TIGER 21 releases Q2 allocation

TIGER 21 has released its latest asset allocation report, providing a snapshot of how an important segment of North America’s affluent investors position their portfolios for wealth preservation. The report represents investment exposure as of the end of the second quarter of 2013.

Read: TIGER 21 beefs up private equity allocation

Key out-takes from the latest report include a pausing of trending movements in private equity and real estate. While there were no drastic changes in allocation, the largest shifts were in private equity, real estate and cash.

Allocations to cash and cash equivalents decreased 2 percentage points from 12% in the first quarter of 2013 to 10% in the second quarter. The 10% allocation marks the lowest allocation to cash by members since the third quarter of 2008.

Real Estate allocation increased from 19% in the first quarter of 2013 to 21% in the second quarter – after either remaining flat or declining for five consecutive quarters.

Private equity allocation decreased to 20%, a decline of 2 percentage points from the first quarter of 2013, yet still 2 percentage points above its second quarter 2012 mark of 18%.

Read: Big names explain outlook at TIGER 21 event

“The reverse in the private equity numbers certainly does not indicate a disfavor by Members with that asset class. It still makes up a significant portion of Members’ portfolios, and is 11 percentage points higher than the low of 9% that was recorded in the fourth quarter of 2010.

“Rather, as prudent investors, TIGER 21 Members hold a cautiously optimistic view of equities in general and slight shifts in allocation can be expected as some investments mature and members evaluate new opportunities,” said Thane Stenner, managing director and founding member of TIGER 21 Canada.

“Likewise, we are not surprised to see a real estate allocation number of 21%. Combined with public and private equities, real estate comprises roughly 60% of Members’ portfolios. It is as important asset class and one that many of our members have significant experience in,” added Stenner.

TIGER 21 includes a cross-section of serial entrepreneurs, Wall Street professionals, money managers and corporate executives who meet monthly in small group settings to share investment ideas and personal experiences.

Read: TIGER 21 names Vancouver co-chairs

Staff

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