Affluent Americans are more likely to allocate assets to alternative investment strategies in asset classes such as private equity, real estate investment trusts and hedge funds today than they have been for several years, according to a new study published by Northern Trust.
"That’s especially true for half of he high net worth (HNW) investors who say they are better off today than they were five years ago," states the Northern Trust report.
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The findings come from Northern Trust’s recent Wealth in America survey, which provides insights into the financial attitudes of 1,700 wealthy Americans.
Among HNW investors, those with US$5 million or more in investable assets, 30% said that they are more inclined towards considering alternative investments now than they were five years ago.
Among these HNW investors, private equity (35%), managed futures (32%), REITs (28%) emerged as their top investment alternatives choices, followed by hedge funds (23%) and venture capital (17%), the report revealed.
Nearly 28% said limited partnerships are their preferred legal structure for holding these investments.
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By GlobalDataThis risk premium is of increased importance, as the survey found that 63% of HNW investors being likely to take calculated risks with their investments to grow their wealth. However, 52% said they will look for new investments to grow their wealth.
