TIGER 21 ups private equity allocation

Private equity investments maintain their appeal for members of TIGER 21, with the category gaining two percentage points from the previous quarter, according to the group’s latest Asset Allocation Report.

Read: Primer on private equity

The allocation increased to 22% during the second quarter of 2014, matching the record high it reached in the first quarter of 2013. Overall, private equity has experienced the most significant allocation increase since TIGER 21 began tracking members’ portfolio allocations in 2007.

Key takeaways from the report:

• Private Equity: Members’ exposure has increased from 9% in early 2008 to above 19% since the fourth quarter of 2012.
• Public Equity: A decrease of one percentage point over last quarter to 23%. It’s stayed in the 23% to 24% range for eight consecutive quarters. This asset class has only been below 20% for three quarters since the TIGER 21 report has been conducted.

Read: Careful: Canadian stocks near record highs

• Cash & Cash Equivalents: Up one percentage point in the second quarter to reach 11%. Average yearly allocations to cash and equivalents fluctuated between 10% and 11% for the last five quarters.
• Real Estate: Down one percentage point to 22%.

“There have been few surprises in the latest asset allocation reports. TIGER 21 Members have kept a considerable presence in public equities, but have shown a greater appreciation for private equity investments, particularly direct investments where they can create long-term value in companies,” said Thane Stenner, managing director of TIGER 21 Canada.

Read: How to invest in real estate

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.