PRIVATE wealth investors are entering 2026 with a more careful and focused strategy, choosing specific markets and assets instead of broad bets. Metropolitan Bank & Trust Co. said clients are spreading investments more widely while taking calculated risks in selected areas.
In its latest market insight, the bank said high-net-worth and ultra-high-net-worth clients are moving away from broad market positioning. Instead, they are focusing on regions and asset classes where returns may better match the level of risk taken.
The bank noted rising investments in Asia and other emerging markets. These markets are seen to have more attractive valuations, or lower prices compared with earnings, and stronger profit outlooks than developed markets. Developed markets continue to face policy uncertainty and high expectations.
“Investors are no longer simply chasing returns; they are becoming far more selective about how and where capital is deployed,” said Ma. Cristina Gabaldon, Metrobank head of investment management. She added that portfolios are becoming more varied as investors balance opportunity with caution.
Equities still lead growth
Stocks remain the main source of growth for medium-risk private wealth portfolios. Investors are keeping higher exposure to equities than to fixed income, which includes bonds and other debt investments.
Many investors are using exchange-traded funds, or ETFs, to gain access to global and regional markets. ETFs are investment funds traded on stock exchanges. They are widely used to invest in Asian equities tied to long-term growth themes, such as rising demand for semiconductors driven by
artificial intelligence.
At the same time, investors are adding fixed-income assets to help stabilize portfolios. Metrobank said funds are being placed in actively managed mutual funds that invest in global credit markets.
These funds manage duration, or the sensitivity of bonds to interest-rate changes. They also invest in specialized areas such as agency-backed securities, which are bonds backed by government-related agencies.
Fixed income plays a stabilizing role as markets remain volatile. Investors also expect a more supportive interest-rate environment later this year.
Alternatives and digital assets
Alternative assets are taking on a bigger role in portfolios. Metrobank reported higher investments in commodities such as gold and silver. Investors see these as protection against geopolitical risks and currency swings. Many access these assets through ETFs for easier buying and selling.
Interest in digital assets is also growing, especially among younger ultra-high-net-worth clients. While still used mainly for short-term strategies, cryptocurrencies and related products are being added to complement traditional investments and improve diversification.
In contrast, demand for private equity, real estate, and hedge funds remains weak. Higher financing costs continue to affect these less
liquid investments.
The bank said asset allocation trends heading into 2026 show a more deliberate investment mindset. Portfolios remain anchored on equities for growth, supported by selective fixed income and alternative assets to manage risk in a fragmented global market. / KOC
