More people this year than in 2011 cite public equities as their favorite investment by asset class because of healthy returns on the vehicles, according to new research.
Tiger 21, a New York-based peer-to-peer learning network for high net worth investors, disclosed this finding in a survey of its 200-plus North American members, who collectively represent more than $19 billion in investable assets. The survey asked TIGER 21 members to name their favorite investments and the percentage of their portfolios allocated to those investments.
Members also named the investment funds and managers they preferred to invest with.
The percentage of members indicating that their favorite investment category is public equities rose to 39 percent this year from 31 percent in 2011. Following public equities as the most favored investment, 19 percent of Tiger 21 members surveyed selected hedge funds, 15 percent flagged investments in private equity, and 11 percent picked investments in real estate.
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Less popular are fixed income investments, cited by 8 percent of the members, cash and cash equivalents (4 percent) and commodities (3 percent).
The survey adds that 2012 marks the third consecutive year that equity-themed investments ranked as the members’ favorite, although allocations to vehicles within this space have shifted from prior years. For members listing individual stock purchases as their favorite investment, this category decreased to 43 percent this year from about 50 percent last year.