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SINGAPORE: High net worth investors seemed unperturbed by the economic downturn and reckoned that it is still a good time to invest in the current market.
A survey by financial services group Barclays Wealth found that almost 90 per cent of these investors remain optimistic about investment opportunities available.
It also said now is a good time to invest despite a strong rally in equity markets over the past few months.
However, investors' fear of further price falls remained the biggest obstacle before investors start investing again.
The survey said about 70 per cent of investors globally fear further price falls. It was the same in Singapore as more than half of the investors polled shared this view.
The survey also indicated several key trends.
Despite the market uncertainty due to the financial crisis, more than half of these wealthy investors globally are investing in what they are familiar with.
Stability of the financial institutions as well as the quality and transparency of investor information have also become key factors to investors in making their investment decisions.
Didier von Daeniken, chief executive, Barclays Wealth Asia Pacific, said: "We are seeing a change in the way high net worth investors approach investment.
"Due to the dramatic developments over the past 12 months, those investors seeking greater exposure to specific assets tend to focus on the most straightforward - with real estate, cash and domestic equities - the most likely beneficiaries of increased allocation."
At the same time, the survey said high net worth individuals have become more circumspect when making their investment decisions.
The survey also found a loss of confidence in major institutions.
Investors from Hong Kong, India and Spain were least impressed with their governments, while 25 per cent of investors in Singapore rated the government's handling of the crisis as being successful.
Gender differences in investment decisions were also noted in the survey. In general, male investors held more positive and bolder economic outlooks as compared to female investors.
In Singapore for instance, only one female investor out of every three male investors was willing to make higher-risk investments.
Close to 30 per cent of male investors were likely to increase their trading frequency in the stock market, compared to 18 per cent of female investors.
Male investors were also more likely to spend more time selecting and analyzing specific investments and their portfolios.
The survey, by Barclays Wealth and the Economist Intelligence Unit, surveyed 2,100 high worth individuals across the world. It was conducted between March and May this year. - CNA/vm
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