Investment Opportunities Return... Asian Asset Owners Go All Out to Secure Cash

Singapore Development Bank PB Clients Increase Cash Ratio from 30% to 40%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Asian wealthy individuals are increasing their cash holdings in preparation for post-COVID-19 investment opportunities, Bloomberg reported on the 4th (local time).

This is considered quite unusual given that the global financial markets hit a low point and then rebounded sharply due to the COVID-19 pandemic.

According to the report, Joseph Pun, Head of Wealth Management (PB) at DBS, Southeast Asia's largest bank based in Singapore, said, "The cash portion in clients' asset portfolios has risen to around 40%, whereas before the COVID-19 outbreak, it was about 30%."

Mr. Pun explained, "Clients are trying to hold more cash than usual, which is a very interesting phenomenon," adding, "Ultra-high-net-worth individuals believe there will be good investment opportunities in the future."

The ultra-high-net-worth individuals mentioned by Mr. Pun have at least 30 million Singapore dollars (approximately 2.62 billion KRW) in readily deployable assets.

This implies that wealthy investors believe the economy has worsened after the COVID-19 pandemic, making it possible to buy assets at lower prices.

Promising investment sectors include financial assets, e-commerce, and logistics.

Meanwhile, some view this as a vague expectation from wealthy individuals who missed buying opportunities during this year's sharp rally.

The global stock market has continued an unprecedented rally immediately after plunging during the COVID-19 phase. The Morgan Stanley Capital International (MSCI) Asia Pacific Index soared 43% from its April low.

This content was produced with the assistance of AI translation services.