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.)

Advertisements
%d bloggers like this: