High net worth investors are set for a better year as corporate profits improve in a healthier macroeconomic environment, according to private bankers.
American Express Bank's head of investment services Ernest Leung said investment sentiment was set to stage a comeback this year, thanks to more sustainable long-term growth rates for corporate earnings, economic growth led by consumer and business spending and the reflationary policies of central banks.
Kam Shing-kwang, managing director and head of investment management Asia for JP Morgan Private Bank, said the present investment climate differred from last year as investors held more reasonable expectations, valuations had improved and corporate balance sheets were looking much healthier.
'We expect investors' risk aversion to stabilise and we would recommend our clients to step up on their risk scale by adding a little to risk assets,' she said.
But she added markets would remain volatile this year due to geopolitical uncertainties and the risks of a slowdown in consumption growth, meaning investors should remain prudent.
According to David Wong, executive director and regional head for North Asia at American Express Private Bank, doubtful sentiment has driven more investors to seek professional advice.
American Express' client base - of people with a minimum of US$1 million, but more typically with US$3 million to US$5 million - and assets under management grew by double digits last year.