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 and municipals were down 4% from 2010.
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.
-Karen DeMasters