Affluent people are continuing to shun the UK stock market and the property market in Britain, according to research from Barclays Wealth and the Economist Intelligence Unit.

A study into investment strategies by high-net-worth individuals, claimed to be the first since the credit crunch set in a year ago, finds that investors who operate in emerging markets such as China and India were more likely to increase the level of risk in their share portfolios. In total 41 per cent of Chinese and 40 per cent of Indian investors intend to increase their exposure. By contrast, the British market is the least attractive market.

About half of all investors in developed markets are leaving their money in the bank because of fears of further market volatility. By contrast, wealthy individuals in emerging markets see the present environment as an opportunity to avail of the fact that asset values are artificially low.

Kevin Lecocq, chief investment officer at Barclays Wealth, said that market volatility meant that investors were having a variety of reactions to the present market state.

The survey, of 2,300 high-net-worth individuals worldwide, found a divide between attitudes towards emerging and developed markets. Mr Lecocq said that in recent years many emerging markets, notably China, India and Russia, had shown the best investment returns since Second World War.

“As such, the correction in recent months comes on the heels of better market performance and, while still affected by the global credit crunch, the emerging markets are not suffering from a comparable lack of liquidity,” he said.

“There is more reason for optimism and the outlook for growth is not as badly affected in emerging economies as in the developed economies.”

There were two key points impacting on investor trends, he said. “First, emerging market investors believe that things will continue to grow, thus any downturn is a buying opportunity.

Secondly, many are first or second-generation wealthy. Unlike developed market investors, their wealth has grown very fast and comparatively recently. This means that they are naturally more likely to be risk-takers and have direct experience of being much less wealthy.

“Even with the losses sustained in the past 12 months, they may be substantially better off than earlier times which they can remember. Put simply, they have not fully adjusted to their new levels of wealth.”

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