For 12 years, the IPI Family Performance Tracking Survey has polled the Institute’s 1,200 members, who come from families with $30 million or more in assets, to find out how they are allocating assets in their portfolios. In 2008, according to the Survey, the families had an average of 16.7% in cash, a record high for the group. The study also found a higher allocation to fixed income, at 31.2% on average, another high for the group. These two allocations appear to have cushioned the groups’ returns, which, while down 18.8% for 2008, were much better than the return for the S&P 500, (-37%).
Notably, of the 25% of IPI members who participated, “all but two IPI investors outperformed the S&P in 2008,” according to the Survey.