More than half of Singapore’s rich investing more in safer assets like cash, gold: Study
Fifty-six per cent of respondents in Singapore have increased their diversification over the past two years in the light of global headwinds. PHOTO: REUTERS
Angela Tan
Senior Correspondent
UPDATED
NOV 10, 2023, 5:20 PM SGT
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SINGAPORE – Among the well-heeled in Singapore, more than half have increased their exposure to safer assets such as cash or gold, suggesting a hesitancy towards volatile equity markets and riskier investments.
According to Swiss private bank Lombard Odier’s fourth annual report on Asia-Pacific high-net-worth individuals (HNWI), 56 per cent of respondents in Singapore have increased their diversification over the past two years in the light of global headwinds, with about 53 per cent turning to safer assets compared with 41 per cent in the region.
Mr Francis Liu, chief executive officer of private clients in Asia at Lombard Odier, said this might not represent a “wholesale flight to safety” but, rather, a hesitancy towards riskier investments such as digital assets and the more volatile listed equities
He noted that the HNWIs, or rich individuals with at least US$1 million (S$1.36 million) of investable assets, understand the need for diversifying their portfolio, but this is not well implemented. Investable assets are financial products that can be easily liquidated such as cash, stocks and bonds.
The study surveyed more than 460 HNWIs in Singapore, Hong Kong, Japan, Thailand, the Philippines, Taiwan and Australia on their personal and wealth goals within the family setting.
The personal goals touched on included lifestyle, protecting family wealth, investments, launching one’s own business, sustainable investing and philanthropic projects.
