PHILADELPHIA, Nov. 16, 2010 /PRNewswire/ -- Nearly half of
affluent investors are comfortable with their own financial
situations but are more pessimistic about the outlook for the U.S.
economy and the stock market during the next six months, according
to survey findings by PNC Wealth Management, a member of The PNC
Financial Services Group, Inc. (NYSE: PNC).
While 47 percent are optimistic and just 16 percent pessimistic
about their own investment decisions as reflected in their
portfolios, one-third (34 percent) are negative about the prospects
of the stock market and 57 percent have a gloomy outlook for the
economy in the next six months. Their mood is significantly darker
than a year ago when just 47 percent had a negative outlook heading
into 2010.
Yet according to the seventh annual Wealth and Values Survey
Investors' Outlook, the wealthy are ambivalent about the
results provided them by their financial institutions during the
market upheaval.
Asked to assign a letter grade to their financial institution,
44 percent give a "C", saying they "didn't make much of a
difference one way or another." Meanwhile, 31 percent responded
with a "B", saying "they helped some but could have done more."
Only one in 10 (11 percent) feel their financial institution's
actions were personally harmful in some respect and rate it either
a "D" or an "F". Just 15 percent said their advisors "really made a
huge positive difference," or an "A", according to the survey of
1,097 affluent individuals, all of whom have at least $500,000 in investible assets.
"This should serve as a wake-up call in the financial advisory
business," said Thomas P. Melcher,
executive vice president and managing director of Hawthorn, the
division of PNC Wealth Management that serves clients with
$20 million or more in investable
assets. "These results clearly tell us that most wealthy investors
are willing to listen to a provider who has a better story and that
managing wealth is more than managing their investments. They want
someone to help them. But whoever helps them is going to have to
work."
The survey indicated that three quarters (74 percent) also
expect greater transparency from their financial institutions and
more than half (57 percent) want more comprehensive wealth
management solutions, while 43 percent are looking for more
attention from their financial advisors.
The Wealth and Values Survey by PNC, which is among the
nation's top 20 wealth management firms, also revealed insights
about the following issues:
- Market Fears: The impact of the stock market volatility
is palpable, as half of affluent Americans (48 percent) indicate
they remain more apprehensive about investing than they were before
the recession, while only 7 percent express greater confidence than
before. The largest proportion – 44 percent, up from 32 percent
last year – assert that the recession has not affected their
investing approach. Yet they continue to be more optimistic
about their personal portfolios, with almost half (47 percent)
optimistic and fewer than two in 10 (16 percent) pessimistic.
- Risk Tolerance: Investors' taste for risk has changed
little in the last year. Most affluent Americans (42 percent)
describe themselves as seeking balance between growth and stability
in their investing; the one-quarter (23 percent) who describe
themselves as more conservative is identical to the proportion
describing themselves that way a year ago.
- Asset allocation models: More than half (54 percent)
remain confident in current asset allocation models, while nearly
one-third (30 percent) are uncertain about that approach to
investing. However 15 percent believe that "these models haven't
worked and new models are needed."
An online media kit containing survey highlights and background
information are available on PNC's website at
http://www.pnc.com/go/presskits.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of
the nation's largest diversified financial services organizations
providing retail and business banking; residential mortgage
banking; specialized services for corporations and government
entities, including corporate banking, real estate finance and
asset-based lending; wealth management and asset management. Follow
@PNCNews on Twitter for breaking news, updates and
announcements from PNC.
Survey Methodology
The Wealth and Values Survey was commissioned by PNC to
identify attitudes about wealth among high-net-worth individuals,
how it affects their lives and their needs in managing wealth. The
survey was conducted online within the
United States in September and October 2010 among a nationwide cross section of
1,097 adults (age 18 or over) with over $500K in investable assets
and a minimum annual income of $150K (if less than $1 million in investable assets and not retired).
Findings are significant at the 95 percent confidence level
with a margin of error of +/- 3.0 percent.
The survey was designed and managed by HNW, Inc. (www.hnw.com),
a strategic marketing services firm focused on the high net worth
segment. The survey was supported by Artemis Strategy Group
(www.ArtemisSG.com), a communications strategy research firm
specializing in brand positioning and policy issues.
This report has been prepared for general informational purposes
only and is not intended as specific advice or recommendations.
Information has been gathered from third party sources and has not
been independently verified or accepted by The PNC Financial
Services Group, Inc. PNC makes no representations or warranties as
to the accuracy or completeness of the information, assumptions,
analyses or conclusions presented in the report. PNC cannot be held
responsible for any errors or misrepresentations contained in the
report or in the information gathered from third party sources. Any
reliance upon the information provided in the report is solely and
exclusively at your own risk.
CONTACT:
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Alan Aldinger
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(412) 768-3711
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alan.aldinger@pnc.com
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SOURCE PNC Wealth Management