“Multi-millionaires’ reactions to global events, such as the US presidential election, may not be agile enough. Fewer than 20% of them reviewed their portfolio and made adjustments accordingly under volatile market conditions,” the survey report said.
About 90% of the respondents made no changes in their bond and stock investments after the US presidential election last November, according to the survey.
The biggest adjustment was in foreign currencies other than the US dollar. About 17% of respondents said they had reduced their exposure.
The number of Hong Kong’s multi-millionaires, defined as those who possess over HK$10 million in liquid assets, was 59,000 in 2016, the same number as the previous year. Their median total liquid assets was HK$20m (HK$18m in 2015), according to the survey.
Increasing diversification
The survey showed that in 2016, Hong Kong multi-millionaires had more diversified portfolios, with a higher number of investment products compared to 2015.
Notably, the respondents indicated a greater interest in forex, mutual funds, bonds and Hong Kong dollar time deposits: 79% said they invested in forex and 71% in mutual funds in 2016, compared to 57% and 53%, respectively, a year earlier.
Half of the respondents said they had bonds in their portfolios in 2016, versus only 24% in 2015.
The survey found that Hong Kong’s multi-millionaires invested 18% of their assets in mutual funds, with a strong home bias.
Hong Kong domestic market accounted for 85% of their assets, while 10% were invested overseas and 5% in China.
Also last year, 53% of multi-millionaire respondents in Hong Kong said they made portfolio gains, 26% had a loss and 22% broke even.
Liquid asset allocation among millionaires
|
2016 |
2015 |
|
|
Cash and deposits |
36% |
45% |
|
Stocks |
27% |
30% |
|
Mutual funds |
18% |
15% |
|
Bonds |
12% |
8% |
|
Others |
7% |
2% |
Source: Citi
