UBS's (UBS, Financial) wealthiest clients are quietly steering their portfolios toward alternative investments — a move that could reshape how high-net-worth capital flows in a jittery macro environment. According to Iqbal Khan, co-president of global wealth management and head of UBS Asia Pacific, there's a growing tilt toward assets like private equity, hedge funds, and real estate. Speaking at the UBS Asian Investment Conference in Hong Kong, Khan said the shift is still in its early innings, but momentum is building. “We've definitely seen significant growth,” he said, noting that alternatives still make up a small slice of most client portfolios — meaning there could be plenty of room to run.
The backdrop? Volatility, geopolitical friction, and rate-cut guessing games. UBS's markets unit just booked a record quarter off that volatility. Meanwhile, clients are bracing for a possible stagflation setup and looking for stability outside traditional equities and bonds. Khan, who moved to Hong Kong in 2024 to take on the top Asia role, added that rate cuts could be coming, but the timeline remains fluid. For UBS, this moment isn't just about investment advice — it's about playing offense as rivals like HSBC and DBS step up in Asia. UBS remains the region's dominant wealth player, backed by over 900 advisers.
Behind the scenes, the firm is still digesting its 2023 Credit Suisse takeover — and slashing deep to make it work. UBS has already axed 10,000+ jobs and locked in $7.5 billion in cost savings on the way to its $13 billion goal. But it's also facing a tense debate with Swiss regulators over how much capital it should hold to brace for the next crisis. All of this could come to a head sooner than expected. CEO Sergio Ermotti is expected to step down by early 2027, and both Khan and U.S. private banking chief Rob Karofsky are seen as top contenders to take the reins.
