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Laxman Pai, Opalesque Asia:

The share of investments among Swiss high net-worth individuals (HNWIs) in private assets and alternative investments is steadily growing in the current market environment, said a study.

The Lombard Odier study of 300 Swiss HNWIs has revealed that 42% of investors said that their priority was to increase their allocation to alternative investments, to improve portfolio diversification.

The survey findings indicate that the share of private assets within Swiss HNWI portfolios is set to rise significantly between now and 2025. At present, just one-third of respondents hold more than 10% of their portfolios in private assets. 66% of younger investors (under 35) plan to increase their allocation, whilst the equivalent figure for the 35-50 age bracket is also over half (57%).

One of the main factors behind the growing popularity of private assets is the greater potential returns they offer, along with downside protection. More than a third of Swiss HNWIs believe that private assets deliver better returns than traditional equities, and this proportion is even higher among those under 35s (63%).

Younger investors also think that private assets can provide downside protection during periods of market turbulence. This view diminishes with age, as older investors tend to be more loyal to traditional financial markets.

Differences according to location are also evident. Investors in German-speaking Switzerland are more likely than their Fr......................

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