MORE than 60 per cent of high-net-worth investors (HNWIs) believe there is too much speculation in listed companies, a study by wealth and asset manager Lombard Odier has found.
The study, which surveyed over 460 HNWIs across Asia-Pacific economies such as Singapore, Hong Kong, Japan, Thailand, the Philippines, Taiwan and Australia, found that more than half are keen to invest in non-listed companies, but lack the confidence to do so.
In Singapore, over 70 per cent of HNWIs think listed companies are over-speculated, and almost eight in 10 indicated an interest in investing in non-listed companies. However, just slightly more than a quarter fully agreed that they had already integrated private assets into their portfolio.
“This highlights the lack of confidence among investors, and the importance of education around these topics to help explain the viability of such assets,” wrote the report’s authors.
Vincent Magnenat, Asia regional head and global head of strategic alliances at Lombard Odier, noted at a media roundtable on Thursday (Nov 2) that investors may not want to invest in private assets now, given that the high interest rate environment provides relatively risk-free yet high-return fixed-income investment opportunities.
However, he said investors ought to “think long term” and understand that interest rates will not always remain high.
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