High-net-worth investors of Tiger 21 continue to have a cautious outlook on investments and the global economy, with minimal changes in their allocations over the past quarter, according to the group's latest report.
Over the past year, however, Tiger 21 members have slowly started to crawl out of their shells, increasing allocations to real estate and private equity and decreasing cash and fixed-income allotments.
"While many TIGER 21 members might feel the worst of the economic troubles are behind us, general consensus is that we are in no way in the clear," said Michael Sonnenfeldt, founder and chairman of TIGER 21. "Members continue to pursue a cautious approach to investing and are making very deliberate moves with their portfolio, only after much research and discussion."
Tiger 21 is an information-sharing network of high-net-worth investors headquartered in New York City, with chapters in 11 major cities in the U.S. and Canada.
Report highlights include:
Fixed-income allocations are down five percentage points to 15 percent from a year ago. The low yields on the bond market and persistent trouble in the sovereign debt market could be contributing factors, according to the report.
Members' allocation to private equity increased by four percentage points to 14 percent over the previous year, which, according to the report, may be an indication that members remain leery of the public markets.
Real estate saw the largest increase in allocations over the past year, with a five-percentage-point increase. A possible reason, according to report, is that low interest rates enhance the tax advantages of real estate investing.
The report was based on the aggregate asset allocations of TIGER 21's 200 members, a group that has collective assets of more than $18 billion.