GlobalData (DATA) Status update summary

Geopolitical and market environment

• Geopolitical risk has become the dominant driver of asset allocation, with 68% of APAC wealth managers prioritizing it over economic factors in 2025, up from 57% in 2023.

• Investors are increasingly cautious, favoring liquidity and safety, leading to higher deposit growth and slower expansion in risk assets.

• High-net-worth individuals show more resilience due to better diversification, while lower affluent segments face greater constraints from inflation and cash flow pressures.

Investment preferences and product trends

• Despite volatility, there is a gradual shift from deposits to market-based assets in APAC, though at a slower pace than globally.

• Uptake of managed mandates and discretionary solutions is rising as investors seek professional guidance amid market uncertainty.

• Demand for active ETFs is surging, especially in India, Malaysia, and China, with flows coming mainly from mutual funds.

ESG and alternative investments

• ESG remains a significant focus for high-net-worth portfolios in APAC, supported by regulation and product development, though retail demand has softened.

• Tokenized assets are gaining traction, improving access to alternatives like private credit and real estate through fractional ownership.

• High-net-worth portfolios have shifted towards equities post-pandemic, increasing concentration risk and highlighting the need for rebalancing.