Asia-Pacific family offices continue ‘strategic shift’, to increase equities and developed-market fixed-income asset allocations: UBS
- Asia-Pacific family offices are continuing a strategic shift towards alternatives and their interest in diversification will persist, UBS Global Wealth Management executive says
- Still believe in the long-term recovery of China despite focus on developed markets, Hong Kong family-office executive says
These firms had the highest equity allocations last year compared with peers globally, said LH Koh, co-head of global family and institutional wealth in Asia-Pacific at UBS Global Wealth Management.
While 40 per cent of family offices in Asia-Pacific plan to significantly increase their allocations to developed market equities over the next five years, 35 per cent said they plan to increase their emerging market equities portfolios following a perceived peak in the US dollar and the reopening of China’s economy. Four out of 10 such firms are also planning to increase their asset allocations to developed-market fixed-income assets.
“Asia-Pacific family offices continue a strategic asset allocation shift towards alternatives, as their private-equity investments were mostly allocated to funds last year,” Koh said. “Looking ahead, we see their continued interest in diversifying with alternatives.”