On January 23, 2025, the Hubbis Digital Dialogue convened leading voices in the wealth management industry to discuss global investment themes and strategies for 2025, tailored to the needs of high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients. The discussion featured an eminent panel of experts offering their invaluable insights and advice whose collective wisdom helps set the scene for the year ahead.
Sponsors
- Janus Henderson Investors
- Sun Hung Kai Capital Partners
- VinaCapital
The Panel
- Jessica Xu, Senior Investment Strategist, Annum Capital
- Alexis Lavergne, Fixed Income Investment Specialist, Janus Henderson Investors
- Paul Gambles, Director, MBMG Group
- Stephanie Leung, Chief Investment Officer, StashAway
- Allen Sing, Chief Investment Officer, Sun Hung Kai Capital Partners
- Eric Levinson, Deputy Managing Director, Head of Business Development, VinaCapital
The Panel’s Key Insights and Advice
2025: A Pivotal Year for Asset Allocation
The panel described 2025 as a landmark year for asset allocation, driven by unprecedented macroeconomic uncertainties and structural shifts. With stretched valuations in equities and opportunities emerging in treasuries, wealth managers must adopt a disciplined and adaptive approach. Market volatility, geopolitical tensions, and changing interest rate environments will test the resilience of portfolios. Investors are advised to focus on balance, maintaining diversification across asset classes and geographies. This approach ensures portfolios can withstand shocks while capturing opportunities in a rapidly evolving investment landscape, where both risks and rewards are amplified.
Equities: Balancing Growth and Risk
Equity markets remain attractive but fraught with risks as valuations in sectors like technology reach elevated levels. Panellists emphasised the importance of selective investing, focusing on sectors like financials, healthcare, and communication services that demonstrate strong fundamentals and earnings growth. At the same time, caution is warranted as corrections are likely, particularly in overhyped areas such as AI-related stocks. Wealth managers must guide clients to adopt an active approach, ensuring equity exposure targets high-quality opportunities while mitigating downside risks through diversification and risk management strategies.
US Markets: Resilience with Caution
The US market continues to benefit from robust GDP growth, consumer spending, and productivity gains. However, the dominance of the technology sector and elevated valuations warrant caution. Panellists recommended maintaining exposure to the US but stressed the importance of diversifying globally to reduce portfolio concentration risks. Emerging markets and undervalued regions like ASEAN present attractive alternatives. Wealth managers should balance the reliability of US assets with the growth potential of international markets to create well-rounded and resilient portfolios for their clients.
The Transformative Power of Artificial Intelligence
Artificial intelligence is reshaping industries, presenting substantial growth opportunities in technology, healthcare, and communication services. Panellists compared AI’s current phase to the early days of the internet, highlighting its long-term transformative potential. However, caution is necessary as valuations in some AI-related stocks, such as Nvidia, appear unsustainable. Wealth managers should focus on companies driving innovation while avoiding speculative excesses. Positioning clients to capitalise on AI’s productivity-enhancing capabilities ensures exposure to this transformative trend without assuming undue risk.
Fixed Income: Capturing High Yields
Fixed income remains a cornerstone of investment strategies in 2025, with longer-duration bonds and emerging market credits offering attractive yields. Central banks’ signals of monetary easing enhance opportunities in this space. Securitised products were also highlighted for their ability to provide stable returns and diversification. Wealth managers should guide clients toward high-quality fixed income allocations, ensuring these investments align with their risk profiles and income needs. Adopting a multi-sector fixed income approach ensures portfolios are well-positioned to benefit from current yield levels while mitigating exposure to potential risks.
Treasuries: A Once-in-a-Lifetime Opportunity
US treasuries present a rare opportunity as yields recover from historic lows. Panellists described longer-duration treasuries as essential for portfolio stability and income generation. Structured products tied to treasury yields were also noted as innovative tools for boosting returns. Wealth managers should position clients to take advantage of this unique environment, balancing long-term strategic exposure with shorter-term tactical opportunities. Treasuries offer an unparalleled hedge against equity volatility, making them a vital component of resilient portfolios in 2025.
Recalibrating Portfolios for Resilience
Portfolio rebalancing remains critical as markets face volatility. Wealth managers should guide clients in allocating capital toward high-quality assets while reassessing portfolio exposures. Fixed income, alternatives, and inflation-hedged assets are pivotal in today’s environment. Regular rebalancing reduces overexposure to risky or overvalued sectors and optimises opportunities in undervalued areas, such as emerging markets. Advisors should encourage clients to view portfolio rebalancing as an ongoing process rather than a one-time activity. This proactive approach enables investors to adapt to macroeconomic changes, maintaining alignment with long-term goals and improving portfolio resilience.
Active Management: Essential in 2025
Given the complexities of the current market environment, active management is indispensable. Panellists highlighted the importance of selecting high-quality managers who can identify undervalued opportunities and navigate volatility effectively. Active strategies are particularly relevant in areas like private credit, emerging markets, and equities, where inefficiencies create opportunities for skilled investors to outperform. Wealth managers should prioritise active approaches in these spaces, ensuring that client portfolios are positioned to adapt dynamically to changing market conditions.
Private Credit: High Returns with Rigorous Selection
Private credit offers significant returns, especially in special situations. Panellists stressed the need for thorough due diligence to identify well-structured deals that align with clients’ objectives. With global allocators increasingly focused on private credit, wealth managers must exercise caution to avoid overexposure to risk. Properly sourced private credit opportunities can yield well into the teens while providing diversification from traditional asset classes. Wealth managers should work with specialised managers to ensure clients benefit from the unique advantages of private credit investments.
Navigating China’s Policy and Economic Uncertainty
Despite attractive valuations, Chinese assets remain overshadowed by policy uncertainties and sluggish economic recovery. Panellists noted that inconsistent stimulus measures and geopolitical challenges have eroded investor confidence. While opportunities exist, particularly in undervalued sectors, advisors should carefully assess risks and focus on selective exposure. Wealth managers should monitor key policy announcements, such as China’s upcoming economic reforms, and evaluate their impact on market confidence. Clients should be guided to balance short-term caution with long-term potential, ensuring that exposure to Chinese equities and bonds aligns with broader portfolio goals.
US-China Dynamics: Implications for Investors
Geopolitical tensions between the US and China remain a critical factor shaping global investment strategies. Trade policies, currency fluctuations, and shifting alliances were highlighted as key risks that could impact asset performance. Panellists advised wealth managers to evaluate these dynamics carefully, particularly when allocating to sectors or regions directly affected by US-China relations. Clients should be encouraged to consider how geopolitical risks align with their broader investment objectives and geographic diversification strategies.
Emerging Markets – Vietnam and Beyond
Earnings growth remains a critical driver of emerging market performance, with Vietnam and broader ASEAN markets standing out due to robust growth potential, favourable demographics, structural reforms, and attractive valuations. A panel member highlighted Vietnam’s anticipated upgrade to emerging market status, which he said further enhances its appeal, while in Asia, other ASEAN markets offer compelling opportunities tied to strong earnings trends and stable macroeconomic policies. Panellists emphasised the need for wealth managers to focus on companies and sectors with solid fundamentals, enabling clients to harness the significant upside potential of these dynamic regions. At the same time, navigating risks such as currency volatility, geopolitical uncertainties, and political instability remains essential to ensuring long-term success in emerging market investments.
Alternatives: Diversification and Stability
Hedge funds, private equity, and private credit provide valuable diversification in a volatile market environment. These asset classes deliver non-correlated returns, offering stability amid fluctuations in equities and fixed income. Panellists stressed that successful allocation to alternatives requires selecting skilled managers with strong track records and sector expertise. For private clients, alternatives can complement traditional asset classes, reducing portfolio risk while enhancing return potential. Wealth managers should work with specialised providers to curate high-quality opportunities that align with client objectives and risk appetites.
Gold as a Strategic Asset
Gold continues to play a crucial role in portfolios, offering protection against inflation and market volatility. Panellists recommended gold allocations for both high-risk and low-risk investors, citing its reliability as a store of value. As geopolitical and economic uncertainties persist, gold serves as a stabilising force in portfolios. Wealth managers should consider gold a strategic allocation, providing clients with a hedge against macroeconomic and market risks.
Digital Assets: Maturation and Adoption
Digital assets, particularly Bitcoin, are gaining credibility as institutional adoption increases and regulatory clarity improves. The emergence of Bitcoin ETFs has made this asset class more accessible, enhancing its appeal as a portfolio diversifier. Panellists advised wealth managers to distinguish between Bitcoin’s long-term store-of-value potential and the speculative nature of other cryptocurrencies. Educating clients on the risks and opportunities of digital assets is essential to integrate them meaningfully into diversified portfolios.
Structured Products: Innovative Portfolio Tools
Structured products are regaining relevance due to the favourable interest rate environment. These instruments provide enhanced exposure to treasuries and other fixed income assets, offering innovative ways to optimise portfolios. Panellists noted that structured products can help investors capture specific opportunities, such as longer-duration treasury yields, while managing risk. Wealth managers should explore structured products carefully, ensuring they align with client goals and are structured to provide optimal outcomes in a volatile market.
Preparing for Volatility: Hedging and Risk Management
Volatility is expected to persist in 2025, requiring robust risk management strategies. Panellists recommended hedging tools, such as options, futures, and long-short strategies, to protect portfolios against significant market corrections. These strategies allow investors to maintain equity exposure while mitigating downside risks. Wealth managers should educate clients on the benefits of hedging and incorporate such strategies into broader portfolio plans to ensure stability during periods of heightened uncertainty.
The Total Portfolio Approach: Rethinking Allocation
Panellists advocated for a total portfolio approach, moving beyond traditional 60/40 allocation models. This strategy evaluates each investment dollar based on its potential contribution to portfolio goals, fostering flexibility and responsiveness to market changes. By adopting this approach, wealth managers can optimise performance, align portfolios with evolving market conditions, and provide clients with a more comprehensive framework for understanding their investments. This method ensures that portfolios remain resilient and forward-looking in a dynamic global environment.
Enhancing Client Education
Panellists also emphasised the importance of client education in building trust and confidence. As investment strategies grow more complex, clients need to understand the rationale behind portfolio decisions and the risks associated with different asset classes. Wealth managers should prioritise clear and transparent communication, offering educational initiatives such as seminars or tailored reports. This proactive engagement ensures clients remain informed and committed to their long-term financial goals, even during periods of market uncertainty.
The Hubbis Post-Event Survey
Hubbis also conducted a post-event survey amongst delegates, the findings of which we have summarised below.
Hubbis: What regions or sectors within global equities present the most attractive opportunities in 2025?
The US equity market consistently emerged as the leading choice among respondents, supported by strong corporate earnings, robust economic fundamentals, and dominance in transformative industries such as technology and AI. Within the technology sector, subfields like cloud computing, cybersecurity, and biotech were frequently cited for their growth potential, underpinned by continued innovation and adoption across industries.
Asian markets, including China, Hong Kong, and Vietnam, were highlighted as attractive due to discounted valuations, economic recovery trends, and specific growth stories. For example, Vietnam was noted for its young demographics, rapid industrialisation, and potential upgrade to emerging market status, while China and Hong Kong benefited from long-term growth potential in sectors like financials, AI technology, and healthcare.
Additionally, sectors like renewable energy, consumer discretionary, and healthcare innovations—spanning biotech and telehealth—were identified as key areas for growth globally. Respondents also acknowledged the importance of diversification, suggesting that rather than concentrating on specific regions or sectors, a balanced approach across global equities could offer optimal risk-adjusted returns.
Hubbis: Which fixed-income markets offer the most compelling stories and why?
The US treasury market stood out as a cornerstone for fixed-income strategies in 2025. Respondents noted the appeal of long-term treasuries offering yields of over 5%, describing them as attractive due to their combination of income generation and capital preservation in an uncertain economic environment. The steepening yield curve and monetary easing signals from the Federal Reserve were seen as pivotal in shaping investment opportunities in this space.
Beyond Treasuries, investment-grade bonds and securitised fixed-income products gained attention for their ability to offer stable returns with lower risk. These instruments were viewed as essential components of diversified fixed-income portfolios, particularly for investors seeking to clip coupons while mitigating exposure to volatile credit markets.
Emerging market bonds were another focus area, particularly in Asia and China, where respondents highlighted the higher yields and potential for appreciation due to improving economic conditions and monetary easing. Structured credit and green bonds were also mentioned as innovative solutions, appealing to investors prioritising ESG factors and income generation in sustainable sectors. Overall, the emphasis was on high-quality debt instruments, supported by diligent credit analysis and careful timing.
Hubbis: Should advisers encourage clients to invest more in alternatives like private equity, private debt, real estate, or hedge funds?
A significant majority of respondents recommended increasing allocations to alternative investments, citing their ability to enhance diversification, mitigate portfolio volatility, and capture alpha in non-correlated markets. Private equity was frequently mentioned for its potential to deliver strong IRRs, especially in co-investments and mid-market buyouts.
Meanwhile, private credit, particularly in special situations, was praised for offering attractive yields and a lower correlation to traditional equity and fixed-income markets.
Hedge funds were highlighted as valuable tools for achieving consistent returns and preserving capital during periods of heightened market uncertainty. Their ability to employ strategies like long-short equity and arbitrage makes them well-suited for volatile environments. Similarly, real estate was regarded as an essential inflation hedge, with opportunities concentrated in sectors like commercial assets in Singapore, discounted core properties in Australia, and hospitality in Japan.
However, respondents also noted several caveats. Liquidity constraints and the need for rigorous manager selection were cited as critical considerations. Alternatives require longer investment horizons, making them less suitable for clients with significant liquidity needs or lower risk tolerance. Advisers were urged to conduct detailed client assessments, ensuring recommendations align with their financial objectives and risk appetite. While alternatives present compelling opportunities, they are best integrated as part of a well-diversified portfolio tailored to individual goals.
Hubbis: How would you advise on portfolio construction for your clients?
Survey participants provided insights into the ideal asset allocation for high-net-worth (HNW) portfolios, reflecting a strong bias towards the US market, which received the highest suggested allocation at 50%. The Asia-Pacific region followed with 24%, while Europe and the Rest of the World were assigned 15% and 11%, respectively.
Respondents also outlined portfolio composition, recommending 44% in listed equities, 24% in public market debt, and 17% in private equity, hedge funds, and private debt. Alternatives, including real estate and gold, accounted for 15%, highlighting their role as diversifiers.
Regarding investment strategies, a majority favoured active management (57%), reflecting the value of skilled managers in navigating complex markets, while 43% opted for passive strategies, appreciating their cost-efficiency and simplicity. These findings underline a preference for a balanced, globally diversified portfolio while showcasing the growing importance of private and alternative assets. The emphasis on active strategies also suggests confidence in tailored approaches to capture opportunities and mitigate risks in evolving market conditions.
