Surveys

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

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

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Cash may finally be losing its charm, and members’ holdings have come down a full five percentage points since the first quarter of 2011, when cash allocations hit a high of 17 per cent. However, Tiger 21 cautions that, at 12 per cent of holdings, members’ liquidity reserves are still higher than most financial advisors would recommend and are indicative of a preference among this segment to retain at least a three- or four-year cash supply.

Fixed income holdings have also fallen, declining five percentage points from Q1 2011, from 20 per cent to 15 per cent. They have now fallen eight percentage points since the fourth quarter of 2009, with low bond yields and sovereign debt woes possible reasons behind this drop, said Tiger 21.

Meanwhile, public equity holdings also dipped 2 percentage points year-over-year, and stood at 22 per cent in the first quarter 2012. This proportion includes both direct equities and fund holdings.

This level of public equity holdings “remains way off” the pre-2009 level of over 30 per cent, said the organization, as “members do not see a correlation between the performance of the stock market and what has (or has not been done) to fix the economy.”

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