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We continue to live in uncertain times. In thefirst half of 2010, the global economic recoveryseemed to be gathering momentum,particularly in the emerging markets. Butsevere fiscal problems in Greece andelsewhere confirm an underlying fragility.

Wealthy individuals based in theemerging markets are muchmore optimistic about globaleconomic prospects than thosein the developed economies.

In terms of net wealth, the European wealthyhave been the worst affected by the recentdownturn. Wealthy individuals in Asian and

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other emerging markets appear more positive,both in regards to the impact of the downturnlocally and the outlook for the global economy

generally. However, wealthy individuals overallare still more pessimistic than professionaleconomists about global economic prospects.

The impact of the downturn varies by region

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Views on global economic recovery vary from regionto region

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The very wealthy are more pessimistic

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High net worth more downbeat than economists?High net worth individuals are rather more gloomythan most professional economists

The desire to accumulate and increase wealthremainsconstant around the world. But differentregions have

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different views on the meaning of wealth.Asians continueto see it as source of respect, Europeans give

personalspending higher priority while the US placesmoreemphasis on charitable giving. With thecontinuingrise of the emerging markets, the focus on thesocialimplications of wealth may deepen, along withaninterest in philanthropy.

What wealth meansAs well as affecting their individual net worth, thedownturn may also have prompted many to think aboutwhat wealth really means and how they should use it.The survey suggests that wealthy individuals desireto accumulate remains, despite a realisation that theirmaterial needs are largely met. Nearly three quartersof respondents list saving for the future as a priority

use for their wealth; only a slightly smaller proportionare aiming to double their net worth.We also asked people what wealth meant to them;the results are summarised by region in Chart 8.

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Different region, different priorities

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They recognise the benefits

thatexposure to renewables bringstotheir portfolio from adiversificationpoint of view.

A degree of investor caution remains after thedownturn.But wealthy individuals remain engaged withthe markets,

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and demonstrate a considerable degree of self-reliance.They continue to hold faith with equities and

property,relative to other asset classes but are moregloomyon equities in relative terms than institutionalinvestors.Women take a different approach toinvestment than men.

Fifty one percent ofrespondents are avoidinghigh-risk investments morethan before the downturnand only 7% are not.

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. While investors may beupbeat about the possible

performance of hedge fundsand private equity, there isstill a reluctance to investin these asset classes.

A continued faith in equities and property

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Equities: wealthy and institutional investors views

compared

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Equities

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Property

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AlternativesOver two-thirds of those who havean opinion believe that hedge funds will perform veryor quite well over the next five years; an even highershare (76%) think this of private equity. And, even ona one-year basis, enthusiasm for private equity and

hedge funds is approaching that for equities andproperty.

Women: different attitudes to investmentWomen assess peopleand opportunities differentlythan men do; its not betteror worse, but just different.Until there are more women

who are backing femaleentrepreneurs, we wonthave as many global leading,high-growth firms ledby women founders.

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The young wealthy: New trends emerging?

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The survey reveals that the wealthy in theemergingmarkets have been less affected by the recentdownturnthan their counterparts in the developedmarkets, and arealso much more optimistic about the future

prospects forthe global economy. This optimism is due, inpart, to thestrong relative performance of the economiesin which

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they live. However, survey respondents overalldo notthink that the recovery of the global economy

willbe straightforward, and appear morepessimisticthan professional economists.

The downturn may have prompted many to thinkabout what wealth means, and how they should usetheir wealth. Major regional differences are evident here,with Europeans much less likely to see wealth as a meansof getting the respect of friends and family than thewealthy in the emerging markets. Europeans are also

much more likely to prioritise spending on themselves(e.g. on travel), while US respondents focus more oncharitable giving and Asia-Pacific respondents aremore concerned with social issues.