Beyond traditional assets: How AI, health tech and private equity are reshaping family portfolios
- Kelvin Tan
- Jul 30, 2024
- 1 min read
At the UBS Singapore Family Wealth Forum 2024, wealthy families gained insights into succession planning, private equity, and alternative investments.
The event, attended by 150 family offices representing US$150 billion in wealth, underscored the increasing complexity faced by ultra-high net worth (UHNW) families in Asia due to economic uncertainty, geopolitical tensions, and technological disruptions.
Key trends highlighted included a shift towards generative AI, health tech, and automation as significant investment themes. Family offices in the Asia Pacific region are also planning to increase their allocation to alternative assets like private equity, private debt, and hedge funds to diversify their portfolios. This strategy aligns with the growing popularity of endowment-style investing, which offers better risk-adjusted returns by diversifying across various asset classes.
Discussions on legacy and succession emphasized the importance of embedding family values and fostering sustainable stewardship. Two main approaches were highlighted: deepening core business competencies with strong family involvement and diversifying investments to mitigate risks and explore growth opportunities.
Effective wealth planning and governance are essential for successful intergenerational wealth transfer, with a projected US$83.5 trillion set to be transferred over the next 20-25 years.
Insights from The Business Times. Read more here or in the PDF below.
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