Tags: Barclays | Wealthy | Shun | Hedge | Funds | Derivatives

Barclays: Wealthy Shun Hedge Funds, Derivatives in Favor of Stocks, Real Estate

By    |   Tuesday, 15 Jun 2010 09:10 AM

Wealthy investors around the world are avoiding risky assets like hedge funds and derivatives and are instead choosing more conservative stocks and real estate.

That’s according to a Barclays Wealth Survey of more than 2,000 people around the globe with a net worth of at least 1 million pounds ($1.46 million).

“Lower risk and an increased focus on wealth preservation are top priorities for U.S. high net worth investors,” Matthew Brady, head of Barclays wealth advisory group for the Americas, said in a statement.

A hefty 60 percent of respondents say the global economic downturn made them more concerned about wealth preservation, and 47 percent say they are avoiding high-risk investments more than they were before the recession.

"The sustained uncertainty around the prospects and timing of the global economic recovery is causing investors to favor the familiar and perceived less complex asset classes of equities and property,” Brady said.

Of U.S. respondents, 49 percent believe the U.S. economy will deteriorate for at least the next year, and 60 percent say the economic slump has made them trust the government less.

Some experts say investors are smart to look at real estate now.

Wall Street Journal columnist James Stewart recently wrote, “One strategy (I followed) was to add exposure to commercial real estate, a sector I recently concluded showed promise, by buying a diversified exchange-traded fund, Vanguard REIT Index Fund.”

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Wealthy investors around the world are avoiding risky assets like hedge funds and derivatives and are instead choosing more conservative stocks and real estate. That s according to a Barclays Wealth Survey of more than 2,000 people around the globe with a net worth of at...
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2010-10-15
Tuesday, 15 Jun 2010 09:10 AM
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