In what industries are Millionaire and Ultra High Net Worth investors most likely to invest in 2016? For the sixth consecutive year, these wealthy investors are plugged in to technology, according to our fourth quarter wealth segment research.
Nearly six-in-ten (57 percent) Millionaires (with a net worth up to $5 million, not including primary residence) and Ultra High Net Worth investors (with a net worth between $5 million and $25 million) indicate they are most likely to invest in the technology industry, according to Asset Allocation, Portfolios and Primary Providers.
This is down slightly from last year, when 61 percent of Millionaires and 59 percent of UHNWinvestors reported that technology was the sector in which they would most likely invest in the next 12 months.
There is continued interest among Millionaire and UHNW investors in the healthcare and pharmaceutical sectors. Fifty-seven percent of Millionaires indicate they will invest in healthcare stocks, while 44 percent will invest in the pharmaceutical sector. This is basically unchanged from last year. Six-in-ten UHNW investors indicate they will invest in healthcare companies, while 43 percent say they are likely to invest in the pharmaceutical sector.
Communications is the next most popular sector for one-fourth of Millionaires and UHNW investors, followed by real estate. But the financial service sector has more appeal to UHNW investors than it does to Millionaires (33 percent vs. 21 percent).
Surprisingly, when we analyze investment intention by age, we find that technology is not the preferred sector for the youngest investors. The highest percentage of Millionaire investors who indicate they will invest in the technology sector are Baby Boomers ages 55-64 and Gen Xers ages 36-44. Similarly, UHNW Baby Boomers comprise the highest percentage of those who intend to invest in technology companies in the coming year.
When it comes to the health care and pharmaceutical sectors, the oldest Millionaires, seniors ages 65 and up, and Baby Boomers who are more likely than their younger counterparts to indicate they will invest in these companies. Among UHNW investors, it is investors age 48-54 who comprise the age group most likely to invest in health care and Baby Boomers the most likely to invest in pharmaceuticals.
Less than 20 percent of Millionaires and UHNW investors indicate a likelihood they will invest in the manufacturing, transportation, construction and the automotive sectors. But manufacturing does have more appeal to UHNW investors (17 percent vs. 12 percent of Millionaires.