Hong Kong’s high net worths prefer traditional asset classes

A majority of high net worth investors (HNWs) in Hong Kong still favour traditional asset classes in 2020, according to research from Quilter International. It showed that aside from cash, Hong Kong’s HNWs hold stocks (96%), fixed income assets (86%) and real estate (76%). The tilt towards traditional asset classes is in stark contrast to non-traditional counterparts such as private equity (49%), lifestyle investments such as art, wine and classic cars (47%), hedge funds (45%) and commodities such as gold and precious metals (31%). While Hong Kong’s HNWs invest in Asia, outside the region the top destinations are North America, Europe and Australasia. According to the research, 69% of the HNWs who were polled are more concerned about wealth preservation rather than wealth creation. “The results of our research shine a light on the investment portfolios of Hong Kong’s HNWs. It is interesting that their portfolios seem to reflect their attitude to risk, wealth preservation desires and long-term succession planning goals,” said Mark Christal, chief executive for Hong Kong at Quilter International. “This type of investor is typically internationally mobile due to them travelling frequently for their work and may also send their children to places like the UK, USA and Australia for overseas study. While there may still be some home region- bias in their portfolios, their exposure to international markets often results in a global portfolio comprised of various overseas assets,” added Christal. © 2020 funds global asia

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