Many of the world's wealthiest people have moved their money out of stocks and bonds and into cash, the head of HSBC's Swiss private banking unit said, according to Reuters.

"The first half of 2008 has seen a notable change in client expectations and investment choices," said Peter Braunwalder, chief executive of HSBC Private Bank (Suisse).

His comments about the desire of high net worth and Ultra-HNW clients to shift into cash echoes the insights of a report issued by Barclays Wealth this week stating that many wealthy investors are moving into cash or wish to do so.

"Faced with inflation worries, volatile asset prices and sudden changes in exchange rates, a majority of investors have reduced their transaction volumes in equities, bonds, and structured products," said Mr Braunwalder.

This was particularly true for clients from
Asia, whose demand for complex investment tools such as equity derivatives has "drastically decreased" in response to recent financial market upheaval, said Mr Braunwalder.

Investors worldwide have been scrambling to find a safe place for their savings this year in the face of a global economic slowdown, a credit crisis that has spooked markets, and an energy price spike spurring concerns about inflation.

Alexandre Zeller, who will replace Mr Braunwalder as HSBC Private Bank (Suisse) chief on 1 October, said that concerns about inflation would dominate many investing decisions ahead.

"My worry is that a lot of liquidity has been injected in the markets by central banks to solve the (credit) crisis," the former head of Banque Cantonale Vaudoise said, raising concerns about how that liquidity will be removed from the market, and whether interest rates would have to rise as a result.