HNW investors ‘optimistic and hungry’ according to UBS

High net worth individuals and business owners globally are optimistic and looking for opportunities to invest as markets rebound in 2019, according to a new survey by UBS. The firm’s quarterly Investor Sentiment survey, which polled more than 3,600 wealthy investors and entrepreneurs in 17 countries, pointed to a rebound in bullish sentiment in the first three months of 2019 as markets recovered from the late- 2018 slump. While respondents held a large proportion of their assets in cash, many expressed willingness to invest it, results showed.51% of investor respondents were said to be optimistic on the global economy versus 21% who were pessimistic. Business owners were especially positive, with 62% optimistic and 15% pessimistic. Even more – 60% of investors and 68% of business owners – expressed optimism on their own region’s economy.Investors were also bullish on stocks, with 56% expressing optimism on stocks in their own regions versus 49% on stocks globally. Meanwhile, 74% saw recent market volatility as an investment opportunity, compared with 67% who were still concerned about volatility witnessed in the fourth quarter of last year. 42% of investors planned to invest more in the next six months versus 17% who planned to invest less. Sustainable investing was also cited as a growing interest, making up 27% of portfolios as opposed to 22% five years ago.Globally, 74% of business owners were optimistic on their business; 37% planned to invest more versus 10% who planned to invest less; and 31% intended to hire more over the next 12 months as opposed to 12% who intended to downsize.On the negative side, investors expressed worries about domestic issues. Some 44% cited their country's politics as a top concern and 40% cited their national debt.Investors’ cash holdings also remained high. On average, 32% of portfolios globally were allocated to cash. US and Swiss investors' cash holdings were lower (23% and 31%, respectively). Holdings in both Asia and Latin America were 36%. In Europe, they were 35%. However, US investors were also least likely to invest more, at 26% of respondents, while Latin American and Asian investors were the most likely, at 66% and 54%, respectively.Paula Polito, client strategy officer at UBS Global Wealth Management, said: “Cash is a safe asset for a liquidity strategy but a risky one for longevity. “Right now, we see high levels of cash globally. “This is a good time for investors to consider a more diversified portfolio.”Christian Wiesendanger, head of investment platforms and solutions at UBS Global Wealth Management, said: “We have seen significant investor interest in multi-asset mandates and other diversified solutions as markets recover. “Most recently, our 100% sustainable cross-asset portfolio surpassed $5bn in assets globally. “Investors should continue to look past their favoured asset classes and countries for opportunities as the global business cycle advances.”

HNW investors ‘optimistic and hungry’ according to UBS

Related items