Survey reveals preferences of Middle East based investors
(10/2/2004)
A Citigroup Private Bank survey of the investment strategies used by ultra-high-net-worth individuals has found that distinct regional preferences exist in the investment behaviour of the wealthy.
The Citigroup Survey of the World`s Wealthiest Families: Wealth Management Attitudes and Perspectives questioned the most affluent investors in the world on their views on how they manage their wealth, their investment priorities and their risk profiles. The survey is a compilation of findings from detailed interviews with individual investors in the US, Latin America, Europe, the Middle East and the Asia Pacific Region.
Among the key findings, it was revealed that US investors have the strongest demand for, and knowledge of, alternative products in comparison to investors from other regions, whereas Europeans have become increasingly interested in ?hard assets? such as art or real estate.
Investors in the Middle East also have a preference for real estate, but also attempt to seek out capital protected products, whereas investors in Asia Pacific region are increasingly looking at local investment opportunities.
However, the survey found that ultra-affluent investors the world over remain susceptible to the same common mistakes as the wider investment community, such as chasing riskier short-term performance with regards to both asset class and investment managers.
David Rosenberg, Head of Investment Solutions at The Citigroup Private Bank, observed: ?The survey highlighted what we believe is a real need for investors to look at their asset allocation holistically and better understand the risks that may be present.`
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