A new global survey has found the majority of high net worth individuals believe the current environment offers significant opportunities, although the risk of further price drops remains high.

The survey, carried out by Barclays Wealth and the Economist Intelligence Unit (EIU) claimed Hong Kong stood out as the most cautious among Asia Pacific, with respondents the most critical about their domestic government's performance in handling the crisis. The survey reported the erosion of trust was affecting investment habits of high net worth investors, changing how they select financial providers and seek information about investments.

The report, entitled 'New horizon, new behaviour', revealed that almost 90% of high net worth individuals who participated believed the current environment offered significant opportunities.

However, the majority of those polled globally (68%), believed the risk of further price falls was too high to consider such opportunities. Hong Kong investors are even more cautious with 79% having a similar view, higher than the Asia Pacific average of 66% and Singapore's 59%. The report showed that 67% of Hong Kong respondents did not plan to increase the level of risk in their portfolios, which is in line with 72% of those polled globally with a similar position.

Investors are embarking on a quest for simplicity, preferring to invest in what they understand. Of those polled globally, almost one quarter said they plan to increase their allocation to real estate over the next 12 months while 22% plan to increase allocation to government bonds and 20% plan to invest in domestic stocks and cash.

Didier von Daeniken, chief executive, Barclays Wealth Asia Pacific, said: "Investment often involves striking a balance between financial and emotional considerations. We are seeing a change in the way high net worth investors approach investment. Due to the dramatic developments over the past 12 months, those investors seeking greater exposure to specific assets tend to focus on the most straightforward, with real estate, cash and domestic equities the most likely beneficiaries of increased allocation.

"At the same time, high net worth individuals are more circumspect about the way they make their investment decisions. They realise they should undertake more due diligence to understand their choice of investments and financial provider, looking beyond past performance and fees."