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Alternative Market Briefing

Survey of Australian HNWIs finds support for alternatives

Tuesday, June 08, 2010

From the Opalesque team:

According to Damien Hatfield and David Chin from Triple A Partners Australia, a firm that provides alternative investment intelligence and market research, an online survey of over 1,600 Australian high-net-worth investors (HNWIs) found that they are opening up to the world of alternatives. The survey was conducted by Investment Trends on behalf of financial planning firm Centric Wealth between November 2009 and January 2010. Here are the findings they listed in their monthly newsletter yesterday:

1. 53% held some form of alternative investment, averaging around 6% of all HNWIs assets overall.

2. Investments out of favour post-crisis (GFC) include agribusiness and mortgage trusts. HNWIs would now be comfortable allocating up to 12% of their portfolios to non-mainstream assets.

3. 7% to 8% of investors are evaluating investments in ETFs, commodity funds and CFDs.

4. Less (14%) are keeping cash, compared to 40% in December 2008. And more (52%) are buying undervalued assets on an opportunistic basis, compared to 42% in Dec-2008.

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