Caan: “Acute loss of trust” amongst ultra-rich

The £65m Dragon’s Den star – who recently fell-out with fellow Dragon Duncan Bannatyne over being a non-dom – is quoted in a report on how the ultra-rich have fared in the downturn: “Where I’ve had investments with professional firms and they’ve failed to deliver, it has made me think even more so that I should do it myself.”

The report, researched by the Economist Intelligence Unit (EIU) and commissioned by SG Private Banking, reveals that he is far from alone: ultra high net worth individuals (i.e. those with more than $30m in the bank) have lost trust in their financial advisors as a result of the downturn, which saw their wealth shrink by an average of 24 per cent.

As a result, the ultra-rich increasingly prefer cash over complex products such as hedge funds and derivatives, the report found .

On the spending side, the EIU found that although the recession has caused an overall downward trend in philanthropic giving, many ultra rich intend to maintain or increase their level of donations. 

“The very wealthy want to understand more than ever where their money is going,” comments Jason Sumner, senior editor at the EIU.

“They may have different goals for investments, philanthropy and spending, but in each arena the downturn has driven them to be more sceptical, ask more questions and in some cases take a more direct, hands-on role.”

This certainly seems to be Caan’s approach, who said: “At the end of the day, if its my money, and one of us has to take a view, it may as well be me.”

 

You can download the EIU’s full report below:

The_New_World_of_Wealth_WEB.pdf

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