Nearly half of Apac’s wealthy expect market crash or correction, plan to rotate to cash: study

[SINGAPORE] Nearly half of Asia-Pacific (Apac) high-net-worth (HNW) investors expect a market correction or crash in the next three years, with just over two in five planning to move into cash and highly liquid assets over the next 12 months, a study by private bank Lombard Odier revealed.

The annual 2026 Asia-Pacific study, which compiled data from more than 390 investors across the region with at least US$1 million in net investable assets, found that 48.1 per cent of wealthy regional investors identify a market crash as a primary threat to their portfolios.

In response to these concerns, 43.7 per cent of investors who do not currently hold cash or highly liquid assets plan to allocate capital into them over the next 12 months – the highest entry intention recorded across all asset classes.

“This is hardly surprising in uncertain times, with quick access to investments hugely desirable at a time of geopolitical and macroeconomic uncertainty,” said the study published on Thursday (May 28).

“Furthermore, Apac has recently witnessed volatile interest rates in some markets and significant regulatory changes, which reinforce the need for flexibility,” it added.

Survey respondents also flagged economic recession as a significant worry, with 53.5 per cent indicating it as the biggest risk to their portfolio.

Currently, 73.7 per cent of respondents maintain active allocations in cash and highly liquid assets. Within this cohort, 38.9 per cent plan to further expand their cash footprint over the coming year, while 26 per cent intend to pare down their exposure.

The study noted the geographic divergences across regional hubs. In China, half of the surveyed base intend to lift their liquid cash buffers, with 20.8 per cent booking major allocation increases of 10 per cent or more.

By contrast, Australian investors are predominantly “supportive and satisfied with their current allocations”, with 53.3 per cent reporting they will make no change to their current allocations of cash and highly liquid assets.

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“Volatility and structural change are part of today’s investment landscape,” said John Woods, chief investment officer and head of investment solutions for Asia at Lombard Odier.

“In this environment, disciplined asset allocation, diversification and active monitoring are essential to long-term resilience.”

Gold, long regarded as a safe haven, could also benefit from investors’ desire for diversification, the study noted.

Of the investors surveyed, 30.9 per cent currently hold gold positions, and 46.3 per cent of that group said they intend to increase their allocation over the next 12 months.

New buying demand is concentrated heavily in China and the Philippines, where respectively 42.9 per cent and 36 per cent of unexposed investors plan to start buying bullion.

However, in other markets such as Singapore, only 16 per cent plan to start investing in gold. The broader regional appetite for entering new gold positions remains limited to 25.9 per cent, which may suggest that investors see the gold price as plateauing at a high level.

The friction in wealth planning

Beyond structural portfolio shifts, the study highlighted paradoxes regarding intergenerational wealth planning and succession.

While wealth preservation across generations remains the stated priority for 64.2 per cent of regional families, only 16.9 per cent of respondents reported that their families are fully aligned around a common vision and purpose for their wealth.

Furthermore, 42.4 per cent of Apac HNW individuals operate completely without formal or informal family governance structures in place.

The behavioural divide between established family business leaders and their heirs is also widening, the study found.

Investors across the region prioritise wealth preservation, but younger generations are widely perceived as least prepared, with 29 per cent of respondents citing a lack of interest and readiness among the next generation as a key barrier to effective succession.

Only 26.9 per cent of respondents indicated having a full succession plan in place, with 39.4 per cent not having any kind of succession planning.

“The greatest risks to successful wealth transfer are rarely market‑driven,” said Louisa Loo, head of wealth planning for Asia at Lombard Odier.

“They come from gaps in governance, communication and succession planning – areas where families recognise the importance but delay in putting in place the right structures and conversations.”

Still, of late, “succession planning has become a more open and widely discussed topic within families, across the financial industry and among policymakers in different jurisdictions”, she said.