High Net Worth Asset Allocation Trends 2022
February 17, 2023 ⚊ 1 Min read ⚊ Views 92 ⚊ BUSINESS
2021 was a good year for equities, and by extension, for HNW investors. While HNW allocations to the asset class have decreased notably since 2018, they increased again over the course of the year and are markedly higher than among other investors segments.
Uncertainty is a key investment theme as investors are scrambling to adjust their portfolios to changing investment conditions as we enter a new economic cycle. Higher inflation amid slower growth has brought an end to the availability of cheap money and inflated asset prices. Returns are harder to come by and investors are exploring new corners of financial markets, while at the same time building up cash reserves to ensure liquidity. Over the coming year, alternatives will be the clear winners, but wealth managers will also have to contend with higher cash and near-cash allocations.
