High-net-worth investors are continuing to deploy capital into Asia and alternative assets even as retail investors globally retreat to cash amid geopolitical uncertainty, according to Schroders CEO Richard Oldfield, as reported by the South China Morning Post.
The divergence in investor behaviour emerged in March, when rising tensions in the Middle East, triggering a spike in oil prices above $100 per barrel, prompted a broad risk-off sentiment among retail investors. This reversed earlier momentum at the start of 2026, when equity allocations had increased.
“What really happened in March was a shift into a risk-off, particularly from retail investors globally as people moved more into cash,” Oldfield said.
In contrast, high-net-worth individuals (HNWIs), defined as those with at least $1 million in investible assets, continued to pursue longer-term opportunities, particularly in Asia. Schroders has seen sustained inflows into the region this year, with wealthy clients allocating capital to private credit, digital assets and other alternative investments.
“The high-net-worth individuals can afford to invest for the longer term,” Oldfield said, noting that this cohort remains focused on returns despite short-term volatility.
The trend underscores a broader shift in wealth allocation, where private markets and alternative assets are becoming increasingly central to portfolio construction among affluent investors seeking diversification and yield.
Against this backdrop, Schroders’ proposed £9.9 billion acquisition by US asset manager Nuveen is expected to expand product offerings for Asian clients, particularly in fixed income and private credit. The combined entity will oversee approximately $2.5 trillion in assets under management, positioning it among the world’s largest asset managers.
Looking ahead, Oldfield highlighted retirement and income-focused strategies as a key growth area in Asia, driven by ageing populations and rising demand for long-term wealth preservation and income generation.