World’s rich confident of overcoming global risk

LONDON: The global economic, financial and political landscape has never been shakier, but the world’s rich are confident they can steer through the fog of uncertainty in the coming year “without so much as a dent in their finances”, a survey showed yesterday.

The findings of UBS Wealth Management’s survey of more than 2,800 millionaires in seven countries show a high degree of worry about the global financial system on the one hand, and supreme self-confidence and optimism on the other.

Some 82 per cent of those surveyed said this was the most unpredictable period in history.

More than a quarter are reviewing their investments and almost half said they intend to but haven’t yet done so.

But more than three quarters (77 per cent) believe they can “accurately assess financial risk arising from uncertain events”, while 51 per cent expect their finances to improve over the coming year compared with 13 per cent who expect them to deteriorate.

More than half (57 per cent) are optimistic about achieving their long-term goals, compared with 11 per cent who are pessimistic.

And an overwhelming 86 per cent trust their own instincts when making important decisions.

“Most millionaires seem to be confident they can steer their way through the turbulence without so much as a dent in their finances,” said UBS WM.

Perhaps surprisingly, younger millionaires are more risk-averse than their older peers. Nearly half of the 18-34-year-old group are less willing to take risks after the financial crisis, compared to less than 30 per cent of the over65 bracket.

The study surveyed 2,842 millionaires, with investable assets of at least US$1 million (RM4.32 million), in Hong Kong, Japan, Singapore, Mexico, Italy, Switzerland and Britain. Reuters