Hong Kong: Wealthy customers of UBS Group AG are looking to buy more alternative assets as they seek to diversify investments during a volatile period for markets and global trade, according to the firm’s Asia Pacific chief.
“We see continued demand” for alternatives, Iqbal Khan, the bank’s regional president, said in an interview with Bloomberg TV in Hong Kong at the UBS Asian Investment Conference yesterday.
In the Asia Pacific, UBS is the biggest wealth manager with more than 900 client advisers.
It faces rising competition from the likes of HSBC Holdings Plc and regional lenders such as DBS Group Holdings Ltd.
“We’ve definitely seen a significant growth of alternatives and alternatives investments in client portfolios,” he said.
“It is still at a lower percentage when you think about an aggregated perspective of wealth portfolios. So there is probably some ways to go in terms of diversification into alts.”
Khan, who relocated to Hong Kong last year and is also co-president for global wealth management, said he expects lower interest rates and continues to see the potential for a stagflation environment.
The bank’s markets unit posted a record performance during the first quarter, as geopolitical turmoil spurred volatility and a surge in trading.
“While we will see rates coming down, it is question of timing,” he said. — Bloomberg
