Commodities, real estate and private equity are the top investment choices among ultra-high-net-worth families this year, according to an investment tracking survey by the Institute for Private Investors (IPI).

Those results were in line with where this group of investors was putting its money at the beginning of the year, according to IPI.

According to the Family Performance Tracking survey conducted by IPI, 45% of respondents increased their allocation to commodities, 31% increased real estate investments and 22% increased their holdings in private equity. In a forward-looking survey at the beginning of the year, 48% of investors said they planned to increase their investments in commodities and 45% said they planned to increase real estate holdings.

So far this year, ultra-high-net-worth investors also have increased their municipal bond holdings but decreased their investments in hedge funds and funds of funds. A year ago, hedge funds were holding their own, according to last year's IPI survey, and municipals were down 4% from 2010.

IPI is a subsidiary of Campden Wealth that provides investment education and networking resources for ultra-high-net-worth families. It has a membership of 345 families with a minimum of $30 million in assets, with 40% having assets of $200 million more.

Investment trends of ultra-high-net-worth families are important because they historically foreshadow trends in mainstream investing, according to IPI.

"This year's data reinforced the investment trends we have been seeing among the ultra-affluent as far as the rise in allocation to commodities and real estate, and the continuing popularity of direct investment in private companies," said Mindy Rosenthal, IPI executive director. "Families are also concerned universally about risk, both abroad and at home."

Of the 57 families that responded to the survey, 70% expressed concern about geopolitical risk and domestic policy. Also, 48% were concerned about finding opportunities for yield. The use of financial advisors continues to rise, with 62% saying they employ an advisor for managing more than half of their wealth.

The majority of IPI families reported returns of between -2.16% and +2.28% for 2011. The five-year average was up 2.4%. Families that sought principal protection fared better in 2011 than those that cited growth as their objective, with almost two-thirds of the former reporting positive returns. Of those seeking growth, not quite half saw positive returns.

-Karen DeMasters