Such studies come at a time when wealth managers are being regaled with the presumed benefits of holding private market investments.

Private equity topped the list of alternative assets that clients of Asia-based Endowus said they were most interested in owning over the next 12 months, with clients in Hong Kong marginally ahead of their Singapore counterparts, a survey finds.

Commodities, property and private credit also featured prominently in the mix. The findings were set out in the Endowus Private Wealth Insights 2025 report, based on the views of professional investors in Hong Kong and Accredited Investors in Singapore. More than 200 professional and accredited investors were surveyed across Hong Kong and Singapore. These individuals meet the qualifying thresholds set by regulators: in Singapore, a minimum of S$1 million ($767,000) in net financial assets or at least S$300,000 of income in the preceding 12 months; in Hong Kong, a portfolio value exceeding HK$8 million ($1.02 million).

Some 47 per cent are looking to deploy into private equity; 41 per cent into commodities; the same share into property; and 40 per cent plan to allocate to private credit. Private real estate and infrastructure stand at 33 per cent, hedge funds at 32 per cent, and collectables (fine art, etc) at 30 per cent.

The report also shed light on what high net worth clients view as the riskiest investments. Some 38 per cent of respondents associated private markets and hedge funds with “high risks”; 37 per cent said these areas involved a “longer investment period”; and 33 per cent mentioned “high fees.” Some 26 per cent cited “complexity and expertise required.”

Such studies come at a time when wealth managers are being regaled with the presumed benefits of holding private market investments because of their ability to diversify returns and achieve yields. A decade-plus of ultra-low interest rates after the 2008 financial crash helped fuel a rise in these investments as yields on listed equities and conventional debt were crushed. A decline in the number of listed companies and a switch to private structures has galvanised the supply side of the equation. There have been calls to "democratise" access to private markets beyond traditional confines of the ultra-wealthy. The complexity and illiquid nature of such investments have traditionally been turnoffs for mass-affluent/retail clients. Private market investments and hedge funds have also typically charged higher fees than on long-only listed equity funds – which suggests that some of the enthusiasm for private markets/alternatives is driven by marketing and a thirst for revenues.

Advice still counts
The report suggests that financial advice is still important, even at a time when digital platforms are said to be “democratising” the private markets and alternatives sector.

Private wealth investors adjust their portfolios frequently, with as many as 70 per cent doing so at least once a quarter. Despite the growing autonomy offered by digital wealth platforms, advisors are seen as crucial to stable wealth creation, with more than 90 per cent of investors agreeing that their advisors are proactive and knowledgeable.

“Despite the proliferation of digital wealth platforms and emergence of technologies such as artificial intelligence, wealth management remains a highly personal topic,” Steffanie Yuen, managing director and head of Hong Kong at Endowus, said.

In other findings, Endowus said its report showed that while retiring well remains relevant, it no longer dominates as a priority. As many as three in five investors seek alternative streams of income, particularly those in mid-life as they prepare for retirement. Of that group, 40 per cent cite estate and succession planning as a key objective.

Endowus said the findings drew on survey results and platform insights. (WealthBriefingAsia has asked the firm for a specific number of respondents and may update this article in due course.)

The group, which is based in Asia, closed its latest funding round in late October, raising more than HK$540 million ($70 million). To date, it has raised $130 million. The Endowus Group comprises Endowus’ licensed entities in Hong Kong and Singapore, as well as Hong Kong-based multi-family office Carret Private.