Q1: Private banks in Asia have faced a number of challenges in 2024 from uncertainty around interest rate cuts in the US to volatile markets and geopolitical tensions. Considering this background, how did you safeguard AUM and revenue streams in 2024 while also attracting net new assets? What will your strategy be in 2025?

To safeguard AUM and revenue streams, we have been focusing this year on several key factors. Firstly, it has been necessary to reemphasise the important advantages of portfolio diversification through adopting multi-asset and multi-geographic strategies. This approach, combined with active risk management, has helped to stabilise portfolios and protect client wealth.

Secondly, it has been even more important in 2024 to emphasise personalised client engagement and offer a strengthened hands-on approach. Clients have been contacted with much greater frequency than in the past in order to inform them specifically about the features of various tailored advisory services. Not only has AUM been retained in this way but also increased in certain instances as a result of fostering an enhanced climate of trust.

Thirdly, it has been necessary to expand the range of products offered as extensively as possible, particularly in the alternative investment and sustainable finance asset classes. This has resonated in many cases, particularly with high net worth clients interested in moving beyond traditional asset classes into sectors offering longer-term growth potential.

Looking ahead to 2025, the most promising strategy for private banks will be a continuing focus on building resilience and adaptability. We will need to embrace further digital innovation, especially in fields such as data analytics and AI-driven personalisation. This will improve further the client experience and should allow for more sophisticated portfolio strategies.

Additionally, we will need to continue to prioritise sustainability given the growing demand for ESG-aligned investments from clients. This is the case, especially among younger clients. Successfully building advisory expertise in this area will be a differentiator and should assist in attracting fresh capital from clients interested in impact investing.

Q2: How are you advising clients in terms of investment opportunities in 2025? Which markets and asset classes will provide the best opportunities? And how can clients balance leveraging these opportunities while managing risks to their portfolios?

We will continue to focus on guiding clients toward a balanced approach to investment opportunities in 2025. This will be shaped by current global trends and client-specific risk profiles.

In terms of equity markets, developed regions like the US and Europe appear set to offer promising returns, particularly in the technology, energy and healthcare sectors. Closer to home for Asian private banks, markets such as Japan and India stand out. Japan’s ongoing economic reforms and India’s demographic strengths will likely support a favourable outlook. These trends will need to be monitored carefully, however, in light of the impact of President-elect Trump’s future agenda.

Beyond traditional equities, alternative investments will, we believe, continue to present an important avenue for growth and diversification. Private equity, private credit and real assets like real estate and infrastructure are attractive due to their lower level of correlation with public markets. These alternatives not only serve to enhance portfolio diversification but also provide higher returns in a low-yield environment. We would recommend up to 20% investment in alternatives in a conservative portfolio oriented towards longer-term growth.

Sustainable investing will continue to remain an important focus in our view. Many clients are showing heightened interest in ESG investments which both align with ethical considerations as well as offer competitive returns. We also consider that advising on sustainable investments will strengthen client engagement, particularly with the younger generation.

Overall several factors will remain important: (i) we will need to continue to recommend that clients diversify across asset classes, sectors and geographies to spread and manage risk effectively (ii) active management will be critical in that it will allow for rapid adjustments to capitalise on emerging opportunities or sidestep potential challenges as markets fluctuate and (iii) clients should maintain a blend of liquid and illiquid assets which will offer the benefit of capturing growth from alternative investments while at the same time retaining access to capital for unforeseen needs or timely market opportunities.

Q3: The Middle East, in particular the United Arab Emirates, has come onto the radar of many private banks as clients increasingly seek global diversification. What potential opportunities do you see in the region for private wealth clients, as well as in the Middle East-to-Asia wealth corridor in general? How else are you adapting to clients’ increasing requirements for global services and offerings?

The Middle East, and particularly the United Arab Emirates (UAE), has emerged as an important hub for private wealth management. This is driven by its strategic location, business-friendly environment and rapidly evolving financial infrastructure. For Asian private wealth clients, the region offers a range of interesting opportunities.

The UAE’s expanding real estate market, including luxury residential and commercial properties, remains a strong draw, particularly for clients seeking stable, dollar-pegged assets in a tax-friendly jurisdiction. Moreover, the UAE’s emphasis on becoming a global financial hub is evidenced by developments at the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM). Both of these now provide platforms for setting up international investment vehicles focussing on private equity, venture capital and alternative assets. Asian clients seeking Sharia-compliant investment options will also find sophisticated offerings tailored to comply with Islamic finance principles.

Asian high net worth individuals are increasingly looking to the Middle East for opportunities in sectors like infrastructure, renewable energy, and technology that align with regional economic diversification agendas such as Saudi Arabia’s Vision 2030. Conversely, Middle Eastern investors are exploring Asia’s fast-growing markets, particularly in technology and consumer sectors creating reciprocal investment flows. Private banks that can bridge this corridor with bespoke advisory services, regional expertise and access to key local networks will be well-positioned to capitalise on these trends.

To cater to Asian clients’ growing appetite for global diversification, private banks, including those with which I am personally involved, will need to provide seamless cross-border banking services and estate planning covering assets in multiple regions. Banks will also need to enhance their cultural understanding and be able to tailor services to the preferences and expectations of Asian clients.

In order to take advantage of these trends, Asian private banks should consider establishing or strengthening their physical presence in the Middle East. Collaborating with regional partners, including local financial institutions and family offices, will also enhance Asian banks’ ability to navigate the market effectively.