KBank Private Banking together with Lombard Odier has unveiled 4 mega investment trends arising from various global factors amidst the current volatility of the world situation. Every change impacts the economy and investments, whether it’s the significant transfer of wealth transitioning assets and investment styles to the new generation, the increasing interest in sustainable investments among investors, the shift in investment behavior from offshore to onshore, and the volatility and uncertainty in capital markets, which render traditional asset allocation insufficient.

Mr. Jirawat Suphanpaiboon Executive Chairman, Private Banking Group of Kasikornbank revealed that the change in investment behavior is driven by several factors, including advancements in medical technology leading to longer life spans, which slow down the transfer of wealth within families compared to the past, resulting in a significant wealth transfer expected in the next decade. The climate crisis has made investors more aware of the importance of sustainable investments, while changes in regulations and the development of financial institutions have led to increased domestic investment. Additionally, the rising market volatility necessitates a change in traditional investment allocation methods.

KBank Private Banking and Lombard Odier have summarized the following 4 key investment mega trends:

  1. The Great Wealth Transfer is expected to see high-net-worth individuals globally transfer wealth valued at $18.3 trillion (approximately 640 trillion baht) by the year 2030. In the Asia-Pacific region, over 70,000 high-net-worth individuals will transfer wealth worth about $2.5 trillion (approximately 88 trillion baht), which will be passed on to the new generation with broader perspectives and interests in new investment opportunities, particularly in areas such as technology, digital finance, private equity, and venture capital.
  2. Sustainability Revolution is based on Lombard Odier's belief that business operations are transitioning from the traditional model known as W.I.L.D (Wasteful, Idle, Lopsided, Dirty) to a model called C.L.I.C.® (Circular, Lean, Inclusive, Clean). This change is expected to create investment opportunities worth over $5.5 trillion (over 190 trillion baht) annually, which will not only bring positive change and sustainability to the world but also lead to increased returns and reduced risks for investment portfolios.
  3. Onshorisation Previously, most investors tended to diversify their investments abroad due to more options and opportunities. However, domestic investment service providers and advisors can now offer investment products that provide similar opportunities and choices. Additionally, in the past decade, governments and organizations worldwide have coordinated to enhance the scrutiny and reporting of cross-border asset flows, not just for tax purposes but to identify the movement of capital and wealth holdings abroad, leading many investors to bring their investments back home.
  4. Current Macro Environment The volatile market, rising interest rates, increasing inflation, energy concerns, climate crises, and geopolitical situations have led to macroeconomic uncertainties affecting various economic aspects. For instance, economic cycles that previously lasted 7-10 years are now shortening and changing rapidly, with periods of poor economic performance outnumbering good ones. Traditional asset allocation may no longer yield returns for investors, necessitating a shift to risk-based asset allocation to respond to economic conditions.

It is evident that the world is constantly changing, and these changes are happening at an accelerated pace, making it possible for many to fall behind and raising concerns. KBank Private Banking, as a wealth management provider for high-net-worth individuals in Thailand, recognizes the importance of instilling confidence in clients by offering appropriate solutions and tools to guide them toward their goals in the current volatile global situation.