Ultra high net worth individuals’ (UHNWI) asset allocation strategies are shifting in response to geopolitical instability, the interest rate environment, digital innovation, and an accelerating generational wealth transfer, according to a report from Altrata.

As the population of people with a net worth exceeding $30m continues to rise, the report argued that keeping pace with these shifts, and integrating intelligence on liquidity, diversification, and emerging preferences, were essential for client acquisition and long-term engagement.

The report highlighted differences in asset allocations between the generations, with older generations more likely to have greater exposure to public equities, cash, and fixed income.

Meanwhile, the next generation were more likely to have larger allocations to private equity, real estate, luxury assets, and newer asset classes such as venture capital and cryptocurrency.

Altrata said that these allocation shifts highlighted the need for wealth managers and advisers to tailor advice to generational dynamics and wealth tiers, alongside market conditions.

Furthermore, these trends were being amplified by the ongoing wealth transfer, as younger UHNWIs often inherit less-diversified portfolios and have stronger preferences for tangible assets.

The report stated that UHNW portfolio strategy required more than general market data, and a global intelligence with granular detail of asset allocation at the individual level was needed.

To meet the evolving expectations of UHNW clients, wealth managers and advisers were urged to act on five imperatives: tailor allocation by generation; prioritise diversification; leverage relationship intelligence; engage clients with data-driven narratives; and prepare for the ‘great wealth transfer’.

“UHNW asset allocation is entering a transformative period,” the report said. “While liquidity and private holdings remain central pillars, generational change, digital innovation, and geopolitical complexity are reshaping portfolios.

“For wealth and asset management firms, the opportunity lies in coupling macro awareness with micro-level intelligence - delivering strategies that not only preserve wealth but also align with shifting UHNW values and preferences.”

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