Rich Irish ‘don’t diversify assets’

Wealthy Irish people have the least diversified portfolio of assets than their counterparts in any of the other 17 countries surveyed as part of Barclay’s Wealth Insights report.

The study shows that just 36% of this country’s “high net worth individuals” (HNWIs) — comprised of entrepreneurs, business leaders and investors — are invested in a geographically diverse portfolio.

Similarly, Irish respondents to the survey indicated a far greater preference for holding their wealth in domestic banks and assets, with just 30% opting for external financial institutions, as opposed to a European average of 50%.

Commenting on the results, Barclays Ireland head of wealth and investment management, Pat McCormack said the findings are in line with previous research that showed an inclination on behalf of Irish investors to keep much of their wealth in domestic property.

“We continue to encourage investors to review their portfolio regularly to ensure they are balanced and consistently match their goals. It is interesting to see that Irish investors are less geographically diversified than their EU peers but not surprising as we know from previous research that Irish HNWIs continue to hold a very high proportion of their wealth in property.

“At the same time, Irish investors remain underweighted when it comes to international equities and other investments when compared with their European counterparts, and this may again go some way in explaining these findings.”

High net worth individuals are also slightly less likely to move abroad than those in other European countries with 16% planning to leave the country in the next five years, compared to the EU average of 18% and a fifth of wealthy UK individuals.

It seems an attachment to the land of their birth is a major factor for those individuals wishing to stay here with 92% saying they planned to stay in Ireland as it was where they were born and raised.

Those looking to make a move abroad are largely looking to develop their career internationally or seeking lower living costs.

Globally however, the number of individuals looking to move varies greatly from just 4% in Switzerland to almost 50% in China.

The research also indicates that charity among wealthy Irish people starts at home with 60% of those surveyed in this country indicating a preference to donate their time and money to domestic causes, compared to 52% of their UK counterparts.