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Written by: The deVere Group
Three quarters of high-net-worth individuals aim to increase contributions to their investment portfolios in the first half of 2016, according to a new global survey.
76% of clients contacted by deVere Group , one of the world’s largest independent financial advisory organisations, answered ‘yes’ when asked “Do you intend to invest more in the first six months of 2016?”
A low 14% responded ‘no’ and the remaining 10% did not yet know.
deVere Group polled 767 people in January 2016 who had investable finance assets of £1m (or equivalent) or more from countries including the UK, the U.S., Australia, the UAE, Qatar, Hong Kong, South Africa and Switzerland.
Nigel Green, founder and CEO of deVere Group, commented on the findings: “The results of this poll clearly show high-net-worth individuals now have a strong appetite to use the cash that they have held in reserve to top up and diversify their investment portfolios”.
Green believes the study overwhelmingly establishes that individuals are aware of the opportunities to buy high quality equities at the prices they want to pay. He added, “They are seeing more favourable choices to boost their portfolios for the longer-term”.
He believes it is a stable investment tactic to put new cash to use in the market whilst prices are relatively low. He continues, “Capitalising like this on the attractive long-term performance of stock markets is a time-honoured way that investors can successfully build wealth”.
He adds: “No-one can predict exactly what the markets will do in the immediate future and it’s too early to say if this is or isn’t the bottom of the market. But our poll suggests that high-net-worth investors believe that it is close to the bottom and that there are major buying opportunities.”
The deVere CEO concludes: “It would appear that many high-net-worth individuals kept their powder dry during 2015, as the markets rose then fell and as we braced ourselves for the first Fed rate hike in almost a decade. But any qualms they might have had last year are now countered by more attractive prices”.
The survey found clients are distancing themselves from the preservation approach by expanding their investment portfolios, the correct attitude to risk management, backed up by decades of financial market data.