Asia's new allocation mindset: Evergreen structures, cultural fluency and portfolio resilience

When it comes to portfolio asset allocation, traditional approaches still matter, but they are no longer enough on their own. Leaders from Julius Baer, M&G Investments, Barclays Private Bank and Indosuez Wealth Management shared how they are approaching private markets, portfolio construction and the rapid evolution of asset and wealth management across Asia.

Private markets at scale

Jason Ng, Executive Director and Alternatives Specialist for Asia & the Middle East at Julius Baer, describes private markets distribution as a structure story. Historically, institutional‑style closed‑end funds limited what wealth clients could access. The breakthrough of the last five years has been evergreen vehicles – effectively a hedge‑fund wrapper applied to private markets. Ng explains that a single evergreen allocation can now deliver exposure to up to 200 line items, replacing the need for multiple closed‑end commitments. The remaining barrier? Time. Relationship managers, advisors and clients all need space to understand the asset class and the structures that genuinely fit. Julius Baer’s next focus is education, holistic portfolio construction and the targeted use of closed‑end funds as satellite allocations when needed.

The great reset and Asia’s two shifts
Amy Cho, Head of Asia Pacific at M&G Investments, frames the current environment as “the great asset management reset.” Scale, performance and brand still count, but investors are more demanding; relevance is the new table stakes. Cho identifies two major shifts in Asia: a drive for diversification that combines public and private market investments, and an intensifying distribution challenge where one model cannot serve 12 markets from six locations. Too much local adaptation compromises efficiency and control, while too little fails to meet specific needs. For Cho, winning firms will invest across public and private, deliver differentiated propositions, and balance global capability with genuine local relevance.

The 60/40 is not dead, but it must evolve
Ken Sze, Head of Investments Asia at Barclays Private Bank, addresses the 2022 experience head‑on. Seeing equities and bonds fall together amid inflation made many question the 60/40, but Sze argues the portfolio was always meant for growth with a side of defence. The growth side now demands looking further afield; defence must diversify beyond what worked before. In Asia, that evolution lands differently. Asian private wealth investors tend to be more adventurous, with newer wealth often concentrated in a single stock or business. Sze stresses that diversification conversations require psychological sensitivity, cultural closeness and genuine trust. Barclays has invested in specialist behavioural teams alongside investment capabilities, acting as a bridge in intergenerational conversations that strengthen both client relationships and family bonds.

60/40, AI infrastructure and the US equity question
Francis Tan, Chief Strategist Asia at Indosuez Wealth Management, goes directly to the data: since 1877 there have been only six years (including 2022) when stocks and bonds both delivered negative returns. The 60/40 isn’t dead, but the assumptions are changing. Geopolitics and “higher for longer” inflation and rates have made the risk‑free rate more attractive – “cash is no longer trash.” Tan highlights growing client interest outside the traditional 60/40, particularly in private equity, private credit and infrastructure. Infrastructure is not just a yield story; it is being driven by AI’s demand for power, water and cooling. US equities remain core because S&P 500 companies are global champions, not American champions. However, Tan turns cautious on valuations and wants to see clear AI monetisation numbers by late 2026 and into 2027.

Key takeaways from market leading experts at FundForum Asia

• Evergreen vehicles now let wealth clients build broad private-market exposure through a single allocation, but education and holistic portfolio construction remain essential.
• The 60/40 portfolio is being updated, not abandoned, with both sleeves now diversifying into private equity, private credit, infrastructure, and cash to meet new macro realities.
• Winning distribution across Asia demands firms strike a careful balance between global consistency and genuine local adaptation while offering both public and private market investments.
• Behavioural expertise, cultural closeness, and deep trust are now as important as investment knowledge when helping Asian private-wealth investors diversify away from concentrated single-stock positions.
• AI’s growing demand for power, water, and cooling is creating new infrastructure opportunities, while US equities face a show-me moment that will require clear monetisation numbers by late 2026.

The four conversations map a region where private markets are becoming more accessible, traditional portfolio frameworks are being updated rather than abandoned, and distribution models must become more adaptive. Across every session, relationship, education and holistic thinking emerge as the real differentiators – hardly new concepts, but ones that are being operationalised in sharper, more urgent ways than even two years ago.

Keep pace with market movements and hear from the leading experts shaping asset and wealth management at FundForum Asia 2027.