wealthy britons seek shelter in property

Added 13th October 2011

The UK's millionaires have around one third of their cash in property and look set to increase their holdings in the asset class over the next six months.

wealthy britons seek shelter in property

The survey found that many respondents are employing a multi-asset approach, with a particular emphasis on property.

About two-thirds of those polled said the global economic crisis had “changed their expectations for future investment returns”, Skandia revealed.

Over the next 12 months, 46% predicted that the economic situation in the UK would worsen, compared with 35% who said it would improve.

As a result, millionaires are spreading their money across a mix of investments in an attempt to diversify risk, the survey found. Property accounted for about one-third of respondents’ portfolios, followed by cash (19.3%), shares (15.9%) and managed investment funds (14.2%).

Looking ahead, wealthy individuals are likely to continue their “love affair” with property. One-third of respondents plan to increase their investment in property over the next six months.

Graham Bentley, the head of investment strategy at Skandia, commented: “People might assume that a lot of millionaire wealth is ‘old money’ and hence it would be natural for a lot of it to be tied up in property. However, that is not the case.

“Nearly half of millionaires say their wealth has been earned from employment income, with only 14% having inherited it. This shows that property is genuinely an investment that millionaires feel comfortable with, and this looks set to continue.”

The full Millionaire Monitor report can be accessed via Skandia's website.

Sponsors

Portfolio Adviser: Guide to Europe

Portfolio Adviser: Guide to Europe

After a politically turbulent time in 2016, Europe has been under scrutiny with several nations going to the polls.The question asked, would investors be right to...

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Income 2017
PA Income 2017

Tuesday 4 July
Radisson Blu Edwardian Bloomsbury Street Hotel 

PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

Sponsored Content

OTHER STORIES FROM LAST WORD...