Cash gains popularity among world’s super-rich amid concerns over political instability, downturn
- Rush to cash was particularly strong among Asia’s UHNW clients in 2018, where 56 per cent more wealth managers reported increased cash holdings
- Sentiment among Asia’s wealthy has soured more than their North American counterparts mainly because of the US-China trade war, Brexit and realignment in Europe
The world’s ultra high net worth individuals (UHNWIs), classified as people holding US$30 million or more in assets, are moving their allocations into cash, according to the latest Knight Frank Wealth Report, released on Wednesday.
Globally, 45 per cent more wealth managers surveyed by Knight Frank reported that their clients increased their cash positions in 2018, and that 27 per cent more managers expected their clients to do the same in 2019. In 2018, 21 per cent more wealth managers reported increases in property holdings and 14 per cent reported increases in private equity, while 7 per cent more reported decreases in equity holdings.
The rush to cash was particularly strong among Asia’s UHNW clients in 2018, where 56 per cent more wealth managers reported increased cash holdings and 25 per cent more reported a decrease in equity holdings. In 2019, 36 per cent expect their Asian clients to increase cash holdings and 20 per cent more expect increased holdings in gold.
Globally, wealth managers said by a margin of 10 per cent that their clients planned to reduce holdings in equities in 2019. They said that their clients had equity, property, bonds and cash allocated at 27, 21, 20 and 17 per cent respectively in 2018.
Knight Frank surveyed 600 private bankers and wealth advisers managing over US$3 trillion to obtain its results.
