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For Asia’s wealthy families, alternatives are becoming an essential part of their broader wealth planning strategies. As high-net-worth investors (HNWIs) look beyond traditional asset classes, art is increasingly being viewed as more than a passion purchase or speculative sideline.

“Investors today are seeking more than just higher returns, they want options that add resilience to their portfolios. We are now seeing high-net-worth and ultra-high-net-worth individuals making significant shifts in their asset allocation, embracing alternative investments as a core component of their wealth strategies.”

For wealthy families, he suggested, the complexity lies not simply in what to buy, but in how such assets align with liquidity needs, protection and intergenerational goals. 

A client may, as an example he cited, need to reserve funds for a child’s university studies overseas in three years’ time, and that would affect how much can be committed to illiquid assets such as art, and the client’s overall risk appetite. 

“We know how much money we need at different points in time,” he said. That awareness of future cash needs, he added, is essential if investors are to avoid being forced into selling assets too early.

This more cautious approach has become evident since the exuberant art market of 2020 and 2021. Asia’s HNWIs now favour strategies guided by personal values, family continuity and careful risk management.

Ben described wealth planning as a highly personal process and stressed that advisers must first build trust and a personal connection while understanding each client’s individual life goals before putting any structure in place.

And this approach has gained more importance in the current investment environment. As inflation eroded the diversification role traditionally played by bonds, investors have increased allocations to alternatives, including private equity, private credit, real estate – and art.

In that context, art and collectibles have attracted greater interest as non-correlated assets that investors increasingly include in their overall asset allocation together with traditional investment funds.

Ben highlighted that combining investment products, insurance protection and passion assets offers a more balanced way of preserving wealth across generations. 

“To our clients, for example, working with wealth advisors who are dual-licensed with the Insurance Authority and the SFC means they can engage in holistic conversations about legacy planning,” he said. Insurance offers protection, while broader wealth solutions provide the financial support needed for the next generation, just as artworks require insurance protection to secure their long-term investment value.

The panel at which Ben spoke was titled “Beyond Traditional Portfolios: Art, Alternatives, and the New Wealth Paradigm in Asia”. 

Held on March 26 during the VIP vernissage at Art Basel Hong Kong, the discussion was co-organised with the South China Morning Post.

Joining Ben were Arthur de Villepin, founder of Villepin Group, and Felix Kwok, chief creative officer and deputy director of Shenzhen Design Bay. All of the speakers emphasized the importance of adopting a long-term perspective and working with trusted advisers to build for their future and lasting legacy.

Collectors, he added, are now concentrating on fewer artists and seeking deeper relationships with them. By doing so they are able to follow an artist’s development and contribute to value creation over time, in some cases through private foundations or support for publications.

Hong Kong remains a leading transaction centre, he added, while the Greater Bay Area is developing the cultural infrastructure needed to support the market’s next phase of growth.

“Improved transport links allow collectors to operate across the region with greater ease,” Felix said.

For Chubb, the fair provides a unique setting for customers and partners to engage in conversations around wealth, protection and legacy. This year also marks the third consecutive year of Chubb Life Hong Kong’s role as the official show partner of Art Basel Hong Kong, where it presented “Life Chapters”, an immersive installation by Thai artist Wit Pimkanchanapong, inviting visitors to reflect on how personal choices support continuity across generations.

Looking ahead, Ben said closer collaboration between wealth advisers, galleries and cultural institutions is likely to grow as art takes on a more established place in private wealth conversations. Chubb Wealth will continue to partner with a range of platforms to facilitate thoughtful conversations that address clients’ most important interests and priorities.