Affluent US Investors Looking To Expand International Portfolios, Says Spectrem

by Philip Morton, Investors Offshore.com

11 May 2007

According to the results of a survey published by consulting firm Spectrem Group on Wednesday, two out of every five (40%) affluent US households (defined as having more than $500,000 in investable assets), say they are likely to invest or continue investing internationally.

The report, entitled "Meeting The Affluent Investors Needs Through International Investing", also revealed that nearly one-third (31%) say they are investing more internationally than in the past.

International investing is significantly more popular among the affluent than some other well-known alternative investments. By way of comparison, according to the Spectrem poll, just 8% of affluent households invest in hedge funds, 14% in venture capital, 15% in private placements and 27% in REITs.

"Many affluent investors today are looking to add international investments to their portfolios, far exceeding the number who invest in hedge funds, venture capital or private placements. The affluent view international investing as an 'alternative' approach, and in many cases are seeking more than just mutual funds to satisfy their global investment ambitions. For financial advisors, this suggests a need to provide affluent clients with a sense for how to invest internationally as well as where the best opportunities might be found," explained Catherine S. McBreen, Managing Director of Spectrem Group.

When the affluent were asked which countries or areas appealed to them most for investment purposes, the top responses were: China (30%), Europe (20%), Japan (12%) and India (11%).

The Spectrem Perspective report was based on a telephone survey conducted in early 2007 of 507 affluent US households.

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