What The Wealthy Are Holding - Tiger 21 Reveals Member Asset Allocations

Harriet Davies, Editor - Family Wealth Report, 26 April 2012


Private markets gaining favor

Allocations to private equity rose by four percentage points year-over-year, hitting 14 per cent for the first quarter, possibly because Tiger 21 members remain “leery of the public markets,” the organization said.

As an indicator of the US stock market’s performance and volatility last year, the S&P 500 ended flat (based on stock prices alone) but with major differences by quarter as markets were rocked by economic and political crises; it rose 11.15 per cent in the fourth quarter, for example.

The allocations which have emerged from Tiger 21 corroborate data released at the beginning of the year by the Institute of Private Investors, which also displayed an appetite for private investment among the wealthy.

The IPI survey found that, in the current climate, investors appear to be less reliant on public markets to protect and grow their wealth, with 55 per cent of IPI members looking to add to their direct investments in private companies. Many also revealed a bullish sentiment on tangible assets such as gold, land and artwork.

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