The UK’s wealthy are reacting very cautiously to the continuing sub-prime credit crisis and its impact on investment markets according to a new report from Tulip Financial Research. Only around one in five of the UK’s 300,000 high net worth and ultra high net worth households say that the problems arising from the sub-prime crisis will lead them to make changes in their current investments or investment plans. The research shows that the main impact of the crisis has been a flight to safety: to increased allocations to what are seen as low risk investments and/or cash. And over half of those making or planning changes say they will sell what they consider to be risky equity or fixed interest investments, while over a third say they will increase their cash reserves and diversify these cash reserves more widely. John Clemens, managing partner of Tulip Financial Research said: “This is of course an early take on the likely impact of the current crisis on the investment plans and actions of the HNW and Ultra HNW markets. These are experienced investors who have mostly lived through previous market crashes including the dotcom bubble of 2001/2002: they are not easily panicked. “The findings do however indicate some significant short-term changes: a search for safety, and a move to increased liquidity. Tulip will continue to track the intentions and actions of HNWs and Ultra HNWs, and a new survey is now being carried out and will report in March 2008.” Click here for more information on this report.