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Affluent Americans Hesitant To Reallocate: HSBC Survey
Affluent Americans have been hesitant to reallocate their assets during the recession, in contrast to their international peers, according to a recent survey by HSBC Bank USA.
Not surprisingly, however, they did share three major financial worries with others around the world, according to the HSBC Bank Global Pulse survey: taxes, wealth preservation and retirement.
“Americans have made little to no changes to how their personal portfolios are allocated since 2008,” said Andrew Ireland, head of Premier and Wealth, HSBC Bank USA.
Affluent Americans took the largest losses on their portfolios, according to the survey. More than half of survey respondents in the US (56 per cent) said they lost money, despite the fact that 75 per cent of them claimed to be either very or extremely knowledgeable about their personal financial matters.
Nonetheless, their losses exceeded those of others around the world: only 19 per cent of respondents in Hong Kong reported losses, as did 28 per cent in Sao Paulo and 37 per cent in Sydney.
Survey respondents in the US said their asset allocations remain virtually identical. Reflecting on these findings, Ireland commented: “American respondents seemingly have not touched their portfolio allocations since 2008, even though the US markets have experienced the greatest sea-changes since then.”
The survey also revealed significant differences in asset allocation between countries, with Americans and Canadians more heavily weighted towards mutual funds, while respondents in Hong Kong, London and Sao Paulo were more willing to invest in real estate, collectables and alternatives.
“It is interesting to note that Americans’ allocations are quite different from their peers around the world whose assets better weathered the storm,” Ireland said.
The Bank Global Pulse survey was conducted online in February and March 2010 with 2044 respondents in 11 cities around the world.
All respondents were between 25 and 64 years old, college educated and had investable assets of at least $100,000; half had over $500,000.
