Findings of the 2022 HNWIs study

We also took the opportunity to unveil the findings of our latest research on building resilience and fortitude in an age of uncertainty and volatility. In the third annual survey conducted since the outbreak of Covid-19, we explored how the pandemic has affected high-net-worth investors across 8 markets in Asia-Pacific, and how they are dealing with ongoing geopolitical and economic volatility.

In giving an overview of the study, co-author Jean-Francois Aboulker, Head of Ultra High Net Worth Individuals Offering, Asia at Lombard Odier, highlighted that the main concerns of these investors are volatility and lack of visibility. The findings – which were framed across two pillars: investments and sustainability – were consistent across age, wealth and markets.

“Understanding client needs has always been the starting point of our journey and our priority. We are seeing an important shift of perception in mitigating risks, increased diversification and also allocations to safer alternatives and private assets," said Jean-Francois Aboulker.

“What emerges and spans both themes of our study is uncertainty and the willingness of investors to manage it. Investors and clients are looking for solutions and advice for managing such risks in a forward-looking manner," he added.

Resilient investing

For a panel discussion on Resilient Investing, Sharanjit Leyl was joined by investment experts from our ecosystem of Strategic Alliances: Dr. Triphon Phumiwasana, Managing Director, Private Banking Business Head at Kasikornbank in Thailand; Jun Trinidad, Macro Strategist at UnionBank of the Philippines; Michael Yuan, Senior Vice President Individual Exclusive Banking Department at Taipei Fubon Bank; Sally Auld, Chief Investment Officer at JBWere and Jean-Louis Nakamura, Chief Executive Officer Hong Kong, and Chief Investment Officer, Asia at Lombard Odier.

The debate centred on topics raised in our HNWI survey, including Asian investors' appetite for risk, shifting market expectations, and adjusting portfolios to increase diversification and allocation to safer alternatives and private assets. The panellists also offered perspectives from their respective markets. This included discussion on the onshore and offshore risks faced by individual countries against the backdrop of geopolitical tension – such as infrastructure gaps and health inequality issues in the Philippines, the supply chain disruption impacting Taiwan's exports, and Australia's concern over central bank policy and inflation risk.

Jean-Louis Nakamura noted that a key problem for investors is the risk of being “a prisoner of one of the two extreme perceptions of the world" – one that says we are seeing a structural shift to a new regime of permanently high inflation, and another that says inflation will come back down. The panel also spoke of the danger of playing it “too safe" by holding too much cash in this inflationary environment.

Read more about resilient and diversified portfolios in rough markets

People, planet, profit – is sustainable attainable?

Stéphane Monier, Lombard Odier's Group Managing Director and Chief Investment Officer, was joined by Dr. Thomas Hohne-Sparborth, Head of Sustainability Research at Lombard Odier, and industry experts Bey Soo Khiang, Vice-Chairman of RGE (Royal Golden Eagle) Group and Jacob Duer, President & Chief Executive Officer of the Alliance to End Plastic Waste, for a panel on sustainable investing.

In a world where “sustainability" has become a common catchphrase, the panellists shared their views on what sustainability means in practice to industries and markets, and how it affects asset allocation.

Delegates heard how plastic pollution remains one of our most significant environmental challenges, with a staggering 12 million tonnes of plastic waste entering our oceans every year. The sustainability challenge, the panel agreed, cannot be tackled by any one actor alone, it must be led by all stakeholders – individuals, government, industry and the financial sector. Panellists also highlighted the importance of accountability, and how investing in a carefully targeted way can provide the push for a company to continue on its trajectory to a more climate-friendly way of working.

Dr. Thomas Hohne-Sparborth provided delegates with an overview of Lombard Odier's sustainability framework, explaining that sustainability is a work in progress, and that from an investment point of view it is important not to underestimate the scale, pace and complexity of the sustainability transition. This requires, he outlined, a more forward-looking approach to understanding how companies’ business models are evolving, as well as the right internal expertise and partnerships. Stéphane Monier concluded by highlighting the risks – transition risk, physical risk, litigation risk – that the growing sustainable investment industry faces, and how in-depth sectoral expertise is vital to fully understand the risk return profile of sustainable investments.

Find out more about sustainability in Asia

First physical event since the Covid-19 pandemic

The Asia Summit 2022 was a landmark event, our first full in-person get-together since the start of the pandemic, where investors and industry experts from the APAC region were able to meet, share insights, and keep abreast of today's rapidly evolving economic climate. Vincent Magnenat, Lombard Odier Limited Partner, Global Head of Strategic Alliances and Asia Regional Head, took the opportunity to introduce Francis Liu, who recently joined Lombard Odier as CEO, Private Clients Asia and CEO, Singapore.

Vincent Magnenat also reiterated our commitment to understanding clients' needs and preserving their wealth in today's volatile environment. “The journey to recovery will continue. We will continue to support our clients to achieve the same longevity that we have enjoyed ourselves, by protecting, growing and passing on assets to the next generation," he concluded.

Read more about Lombard Odier's commitment to clients