Minneapolis, MN/November 15, 2010: A new survey from U.S. Bank, conducted online by Harris Interactive, asked millionaires how they are investing their money today.

The Private Client Reserve of U.S. Bank Millionaire Investor Insights Annual Survey, which looks at investment attitudes, behaviors, risk profile and strategies of millionaire investors, was conducted between September 27 and October 15 among 1,609 U.S. households with investment assets of $1 million or more.

According to U.S. Bank, the findings challenge conventional assumptions regarding investor behavior in the wake of the economic downturn.

 “The vast majority of millionaire investors have persevered and remained in the market despite the recession, a fragile recovery and continued market volatility,” said Mark Jordahl, president of U.S. Bank Wealth Management Group. “They haven't overreacted. They’ve maintained a balanced approach to risk and its potential rewards, and while they are guardedly optimistic about the U.S. economy for 2011 and achieving their short-term investment goals, they say they are confident about achieving their long-term investment goals over the next six to ten years.”

The survey highlights include:

• 92% of millionaires have not abandoned the stock market, with 43% currently engaged in moderate to heavy buying or selling while 49% wait for the right opportunity to buy or sell;

• Only 8% exited the market altogether;

• 30% of respondents are optimistic about the U.S. economy for 2011, and 44% are confident about achieving their short-term investment goals over the next two to five years.

• 20% of millionaires who lost value in their investments since 2008 have already seen their investments return to pre-2008 levels, and 90% indicated that their current investments performed better or about the same as other investors since the beginning of 2008;

• 47% say their investment risk tolerance has not changed during the last three years and only one in 10 say they are not willing to take any investment losses in the current investment market;

• In past three years, 47% of millionaires made no change in their allocation to equities, 42% made no change in their allocation to fixed income, and 47% made no change in their allocation to cash; and

• 72% said the U.S. stock market performance has a major or moderate impact on their investment strategies.

In a published interview with Bloomberg, Jordahl commented on the study by saying, “This paints a picture of wealthy investors behaving quite rationally amid the worst recession since the Great Depression. They’re looking forward with optimism.”

Methodology The Private Client Reserve of U.S. Bank inaugural Millionaire Investor Insights Annual Survey monitors the investment attitudes, behaviors, risk profile and strategies of millionaire investors in the United States. The national survey was conducted online for U.S. Bank by Harris Interactive between September 27 and October 15, 2010 among 1,609 respondents, which includes an oversample of eight markets — Cincinnati; Denver; Los Angeles; Madison-Milwaukee; Minneapolis-St. Paul; Portland; Seattle; and St. Louis. Respondents were age 18 or older, with $1 million or more in household investable assets (excluding primary and secondary residence and assets held in employer-sponsored retirement plans). Results were weighted for age, sex, race/ethnicity, education, region, household income and investable assets where necessary to bring them in line with their actual proportions in the high net worth population of U.S. residents age 18 or older. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

SOURCE: U.S. Bank