While we have always had just the one planet to live on, somehow it has gotten larger and smaller at the same time. For investors, there seems to be more world to play in today, while digital communications and the internet have made every place seem available to us.
Global investing is a significant portion of the investing game for affluent Americans, and the wealthier the investor, the more likely it is that there will be global companies in his portfolio.
Spectrem’s Market Insights 2015 reveals that more than half of all Ultra High Net Worth investors, with a net worth between $5 million and $25 million, are willing to invest globally. From 56 percent of UHNW investors, the percentage drops to 39 percent for Millionaires with a net worth between $1 million and $5 million and down to 26 percent among Mass Affluent investors with a net worth under $1 million.
Although the UHNW percentage is consistent from 2001 numbers, the percentages are down among Millionaires (from 44 percent to 39 percent) and Mass Affluent (from 29 percent to 26 percent).
The UHNW and Millionaire investors reveal a preference to invest in Europe, with 26 percent of UHNW and 19 percent of Millionaires selecting that continent as a favored investment spot. In both cases, that percentage has increased significantly from 2011.
Meanwhile, interest in investing in China has dropped. For UHNW investors, it dropped from 27 percent in 2011 to 20 percent in 2014, and for Millionaires, it dropped from 21 percent to 15 percent.
After Europe and China, the next most popular foreign land for investing is Canada. Twenty percent of UHNW, 21 percent of Millionaires and 7 percent of Mass Affluent say they invest in Canadian firms.
Japan, Brazil, Australia and the United Kingdom all garner interest. For UHNW investors, those countries range from 14 percent in the UK to 11 percent in Japan. For Millionaires, investing interest ranges from 9 percent in the UK to 8 percent in the other countries mentioned.
Interest in investing in Brazil has dropped over the past three years. Among UHWW investors, there were 25 percent interested in investing in 2011 and it dropped to 12 percent in 2014. For Millionaires, the percentage dropped from 20 to 8, and for Mass Affluent it dropped from 10 percent to 4.
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