An electronic board showing the Hong Kong share index. Asia's rich are giving cryptocurrencies a wide berth. AP
An electronic board showing the Hong Kong share index. Asia's rich are giving cryptocurrencies a wide berth. AP
An electronic board showing the Hong Kong share index. Asia's rich are giving cryptocurrencies a wide berth. AP
An electronic board showing the Hong Kong share index. Asia's rich are giving cryptocurrencies a wide berth. AP

Asia's wealthy shun crypto, stocks and bonds in favour of 'safe assets'


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With growing concerns over rising inflation and market volatility, Asia’s wealthy are turning cautious.

People with more than $1 million of investable funds are repositioning towards private markets to shield their assets from market volatility, according to Swiss bank Lombard Odier’s 2022 study about high-net-worth individuals (HNIs) in the Asia-Pacific region.

They have increasingly shunned stocks and bonds to focus on their own companies or assets deemed safer, such as gold and cash.

At the same time, they have largely stayed clear of cryptocurrencies, which has proved particularly volatile.

“APAC investors are becoming more conservative in their portfolio construction and are diverting to ‘safer’ alternative and private assets, while increasingly diversifying beyond their local markets,” said Vincent Magnenat, Lombard Odier’s head of Asia.

“Allocation to digital assets is extremely low.”

A slump in technology stocks and soaring inflation amid rising interest rates have shaved off $1.4 trillion from the cumulative wealth of the world’s 500 richest people in the first half of 2022, according to the Bloomberg Billionaires Index.

That is a reversal from the past two years, when central bank largesse to combat the effects of the Covid-19 pandemic helped to boost assets and personal fortunes with them.

The surge in inflation and its repercussions on the global economy are the biggest concern for 77 per cent of the people polled, Lombard Odier said.

Half of them are worried about market volatility, which has pushed as much as 56 per cent of them to increase diversification.

The wealthy individuals in the survey are also shunning cryptocurrencies, with 83 per cent of them either having no investment or less than 5 per cent of their portfolio backing such assets.

Low liquidity concerns, particularly among older generations, underscore the enthusiasm for private assets, the bank said.

The region’s investors seem to believe that those allow them to capture structural changes in a regulated and risk-managed way, it said.

The rich in Singapore and Australia are leading the trend, with about 60 per cent planning to increase their allocations to private markets.

Lombard Odier, which oversees about 358 billion Swiss francs ($363bn) in client assets globally, surveyed more than 450 HNIs domiciled in Singapore, Hong Kong, Japan, Thailand, the Philippines, Indonesia, Taiwan and Australia between May and June.

“The concern of lack of visibility, volatility and the willingness to manage it are homogeneous across the markets and across age brackets,” said Jean-Francois Aboulker, the bank’s Asia head of HNIs.

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World’s top 12 youngest billionaires under 30 - in pictures

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- Abdullah Ishnaneh, Partner, BSA Law 

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

MATCH INFO

Sheffield United 0 Wolves 2 (Jimenez 3', Saiss 6)

Man of the Match Romain Saiss (Wolves)

ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

UAE currency: the story behind the money in your pockets
MATCH INFO

Tottenham Hotspur 0 Everton 1 (Calvert-Lewin 55')

Man of the Match Allan (Everton)

ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

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While you're here
Scores

Oman 109-3 in 18.4 overs (Aqib Ilyas 45 not out, Aamir Kaleem 27) beat UAE 108-9 in 20 overs (Usman 27, Mustafa 24, Fayyaz 3-16, Bilal 3-23)

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Results

6.30pm: Maiden Dh165,000 (Dirt) 1,600m

Winner: Celtic Prince, David Liska (jockey), Rashed Bouresly (trainer).

7.05pm: Conditions Dh240,000 (D) 1,600m

Winner: Commanding, Richard Mullen, Satish Seemar.

7.40pm: Handicap Dh190,000 (D) 2,000m

Winner: Grand Argentier, Pat Dobbs, Doug Watson.

8.15pm: Handicap Dh170,000 (D) 2,200m

Winner: Arch Gold, Sam Hitchcott, Doug Watson.

8.50pm: The Entisar Listed Dh265,000 (D) 2,000m

Winner: Military Law, Antonio Fresu, Musabah Al Muhairi.

9.25pm: The Garhoud Sprint Listed Dh265,000 (D) 1,200m

Winner: Ibn Malik, Dane O’Neill, Musabah Al Muhairi.

10pm: Handicap Dh185,000 (D) 1,400m

Winner: Midnight Sands, Pat Dobbs, Doug Watson.

The biog

Name: Atheja Ali Busaibah

Date of birth: 15 November, 1951

Favourite books: Ihsan Abdel Quddous books, such as “The Sun will Never Set”

Hobbies: Reading and writing poetry

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

Super Saturday race card

4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m

Squad: Majed Naser, Abdulaziz Sanqour, Walid Abbas, Khamis Esmail, Habib Fardan, Mohammed Marzouq (Shabab Al Ahli Dubai), Khalid Essa, Muhanad Salem, Mohammed Ahmed, Ismail Ahmed, Ahmed Barman,  Amer Abdulrahman, Omar Abdulrahman (Al Ain), Ali Khaseif, Fares Juma, Mohammed Fawzi, Khalfan Mubarak, Mohammed Jamal, Ahmed Al Attas (Al Jazira), Ahmed Rashid, Mohammed Al Akbari (Al Wahda), Tariq Ahmed, Mahmoud Khamis, Khalifa Mubarak, Jassim Yaqoub (Al Nasr), Ali Salmeen (Al Wasl), Yousef Saeed (Sharjah), Suhail Al Nubi (Baniyas)

Company%20profile
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Updated: September 07, 2022, 6:27 AM`