Elite Investors Still Cautious, Survey Says
Tiger 21 is "for the person who has everything except someone to discuss it with," wrote the New York Times of the elite ultra-high-net-worth peer-to-peer learning network-the full name is The Investment Group for Enhanced Returns-whose about 170 members are mostly entrepreneurs with collective investable assets exceeding $15 billion.

A member survey just released shows that while Tiger 21 member allocation to some investment categories has reverted to 2008 levels, portfolios in general have not returned to the allocations seen before the economic downturn and that certain shifts by members may be long term. These results reflect "a continued concern" of the overall health of the world economy, according to the survey.

"The report shows that we have a prudent membership that does not make drastic changes to their holdings. Rather they make informed decisions that best position their portfolios for the long haul," said Michael Sonnenfeldt, chairman and founder of TIGER 21. The organization holds monthly meetings in various U.S. cities (groups are also forming in Canada) to discuss a range of estate planning, wealth preservation and "lifestyle" issues. Entrepreneurs (two-thirds of membership) are joined by Wall Street professionals, money managers and corporate executives.

The snapshot of how America's affluent investors position their portfolios for wealth preservation compares Tiger 21 members' aggregate asset allocation over a two-year period, and represents investment exposure based upon their portfolio defense presentations as of the fourth quarter of 2010. According to the report, real estate investments at 23% and private equity investments at 9% combine for nearly a third of members' portfolios (a large proportion of TIGER 21 Members have expertise in these two areas). Allocation to hedge funds, which increased four percentage points between 2008 and 2009, remained steady over the past year at 9%. Before the downturn, members' hedge fund allocation was in the 10-12% range.

Member exposure to public equity at 21% remains low compared with a historical range of 30% to 35% range. Public equity exposure stood at 31% towards the end of 2008. "Some members may now perceive additional opportunities for alternative investments to outperform the public markets," said Sonnenfeldt, adding that members remain wary about the extent and permanence of the recession's recovery.

The survey also shows that from 2008 to 2009, member allocation in cash holdings and cash equivalents increased by three percentage points and remains at historically high levels (currently 14%). Previous Tiger 21 surveys indicated that members were living on about 3% of assets when their total sources of income were passive investment returns and a 12% cash allocation was a reserve of four years of expenses, said Sonnenfeldt. "Now with members tightening their belts, and with living expenses suggested at just over 2% of assets, a 14% cash allocation is really a reserve of more than five years of expenses, which is still at an historic high." For access to the full report, click here.

In other news ...

Single-family offices can reduce their costs by simplifying the complexity of their work-with complexity being the single largest driver of cost, according to a new study by Family Office Exchange (FOX), which provides research, education and networking support to wealth owners, family office executives, and wealth advisory firms. "The key is to learn to distinguish between necessary and unnecessary complexity in order to maintain service quality while eliminating inefficiency," noted Leslie Voth, president and COO of Pitcairn, a multifamily office and FOX member which co-sponsored the study, "The Cost of Complexity: Understanding Family Office Costs." Go to www.familyoffice.com/complexity for further information.

Global IPO market activity is off to a record start in the first two months of 2011, with $25.3 billion raised in 193 deals, according to Ernst & Young's Global IPO trends report 2011, which highlights the market outlook for IPO markets in 2011 and analyzes the key trends of 2010, including the perspectives of some of the world's top investment bankers. Go to www.ey.com for further information.

Research and Markets, headquartered in Dublin, Ireland, has added Australia to its wealth market database. The "Australia Regional Wealth Markets Database 2010" sizes the potential affluent client base across all the states and territories of Australia, presenting the number of individuals and the aggregate onshore liquid assets they hold, from 2005 to 2009 and forecasted to 2014. Highlights include New South Wales, said by Research and Markets to be critical to players in the private banking and HNW market (the state accounts for 40.5% of individuals with more than $1 million in liquid wealth, which is significantly more than their population would suggest). For further information about the database, go to www.researchandmarkets.com/research/bead1e/australia_regional.

Early estimates (based on 72% of assets in the index reporting as of March 8) indicate the Dow Jones Credit Suisse Hedge Fund Index ("Broad Index") continued to rally in February, up an estimated 1.44% for the month and representing positive performance for the second consecutive month in 2011. Managed futures hedge funds finished up 2.56%; the event driven space was up 1.59%; and global macro finished February up 1.26%. Go to www.djindexes.com for more information.

Returns for the Credit Suisse Liquid Alternative Beta Index, which aims to reflect the return of the overall hedge fund industry, have hedge funds up 1.60% for the month of February, according to Jordan Drachman, head of research for Alternative Beta Strategies at Credit Suisse. The LAB Event Driven Liquid Index (one of four LAB sector indices) was the best performer in February (+2.08%), bringing year-to date returns to 3.35%. Go to www.credit-suisse.com for further information.

A recent Barclays Wealth report said that despite Middle East turmoil, the investing environment there remains "benign-for now." The company's investment calls for March include: Consider adding exposure to higher energy prices and equity market volatility to hedge political risk; hold more developed equities than usual to benefit from continuing global, non-inflationary growth; use setbacks to shift portfolios in this direction; and retain a small overweight in high-quality government bonds as portfolio insurance. Go to www.barclayswealthamericas.com for further information.

A new Harris Interactive poll-the research company's first to be conducted in Asia-shows that when it comes to how optimistic people are about their own country's economy over the next ten years, strong majorities of adults in China (81%), Hong Kong (72%), Singapore (70%), and India (63%) are optimistic compared to just half of Americans (49%). As for which economy people believe will be the most influential in ten years, China is the top choice for Hong Kong residents (87%), the Chinese (85%) and Singaporeans (75%); 80% of Indians believe India will be most influential. Americans are more divided, with 49% saying it will be China and 39% choosing the U.S. Go to www.harrisinteractive.com for further information.

The Epiphany Large Cap Core Equity fund that Dana Investment Advisors sub-advises has been renamed the Dana Large Cap Core Fund. As of February 28, the fund has returned 34.75% since inception, outperforming the S&P 500 benchmark index return of 21.34%, according to the Brookfield, Wis.-based firm. The Epiphany name will carry on in two other sub-advised funds, which promote strong social, faith and family values.

The vast majority of consumers say they trust their own financial planner, according to the First Command Financial Behaviors Index, with data compiled by Sentient Decision Science, LLC. The trust is attributable to a variety of factors, including personal relationship (23% of those surveyed); good service (16%); honesty (13%); knowledge (9%); and good advice (9%). While 78% trust financial planners in general, just 27% trust the industry. Go to www.firstcommand.com/research for further information.


The 18th Annual CFO Rising Conference & Exposition will be held March 13-16 in Orlando, Fla. Go to www.cfo.com/conferences for further information.

The 13th Annual Credit Suisse Global Services Conference will be held March 15 at The Phoenician in Scottsdale, Ariz. Go to www.credit-suisse.com/us for further information. 

The Sidoti & Company Fifteenth Annual Emerging Growth Investor Forum will be held March 22-23 at The Grand Hyatt Hotel in New York. For information go to www.sidoti.com or e-mail [email protected].

The RioInvestment 2011 Summit, originally scheduled for March 22-24 at the Bolsa do Rio Convention Center in Rio de Janeiro, has been postponed until the second semester of 2011. For event information and updates, go to www.infocastinc.com/rioinvest.

The AIP 2011 Conference on Philanthropy will be held April 28-29 at the Intercontinental Chicago O'Hare in Rosemont, Ill. For information and to register, go to www.advisorsinphilanthropy.org or call The International Association of Advisors in Philanthropy at 888-597-6575.

SPIEF 2011: Emerging Leadership for a New Era
will be held in St. Petersburg, Russia June 16-18. The event, which attracts delegates from all over the world including eminent politicians and entrepreneurs, is held annually with the support and participation of the President of the Russian Federation. For information about the St. Petersburg International Forum go to www.forumspb.com or e-mail [email protected].

The PPP Investment Summit Kuwait will be held May 8-11 at Hilton Resorts Kuwait City in Kuwait. Go to www.pppkuwait.com for further information.

On The Move

Philip Hill, former senior vice president and portfolio manager for U.S. Trust, has joined First Republic Private Wealth Management, the investment management, trust and brokerage group of First Republic Bank, as portfolio manager and managing director at the firm's San Francisco office.

Rachele Cawaring, a former financial advisor with Merrill Lynch and Charles Schwab, and most recently the owner of Cawaring Financial Planning, has joined Clark Nuber as director of financial planning in the firm's tax services group. Based in Bellevue, Wash., Clark Nuber provides services for clients that include high-net-worth individuals and not-for-profit organizations.

Entrust Northeast of Roseland, N.J., has changed its name to Next Generation TS LLC. The move was made when Entrust cofounders Jaime Raskulinecz, CEO, and Linda Varas, principal, decided to go independent and part ways with the former licensor in order to have full control of the self-directed retirement business. Next Generation Trust Services' new Web site is www.NextGenerationTrust.com.

Lyle LaMothe, head of Bank of America Corp.'s U.S wealth-management unit, is retiring after 24 years at Merrill Lynch. He will remain at the brokerage until May 1. The bank did not name a successor in the memo the company circulated internally last week.

Cambridge Trust Company of New Hampshire, a subsidiary of Cambridge Bancorp, has appointed Maureen Kelliher as senior vice president and investment officer, based in the Exeter, N.H., office. Kelliher was formerly a senior vice president of Citizens Bank and CIO of Charter Trust Company.

Jennings Insurance Agency has joined the Oregon office of San Francisco-based Woodruff-Sawyer & Co., enhancing Woodruff's expertise in the private-client risk management services it provides for high net-worth individuals and their families. Jennings Insurance will retain its company name and continue to be based in Lake Oswego, Ore.

Forward Management LLC, a privately-held asset management firm based in San Francisco, has hired David Readerman to help accelerate the firm's development of alternative investment products. Readerman, a former analyst at Marsico, will be lead portfolio manager for a global "go-anywhere" equity strategy at Forward, and will serve as co-portfolio manager of the Forward Small Cap Equity Fund.

U.S. Trust has hired 14 wealth management executives to serve the company's ultra-high-net-worth clientele. The appointees are: Dino Aloisio, senior vice president and Private Client advisor, Los Angeles; John Benun, senior vice president and Private Client advisor, Century City, Calif.; Donna Botkin, senior vice president and senior trust officer, St. Louis, Mo.; Tyler Brock, vice president and Private Client consultant, San Francisco; Warren S. Cohn, senior vice president and Private Client advisor, Century City, Calif.; John M. Corby, senior vice president and senior portfolio manager, Seattle; Jon Hearn, senior vice president and Private Client advisor, Bellevue, Wash.; Mark Kessinger, senior vice president and portfolio manager, St. Louis; Elizabeth Kurman, vice president and senior trust officer, Chicago; Teresa Meyer, senior vice president and portfolio manager, Portland, Ore.; Christopher Robinson, senior vice president and Private Client advisor, Portland, Me; Jeff Scofield, senior vice president and Private Client advisor, Pasadena, Calif.; George D. Smith, Jr., senior vice president and portfolio manager, Nashville, Tn.; Margaret A. Zywicz, senior trust officer and fiduciary professional, San Francisco.

PFGBEST, a non-clearing U.S. Futures Commission merchant based in Cedar Falls, Iowa, has established a new division called the PFGBEST Wealth Management Group in order to provide clients with alternative investment strategies.

ClearStream Investments LLC, formerly GMB Capital Management, an investment management firm focused on alternative strategies, has formed an advisory board to provide strategic advice to the firm's executive management. In addition to ClearStream's CEO Rohit Vohra and co-founders Dr. Gabriel Bitran and Marco Bitran, outside advisory board members include John Goldsmith, former executive at Tucker Anthony Sutro; Andrew Parsons, director emeritus of McKinsey and Company Inc.; Paul Karger, co-founder and Managing Partner of TwinFocus Capital Partner; and Daniel C. Gusenoff, founder of Gusenoff Law, LLC, in Newton, Mass.

-Cort Smith