The ultra-high net worth might not be so enamoured by alternative investments such as private equity and hedge funds as many believe, says a...

The ultra-high net worth might not be so enamoured by alternative investments such as private equity and hedge funds as many believe, says a survey by US Trust, the New York City-based wealth manager.

According to US Trust’s annual survey of affluent Americans, less than 20 per cent of ultra-HNWIs hold alternative investments, and that these assets form less than 5 per cent of typical affluent investor’s portfolio.

US Trust said most affluent investors worry that alternative investments are too risky, lack transparency, and require minimums that are too high.

Overall, the wealthiest Americans were more confident about the stock market in this year's survey than in last year's, said US Trust. An index that gauges investor expectations for the market jumped to 63, compared with a four-year low of 48 in 2005.

The survey questioned Americans with annual adjusted gross income exceeding $300,000, or net worth above $5.9 million. Ninety-one per cent of respondents said their investment portfolios had grown in the past year, compared to 81 per cent in 2005. Only 3 per cent said their portfolios had lost value.