TIGER 21: MEMBERS EYE REAL ESTATE, PRIVATE EQUITY
by Jackie Rapetti
Affluent investors are investing more into real estate and private equity, according to TIGER 21’s recently released Asset Allocation Report.
The study found that real estate and private equity remain popular investments among TIGER 21 members combining for nearly a third of members’ portfolios. “Members favor real estate and private equity because they are two asset classes that are not correlated to the market,” Jonathan Kempner, president of TIGER 21, told PAM.
“Just as important for members who have made their fortunes in the property market or in private investing is the adage ‚Äòfocus on what you know,'” said Kempner. “Members like to understand their investments and income-producing real estate and private equity,” he said.
Cash allocation levels were the highest ever recorded, at 14% in 2010, further indicating deep concerns about economic instability. Between cash and fixed income, members devote a third of their portfolios, indicating a vigilant approach to investing that appears to be the new norm.
“TIGER members still see a lot of risks in the marketplaces and the economy and the latest asset allocation reflects their greater concern to sleep well rather than eat well,” Kempner said.
TIGER 21, whose approximately 180 members throughout North America maintain investable assets in excess of $15 billion, collected member data measuring aggregate asset allocation exposures based upon members’ annual portfolio defense presentations.