Rich people keep passion investing
A survey by Merrill Lynch Global Wealth Management and CapGemini found that the population of high net worth individuals (HNWI), with net assets of at least $1 million, fell 14.9 percent in 2008 from the year before. The population of ultra high net worth individuals, with net assets of at least $30 million, fell 24.6 percent.
Luxury collectibles, which include automobiles, boats and jets, remained the most preferred choice of “passion” investments, representing 27 percent of the portfolio last year, compared with 26 percent the year before.
Art collections rose to 25 percent of the passion portfolio from 20 percent in 2007 while jewellery, gems and watches rose to 22 percent from 18 percent as alternative flight-to-safety investments.
Sports investments, including sports teams, sailing and race horses, rose to 7 percent from 6 percent while miscellaneous — which include club memberships, travel, guns and musical instruments — more than halved to 7 percent.