June 28, 2010

Hedging Millionaires Buy Jets, Art, Bling, Give Less to Charity

Posted in Philanthropy at 4:53 pm by philanthropynews

By Katya Kazakina

As millionaires’ assets rebounded in 2009, they put more money in tangibles such as art, jets and gems, according to a report released this week by Capgemini SA and Merrill Lynch & Co.

“It was such a severe crisis, the investor psyche has really shifted,” said Ileana van der Linde, the Capgemini principal who managed the research, in a phone interview. “They don’t fully trust the financial markets and regulatory bodies. That’s why we are seeing a trend toward putting money into tangible assets like art and gold.”

Almost 30 percent of the world’s millionaires withdrew their assets or left wealth-management firms in 2008, when the Standard & Poor’s 500 Index dropped 38 percent, according to an earlier survey by Capgemini and Merrill. The index has gained 22 percent in the past 12 months.

(Read more via Bloomberg News.)

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