Asian Business Owners Boost Investments in US Equities and Real Estate

Asian business owners and family offices are significantly increasing their allocations to US equities and real estate, driven by confidence in US President-elect Donald Trump’s pro-business policies.

Kurt Rademacher, partner and head of US private client at Charles Russell Speechlys, explained that many clients are reallocating assets to US markets in anticipation of Trump’s proposed corporate tax cuts from 21% to 15%. “That’s going to help corporate earnings after tax, which could drive up stock prices,” he said. He also noted that stronger corporate performance could fuel growth in the real estate sector as “a rising tide lifts all boats.”

This sentiment is backed by the latest Global Fund Manager Survey from Bank of America, which found that allocations to US equities have surged to their highest levels since 2013. Post-election optimism has led 43% of respondents to believe US equities will be the best-performing asset class in 2024, up from 27% before the election.

Marcus Yorke-Long, head of private office at Charles Russell Speechlys, highlighted how Trump’s victory brings a sense of direction and predictability, which underpins investor confidence. “Investors and families tend to find it easier to plot their path when there are elements of conviction and direction as opposed to uncertainty and mixed messages,” he said.

However, challenges loom for Singaporean business owners with ties to Chinese manufacturing. Trump’s plans to impose tariffs of 10-20% on imports, and additional 60% tariffs on Chinese goods, could create a period of uncertainty. Mr Rademacher cautioned that such policies may disrupt operations for clients with China-centred businesses.

Ms Francoise Huang, senior economist for the Asia-Pacific at Allianz Trade, noted that US-China tensions are reshaping global supply chains, creating opportunities for economies like Vietnam, Malaysia, Indonesia, and the UAE to emerge as next-generation trade hubs.

For high-net-worth families, these political changes present an opportunity to review global structures and tax strategies. As Rademacher advised, those with US connections or investments must address compliance issues quickly, as the IRS ramps up efforts to pursue non-filers.

Despite potential challenges, the current environment has created opportunities for growth and strategic repositioning. With US equities up over 20% this year, many Asian investors are seizing the moment to expand their portfolios in anticipation of a pro-business administration.

Article by Angela Tan for The Straits Times. Read here or download the PDF below.

Asian business owners and family offices are piling into US equities and real estate _ The.

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