A record 62 per cent of ultra-wealthy respondents to the Institute for Private Investors’ annual performance survey reported using an advisor for over half their wealth.

The IPI Family Performance Tracking survey, which covered 57 families with at least $30 million in assets, is conducted in two parts. Data released earlier this year revealed families’ anticipated investment strategies while the latest survey, completed in April, examines actual allocations and performance. 

It found that 45 per cent of respondents increased their allocation to commodities, while 31 per cent increased their exposure to real estate, and 22 per cent to private equity. “Investors also increased their municipal holdings and decreased investment in hedge funds/funds of funds,” said IPI.       

Wealthy families are worried about geopolitical risk and domestic policy shifts, according to the survey, with 70 per cent of respondents expressing concern about this. Nearly half of respondents were concerned about the scarcity of yield opportunities.

Returns for 2011 “varied widely,” said IPI, from -10 per cent to 25.1 per cent net of fees. The majority of families, though, reported returns in the range of -2.16 per cent and 2.28 per cent net of fees. Families seeking principal protection last year fared better than those pursuing growth, with nearly two-thirds of the first group achieving positive returns compared to less than half of the second group.

“This year’s data reinforced the investment trends we have been seeing among the ultra-affluent as far as the rise in allocation to commodities and real estate, and the continuing popularity of direct investment in private companies,” said Mindy Rosenthal, IPI executive director. “Families are also concerned universally about risk, both abroad and at home.”