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Wealthiest Americans Have Become Far More Conservative Investors During Recession
Ultra High Net Worth Households Investing Conservatively Rose Fivefold in 2009; Allow Advisors to Independently Invest Just 18% of Their Assets
| Source: Spectrem Group
CHICAGO, IL--(Marketwire - January 14, 2010) - The recession has driven America's richest
investors to put the brakes on risk.
The percentage of U.S. households with a net worth of $5 million to $25
million that describe themselves as "conservative" investors increased
fivefold in 2009 to 27%, according to the new report "Ultra High Net Worth
Investor 2009," released today by Spectrem Group (www.spectrem.com). That
compares with 5% in the "conservative" category the year before.
Households worth $1 million to $5 million that describe themselves as
"conservative" grew to 28%, up from 12% in 2008, according to a second
Spectrem Group report, "Millionaire Investor 2009."
At the same time, those listing themselves as "aggressive" investors fell
sharply, down to 13% for the Ultra High Net Worth group and 12% for the $1
million-to-$5 million group. "Most aggressive" were 3% and 2%,
respectively.
"America's wealthiest investors have backed away from risk during the
recession in surprising numbers, with more than a quarter of all Ultra High
Net Worth households now considering themselves conservative investors.
They are also keeping a strong hand in the management of their assets,
letting advisors handle just 18% independently and managing nearly half by
themselves," said George H. Walper, Jr., President of Spectrem Group.
Ultra High Net Worth households invest 47% of their assets themselves with
no professional help. They consult professional advisors but make their
own decisions about 35%, and allow advisors to completely handle and
provide no input on 18% of their assets.
The Spectrem report "Ultra High Net Worth Investor 2009" is based on a
survey of 523 households with a net worth of $5 million to $25 million, not
including primary residence (NIPR), conducted in November of 2009. The
report "Millionaire Investor 2009" is based on a survey of 1,089 households
with a new worth of $1 million to $5 million (NIPR), also conducted in
November of 2009. The reports' data have margins of error, respectively,
of plus or minus 4.2 and 2.9 percentage points.