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Ultra-Wealthy Investors ‘Wait and See’ in Q1: Tiger 21

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High-net-worth investors in Tiger 21’s peer-to-peer learning network appeared to be sitting tight in the first quarter, leaving their asset allocations mostly unchanged, the organization reported Wednesday.

Members did decrease their quarter-over-quarter private equity allocation by one percentage point to 21%. And for the first time since 2013, they allocated to commodities, now 1% of their investment portfolios.

Members’ other first-quarter allocations:

  • Real estate: 30%
  • Public equities: 23%
  • Cash and cash equivalents: 10%
  • Fixed income: 9%
  • Hedge funds: 5%
  • Currencies: 0%

Tiger 21’s quarterly reports measure the aggregate asset allocation of its membership base on a trailing 12-month basis. The organization said this methodology tends to reveal substantive trends more clearly and is less affected by short-term distortions caused by growing membership.

The group comprises upward of 500 investors in North America and London who collectively manage some $51 billion in personal investable assets.

Several factors played into wealthy investors’ “wait-and-see” approach, according to the report.

Although markets have been high, global politics and threats of trade tariffs from Washington are making members feel uncertain. As well, there has been a lot of speculation about which direction markets will be going.

“This uncertainty,” the report says, “has prompted members to hold firm as they are sophisticated investors who know they should not make changes to their portfolios based on headlines. Instead, they are doing their own research and making changes to their portfolios when they feel it is appropriate.”

Global investors in a recent survey, though decidedly less bullish in recent weeks, said the stock market had yet to peak — possibly in the second half or perhaps in 2019 or later.

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