High-net-worth investors across Asia are accelerating portfolio diversification away from US-dollar assets, according to UBS Group AG’s latest wealth management insights. The Swiss financial giant reports increased allocations to Bitcoin, gold, and Chinese markets as clients seek alternatives to traditional holdings.
UBS Asia Pacific wealth management co-head Amy Lo revealed clients now maintain a 40-40-15 portfolio structure:
- 40% fixed income
- 40% equities
- 15% alternatives
This strategic rebalancing comes amid growing concerns about US-China trade tensions and dollar volatility. The trend was highlighted during UBS’s recent Asian Investment Conference expansion, which added a Singapore wealth management edition to address client demand.
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UBS’s diversification strategy
The bank’s 30-year Asia veteran Amy Lo notes investors are adopting “conscious risk budgeting” approaches, particularly among Asian entrepreneurs. UBS Co-President Iqbal Khan emphasized this shift during the firm’s 28th Asian Investment Conference, stating clients want “global connectivity with local insights.”
Cryptocurrency adoption accelerates
Bitcoin has emerged as a primary beneficiary of this portfolio restructuring. Institutional interest grows despite regulatory uncertainties, with UBS clients viewing it as both inflation hedge and tech play. Ethereum also gains traction through its role in decentralized finance (DeFi) ecosystems, though UBS advises cautious position sizing.
Gold’s enduring appeal
The precious metal remains central to risk management strategies, with physical gold ETFs seeing record inflows. UBS analysts attribute this to gold’s historical stability during currency fluctuations, particularly valuable amid potential dollar weakness.
China’s financial markets attract renewed interest despite economic headwinds. Investors are positioning for long-term growth in renewable energy and consumer tech sectors, using Hong Kong Connect programs for mainland exposure.
Market analysts observe this trend reflects broader de-dollarization efforts across emerging economies. Recent CoinTelegraph reports suggest similar patterns developing in Middle Eastern sovereign wealth funds.
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This strategic reallocation signals potential long-term impacts on currency markets and asset valuations. As capital flows into alternative stores of value, traditional portfolio management approaches face unprecedented challenges in Asia’s evolving financial landscape.
