Ultra-affluent members of the Institute for Private Investors are bullish on equity markets and focused on growth rather than merely preserving capital, according to a survey released Thursday.
IPI said 69 families with assets of at least $30 million participated in its annual Family Performance Tracking survey during the second quarter.
Sixty-three percent of respondents said they planned to increase their allocation to global equities in 2013, and 53% planned to increase positions in domestic equities.
Growth is the primary objective of 51% of survey respondents in 2013, compared with 47% in last year’s survey, while 36% aim for principal protection, versus 43% in 2012, and 13% look for income, compared with 10% last year.
Wealthy investors enjoyed positive returns in 2012, according to the survey. The average return net of fees was 10.1%, up from 0.6% in 2011.
Domestic equities accounted for an average 2012 portfolio allocation of 18%, global equities 14%, taxable bonds 10%, municipals 7%, hedge funds and/or funds of funds 18%, private equity 10%, real estate direct investment 6%, commodities 5%, venture capital 2%, direct investments in private companies 2% and other 1%.