Singapore investors are reshaping portfolios with a focus on capital preservation: survey
Singapore investors are becoming more deliberate in how they build portfolios.
As highlighted in an article by The Business Times this week, a recent survey found that 𝗱𝗼𝘄𝗻𝘀𝗶𝗱𝗲 𝗽𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗼𝗻 and 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗽𝗿𝗲𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝗼𝗻 have emerged as the most important portfolio priorities for Asia-Pacific investors. In Singapore, 64% of investors now rank capital preservation as a top priority, well above the 44% regional average.
This shift is taking place alongside a continued increase in allocations to private credit. The share of Singapore investors with zero allocation is expected to fall from 17% to just 9%. At the same time, 𝟳𝟮% 𝗼𝗳 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝘀𝗮𝘆 𝘁𝗵𝗲𝘆 𝗻𝗼𝘄 𝗲𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝗽𝘂𝗯𝗹𝗶𝗰 𝗮𝗻𝗱 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗮 𝗵𝗼𝗹𝗶𝘀𝘁𝗶𝗰 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵, rather than treating them as separate portfolio buckets.
In a more uncertain cycle, portfolio construction is no longer simply about maximising return within traditional asset class buckets. 𝗜𝘁 𝗶𝘀 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴𝗹𝘆 𝗮𝗯𝗼𝘂𝘁 𝗼𝘂𝘁𝗰𝗼𝗺𝗲 𝗿𝗲𝘀𝗶𝗹𝗶𝗲𝗻𝗰𝗲: 𝗽𝗿𝗲𝘀𝗲𝗿𝘃𝗶𝗻𝗴 𝗰𝗮𝗽𝗶𝘁𝗮𝗹, 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗿𝗲𝗮𝗹 𝗶𝗻𝗰𝗼𝗺𝗲, 𝗺𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗱𝗿𝗮𝘄𝗱𝗼𝘄𝗻𝘀, 𝗮𝗻𝗱 𝗿𝗲𝘁𝗮𝗶𝗻𝗶𝗻𝗴 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗰𝗿𝗼𝘀𝘀 𝗽𝘂𝗯𝗹𝗶𝗰 𝗮𝗻𝗱 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗺𝗮𝗿𝗸𝗲𝘁𝘀.
This aligns closely with the conversations we are having with investors today. Given that credit spreads are tight by historical standards, investors are increasingly looking for asset managers who can be nimble, provide access to specialist exposures, and work across both public and private markets with discipline.
The focus is not simply on adding yield, but on constructing portfolios that seek to 𝗽𝗿𝗲𝘀𝗲𝗿𝘃𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹, 𝗺𝗮𝗻𝗮𝗴𝗲 𝗱𝗼𝘄𝗻𝘀𝗶𝗱𝗲 𝗿𝗶𝘀𝗸, and 𝗰𝗼𝗺𝗽𝗼𝘂𝗻𝗱 𝗿𝗲𝘁𝘂𝗿𝗻𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝗺𝗮𝗿𝗸𝗲𝘁 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀. Public and private credit should be part of that focus to fit within that broader portfolio construction.
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𝘛𝘩𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘱𝘳𝘰𝘷𝘪𝘥𝘦𝘥 𝘪𝘯 𝘵𝘩𝘪𝘴 𝘱𝘰𝘴𝘵 𝘪𝘴 𝘧𝘰𝘳 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯𝘢𝘭 𝘱𝘶𝘳𝘱𝘰𝘴𝘦𝘴 𝘰𝘯𝘭𝘺 𝘢𝘯𝘥 𝘴𝘩𝘰𝘶𝘭𝘥 𝘯𝘰𝘵 𝘣𝘦 𝘤𝘰𝘯𝘴𝘵𝘳𝘶𝘦𝘥 𝘢𝘴 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭, 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵, 𝘰𝘳 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘈𝘭𝘸𝘢𝘺𝘴 𝘤𝘰𝘯𝘥𝘶𝘤𝘵 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘢𝘯𝘥 𝘤𝘰𝘯𝘴𝘶𝘭𝘵 𝘸𝘪𝘵𝘩 𝘢 𝘲𝘶𝘢𝘭𝘪𝘧𝘪𝘦𝘥 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘴𝘰𝘳 𝘣𝘦𝘧𝘰𝘳𝘦 𝘮𝘢𝘬𝘪𝘯𝘨 𝘢𝘯𝘺 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘦𝘤𝘪𝘴𝘪𝘰𝘯𝘴. 𝘗𝘢𝘴𝘵 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘥𝘪𝘤𝘢𝘵𝘪𝘷𝘦 𝘰𝘧 𝘧𝘶𝘵𝘶𝘳𝘦 𝘳𝘦𝘴𝘶𝘭𝘵𝘴.
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