A study of high net worth individuals by LGT in Singapore, Hong Kong and Switzerland shows that private banking clients in the Republic are the most risk-averse and have the lowest level of portfolio diversification. Singapore investors also have high expectations for returns. Another finding that indicated the cautiousness of local investors is that they hold, on average, 52 per cent of their investable assets in cash. "Cash is ... usually perceived as a safe and attractive investment with minimal risks, providing generally high liquidity and akin to a safety net in these uncertain times," explained SMU Vice President (Business Development & External Relations) Associate Professor of Finance Annie Koh who analysed the results. Local investors were also found to have the least diversified portfolio, holding an average of three asset classes. Sixty-seven per cent invested in less than four, against 53 per cent in Switzerland and 45 per cent in Hong Kong. This may not be a good reflection of investors' asset allocation though, as the options given for the purpose of the survey is not representative of the asset classes in each country, added Associate Prof Koh.