Feedback from the Opal Family Office and Private Wealth Management Conference

Interesting responses from the attendees of this year's Opal Family Office and Private Wealth Conference in Newport, RI:

- More than half of respondents (55%) expect the investing environment to be choppy, with mostly sideways movement for the next 3-5 years.
- Income is considered very (46%) or somewhat (31%) important to respondents’ investment strategy.
- Three-in-four respondents (75%) consider alternative investments as strategic (defined as 10% or more) of their portfolio, while half (48%) consider them a primary component (30% or more).
- Four-in-five respondents (78%) expect to increase their allocation to alternatives over the next three years.
- Three-in-five (58%) of respondents have used alternatives specifically to generate income.
- Respondents said liquidity (31%), transparency (22%) and track record (22%) are factors that limit investing more in alternatives.
- When asked which alternative investment vehicle structures they would consider, respondents cited hedge funds (35%), structured product (21%), exchange traded funds (15%) and fund of funds (12%).
- Respondents said the following investments exhibit the greatest potential in the next few years; other alternatives (29%) real estate (23%), stocks (16%), venture capital (14%), commodities (12%), bonds (5%) and Treasuries (1%)
- Respondents expect their investing to change as follows; more direct investing (39%), more investing through managers (15%), and more co-investing with other family offices (14%).
- Economic headwinds causing the most worries; the European debt crisis (24%), global economic slowdown (21%), U.S. Presidential election (19%) and U.S. recession (11%).