Singapore HNW Client Assets Climb 6% to US$1.5 Million: Citi Study

Singapore's wealthy are increasingly turning to professional fund management, with mutual fund ownership among HNW investors rising from 11% in 2022 to 31% in 2026. This adoption rate now leads Asia, with the report attributing the shift to investors seeking to mitigate emotional decision-making and leverage expert management.

However, this trend towards managed investments coexists with a strong preference for liquidity. The study highlights that the majority of assets for both onshore Affluent (72%) and offshore booked (74%) clients in Singapore remain in cash and liquid deposits. This pattern is consistent with other Asian hubs, contrasting with the United States where a larger proportion is allocated to long-term investments.

Citi suggests these high cash holdings reflect a prioritization of capital preservation. This indicates a dual strategy where investors are entrusting a portion of their capital to professional managers for growth, while simultaneously maintaining substantial liquid reserves for immediate financial security and flexibility. The two approaches are not necessarily contradictory, but rather represent a cautious yet engaged approach to wealth management.

Separately, the research notes a growing openness to artificial intelligence among Singaporean clients, with 58% of HNW and 51% of Affluent clients comfortable exploring AI for investment insights. However, the top considerations for AI adoption remain full client control and the option to consult a human adviser, suggesting AI is viewed as a complementary analytical tool rather than a replacement for human judgment and reassurance.