Asset Classes

• Tiger21, the "membership community for high-net-worth wealth creators and preservers," surveyed 400 high-net-worth investors in 2016 to understand where they put their money. The survey found that the average respondent had 25% of the portfolio allocated in real estate. Private and public equities accounted for 23% and 22%, respectively. Eleven percent of the portfolio is allocated in fixed income, while only 10% of the portfolio is allocated in cash. Eight percent of the portfolio is allocated in hedge funds.
• In February 2020, high-net-worth investors allocated 17.1% of their portfolios in fixed income and 25.2% in cash. "In other words, they parked more than 40% of their assets in relatively safe assets, larger than any other asset class."
• According to Investor's Business Daily, high-net-worth investors hold five different asset classes: "alternatives, real estate, fixed income, cash and stocks."
• Stocks: 30% of portfolios
• Cash: 25.2% of portfolios
• Fixed income: 17.1% of portfolios
• Real estate: 14.6% of portfolios
• Alternatives (hedge funds and private equity): 13% of portfolios
• Six in ten high-net-worth investors allocate at least 10% of their portfolio in cash. "It’s a sign of their desire to capitalize on the right opportunities at a moment’s notice. This serves as another source of liquidity, allowing their cash on hand to flow opportunistically."
• Fifty percent of high-net-worth investors own tangible assets, such as real estate. "These assets can produce income for the investor, and grow in value over time."

Summary of Our Early Findings Relevant to The Goals

• The goal of the initial hour of the research is to discover the feasibility of the research, to provide early findings, and to understand the overall project viability. Our preliminary research highlighted the asset allocation for high-net-worth investors.
• Early research found that data surrounding high-net-worth investors is publicly available. Thus, our recommendations are based on our findings in early research.
• Since a specific geographic focus was not indicated, we are assuming that this research is focused on the United States. If another targeted market is requested (the United Kingdom or globally, for example), please let us know in any reply.
• Please select one or more of the options provided in the proposed scoping section below.