Private wealth investors favor Asia, emerging markets, Metrobank says

METROPOLITAN Bank & Trust Co. (Metrobank) is seeing its high-net-worth and ultra-high-net-worth clients investing more in Asia and emerging markets amid volatility in developed countries, it said on Tuesday.

“Investors are no longer simply chasing returns; they are being far more selective about how and where capital is deployed,” Ma. Cristina Gabaldon, Metrobank Head of Investment Management, said in a statement on Tuesday. “This has led to more differentiated portfolios that reflect both opportunity and caution.”

Wealthy investors are allocating their assets in these markets as these offer better valuations and earnings prospects, Metrobank said.

“As market outcomes become more differentiated, private wealth investors are placing greater value on active advisory, risk and return trade-offs, and access to diversified investment solutions.”

Metrobank said majority of investors’ portfolios are invested in equities and increasingly through exchange-traded funds with global and regional equity allocations, particularly in Asia, as the rise of artificial intelligence technologies has driven interest in semiconductor companies in the region.

“Equities remain the primary growth engine for medium-risk private wealth portfolios as these investors maintain overweight positions relative to fixed income.”

Investors are also diversifying their asset allocation as they are now adding select fixed-income exposure through mutual funds to improve their portfolios’ resilience.

“These mutual funds provide global credit exposure, expertise in duration management, access to agency-backed securities and other specialized segments. Fixed-income exposure act as stabilizers in a very volatile market amid expectations that interest rate cycles may turn more supportive later in the year,” it said.

Wealthy individuals are also increasing their investments in alternative assets, such as commodities like gold and silver, to hedge against geopolitical and currency risks.

Meanwhile, their younger ultra-high-net-worth clients are also investing in digital assets such as cryptocurrencies, Metrobank added.

“In contrast, appetite for private equity, real estate, and hedge funds remains muted, as higher financing costs continue to weigh on sentiment toward less liquid assets,” it said.

The bank said these trends show that private wealth investors are becoming “more disciplined and opportunity-driven” in their asset allocation decisions. “Portfolios are becoming more intentional, anchored on equities for growth, supported by selective fixed-income, and complemented by alternatives that enhance risk management.”

“This shift reflects a more mature investment mindset,” Ms. Gabaldon said. “Private wealth investors are building portfolios that are not just positioned for upside, but are also designed to navigate uncertainty in a more fragmented global market.”

For their part, the bank said they offer clients curated global and investment strategies that cater to their diverse needs, providing active advisory and insights on risk and return trade-offs, and access to diversified investment solutions.

Metrobank’s attributable net income rose by 2.56% to P12.43 billion in the third quarter last year. This brought its nine-month profit to P37.28 billion, up by 4.34% year on year.

Its shares closed at P73.80 apiece on Tuesday, up by 60 centavos or 0.82% from Monday’s finish. — Aaron Michael C. Sy