HSBC: HNW investors redraw global wealth map

High net worth (HNW) and ultra high net worth (UHNW) investors are rapidly reshaping global wealth patterns as they seek new opportunities and mitigate risks through diversified asset allocation.

Amid rising geopolitical tensions and increasing economic protectionism, the wealthiest investors are accelerating their global footprint  - a trend highlighted in HSBC Global Private Banking’s latest report, entitled ‘Global Wealth Hubs: Drivers of diversification 2025’.

At first glance, this expansionary approach appears contradictory. Governments worldwide are prioritising onshoring and nearshoring strategies, encouraging businesses to keep supply chains close to home or within allied nations.

However, HNW and UHNW want to diversify their portfolios across multiple geographies to capitalise on market inefficiencies and lower correlations between economies.

A strategic shift in allocation

A key driver behind this strategy is the belief that individual markets are becoming less correlated, said the HSBC report.

As nations turn inward, their economies operate at varying paces, creating distinct investment opportunities that would otherwise be unavailable in a more synchronised global market. For investors, this translates into the potential to achieve returns in one market that may be absent in another.

This approach builds on a well-established investment principle. Developed market investors have long sought exposure to high-growth emerging markets, while investors from volatile economies have favoured developed markets for their stability. European hard assets such as property and infrastructure have remained particularly attractive to Asian and Middle Eastern investors looking for steady, long-term value.

The diversification strategy among the ultra-wealthy extends beyond asset allocation to include multiple residencies and booking centres. HSBC’s research highlights that HNW and UHNW entrepreneurs are actively moving liquid assets across jurisdictions while keeping illiquid assets, such as businesses and primary residences, in their home countries.

This trend is fuelling the growth of global wealth hubs. While Asia’s financial centres continue to expand in line with the region’s economic rise, European wealth hubs are also attracting increasing capital. The appeal of Europe lies not only in financial stability but also in the region’s ‘old money’ heritage, which resonates with ‘new money’ investors seeking both expertise and lifestyle benefits.

Another rising trend among global investors is thematic investing, which cuts across national boundaries. Interest in transformative industries such as artificial intelligence, clean energy and biotechnology is prompting investors to seek opportunities beyond their home markets. A technology-focused investor, for example, may look for growth prospects in Taiwan, Japan or the US, rather than limiting their exposure to a single economy.

By allocating wealth across various asset classes, sectors and regions, investors aim to smooth out market fluctuations and secure stable long-term returns. This approach has also led to a growing focus on wealth hubs, with investors strategically booking their assets in multiple financial centres to maximise benefits.

A global mindset

One unifying characteristic among HNW and UHNW investors is their global mindset, said HSBC’s report.

Their international lifestyles and business operations enable them to view national and regional borders as opportunities rather than limitations. Unlike retail investors, who often concentrate their wealth in domestic markets, these individuals actively seek to diversify their holdings, minimising risk while maximising returns.

“We see no sign of deglobalisation from an investment perspective,” said Willem Sels, global chief investment officer  at HSBC Global Private Banking and Wealth. “In fact, entrepreneurs’ desire to access opportunities outside their home markets is growing at a time when many respective governments are adopting a more domestic bias from an economic or trade perspective. Diversification is all about opening up opportunities.”