Surveys sees “mass-affluent” upping investments

FWR Staff

17 April 2006

Research firm sees signs of investor confidence in new numbers. The rich are loosening up. A new survey by Phoenix Marketing International suggests that an increasing number of affluent households will increase their investments in the next three months, continuing an upward trend that began in August 2005.

According to the report, 42% of the 1,100 affluent households surveyed will make net increases to their investment portfolios, up from 38% in February 2005.

By “affluent” Rhinebeck, N.Y.-based Phoenix Marketing means households with at least $250,000 in investable assets or $150,000 in annual household income.

“Affluent consumers, a highly risk averse group, are showing signs of confidence in the economy as they move their money back into the stock market," says David Thompson, head of Phoenix Marketing’s affluent practice. "This continued momentum is an excellent opportunity for financial planners to expand and diversify their customers' portfolios.”

Those report also indicates the asset classes respondents said they would increase and by how much. Retirement accounts: 70% are likely to increase positions Deposit accounts: 62 %are likely to increase Mutual funds: 46% are likely to increase Stocks: 42% are likely to increase Fixed income: 13% are likely to increase Business investments: 11% are likely to increase Real estate: 21% are likely to increase Alternative investments: 3% are likely to increase

The majority of households – 53% –said they would be making no changes to their portfolios, and only four per cent said they would decrease their holdings. –FWR