SOURCE: Cambridge Associates

Cambridge Associates

May 17, 2010 09:30 ET

Expert Available: Portfolio Concerns of the Ultra High Net Worth Individuals; Two Biggest Concerns for Wealthy Families: Missed Investment Opportunities and Potential Over-Exposure to Specific Risks, According to Cambridge Associates Survey of Clients

Concerns of Private Clients and Family Offices Diverge From Those of Endowed Non-Profits, Which Are More Concerned With Increased Portfolio Complexity and Resources Required for Overseeing Portfolios

BOSTON, MA--(Marketwire - May 17, 2010) -  In the aftermath of the financial crisis, high net worth individuals and families are most concerned about missing investment opportunities and potential over-exposure to specific risks. Meanwhile, the main concerns of endowed institutions are increased portfolio complexity and the time required to oversee portfolios.

Those are insights from a recent Cambridge Associates LLC survey of over 400 clients, including private clients (individuals and families) and family offices. The median asset size of the private client/family office group was $149.9 million and the mean was $418.6 million. Cambridge Associates is a provider of independent investment advice and research to institutional investors and private clients around the world. (The firm does not offer investment products; it provides investment consulting, outsourced portfolio solutions, independent research and performance monitoring tools across all asset classes.)

"During 2009, it appears that high net worth families were most concerned about missing investment opportunities and also wanted to make sure they understood the true risks in their portfolios. In addition, they expressed a desire to learn and stay abreast of investment issues; and therefore, had higher levels of interest in educational forums, workshops and webinars, as well as for stepped-up risk measures across portfolios," said Lindsey Brace Martinez, Cambridge Associates' Director of Global Client Service and Relations.

She added, "Non-profit institutions shared many of the same concerns and desires, but they were significantly more concerned about the increased complexity of their portfolios and the resources required to oversee them."

Ms. Martinez is available to elaborate on the insights and engage in a conversation on...

  • What affluent families are concerned about...
    • 49% are concerned about missing investment opportunities.
    • 43% are concerned about potential over-exposure to specific risks.
    • 43% are concerned about liquidity constraints.
    • 40% are concerned about the risk of significant issues with portfolio managers.
  • What affluent families want in the aftermath of the financial crisis...
    • 55% want more risk exposure analytics across the portfolio.
    • 41% want more topical webinars and conference calls.
    • 37% want more currency management.
    • 35% want more client forums and educational workshops.
  • How affluent families felt about their investment performance during 2009...
    • Three-quarters (76%) were at least somewhat satisfied, despite the market challenges of the past year.
  • What endowed non-profit institutions are concerned about... 
    • 50% are also concerned about missing investment opportunities.
    • 43% are concerned about the increase in portfolio complexity (compared with only 18% of affluent families).
    • 42% are concerned about potential overexposure to specific risks.
    • 36% are concerned about liquidity constraints.
    • 36% are concerned about risk of significant issues with portfolio managers.
    • 35% are concerned about the growing time commitment required to oversee the portfolio (compared with only 23% of affluent families).
    • 26% are concerned about insufficient internal resources.

To arrange a conversation with Ms. Martinez at Cambridge Associates, please contact Itay Engelman at Sommerfield Communications, Inc. at 212-255-8386 or iengelman@sommerfield.com.

About the Cambridge Associates Client Research

Nearly 400 clients, including 68 private clients, participated in the Cambridge Associates Client Research Survey. The survey was conducted by an independent third-party, Forbes Consulting Group, in September of 2009. This is the second client survey administered by Cambridge Associates, with the prior having been administered in the Fall of 2007.

About Cambridge Associates

Founded in 1973, Cambridge Associates LLC is a provider of independent investment advice and research to more than 800 institutional investors and private clients worldwide. The firm delivers a range of services including investment consulting, outsourced portfolio solutions, independent research, and performance monitoring and tools across all asset classes. The firm also produces proprietary private equity and venture capital benchmarks which are widely regarded as the industry standard for these asset classes. Cambridge Associates has 950 employees and offices in Arlington, VA; Boston; Dallas; Menlo Park, CA; London; Singapore, and Sydney, Australia. Cambridge Associates is recognized as a thought leader, innovator and advocate for institutional investors. For more information about Cambridge Associates, please visit www.cambridgeassociates.com.

Contact Information