Advice and active management will be in demand in 2023 as cash allocations decrease due to investor worries about rising inflation, according to a recent Standard Chartered survey.
More than half of investors (61 percent) are looking to reduce cash allocations with the current average of 26 percent set to fall to 15 percent in 2023, according to Standard Chartered’s «Wealth Expectancy Report 2022».
The top cited concerns include inflation (34 percent), global economic uncertainty (27 percent) and recession risk (22 percent).
Multi-Asset Income
While investors are looking to add investments, there are indications of risk aversion with equity allocation expected to decrease from 22 percent to 13 percent. 37 percent of respondents have invested in gold to combat inflation while bond interest fell to 22 percent.
«We believe that diversified portfolios with multi-asset income generation strategies provide some of the best opportunities today,» said Marc Van de Walle, global head wealth management of Standard Chartered.
Digital Assets
On crypto, around 66 percent of investors hold digital assets and 35 percent view it to be a longer-term investment. Younger investors (aged 18 to 34) will be the major driver with 54 percent intending to invest more in the coming year, compared to 34 percent amongst those aged 55 and above, though it should be noted that the responses were collected prior to the FTX crash.
Standard Chartered's report was conducted between 26 September and 18 October 2022 with 15,206 respondents across 14 markets including mainland China, India, Pakistan, UAE, Vietnam, Hong Kong, Kenya, Nigeria, Indonesia, Taiwan, Malaysia, Thailand, Singapore and South Korea.
