to move from reporting our annual findings at a regional
to a country level. In addition to applying the up-to-date-annual statistics,
we modified areas to ensure the model more precisely estimated
the number of HNWIs and their financial wealth at a country level.
We have continued with this approach in this year’s report.
This year we enhanced our macro-economic model with increased
analysis of domestic economic factors that influence wealth creation.
We have worked, for example, with colleagues from Capgemini and
Merrill Lynch in over 20 countries to better account for the impact of
domestic fiscal and monetary policies over time on HNWI wealth
26 World Wealth Report 2005
generation. We also refined our approach for gathering data and
expertise from Merrill Lynch’s Relationship Managers by moving to an
electronic survey. This elicited higher response rates and ensured greater
accuracy of our results.
Given the exchange rate fluctuations over the past years, especially with
respect to the United States dollar, we specifically assessed the impact of
currency fluctuations on our results. From our analysis, we conclude
that our methodology is robust and exchange rate fluctuations do not
have a significant impact on our results.
The translation to United States dollars is made using a yearly average
exchange rate. As our model calculates cumulative wealth in United
States dollar terms using a time series of data going back over 100 years,
the impact of a sharp currency appreciation for a year or two has a negligible
effect. For example, our analysis shows that if exchange rates had
remained at the same level as in 2003, global wealth in 2004 would have
been only 0.24% lower than our reported figure of US$30.8 trillion.
Model adjustments and continuous refinements mean that figures in
the current report do not map directly back to those reported previously;
in order to accurately compare wealth growth in 2004 to earlier
years, the numbers for 2002 and 2003 were adjusted. Nevertheless,
detailed analysis of our changes revealed that trends outlined in the
previous reports hold largely true. Overall, global HNWI wealth in
2003 declined slightly, by 1.04%, as a result of these changes.
The data supporting the analysis is drawn from a wide range of
sources. We cannot, therefore, warrant its exactitude; nor can
we accept liability in that regard.
We thank the following people for helping to compile this report:
Benjamin Beauvalot, Louise Brakenhielm, Swati Chaturvedi and
Valerie McCabe from the Strategic Research Group. They toiled
many hours checking and double-checking multiple data points
and sources to protect the integrity and objectivity of this report.
Petrina Dolby, Jaime Punishill, Alex Sion and Robert Crespi from
the Wealth Management Practice, who have taken primary and
secondary learnings from the Capgemini global network to
shape a cohesive story.
Jennifer Grigas, Erik Hendrickson, Tricia Nestfield, James Wiggins,
Ken Winch, Kathy Bostjancic and Martin Mauro from Merrill
Lynch. They have provided invaluable industry perspective and
research to ensure development of topical issues being
addressed in the Financial Services industry.
In addition to our own primary research, we extend a special
thanks to: Capgemini Canadian Wealth Management Report, CEG
Worldwide, Economist Intelligence Unit, Family Office Metrics LLC,
Ferretti Group, Rolls Royce, Forrester Research, The United States
Internal Revenue Service, MSCI, Merrill Lynch Financial Advisors,
and Spectrem Group. We also acknowledge the many individuals
and external groups who have engaged in ongoing dialogue to
provide additional validation and perspective.

Appendix B: Selected Country Breakdown
Number
of
HNWIs
(000)
Number
of
HNWIs
(000)
Number
of
HNWIs
(000)
450
300
150
0
450
300
150
0
450
300
150
0
117
134
2003 2004
287
Australia
Growth (03-04)
14.8%
300
2003 2004
84
China*
Growth (03-04)
4.3%
88
2003 2004
Russia
Growth (03-04)
4.2%
Number
of
HNWIs
(000)
Number
of
HNWIs
(000)
Number
of
HNWIs
(000)
450
300
150
0
900
600
300
0
450
300
150
0
92
98
2003 2004
756
Brazil*
Growth (03-04)
7.1%
760
2003 2004
383
Germany
Growth (03-04)
0.6%
Growth (03-04)
8.9%
418
2003 2004
United Kingdom
* Based on refined data, HNWI numbers for 2003 have been restated this year. For more information, see Appendix A – Methodology.
Source: Capgemini Lorenz curve analysis; base data from multiple sources, including MSCI
Number
of
HNWIs
(000)
Number
of
HNWIs
(000)
Number
of
HNWIs
(000)
450
300
150
0
450
300
150
0
3,000
2,000
1,000
0
200
217
2003 2004
61
Canada
Growth (03-04)
8.3%
70
2003 2004
2,272
India
Growth (03-04)
14.6%
2,498
2003 2004
United States
Growth (03-04)
9.9%
World Wealth Report 2005
27

Capgemini – Financial Services
With more than 75% of the World’s Top 25 financial services firms as clients and over 5,000 financial services professionals worldwide, Capgemini is
uniquely positioned to serve the financial services industry. Capgemini has a 30-year history of helping financial institutions solve problems and
achieve faster, more sustainable results by working hand-in-hand with our clients to share knowledge, create leading-edge ideas and establish
industry-wide competencies that ensure all of our clients receive the best possible advice and assistance
Over 700 companies in 30 countries collaborate with us today for a distinctive difference in financial services. Our clients know that working with
Capgemini provides measurable results that move their banking, wealth management, insurance and leasing/asset management businesses forward.
Our local and international clients rely on us to provide proven solutions in consulting, technology and outsourcing.
Capgemini’s Wealth Management practice is continuously working to help clients in developing and operationalizing innovative growth strategies
and successfully implementing customer relationship management solutions, wealth advisor workstations, internet-based “self-directed” and “fullservice”
offerings, as well as front- and back-office systems and business process outsourcing. Last year, The Banker and the Financial Times Group
awarded Capgemini the prestigious award for “Wealth Management Solution of the Year” in the 2004 Banker Technology Awards.
The Strategic Research Group is a team of experienced strategy analysts and researchers that provides market and strategic-issue research and
analysis across industries for Capgemini.
The Capgemini Group, one of the world's foremost providers of consulting, technology and outsourcing services, has a unique way of working
with its clients, which it calls the Collaborative Business Experience. Our clients tell us that what makes Capgemini different is the unique way we
collaborate to help them take advantage of opportunities and solve their problems Our approach is to combine what our clients do best with what
we do best. Together, we can achieve better, faster and more sustainable results. Capgemini employs approximately 59,000 people worldwide and
reported 2004 global revenues of 6.3 billion euros.
Selected Capgemini Offices
Beijing +86 10 650 52935
Brussels +32 2 708 1111
Cambridge +1 617 768 5600
Chicago +1 312 395 5002
Copenhagen +45 70 11 22 00
Frankfurt +49 69 9515 0000
Helsinki +358 9 452 651
Lisbon +351 21 412 2200
London +44 1483 764 764
Madrid +34 91 657 7000
Milan +39 024 2261
Mumbai +91-22 518 7000
New York +1 917 934 8000
Oslo +47 2412 8000
Paris +33 1 47 54 52 00
28 World Wealth Report 2005
Prague +420 224 505 270
San Francisco +1 415 738 1300
Singapore +65 6484 3188
Stockholm +46 853 68 5000
Sydney +61 292 93 4000
Tokyo +81 3 4560 2200
Toronto +1 416 365 4400
Utrecht +31 306 89 0000
Vienna +43 1 211630
Warsaw +48 22 850 9200
Zurich +41 44 560 2400

Merrill Lynch
Merrill Lynch is one of the world’s leading financial management and advisory companies, with offices in 36 countries. The firm has commanding
positions around the world in its complementary core businesses of:
• Global private client wealth management
• Global markets and investment banking
• Investment management
Merrill Lynch’s Global Private Client group is a leading international provider of wealth management and investment services, including asset and
liability management, private banking, trust and generational planning services, and retail brokerage. Its global network of 14,100 financial advisors
is entrusted with $1.3 trillion in private client assets. The Private Banking and Investments Group of Merrill Lynch is a prominent provider of
financial advisory, banking, and trust services to America’s wealthiest families.
As an investment bank, Merrill Lynch is a top global underwriter and trader of debt and equity securities and a leading strategic advisor to corporations,
governments, institutions, and individuals worldwide.
Through Merrill Lynch Investment Managers, the firm is one of the world’s largest managers of financial assets, with assets under management of
US$480 billion.
© 2005 Merrill Lynch, Pierce, Fanner & Smith Incorporated.
Printed in the U.S.A. Member, Securities Investor Protection Corporation (SIPC).
The information herein was obtained from various sources; we do not guarantee its accuracy or completeness.
Selected Merrill Lynch Offices
Amsterdam +31 20 592 5777
Atlanta +1 404 231 2400
Bahrain +973 530 260
Bangkok +662 685 3538
Beirut +961 1 983 004
Beverly Hills +1 310 285 6888
Boston +1 617 946 4000
Buenos Aires +5411 4317 7500
Chicago +1 312 269 5100
Dubai +9714 397 5555
Dublin +353 1 605 8877
Geneva +41 22 703 1717
Hong Kong +852 2844 5678
Houston +1 713 658 1282
London +44 20 7628 1000
Los Angeles +1 213 627 7900
Luxemburg +352 49 49 111
Madrid +34 91 432 9900
Melbourne +61 3 9659 2666
Miami +1 305 416 6600
Milan +39 02 655 941
Montevideo +598 2518 2602
Mumbai +91 22 5632 8000
New York City +1 212 236 2181
Panama +507 263 9911
Paris +33 1 5365 5555
Rome +39 06 683 931
San Francisco +1 415 288 2576
Santiago +562 370 7000
São Paulo +5511 3175 4100
Seoul +82 2 3707 0400
Singapore +65 6331 3888
Sydney +61 2 9225 6500
Taipei +88 62 2376 3666
Tel Aviv +972 3 607 2000
Tokyo +81 3 6225 7666
Washington, D.C. +1 202 659 7578
Zurich +41 1 289 48 00

Merrill Lynch
Merrill Lynch is one of the world’s leading financial management and advisory companies, with offices in 36 countries. The firm has commanding
positions around the world in its complementary core businesses of:
• Global private client wealth management
• Global markets and investment banking
• Investment management
Merrill Lynch’s Global Private Client group is a leading international provider of wealth management and investment services, including asset and
liability management, private banking, trust and generational planning services, and retail brokerage. Its global network of 14,100 financial advisors
is entrusted with $1.3 trillion in private client assets. The Private Banking and Investments Group of Merrill Lynch is a prominent provider of
financial advisory, banking, and trust services to America’s wealthiest families.
As an investment bank, Merrill Lynch is a top global underwriter and trader of debt and equity securities and a leading strategic advisor to corporations,
governments, institutions, and individuals worldwide.
Through Merrill Lynch Investment Managers, the firm is one of the world’s largest managers of financial assets, with assets under management of
US$480 billion.
© 2005 Merrill Lynch, Pierce, Fanner & Smith Incorporated.
Printed in the U.S.A. Member, Securities Investor Protection Corporation (SIPC).
The information herein was obtained from various sources; we do not guarantee its accuracy or completeness.
Selected Merrill Lynch Offices
Amsterdam +31 20 592 5777
Atlanta +1 404 231 2400
Bahrain +973 530 260
Bangkok +662 685 3538
Beirut +961 1 983 004
Beverly Hills +1 310 285 6888
Boston +1 617 946 4000
Buenos Aires +5411 4317 7500
Chicago +1 312 269 5100
Dubai +9714 397 5555
Dublin +353 1 605 8877
Geneva +41 22 703 1717
Hong Kong +852 2844 5678
Houston +1 713 658 1282
London +44 20 7628 1000
Los Angeles +1 213 627 7900
Luxemburg +352 49 49 111
Madrid +34 91 432 9900
Melbourne +61 3 9659 2666
Miami +1 305 416 6600
Milan +39 02 655 941
Montevideo +598 2518 2602
Mumbai +91 22 5632 8000
New York City +1 212 236 2181
Panama +507 263 9911
Paris +33 1 5365 5555
Rome +39 06 683 931
San Francisco +1 415 288 2576
Santiago +562 370 7000
São Paulo +5511 3175 4100
Seoul +82 2 3707 0400
Singapore +65 6331 3888
Sydney +61 2 9225 6500
Taipei +88 62 2376 3666
Tel Aviv +972 3 607 2000
Tokyo +81 3 6225 7666
Washington, D.C. +1 202 659 7578
Zurich +41 1 289 48 00