The crisis has changed investment preferences of millionaires

The last years have turned many an optimist into level-headed market participants, more careful when selecting financial products. As regards Poland's 10 largest banks, deposits increased almost 10% during 2011, with the amount of money invested in mutual funds (8 banks with their own fund management companies were taken into account) at the same time fell by over 15% - says Agnieszka Dojlidko, Director of the Millennium Private Banking Department.   
Bank Millennium's analysis of the portfolio of the most affluent customers shows that among Private banking customers aversion for risk dominates. Even persons who were until now accepting its increased level, at times of strong market fluctuation preferred safe products.
Macroeconomic analyses show that also 2012 will be characterised by high economic volatility. In the opinion of Grzegorz Maliszewski, chief economist of Bank Millennium, the debt crisis of Eurozone countries, its protracted resolution as well as the prospect of an economic slowdown will sustain uncertainty on financial markets as well as aversion of investors to investing in riskier assets. Under such circumstances assets perceived as being safer should be more popular.
The market situation in 2012 will further increase the preference of the most affluent customers for safe financial products. In fact it is the experience of Bank Millennium that this special group of people is not focused on investing aggressively and taking high risk. Millionaires rather aim to protect the value of their portfolio and to ensure its stable growth with moderate risk accepted only with respect to its part. 
- We expect the portfolios of the most affluent customers to increase the share of safe products, with protected capital - term deposits, bonds or structured products. At least in the first half of 2012 it is difficult to expect a strong growth of assets invested in high risk instruments - says Agnieszka Dojlidko, Director of the Millennium Private Banking Department.   
In response to the needs and expectations of customers with assets in excess of PLN 1 million, Millennium Private banking will continue to offer savings products in the form policies, term deposits, bonds or bond funds. An important role in the Bank's offer will also be played by structured products - combining the opportunity to take advantage of trends on specific markets, commodities or currencies, with full protection of capital. Investment options will include i.a. closed-end funds, absolute return or active allocation strategies, as well as through art banking, or investing in art.
In December 2011 Bank Millennium launched Private Banking, offering attractive products, comprehensive top quality service and non-standard financial and investment solutions to persons with over 1 million PLN in assets. There are almost 2000 such customers in Bank Millennium, with their money accounting for close to 20% of total assets of all private individual customers.