Credit Suisse publishes “Wealth patterns among the top 5% of African-Americans,” a comprehensive study on wealth creation and wealth management among the nation’s wealthiest African-Americans
Study reveals more conservative approaches to financial decision-making; may reflect differences in “wealth mobility” and historically limited access to capital
Credit Suisse, in collaboration with Brandeis University’s Institute on Assets and Social Policy (IASP), today published “Wealth patterns among the top 5% of African-Americans,” a study on wealth creation and wealth management among the nation’s wealthiest African-Americans as measured by net worth.
The study shows that the top 5% of African-Americans invest a greater proportion of their wealth in lower-volatility assets relative to a white comparison group, including insurance, savings bonds and CDs. It also shows proportionally higher investments in real estate, and proportionally lower investments in business assets.
The research was sponsored by Credit Suisse’s New Markets business, which seeks to advance financial opportunity among women, African-Americans and the LGBT community.
“This study identifies distinctive investing behaviors within the African-American community and a number of potential drivers of these behaviors,” said Pamela Thomas-Graham, Credit Suisse’s Chief Marketing and Talent Officer and Head of New Markets. “The findings may also reflect what we know from adjacent data, which is that African-Americans are generally under-served by banking institutions. The Commerce Department, for example, has published data showing that minority business owners receive loans less frequently, at significantly smaller sizes, and at worse rates than non-minority business owners.”
Highlights of the report include:
“The numbers in our report provide rich and detailed insights,” said Stefano Natella, Global Head of Equity Research and one of the study’s authors. “Wealth at the top of the African-American community, what drives it and how it compares to specific control groups has not been studied with this comprehensiveness in some time.”
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