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Featured Advisor



Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management

City:Northbrook

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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Where the Wealthy Invest Their Funds

Alternatives are making headway in the portfolios of wealthy investors, with special interest shown by younger investors. 

| BY Kent McDill

Alternative investments are gaining strength, but most very wealthy investors remain committed to placing investable funds in equities, a Spectrem study shows.

Spectrem’s study Asset Allocation, Portfolios and Primary Providers determines the details in the portfolios of affluent investors ranging in net worth from $100,000 up to $25 million. The extensive research looks into where the money is, where the money might end up in the future, and who is helping investors determine the best place for the money to go.

The investors are segmented into Mass Affluent (with a net worth between $100,000 and $1 million Not Including Primary Residence), Millionaire (with a net worth between $1 million and $5 million NIPR), and Ultra High Net Worth (with a net worth between $5 million and $25 million).

Examining the portfolios of Ultra High Net Worth investors, the Spectrem study shows that on average 68 percent of an investor’s net worth is comprised of investable assets, while 16 percent is invested in the principal residence. Less than 10 percent is invested in real estate, defined contribution, restricted stock, insurance, or privately held businesses.

Of the investable assets, almost 60 percent is placed in equities, while 21 percent is in fixed income products. Thirteen percent is in cash or liquid assets, while 5 percent is in alternative investments.

Equities is the largest portion of a UHNW investor’s portfolio, and a majority of UHNW investors are in the stock market. Eighty-four percent of investors own stocks, with 1.5 million invested on average. Almost 80 percent are invested in U.S. stock mutual funds, with $1.17 million invested.

A continued increase in the globalization of the investment market shows in the news that 53 percent of UHNW investors have a portion of their investable assets in international or foreign mutual funds to the tune of $419,000 per investor.

Alternatives are also a growing investment option, and 40 percent of UHNW investors have funds in domestic Exchanged Traded Funds, while 23 percent are invested in International Exchange Traded Funds. Almost one-third of investors have funds in individual international stocks.

The Spectrem study reveals that younger investors are more likely to spread their investable assets among all equity options.



About the Author


Kent McDill

kmcdill@spectrem.com

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.