<article><p>As the impact of high inflation and rate hikes reverberates across the global economy, high-net-worth individuals (HNWIs) in Asia Pacific are churning their portfolios.</p></article>

<p>As the impact of high inflation and rate hikes reverberates across the global economy, high-net-worth individuals (HNWIs) in Asia Pacific are churning their portfolios.</p>
<p>Over the past two years, HNWIs in the region have turned more conservative in terms of their portfolio, according to a recent report by Lombard Odier.</p>
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<div class="p-rich_text_section">The Swiss private bank surveyed 450 respondents across Asia-Pacific countries between May and June 2022.</div>
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<div class="p-rich_text_section">&#8220;Around 27% of respondents have started to divert more from traditional asset classes such as equities and bonds to investing in their own company over the past two years. Moreover, around 44% have started to shift their allocation into &#8216;safer&#8217; assets and 37% into alternative investments including private equity, according to the report.</div>
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<p><img loading="lazy" decoding="async" class="aligncenter wp-image-307106 size-full" src="https://media.dealstreetasia.com/uploads/2022/09/Lombardier.jpg?resize=640,332" alt="" srcset="https://media.dealstreetasia.com/uploads/2022/09/Lombardier.jpg?w=1222 1222w, https://media.dealstreetasia.com/uploads/2022/09/Lombardier.jpg?resize=300,156 300w, https://media.dealstreetasia.com/uploads/2022/09/Lombardier.jpg?resize=1024,531 1024w, https://media.dealstreetasia.com/uploads/2022/09/Lombardier.jpg?resize=768,398 768w" sizes="(max-width: 1222px) 100vw, 1222px" data-recalc-dims="1" /></p>
<p>“We can see that HNWIs are embracing diversification and seeking out safer assets. Understanding their portfolio risk is a priority for them as they naturally take on a more conservative approach in today’s volatile market environment,” said Vincent Magnenat, limited partner, global head of strategic alliances and Asia regional head at Lombard Odier.</p>
<p>Singapore and Australia are leading the demand for private assets.</p>
<p>When asked about investing in alternative assets, including private equity and real estate, up to 60% of Singaporean HNWIs and 57% of those in Australia said they are marching towards these private assets. Compared with bonds and equities, private assets appear to be less wavering, with clearer visibility on associated risks, unlike options such as digital assets.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-307107 size-full" src="https://media.dealstreetasia.com/uploads/2022/09/Alternatives.jpg?resize=640,341" alt="" srcset="https://media.dealstreetasia.com/uploads/2022/09/Alternatives.jpg?w=1134 1134w, https://media.dealstreetasia.com/uploads/2022/09/Alternatives.jpg?resize=300,160 300w, https://media.dealstreetasia.com/uploads/2022/09/Alternatives.jpg?resize=1024,546 1024w, https://media.dealstreetasia.com/uploads/2022/09/Alternatives.jpg?resize=768,410 768w" sizes="(max-width: 1134px) 100vw, 1134px" data-recalc-dims="1" /></p>
<p>Private asset investments, however, come with risks such as loss of liquidity as capital can be ‘locked up’ for up to 10 years and there is also the risk of potential capital loss.</p>
<p>However, rich Asian investors, especially the older generation, are barely fazed by liquidity issues. Only around 20% of respondents in the age group of 35-50 years, said lack of liquidity is a concern.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-307115 size-full" src="https://media.dealstreetasia.com/uploads/2022/09/Lombard-1.jpg?resize=640,321" alt="" srcset="https://media.dealstreetasia.com/uploads/2022/09/Lombard-1.jpg?w=1369 1369w, https://media.dealstreetasia.com/uploads/2022/09/Lombard-1.jpg?resize=300,151 300w, https://media.dealstreetasia.com/uploads/2022/09/Lombard-1.jpg?resize=1024,514 1024w, https://media.dealstreetasia.com/uploads/2022/09/Lombard-1.jpg?resize=768,385 768w" sizes="(max-width: 1369px) 100vw, 1369px" data-recalc-dims="1" /></p>
<p>&#8220;Younger generations desire more liquidity relative to the older generations; most probably because they want the flexibility to seize opportunities, and they tend to be more proficient on new technology platforms and possibly more reactive as investors,&#8221; explained the report.</p>
<p>The private asset market might not come out of the economic slowdown entirely unscathed but the Swiss bank noted that private equity, private debt, real estate, and infrastructure investments could be a strategic move for asset diversification and long-term investments.</p>
<p>Despite the lack of liquidity, private asset investments have the benefit of &#8220;enhanced returns versus public markets, lower volatility given lower exposure to short-term market movements, and greater diversification, via access to privately held firms that complement traditional equity allocations,&#8221; it added.</p>
<p>Currently accounting for just over $10 trillion, or approximately 10% of investable assets in the world, the market for private assets is predicted to double in size by 2026, the report said citing the English research firm Preqin.</p>


Singapore and Australia are leading the demand for private assets, according to a report by Swiss bank Lombard Odier.

Many HNWIs in APAC are shifting to alternative investments such as PE, realty: report

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