CHICAGO, January 17, 2017– As wealthy U.S. investors and their advisors plan their investment strategies for 2017, new research from Spectrem Group reveals high levels of interest in the healthcare and technology sectors.
The new study, Asset Allocations, Portfolios and Primary Providers, examines the portfolios of affluent investors to determine where these sophisticated individuals are invested today and where they intend to invest in 2017. Segmented by wealth level (Mass Affluent, Millionaire, UHNW), age, occupation and advisor dependency, the report offers insights to providers and advisors about how they are perceived among investors, helping them identify the products and services most closely aligned with their clients’ needs.
The details on distribution of assets include insights on managed programs, fixed investment levels, short-term investments, and assets in standard products like real estate or alternative products like hedge funds. But investors also detail their investments in vacation homes and collectibles, decisions made related to long-term care insurance and retirement income, as well as wealth transfer considerations.
The report reveals strong confidence in U.S. markets, with 72 percent of Mass Affluent investors, 63 percent of Millionaire investors, and 52 percent of UHNW investors indicating unwillingness to invest anywhere else. Those who do express interest in international investing are focused mostly on Europe, followed by Canada, China, the United Kingdom and Japan.
Consistent with previous research, the report shows that investors’ primary objectives change as their wealth increases. Among Mass Affluent investors, security is their primary objective, while Millionaire and UHNW investors are most interested in growth. Age is also a contributing factor, with younger investors primarily interested in growth.
Other key findings include:
· Millionaire investors are most likely to invest in checking/savings accounts in the next 12 months (52 percent), followed by mutual funds (50 percent) and individual stocks (41 percent).
· 44 percent of UHNW investors have assets in a trust, but just one in 10 (9 percent) use a corporate trustee.
· Eight in 10 (81 percent) Mass Affluent investors made a charitable contribution in the last 12 months, but only two in 10 (22 percent) made a political contribution.
· The average age of Mass Affluent, Millionaire and UHNW investors is 58, 62 and 65, respectively.
“Given the strong post-election rally and prospects for additional interest rate hikes, 2017 promises to be challenging for market prognosticators. Gaining insights into how affluent investors are planning to allocate their capital, the types of investment products they are most interested in, and their primary focus areas for the year ahead will prove useful to advisors and providers,’’ said George H. Walper Jr., President of Spectrem Group. “By showcasing the decisions investors of varied wealth segments have made during the past decade, this study could prove helpful in charting their likely investment decisions for the upcoming year.”
About Spectrem Group:Spectrem Group (www.spectrem.com) strategically analyzes its ongoing primary research with investors to assist financial providers and advisors in understanding the Voice of the Investor.