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Quote of the Week: Equities and PE on the High Net Worth Radar

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December 19, 2013

“Over the longer term however, UHNWs and advisers clearly anticipate that equities will provide superior returns, led by emerging market stocks…followed by developed world equities, agricultural land, and private equity.”

 

Who said it: Ian Marsh, CEO Asset Management, Fleming Family & Partners

 

In Context: In an executive summary of a new report on where wealthy families are investing and why over the next 30 years, Ian Marsh of FF&P made this statement above. Later on the exact figures are presented with emerging market equity coming out on top with 24% and private equity coming in fourth at 16% (see graphic).

 

The report is entitled The World in 2043. Investing with a 30 year horizon may seem hard to grasp but FF&P is specialized in that kind of investment activity, which it calls “the management of long-term family wealth”. It is also an active PE investor with several new investments this year and some stellar exits, according to its website.

 

The report is based on a survey and interviews with ninety Ultra High Net Worths (UHNW)  and advisers, collectively representing over GBP 100 billion of net assets. The key takeaways were that 71% of identified “real capital preservation” as the greatest challenge and were quite consistent in their view of what threatened that goal, namely lack of strategic planning, fragmentation on inheritance, excessive risk taking, dispute and family breakdown, and Inflation/Taxation. Other findings: the super-wealthy like real estate as an investment; the majority believe that the US Dollar will remain the global reserve currency in 30 years, notwithstanding the US’s anticipated loss of economic pre-eminence to China. And London is expected to remain a leading financial centre for wealthy families, with 93% of the sample believing that it will continue to be one of the top three globally in 2043. (Images Source: FF&P)

 

Where we found it: FF&P Publications

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