Being wealthy was supposed to be a passport to lifelong financial stability. But after 18 months of nail-biting volatility in financial markets and wealth destruction on a massive scale, the very rich are no longer feeling quite so secure. True, the banking system and global economy are showing signs of stabilisation, but the longer-term future remains uncertain, and this is having a significant impact on the attitudes and behaviour of the wealthy.
The crisis has had a life-changing impact for many of the world’s ultra high net worth individuals (those with investable assets in excess of US$30m).1 Many have lost their “ultra” tag altogether and have been downgraded to the rank of mere high net worth individual (someone with wealth in excess of US$1m). According to the 2009 World Wealth Report, which is published by CapGemini, a consultancy, and Merrill Lynch, an investment company, the global population of ultra high net worth individuals fell by 24.6% during 2008 to an estimated 78,000. Overall, the wealth held by this cohort shrank by 23.9% from the previous year.
