iCapital’s latest Asia Adviser Survey reveals a significant shift in investment priorities among financial professionals in Hong Kong and Singapore. The survey, which gathered insights from 62 advisers, highlights a growing commitment to alternative investments despite a decline in economic confidence across the region.
The survey indicates that more than a quarter of advisers plan to increase allocations to alternatives over the next year. This comes as positive economic sentiment in Asia experiences the steepest decline of any region surveyed. Advisers are increasingly seeking risk analytics tools, with demand rising by 22%, making it the top technology priority. Compliance concerns have also surged by 15%, highlighting the growing regulatory challenges faced by advisers.
Interest in alternative investments has notably shifted from private credit to real assets, with real estate and venture capital seeing significant increases. This rotation reflects a heightened focus on inflation resilience and tangible assets amidst geopolitical disruptions and energy-security concerns.
Complexity in explaining alternatives to clients has emerged as the leading barrier to scaling these investments, surpassing client reporting, which saw an 18% decline. The demand for advanced education in alternative investments is highest in Asia, with two-thirds of advisers expressing interest in advanced topics.
The iCapital survey notes that whilst European advisers focus on model portfolios, Asian advisers are prioritising risk analytics and compliance support. This shift underscores the unique challenges and opportunities within Asia’s wealth management landscape. As advisers navigate these complexities, the emphasis on education and technology is set to shape the future of alternative investments in the region.
