The wealthiest investors are not making drastic changes in their portfolios due to recent market volatility, but seem to be taking a wait-and-see attitude, according to Tiger 21.
The only two asset classes that saw any change among wealthy investors who are members of Tiger 21 during the first quarter of 2018 were commodities and private equity, but changes were minimal: Commodities went up by one percentage point, and private equity decreased by one percentage point of the portfolio totals. Commodities now make up 1 percent of member assets and private equity makes up 21 percent.
TIGER 21 is a networking group of ultra-high-net-worth investors who collectively manage $52 billion in assets. The organization releases quarterly reports on members’ portfolio allocations.
Allocations to cash, currencies, fixed income, hedge funds, public equities and real estate did not change between the fourth quarter of 2017 and the end of the first quarter of this year. Real estate, which makes up 30 percent of members’ asset allocation, public equities (23 percent) and private equity (21 percent) are the top three allocations.Many of the wealthiest investors made their fortunes in real estate and in building private businesses, TIGER 21 said.
Cash and cash equivalents, fixed income and hedge funds each have 10 percent or less of the allocations.
TIGER 21 members are not changing allocations for several reasons, according to the organization. Despite markets still being high, members feel uncertainty given current political situations around the world and the impact of U.S. trade tariffs, TIGER 21 said.
